Cadillac’s products have made a major turnaround in regards to competing with German offerings, however its sales still lag behind rivals like BMW and Mercedes-Benz. Forbes recently got a hold of a 2015 ATS Coupe and after driving it, they concluded the issue with Cadillac isn’t due to having an inferior product.
Instead, Forbes said Cadillac has issues with its marketing, brand image and pricing. The ATS, for example, had an “uneven” launch campaign in 2012, with ads running consistently during the Olympics, but quickly tapering off afterwards. The Coupe variant of the ATS was also debuted in Detroit in January and has yet to garner much attention through advertising.
It wouldn’t be so bad if the luxury market wasn’t getting increasingly competitive. Audi, BMW and Mercedes-Benz, all of which have a more upscale brand image, are moving downmarket with cars like the CLA and A3. That means someone who may have always wanted a Mercedes can squeeze themselves into an entry-level model for a little more than $30,000, while Cadillac’s entry model, the ATS, can easily cost as much as $50,000.
Additionally, Forbes noted Cadillac is still associated with its “older roots” in the eyes of many young buyers, who may not consider it a viable alternative to a BMW or Mercedes. The brand’s attempt at being more performance-oriented and youthful may have also scared away its older, lifelong customers, something CEO Johan de Nysschen had already said he isn’t scared of doing.
Also scaring away older customers is Cadillac’s new pricing strategy. It’s more in line with other luxury brands, which means for many of Cadillac’s existing customers, it’s now too high. Forbes also thinks the price of most of today’s Cadillacs is a bit steep, which will hopefully be solved when it rolls out its true entry-level compact. The Cadillac portfolio will also benefit greatly from the next-generation SRX and planned sub-SRX crossover.
The ATS and CTS may be on par with the competition, but Cadillac needs to convey that message to the public before results in more sales. That goal can be met, but it will take a long time. De Nysschen already said it will take “several years before a sufficiently large part of the audience who until now have been concentrating on the German brands will find (Cadillac) in their consideration set,” let alone surpassing those brands in sales.
Comments
They need much COOLER marketing. And much more of it.
After years of seeing and still seeing old men and ladies driving their behemoths slowly in front of them, or in grandpa’s driveway, they need to kill it with branding. I always remember. I bought one of the first ATS’s here in Toronto. On the day I went to pick mine up there was one driving off the lot. The guy looked like the evil Minister from Poltergeist 2.
Gradually I am seeing lots more, but we are still the youngest drivers I have seen in one here. Nothing against the elders, but the young folks want that hip appeal when getting their car. For me, I LOVE the fact that my car stands out. On a street with 5 BMW’s, 3 Audi’s 3 Merc’s and 2 Lexus’s, my ATS looks even better I find. I said it before, Cadillac should pay my wife to drive the car around town. She is young and hot . I know seeing her in it changes perceptions.
For a while I thought that the CTS was a woman’s car, largely based on Caddy’s advertising…
To paraphrase the best response I read on GMI:
“It’s gotta hurt the traditional buyer to buy a Camry when Cadillac is suddenly out of your league.”
Goodbye, value-conscious trad buyers. News of Cadillac’s upmarket shift must have hurt them as badly as the discontinuation of whitewalls. At least they’ll still have their Brylcreem.
Onwards and upwards, Caddy. The short term volume lost today is the higher price point and greater public perception tomorrow.
I’m seeing everyone but Cadillac when it comes to watching the NFL, NHL and NASCAR. Where are you Cadillac?
I think the price thing is way over rated.
The issue with price is that you need to win people over with good marketing and make the car in their eyes worth the price. Also the price keeps the car more exclusive. The fact is Cadillac is not a car for everyone anymore and that is a good thing.
The last thing I would want is to pull up in my ATS V and then have my mother in law pull up next to me in her ATS.
The marketing for Cadillac has nothing that promotes the car and the details of the car. Just look a the most recent Benz add and it promotes the technology, safety, exclusiveness, performance and sexiness of the car all in one min. They make it exciting.
What do we get dancing robots?
What you want these commercials to say with out saying it is Buy a Cadillac Get Laid.
