A little over a year after Cadillac appointed Rogue as its ad agency, the company is looking for a different marketing firm to handle its advertising ventures, according to Media Bistro. The brand reported a sales slump of 18% in the month of August and its sales have fallen in five of the eight full sales months so far in 2014, leading some to speculate change is in order.
Automotive News said the brand will undergo “significant changes” within its marketing department in the first quarter of 2015, though it’s not clear if that is a reference to the new ad agency. Rogue, a division of the Interpublic Group created solely for Cadillac marketing, was appointed as the brand’s AOR in June of last year and made waves with its somewhat controversial “Poolside” ad for the ELR.
Media Bistro says their information that Cadillac will hire a new ad agency is just “an anonymous tip,” but whether it’s true or not, we can expect some changes to be happening in Cadillac’s marketing wing in the near future.
Comments
GM has had a tough time defining Cadillac. The marque may have shifted into The General’s performance brand more than ten years ago but a bulk of consumers have yet to get the memo & still this of Grandpa’s Fleetwood.
I don’t think Cadillac is all that much ahead of Buick when it comes to its tattered, disjointed messaging, marketing and image. Much of the problem may be that Caddy was never a true performance brand, and it requires more than three logo updates in a single generation to get the messages out.
I also think Cadillac had ignored meaningful history in the hopes of appearing modern. Doing so in an age where MB embraces Art Deco and brands like Mini subsist on deep, meaningful history has been a mistake.
Right now Cadillac has had too many cooks in the kitchen. They need to get one competent leader and one competent vision and support that plan. Once that is established then they can get a marketing plan together that will work.
Again they need to focus on the cars and what they are. For the first time in years Cadillac has a car worth a damn and worth bragging about so lets get to it and move this baby forward.
History is nice but to move forward you must advance. Cadillac for too long was a rolling history museum with the bench seats big fins and the floaty ride,
The history they do need to approach is their excellence in car building in the era of the V16 cars were on the road. Back then they were not trying to relive 1911 as they were trying to advance the quality and appointments of the cars to world class.
History is great and I am a history buff in many ways. I think a little history is needed but you can’t just keep reliving the past or you will have no future.
Right now the Mini is in a box and is having a hard time working their way out of that box. About every variation they have tried to expand the line has failed and they are only lucky the main car is still selling. But they know at some point that will run out too as people will tire of it.
I look at the poste of the worlds fair Cadillac V16 that I have on the wall and it is one of the greatest cars GM built. Now should they copy it? By all means now but they need to copy what it represented in the best of GM and the best of the auto industry at the time. That Blue car was the leading edge of what the market offered back then and that is what they need to do today. Anything else is just a rehash of the past.
Maybe I should have been more clear: It is as if GM developed a new performance oriented brand and just happened to slap the Cadillac tags on it for the sake of price point.
I in no way want to see Caddy stuck in the past.
I’m the first to agree that Cadillac was shameful 1975-1997; at the same time, this its no excuse for a meaningless naming scheme coupled with indecisive execution: 3 new logos since the birth of Art and Science coupled with 10 nee grills that all flipped coupled with Art and Science loosing its edge because China doesn’t like it (ATS coupe, as a bring example).
Once GM decides on Cadillac’s true DNA, and then stays true, the customers will follow.
Cadillac like GM started to lose the edge back in the 60’s but the erosion was slow at first.
I wish people would stop blaming China or the loss od the hard edges as it really started a while back with Lutz. He was smart enough to know the hard edges will lose their sharpness as they age. That is the problem with polarizing designs too often they do not age well.
Lets face it the CTS coupe was not a sales winner here or anywhere. I loved the car but you can not give me numbers that support it was successful or more successful than a more conventional car. Critics like to be critical but the only thing that matters is how the public votes with their money and at this point they did not approve.
Right now Cadillac is like a Teenager. Yes this have been awkward and some mistakes have been made but in time they will find their maturing self and follow that path in styling.
My concern is they do have some very good product now and the marketing is failing. There is no reason they can not sell these cars better. Second they need to get the division run by a benevolent dictator that has the say and responsibility to lead as now it is like they put a figure head in but do not give him the full support to run the division without second guessing him. Case in point the pricing argument going on inside right now that is not well reported in the media.
Also we have to remember Cadillac is in transition right now from the pre bail out under funded cars to new cars built on a new platform. At this point we only have two of them and it generally takes a second gen to really sort things out. Cars are like a good whiskey and it needs refined and distilled then time finishes the process.
There are still some things that need sorted out and GM still has some culture issues as we have seen. Too many never knew about the culture issues or even understand that there is still some snipping going on but the good guys for once are winning. The old boys club is being dismantled but it will take time and some retirements for it to be competed.
