Cadillac Chief To Push For Dealer Network Restructuring?
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Cadillac chief Johan de Nysschen is struggling with a few legacy ailments of Cadillac. Marketing, for one, appears to be in a flux, and can’t seem to find a way to deliver a message to attract buyers to the compelling ATS and CTS sport sedans.
Or maybe it’s the dealer network.
For instance, Cadillac has more than 900 dealers in the United States, which is more than double what Mercedes-Benz needs to sell about 70% more cars a month on average. de Nysschen has made it clear in a Wall Street Journal report that Cadillac doesn’t need all the dealerships it has, and hints at having a “rational conversation” with dealers who aren’t competitive. Which appears to be several. Look for more on this change in the future.
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In terms of marketing, bring back the commercials from 2008-2010. It’s my opinion that those were the best commercials cadillac has done. The cadillac shield broke up into different shots, it was fast paced, fast music, quick scene changes, exciting. Then it all closes back into the Cadillac shield. The 2009 CTS-V commercial is my favorite. Bring those ads back with and ATS (premium, the always use the base model in commercials, why???) shooting around a city. They would be much better than the current ads.
Wonderful to hear this now… a major reason why I drive Cadillac is that I have a local dealer…the nearest Benz/BMW dealers are over 100 miles away. Shutter my Cadillac dealer and I’ll drive something else…I have better things to do than commute 4 hours to have a “widget” replaced.
Cull the redundant dealers and fast. If MB can do better with less dealers, then it behooves Cadillac to cut out the fat.
Along with Cadillac’s move to NYC, it should be apparent to others that the positioning of the brand is moving towards wealthier clientele who have much more disposable income than a “traditional buyer” ever had. This has implications for the expectations of the dealers, of which they should be positioned nearby places where such wealthy clientele live and work.
A Cadillac dealer in a small rural Minnesota farming town is going to have a very difficult time trying to cater to the towns top <1% who have the disposable income to buy a Cadillac. The town itself likely doesn't offer things that luxury consumers would want (dining, nightclubs, fashion, architecture), so it stands that a Cadillac dealer in the town would be a fruitless venture; chasing buyers who simply don't live in the town.
Sadly, those who may protest at the idea of culling dealers may feel that this idea reeks of "big city vs. small country" attitudes. They may also offer anecdotal evidence of someone who lives in a small Minnesota farming town who is a millionaire. Such opinions are pleasant, but don't reflect reality: luxury buyers congregate in and around urban centres.
While GM is at it, cull ANY dealer who dares to offer this:
http://www.curbsideclassic.com/wp-content/uploads/2014/04/Cadillac-2013-CTS-coupe-vinyl-top.jpg
It is good to review which dealerships are meeting the challenge especially those matched with other GM brands, but they should not cut too deeply. As someone else already mentioned, I do think customers like having a dealership closer to them for convenience. I think they should focus more on the overall dealership and showroom experience. It should feel like walking into the lobby of a Ritz-Carlton with exceptional service and customer attention. If you must bring your Cadillac in for service, the service area should not look like some kind of industrial garage with painted oil stained concrete floor, bare tube florescent lights, and cinderblock walls. There should also always be perks for all visitors to the showroom or Service Department. My sister bought a new Lexus RX350 a few years ago and the dealership always gave her a brand new Loner Car for her to use if the service would be overnight. It was always the latest newest Lexus not some Enterprise Geo Metro. She says they always had refreshments, doughnuts or pastry or croissant with Coffee or Tea. and the lounge area should be serene and comfortable with nice furniture and lighting and Wi-Fi and not look like a bus depot with fox news blaring on a CRT hanging from the ceiling. The restrooms should be well designed and be for the exclusive use of customers. I have been to some dealerships where the customers had to use the same restrooms as the oil covered mechanics. GM should use its large numbers of Dealership as an asset before it closes too many of them down.
GM just has too many dealers period. But they are harder to lose than you think. So many people get protective of them even if they are proven crooked or unproductive. GM’s hands are pretty tied unless they buy them out.
As for marketing the best ad was done in 1915 in response to Packard. Since I figure few of you were around here is the text of it from the Saturday Evening Post. I would love to see a modern version of this targeted at the Germans. It is dignified and elegant but to the point. It is in old speak so like I said I would like an updated version.
The Penalty of Leadership
“In every field of human endeavor, he that is first must perpetually live in the white light of publicity. Whether the leadership be vested in a man or in a manufactured product, emulation and envy are ever at work. In art, in literature, in music, in industry, the reward and the punishment are always the same. The reward is widespread recognition; the punishment, fierce denial and detraction. When a man’s work becomes a standard for the whole world, it also becomes a target for the shafts of the envious few. If his work be mediocre, he will be left severely alone – if he achieves a masterpiece, it will set a million tongues a-wagging. Jealousy does not protrude its forked tongue at the artist who produces a commonplace painting. Whatsoever you write, or paint, or play, or sing, or build, no one will strive to surpass or to slander you unless your work be stamped with the seal of genius. Long, long after a great work or a good work has been done, those who are disappointed or envious, continue to cry out that it cannot be done. Spiteful little voices in the domain of art were raised against our own Whistler, long after the big world had acclaimed him its greatest artistic genius. Multitudes flocked to Bayreuth to worship at the musical shrine of Wagner, while the little group of those whom he had dethroned and displaced argued angrily that he was no musician at all. The little world continued to protest that Fulton could never build a steamboat, while the big world flocked to the river banks to see his boat steam by. The leader is assailed because he is a leader, and the effort to equal him is merely added proof of that leadership. Failing to equal or to excel, the follower seeks to depreciate and to destroy – but only confirms once more the superiority of that which he strives to supplant. There is nothing new in this. It is as old as the world and as old as human passions – envy, fear, greed, ambition, and the desire to surpass. And it all avails nothing. If the leader truly leads, he remains – the leader. Master-poet, master-painter, master-workman, each in his turn is assailed, and each holds his laurels through the ages.
“That which is good or great makes itself known, no matter how loud the clamor of denial. That which deserves to live – lives.”
Cadillac 1915