Promote just what this car will do for you emotionally and to your image.
The Escalade sells and why? It is the image that it puts on the owner. No other SUV says that you have made it in the world like one. You see everyone from Drug deals to sports stars in them and it sends a signal that they have made it. Other buy them because they want that same image presented over them. The same thing needs done with the cars. It takes time but they can do it with the proper marketing.
As for lowing the price all you will do is make these cars show up in all the places you don’t want them. Bingo halls, trailer parks and retirement condo’s. People buy cars like these because they do not find them at places they find Lincolns and older Cadillac’s.
Most traditional buyers would be just as happy in a Buick anyways and it will not eat as much of their 401K too.
“What you want these commercials to say with out saying it is Buy a Cadillac Get Laid.”
“Promote just what this car will do for you emotionally and to your image.”
^This X a billion. Sex sells and anything that makes someone look and feel like a millionaire playboy is what will keep the people coming back. The Eldorado never had THAT kind of cachet. Pretty telling, actually.
Image and sex appeal: It’s why people buy luxury products.
People want what they can’t have and those who have want what others can all have. Just look at the shows that play up the largest most expensive houses, car collections and even campers.
Cadillac and cars in this segment play to vanity. The fact is no one needs a Cadillac as we all could do what ever we need in a Sonic just as easily. But playing to the vanity and image the car bestows on the owner is important.
They want to look smart for owning the car = technology and safety
They want to look powerful = powerful engines
They want to look trendy or sexy = distinctive styling
They want to look affluent = pricing this so the commoners do not also buy
The fact is not everyone should be Cadillac material. If you make the car too common then it is just a fancy Chevy and that was part of the problem before.
But you have to earn this image and not sell the car to every one that retires and moves to Boca Vista retirement community.
You do not see Bentleys at Denny’s so you?
I know that some may not like it but the fact is the kind of people who have bought Cadillac have damaged their image. I know as I am related to some.
also another thing wrong with the “Ad” was they showed a silver car without a sunroof instead of showing a red car with more options,those caddys looked like base models,this is the same problem with the chevy ss ads silver car no sunroof,the color of the car matters if they know it or not,a red car demands attention silver is bland and boring and doesnt catch the eye like a loud color,most bmws,mercedes audis etc come standard with a sunroof who wants to pay over $50 for a luxury automobile without a sunroof or h.i.d lights? GM tend to be a little stingy with the standard options so customers stick to where they feel like they are getting more bang for their buck(mercedes,bmw,audi)
Lots emphasis on sunroofs, eh?
Here’s the thing. Luxury is about getting what you want, not what you expect. Sunroofs and red paint are what you want, not what you expect.
I agree about the options thing and the use of base models in ads!! You NEVER see this in the other luxury ads! NEVER!! Yet I see basic wheels on a basic ATS lots. ALWAYS put your best foot forward.
Options is another mess. I got the “Luxury” package loaded with leather, 17inch wheels etc etc. In my excitement of getting the car, I missed something. Driving to the store I saw the cars reflection. No LED DRL’s. This on a car that cost’s 50K!?!?!? I went on Cadillac forums and saw a tonne of other “idiots” who thought that the DRL’s came with the luxury car. Yes I know they are trendy, but you don’t find any audi, Bmw, Mercs etc without them. It was part of their special look. I know hyundais have them these days, but GM should have not missed little details like that for a premium car. They want those suckers looking good to bring in more sales.
the toyota camry is a PIECE OF GARBAGE and its ugly and boring theres nothing exciting about driving a toyota all toyotas SUCK
Hyundais and Kias too!
Prestige and Price are what sells cars . For the ATS and CTS the quality is there and the design elements of them are very good . This new head of Cadillac reported to Automotive News that he wants Cadillac to become exclusive . He doesn’t worry about volumn , he wants to sell fewer cars at a higher price than sell alot of cars for a reasonable price . That is one reason the plant that builds them is laying of people and doing away withe th second shift . They have a high inventory right now . Doesn;t this guy understand the market here in the states ?
“He doesn’t worry about volumn , he wants to sell fewer cars at a higher price than sell alot of cars for a reasonable price .”