I understand where you are coming from and will give you a plus for speaking your mind. I do not know who did the negative here but you should not be voted down for your frustration.
I know there is a segment that wants Cadillac to hang it out with the A&S but at this point Cadillac needs to get back to the basics and the widest appeal they can have. It is about more than China. I think if they can get their marketing/pricing fixed you will see the recent line of cars will be more successful than the first gen Cadillac’s.
This is the simple issue. To build better cars GM has to put better content into the cars. Better content cost more money. GM has a policy that requires a car to show a specific profit over the cost of the car minimum. This in turn has lead to higher prices. You want a better car you have to spend more to build it.
Ok You with me so far?
Now with the higher prices it has moved Cadillac to a place where one faction in the company wants to hold the line on price for the profit per car policy. Even if they sell less cars the will make as much profit and they are ok with that. Now the other party wants to lower the price to entice buyers to come back or to give Cadillac a real look to sell more cars with less profits and grow the brand. In time they can slowly increase the prices as they earn a reputation and creed to be worth the extra money.
That is only problem one. Now problem two is to get on the same page with marketing the cars and teaching the public this is not the old Catera we are dealing with here or even the old Seville STS. This is a new breed of car altogether but GM has not gotten that word out at all in their marketing. They have given me attitude, they have given me dancing robots and they have given me the chrome woman living hood ornament but what have you told me about the car. How many people understand how well it handles and how much power the TT V6 provides with much flat line torque? How many times have you seen Cadillac in a commercial show how well their AWD works?
This message is not lost on many at GM but they are having to fight for this view.
So for now stop blaming the Chinese and the soften look of the car and get to the real issues that we do not read about in the headlines. It is the internal dirty laundry and infighting that has gone on for years at GM still playing out.
It was not long ago the old school guys wanted to cut the content of a Cruze because it was selling so well. Is that crazy? They figured if it is selling that well they could cheapen it up and make more money not even considering that the reason it was selling was because it was a better car than most in class.
I agree with your key points, and it seems that you and me only really disagree on a few design issues (I maintain that Caddy design is still devoid of the irresistible essential element that supersedes bad marketing and lives on throughout the ages as the ultimate in iconic industrial creativity).
With that said, GM is producing it’s finest cars since the early 1970s. Within both Buick & Cadillac, we see both the spirits of Olds (that premium yet humble middle ground) & Pontiac (spirited performance) live on by way of great vehicles like Regal and ATS.
GM must now get the message out and do so in a more creative yet detail oriented manner. I’m no fan of the recent Buick ads, but minds far brighter than mine think that they seal the deal in terms of Buick’s brand evolution. Now it is time for Caddy to do the same and to do so rapidly before the currently crop of product becomes dull.
Well if creating a masterpiece of design was all that easy would we have had the Aztek?
Here is the problem with today. In the past cars were built buy craftsmen who designed them and hammered them out buy hand. True works of art.
Today you have an artist who makes a car and then has to meet the following criteria.
Global Crash Standards today they have to account not only for here but standards everywhere.
Aero numbers Today it is all about MPG and get it anywhere you can.
Pedestrian crash standards Notice the hood being so high anymore well that is because of the required crash standard that make them put a couple inches between the hood and engine for pedestrians to be less injured.
Smaller cars It is difficult to to display the design over smaller car in many cases as it limits the low of the design. Or you have to work with 2 boxes vs 3 boxes.
Ergonomics. Today many cars will not sell if people can not see out or get in with out hitting their head. It is about the appliance way of thinking and many buyers will not compromise this.
That is how you can design a Camry and get away with it.
Cadillac is dealing with all of this while creating a new image of their own and not trying to get all retro or all copying the competition as Hyundai to build a cheap look alike.
Generally the deigns have gotten little criticisms from the public as a whole and is still evolving.
They are tying to evolve to the home run design but it is not always that easy. They really hit on it with the Elmirage but to meet all the above criteria with a platform they can use is not always as easy or cheap to do. Even then some of the Show Car elements have to go as they create issues in the real world or run up cost beyond what anyone would pay.
Cadillac is only half way to where they need to be and I predicted ten years to get there so we need to let them finish and solve the marketing issue.
Lets face it BMW and Benz styling for the most is just a evolution on what they had before and not always a home run. But people keep coming back again and again.
Scott, Your analysis is correct. Unfortunately someone like you will never be in a position to take your fine understanding of the problem and apply your idea’s to improve this situation. You are an outsider (not having come up through the ingrown system at GM). You have demonstrated ability and are willing to analyze and start to create an action plan that could indeed be the starting point for recovery at this company. I really wish it could be different because I think you just demonstrated how it should be done. Thank you.
