Financial services company The Motley Fool has published a very smart read pertaining to the obstacles – and the required strategy – of Cadillac’s current marketing dilemma.
The shortened version is this: that would-be Cadillac customers, who have long since moved on to Audi, BMW, Mercedes-Benz, and other luxury brands, no longer perceive the Cadillac marque as relevant to them. There was a time in our history when the name Cadillac was synonymous with “best of the best”, “cream of the crop”, and other idioms reflecting the unparalleled quality and luxury that the crest once stood for.
But decades of lackluster products and terrible badge engineered offerings have rendered that a part of our mythic past. So, while Cadillac’s offerings have since risen greatly in terms of quality, it’s not simply a matter of putting out better advertisements: the target audience won’t be listening.
Of course, part of Johann de Nysschen’s strategy is the contested move to the SoHo district of Manhattan, putting the brand front and center in the minds of trendy yuppies to re-awaken awareness. Another part of his strategy lies in addressing countless small details, which collectively, will hopefully have a large positive impact on the way that Cadillac’s products are received.
Examples cited by The Motley Fool include the sound of doors closing, the feel of interior buttons and knobs, and the musical tuning of the exhaust notes. With these almost imperceptible, rich details, de Nysschen is hoping to create a “mythology and theater in the showroom.”
That is by no means the full story, but with an effort that is nothing short of a complete, thorough brand re-imagination, Cadillac is hoping to create the buzz necessary to drag educated, moneyed millennials into its showrooms – and away from other luxury brands.
Comments
This is nothing most of us here have already discussed. The fact is Cadillac needs to change their perceived image. This will not be cheap or easy let along happen over night but the moves they are making and the long term commitment of GM is showing they are at least serious this time.
We already know there was an argument over details like the door handles on the CT6. These are the first things a person touches on the car and they can not be cheap plastic or have casting ridges on them. In other words you pay $5 a piece not $1. The same goes for many other details. We have already seen a peak with the cut and sewn Leather as it is world class in the present cars.
The move to NYC is all about putting distance between them and GM to do their work and also in the eyes of the customer. Cadillac need to be perceived as their own entity.
There will be a lot of psychological marketing here just as all brands employ. This is nothing unique here. Why does Hyundai offer a bigger warranty? because their cars were crap years ago and they want people to trust them to buy a present model.
There was a show on the other night on NAT Geo called Crowd Control. It was a very good show on how to control people thoughts, perceptions and actions. Some call it marketing but there also is a real science to many things they do now and will employ in the future.
Nothing here is impossible but it will take a fully committed GM with money and patients to fix Cadillac.
If you do not believe that look to Audi in the early to mid 70’s. They were nothing but a expensive VW model very prone to rust. Not really a model of luxury and class. They started to change that in the early 80’s and today are considered right there with some of the best cars in the world.
We will see Cadillac make it but it will be done one model at a time over a decade and that is as long as everything goes right.
IF you want people to see you differently you have to do thing much differently. Build the products to their expectations and get their butts behind the wheel. Also pick up the new generations coming up. Many do not remember the messy years and will be more open minded.
Lets also not forget that all the German makes have also had their ups and downs. When they miss it is time to capitalize.
I’ve read a few of you scott3’s posts and it has me thinking this:
Is simply matching the German’s enough? When Hyundai was perceived as low quality, they had to out-warranty their product to shift that perception. Cadillac products are slightly beating out the Germans performance wise, but is that enough? Might they need to go overboard to pull that perception over? Might that mean improving showrooms, improving service, adding service and ammenities that go way above and beyond what the Germans do? Might it mean making sure their products don’t just edge out the germans, but dominate them, even if it means having to raise their prices even further?
Typically matching the competition doesn’t mean your going to beat them. You have to exceed them. They are already in position, and I’m thinking if this is seriously the strategy they want to take, they need to go so far and beyond, there is no question whose the leader. Some things they may want to consider:
-At home vehicle pickup and delivery for service. We have a cadillac and a BMW. BMW gives us a loaner every time, and washes it every time. Cadillac does neither.
-Stupid features no one cares about – While we don’t care about it, it does give it an aire of superiority. Things like concierge services that BMW offers that cadillac doesn’t.