As he should. Cadillac should be exclusive. Luxury products are never “reasonably priced”. If they were, they wouldn’t be luxuries by definition as anyone could have them.
I’m certain that deNychen knows how the luxury market works in the US. The demand for luxury goods is universal, and auto makers like MB and Lexus know how to offer and sell luxury products in the US.
This guy does understand this market but doesn’t want another Lincoln where it has to send many cars to fleet and rental companies.
The fact is Cadillac was not a real luxury car anymore and to get there they need to move back up. If Cadillac is handled right they will not be afforded by just anyone.
Not everyone can own a Benz or BMW either. Porsche learned this in a harsh way in the 80’s when they tried to build everything from a top end car to the 924. The low end cars started to really hurt Porsche’s image. While not bad cars they just lowered the expectations and images of a Porsche as it was becoming a car that nearly anyone could own.
After they learned their lesson they cut all the cheap VW based models and went back to basics. They did go back to a lower priced mode but it is not cheap by any means in the Boxster and Cayman but neither hurt their image too much. The Boxster is about as low as you can go with out doing image damage. Though resale remains low and many 911 owners look at Boxster owner as people who just can’t afford a 911.
As far I am concerned, anyone who wants value luxury needs to buy a Buick, Acura, Lincoln, Denali, Genesis and Equus.
Cadillac belongs in Tier 1 group and they are getting there. The positive perception will take time and marketing from here on out, starting next year with new ad campaigns, needs to be consistent for now on without any ad breaks like they are doing currently.
I don’t think it is the marketing, the issue is much deeper than that. They first need to start with the dealerships. If you are paying a premium, you should be treated like you are. The Chevy dealer that also sells Cadillac is not going to be able to provide that. Next they need to create more visual differentiation between models. I’m a car guy and I had problems identifying a ATS from a CTS at the dealership the other day. Lastly they can’t lose sight of the easy things. The ATS is probably the most well balance cars I’ve ever driven but what were they thinking when they decided to have the 2.5 as the base engine. Also, where is the back seat? They must not be targeting people with young kids since it isn’t very car seat friendly. End of rant….
I keep hearing everyone say “Do the same thing as every other luxury car”
Why?
Why not go after the niche and be what the other brands are NOT? Why not fit those voids the others leave behind? Why not differentiate instead of directly compete?
Why not go after the niches?
There are several problems. 1. Cadillac comes from a history of making Allantes, Cimarrons, Cateras, Sevilles with pieces that don’t fit and have ugly humpbacks– not exactly ogreing well with people who are willing to plunk down $75,000 for a car. 2. They are also of a division of car Corp. That made Pontiac Azteks, Phoenixes, Sunfires, Vegas. 40 years or more of that crap. 3. They discontinue models too frequently. The CT6, XTS, ATS, Catera barely got off the ground and they are discontinuing it or have discontinued them. Ridiculous. The same can be said for many models of GM. 3. They are associated with a corporation who has a terrible public relations history. GM cancelled the EV1s, then introduced the Hummer which was the last type of vehicle anyone wanted and was the exact opposite of the EV1. 4. Their cars have a history of having subpar reliability. Rich or poor, no one deserves or wants to be stranded on the road, which is scary, dangerous, and can be fatal. 5. It does not sit well with the USA public that they got billions from USA government at the drop of a hat when asked only to soak it into their China and Brazil operations, as they flew to Washington DC, USA in their private jets and limousines. What about other USA citizens and companies that are struggling and can’t get any monetary help? The huge textile industry of the USA southbelt was given no help at all. 6. I just got back from the Los Angeles, USA, International Car Show (12-2-2018). They had a CT6 on display with loose interior fittings that look cheap, had glare spots everywhere you turned. What is that car doing on display? They’re discontinuing it. The middle class family sedan known as the Impala which gained the nickname IMPALE from the ignition switch debacle, was nowhere to found. They made tons of noise about that car. The Cadillac XT4 and XT5 compared to the competition, felt like embarrassing cheap, unrefined disappointments inside. It is not an inexpensive vehicle. Another problem is people scream bad taste if they are seen in GM vehicles where I live (southwest USA)