Thanks but there are people in GM that think this way as that is who I learned it from.
The problem in the past was these folks were the minority of the leadership there. The old guard just keep doing things the same way as it worked years ago and we should just keep doing it because we are GM
Today we have may people that do understand what needs done and are working to change the Culture. Lutz was the first to shake the tree and lose some nuts but it is a on going issue that is still being worked on. Change in a damaged culture is hard to make but many who are now taking the lead at GM are not part of the problem anymore and are cleaning house of the people who are the problem and the policies that have prevented them fixing things.
This is not just a GM issue as I have seen in in companies I have worked for.
My back ground with GM is I grew up with a lead engineer at GMC from the late 20’s to the early 60’s. He was of the old school and was well placed. You did not make waves and did as you were told no matter what.
I have also made friends with present day GM people that are part of the group working to bring change. I hear their issues, complaints and victories. They have done a lot but have a long way to go. People Like Mark and Mary will help continue this work and backing the talented people at GM to continue to do what they do best.
But there are still some that need to retire or be replaced. Also there are many policies that still need to be addressed yet.
GM is heading for once in the right direction and I feel they will get it worked out in time. But change like this comes with a price in dollars and hours and days.
To really under stand what is going on you have to understand what GM is going through now.
I only know a small part of it but I have enough of an idea to know what to watch for and understand what is going on and why.
Old GM was so bad as Lutz asked why GM did not have better panel fit and why they could not do the same as Hyundai. He was told we can but we were never told to do it. The head of the Sheet Metal stamping was not told and he could not just do it or ask to do it. Lutz told him to do it and do it now. For small cost he did and the panel fit on the 08 Malibu was market leading. This is just one example of what is going on.
With the flawed culture I could understand the ignition issue as being a failed culture issue. The left hand did not know what the right hand was doing enough to have covered it up this well. It was more due a failed system inside GM.
While Lutz did make mistakes he over all gets it about the auto industry and does not try to rely on just numbers and policy to build cars. We need more people like this that are willing to take chances. They often get more right than wrong. His breed is a lost art among the automakers but I think he has inspired many at GM to a new way of thinking.
Expect in 5 years things will gel a little more and we will see more direction here. We will still have some painful moments and growing pains but all MFG do. What GM is doing few companies would be doing as well at this point. Chrysler for example is not as strong as there sales percentages indicate. Ford too is doing well but they have no choice as they still are paying off the plants they leveraged and they have to make sure the new F 150 works as it is paying much of the loans off for them.
You mention Chrysler which in my view is an illusion of success. They are being looted by FIAT in an effort to support EU operations plus this relaunch of Alfa.
What does Chrysler get from Fiat aside from the USCW platform & Sergio’s (overrated) leadership?
Chrysler has been transformed into a truck company. The money being redirected to Alfa should be used for the purpose of building.up solid Chrysler brand and Dodge cars; instead, we see a hobbled Dart, sub par 200 & decade old RWD vehicles.
I predict a bankrupt FCA come the next economic hiccup. I also predict that it will be swallowed up by either VW or PSA (my bidder of choice).
I agree but it is not even an illusion of anything. Right now they are a mess and many just have not been paying attention.
The Hellcat was just an attention getter as they really need an entire line of new products at Dodge and Chrysler.
All their cars are either old and propped up with publicity and new interiors but yet they sell at massive discounts. My in law just bought a 300 only because it was $10,000 off sticker. They already miss the Cadillac and will not go back to Chrysler. I seamed like a good idea at the time.
The 200 is better than the old 200 but so is a good pair of Asics. The Dart is in for a redo in 2016 as it has failed and only lives on big discounts.
Ram trucks are doing well but again big discounts. Jeep is the only real bright spot and they are lucky for some reason the Cherokee has been a hit.
Chrysler has the lowest repeat buyers the highest incentives and the lowest profits per car and this can not go on for ever.
Fiat has underperformed in the states and many dealers are not happy.
Fiat will either sell out as you say to VW and that is not good as if VW stumbles it will put a shock wave in the industry that has never been felt. They are expanding to keep ahead but one trip up and the house of cards can come down.
I would not be surprised at some point Ram and jeep are kept and Dodge and Chrysler are removed if things do not improve soon. There may be a small Fiat/Alfa and Lancia network put in place. There is just only so much money they will lose if they can not fix them easily.
All Automakers are in great need for small CUV and Car models and Chrysler only has a few CUV models for Jeep coming and Dodge has really no small car worth anything coming soon.