-Consistent brand touches – BMW sends me Christmas cards, spring cards, summer cards, and sends me emails. Cadillac? Occaisonally I get a “we want your cadillac CTS” marketing mailings
-“BS” bases – People perceive what they see. when the guy at work bought a new 2013 CTS and is talkign to everyone about how much he hates it because it doesn’t even have bluetooth, that impacts the brand, He could have spent more, but he didn’t even think about it. Those touches matter. It has less than 5,000 miles and he’s looking to trade it in for a Mercedes.
-Brand, not the car – I feel that cadillac sells me a car. BMW sells me the brand. At BMW, the brand hits everything- Service, contacts, parts, sales. At cadillac, I bought a CTS. I feel no ties to the brand. The service looks and acts like a chevy store. The parts counter parts say GM and Chevy on them. I just paid $50k for a car, make me feel like it… and BMW expects me to buy another BMW- The question is, am I buying a 4 or 5 series? Heck, they’d gladly sell me a CPO, and they make that clear. Cadillac on the other hand? They sold me a car. They would like to sell me another car.
If it comes down to the little things, cadillac has a long way to go, even if the physical product is there!
Arach you are going in the right direction.
Think of this as a Football game. You need to try to win in all areas of the game. Here Cadillac needs to win in product and work to build not just better cars but the best no excuse cars they can build.
They also need to win in the presentation of the cars and the perception of how people see them. This is very important as you can win more here than anything you engineer in the car. Lets face it even BMW has not always given their best but they often get a free pass because of perceptions.
Perceptions are not just how people view a car or their opinions but how they see a car and how it feels to drive touch and sit in. Just the look and feel can transmit a level of quality to a customer more than the real quality and value put in. You can make something out of silver but if it looks like Cheap aluminum they will not care but make that aluminum look like silver and they will fall for it any time.
Also the little things that all add out like the touch of a door handle to the hand, the sound of a glove box, the smell of the leather and usefulness and ease of use of the dash and technology.
Good example here the Cue system is not bad and after using it for a while most reviews have agreed that it is a good system. The failure is the system is not easy to just look at the first day and fully understand it. Details like his have hampered a good system and a little better controls that are much easier to comprehend on first use would have done wonders here.
Dealers are part of this plan and they will either have to change or else. Cadillac is for once looking at all areas including service before, during and after the sale.
The real key to Cadillac is to get people to see and perceive that they are their own brand. Too long they have used general GM platforms and GM drivelines that from an engineering point of view is fine as they are all very good parts. But when you pay more for a car it makes it difficult to sell a Cadillac as being a Cadillac when it has the same platform and engine as a much lesser GM cars.
Case in point the XTS is a very nice car but yet it shares much with the Impala and Lacrosse. While that is fine from a material stand point a buyer who is not a diehard GM fan sees a car with the same platform as a Chevy with the same 3.6 engine used in many other GM cars. Even the CTS V is a great car but yet it is the same V8 as Chevy and that makes it a hard sell to those who see it as a pick up engine. I know many of you think well that is their loss but it also is a loss of a potential sale and growth.
Some areas can not be avoided but on the other hand some of this could be fixed. Today the idea of Cadillac’s own engines is a very good idea. Also is the Omega going to be for Cadillac only? Is the Alpha being limited to only the Camaro and Cadillac a key to making Cadillac more autonomous? Time will tell.
The bottom line is you have to do a lot of things right and you have to earn the right to be the best car. You can not just design it or just market it you have to earn it from all you do. Also you have to earn trust and that only comes with time and great product.
I expect mistakes as no one is perfect but I expect they will find their way. The toughest thing was getting GM’s support to let Cadillac move to be their own brand again and now that we have that a lot can and will happen.
The Critics will have their say but results will silence them. As in the last line of the 1915 Cadillac ad says
“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.”
You may read the rest here a sit is a blue print for the future. It also is one of the greatest car ads ever. I wish they would clean it up with more modern words and redeliver this as their mission statement.
http://blog.mlive.com/mindcapture/2009/06/a_cadillac_ad_from_1915_that_w.html
Yeah, the badge-engineered Cruze that’s supposedly in the works is NOT going to help that image, downvote away, but its the freaking truth.
The simple truth is it is going to take Cadillac years to change the perception of the brand . I’m afraid that when the next recession hits GM may not be able to help fund all of the changes needed , I know Cadillac wants to stand on its own but it still needs mother GM . These changes should have started during bankruptcy .
Sales at Cadillac are bad right now and Buicks sales are better since 07 . Could it be that the old Cadillac or GM loyalists are now taking a look at Buick ?