Also note that Chrysler has been down graded to more of a Buick competitor now. Fiat is no longer going big as Cadillac is trying. They will back off and take the entry level luxury. This will hurt profits as the higher segment is lower volume but the highest profit per unit sold car on the market. This is why Ford has not killed Lincoln off and is investing in it.
I agree with the majority of your points. Sergio only understands niche brands hence his separating Ram from Dodge. In my view, he may be intentionally killing off the NA passenger car business (he has spoken at length about the futility of mainstream value car brands in Europe, and may well see the situation as similar here.) He really believes that Americans view 500 line as a novel European import as opposed to over priced junk outrated by Spark and Fiesta.
Chrysler Group has become a deconstructed Chevy: Dodge fights Camaro and Vette; Chrysler does Malibu and Impala; Ram handles Chevy truck; Jeep.jpeg the SUV.
This formula is fine until you remember that both Dodge and Chrysler were full line brands until recently. This formula seems smart until you remember Chrysler has cash that goes to Fiat as opposed to rebuilding these storied name plates. At this point, Chrysler is chasing Chevy, not Buick, when you look at price points and sales projections.
The press will eventually see through the FCA PR machine. I’m hoping PSA eventually gains control of this storied American icon.
The truth is Ram was moved and they will never state this publically but one to sell it in other markets with out Dodge. Also if the time comes they can easily kill Dodge and keep Ram viable. They could sell Ram to another MFG like VW.
VW has a history with Dodge already with Omni Engines and also the mini vans rebadged as VW.
Daimler came in and wanted no little cars and slowly removed most and hid the Neon as a CUV like car in a Caliper. They only liked the big cars, Trucks and Jeep. Fiat is paying the price for that now. With such low volumes they need to invest in the car lines now or they will surly be at risk due to the lack of profits and meeting future standard. We may get a Lancia as a rebadged Chrysler and that is not really a good thing unless you live in Italy and are willing to put up with the crap they dish out.
Fiat has been behind on many things for many years. I have a lot of miles in a 128 and while not a bad car it was not great. The rust finished it off fast. It did great as a Lada and other variations it sold as in many third world countries and behind the Iron Curtin as they were better than what they had. The Lada was funny. I drove one and it was just a bad Fiat.
I truly think one of two outcome will happen here. The cars will be replaced in time with Fiat models rebadged from their various divisions. Or we will see them sell off parts of the company like Ram and Jeep as they can pay a lot of debt and offer money for investment into their own cars in need.
No one ever saw Old going away and then Plymouth and Pontiac but those of us who watch the market close had a bad feeling it was coming. I see the same here as the Chrysler we knew will never be the same.
Hell did you see they are now discounting the Viper $15K? You would think with Ferrari they could have really come up with something market shaking but yet they just refined much of the same and raised the price.
Fiat has many good resources but always muck it up. The Fiat sedans with the Ferrari engines were a great idea but a rea mess. The new Alfa with no opening front trunk. Nothing like limiting already limited market.
If the EU fails across Europe things can get real dire. I suspect the move to England from Italy will help in several ways but also in the ways of dealing with the weak Italy economy and socialist government.
This is so complex that we could hardly cover all the aspect here. Lets just keep it short that even with the recall etc GM is doing well and while they still have a lot of work to do are moving in the right direction.
Based on Sergio’s recent comments, he knows that Fiat brand besides 500 family is dead in Europe. He seems to understand that Jeep and Ram pay the bills & is hoping Alfa will make for a three legged stool.
With Pontiac dead, Dodge could make for a very cool and profitable niche brand. I don’t think he cars about Chrysler brand which is a real pity considering all the customer good will out there. (It would be interesting for FCA to shift Chrysler into a JV with PSA given the very attractive 208, 308, 408 & C4 Cactus—a ready made line up.
If FCA survives, it will be due to Chrysler Group NA operations.
Now that FCA is Dutch, I expect big Italian factory closures and a further shrinking of Fiat brand. There is no room in the value or even premium segment for Fiat, and FCA well not be making money in the EU for 5-10 years.
I’d love to see GM get Chrysler. The deal could/should resemble the Hyn/Kia deal and be highly productive.
Scott, I am interested in your take on advertising and agency selection. I see the current GM involvement in advertising as a disaster. The advertising currently being shown on TV is the result of a client with no idea of what advertising needs to be and advertising agencies that either refuse or can’t lead the way. The Cadillac TV ad with the “exercising robot arms” is silly and lacking in meaning and has no effect on the consumer (to be kind)…approved by a client committee and proposed by the combination of a couple of advertising agencies. It almost makes me think this combination leaves no one responsible and no one accountable. in other words…a disaster. I never thought it could be worse than the “Chevrolet/Jock spokesman” advertising but it is… The Buick advertising currently on the air is another contestant for the title of most vapid and meaningless of the year award…Current Cadillac and Buick products are very good, perhaps some of the best in the last 50 years but they need to be supported by advertising that communicates their real essence and not lightsome frivolous efforts.
Here is the deal. I am not a advertising pro but I have studied the auto industry marketing for years and I do have a minor in marketing with my business degree. Plus I rely on a lot of just common automotive sense too since my job is not depending on this. Thought that last thought using some common sense in the industry would not be a bad idea.
I have a great distrust of many marketing people as like my staff at work they are to often selling products they have no love or feel for.
Here is what I would do.
#1 get the division of Cadillac into One Vision with full corporate support. Right now I do not sense this with the thing I have been hearing. Too many cooks in the kitchen all making a different dish.
#2 Get a marketing firm involved that knows how to sell cars. Demand a manager of the account that loves cars and knows them inside and out.
#3 Market the hell out of the attributes that define the car and what it is and what it is becoming. Technology, Performances, Luxury and refinement are all key here. The interiors in the premium are totally world class but who knows this with the dancing robots. How about marketing how you offer AWD on all the models. Also show the technology of the DOHC V6 TT engine and what it can do. Finally the magnetic shock are world class and I saw one spot on it saying Ferrari had them but not so much what it would provide the driver with. Don’t worry about anyone else and sell Cadillac not the other brand.
#3 Sell it with some real swagger like Pontiac did for year.
#4 Get the price Policy away from the required GM levels and entice people to take a look at these cars and then slowly raise the prices back over years once you hook them after owning them.
#5 Make this a global strategy but yet tailor it to each market. Different cultures buy for different reasons and tailor it to each market.
At Chevy Marketing is not as important as price and the cars themselves. The styling, features and price tell this sector all they need to know. A good song and give people a great looking car at a great price with a lot of great value features is what Chevy is all about. Todd in some for the performance cars too and you have a great image.
Buick is doing ok with what they have started with the fact they have some good looking cars. Now they need follow through and advertise more about the AWD and other feature they offer. The Encore should press the quality interior and utility with great MPG. The same for the Encore.
The real key for Buick now is to replace the entire line with 2nd gen models post chapter 8 and build on the quality and features of the new models Lets face it the Lacrosse is old as well as the Regal so the models will advance the message.
They are on the verge of doing this in the next couple years. GM just got to them last.
The real key for Buick and Cadillac is to draw people to the dealers some how. They need to get people interested through advertising and price. Once you get butts in the seats then I think some minds will change.
Also target the collage and post collage ages as they are the future and are the most impressionable as they do not always have preconceived notions. They will leave collage a Toyota liberals and by 35 will be Cadillac fiscal conservatives with 1.7 kids.
Now factor in the unknown of what GM is doing and thinking that we are not privy too and it can wipe out my total assessment.
In short I would like to see someone like Jim Wangers way of thinking come in to Cadillac. Jim was and still is a blow hard but any good advertising man is. He Drove, Raced and Lived the Pontiac line for years. While he did not create the GTO he did honestly effect much of the image we now see of it yet today. Here is a guy who was in advertising out racing on weekends even winning the NHRA US Nationals in 1960. That is passion and understanding what the product is and who they were targeting. Give me someone who loves a product and they will give you a great legitimate argument of why you should buy.
I just hope all those with the Cadillac account are given cars to drive and live with daily. Make them get out and really see what people thing or know and they will understand what they need to target as buyers and features that need shown to the public.
The specific company that just took over I have no knowledge of them and have yet to investigate. It is just to the point GM need to settle on one firm one message and one plan. This changing every six months is doing more damage than if they just has stayed with one bad plan.
I hope my ramble here make sense.
The one thing that would help sell Cadillac is to use Johnny O Connell the Pirelli Cup CTS V driver. I got to spend time with him several weeks ago and he has the passion for the car and he has the personality that you can market. He came out and hung around with me and a buddy at the race for about a half hour just talking racing.
By the way the Pirelli world cup program has some of the best Cadillac marketing adds in it. It had like 4 that I had not seen anywhere else. Why are these not in Car and Driver/ Road and Track?
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I agree with you Scott. If you are going to effectively advertise and promote a car line you have to have very deep feelings for the vehicles. When you don’t and are just interested in the bottom line you are looking for a disaster…just like we see now. It has been a pleasure to read your comments. I will watch for more….