- Inside General Motors' Aggressive Plan to Revamp Cadillac's Portfolio
- General Motors : Cadillac targets millennial women in brand revival and SUV push | MarketScreener
- Marketing Strategy Of A Business
- Cadillac has a bold plan for the future — now it just needs the right cars
Sales of the XT5, for example, rose 73 percent year over year in The SUV occupies the No. S, he said. Cadillac's ongoing overhaul of its dealer operations, called Project Pinnacle, is controversial among some of its dealers. De Nysschen acknowledged that the program has led to tensions at times. Churchill, who is chairman of the National Cadillac Dealership Council, a group representing the roughly dealers around the country said the changes created a lot of new requirements for dealers and changed how they were paid.
The new plan rewards dealers based on how much they invest in resources specifically for Cadillac, including things like dedicated sales staff and roadside assistance. If Cadillac wants to compete with Mercedes, Audi and Lexus , Churchill said, the brand will have to ensure the shopping and ownership experience is as premium as those offered by other luxury brands. Some industry watchers have also questioned the direction Cadillac's marketing has taken in recent years.
Cadillac moved its headquarters from Detroit to New York, and much of its advertising appears to be targeting folks living in coastal cities, said Kelley Blue Book analyst Rebecca Lindland. Advertisements frequently featured cars driving over cobblestone streets in places like Manhattan's Soho district. While this may be bringing in new buyers and raising the brand's profile, it doesn't resonate with many of Cadillac's core buyers, who are often wealthy, but oriented toward domestic brands, Lindland said.
They are also looking at a fully loaded Buick or totally tricked out Fords," she said.
Inside General Motors' Aggressive Plan to Revamp Cadillac's Portfolio
People considering a Cadillac are almost twice as likely to be domestically oriented as the general public, which is to say they want to buy products from American companies. Other research suggests Cadillac's buyers tend to be older, which could present challenges for it in the future.
The brand is not connecting with young buyers, said Alexander Edwards, president of Strategic Vision, which conducts large surveys of vehicle owners and buyers. Younger people aren't considering Cadillac in the way they are considering other brands, even those they cannot afford at the moment, such as BMW. Strategic Vision's research has found that 34 percent of buyers younger than age 29 would definitely consider buying a Tesla , 28 percent would consider Audi, 26 percent would consider Lexus and 25 and 22 percent would consider BMW and Mercedes, respectively. Only 9 percent would consider Cadillac.
Cadillac has always appealed to older buyers, but it needs to think about winning buyers from emerging markets, ethnic minorities and young people to stay relevant, Edwards said. However, they have to shift their thinking from trying to think 'how can we be as good as Mercedes? It is important to point out that Cadillac is just one brand in GM's stable, whereas Mercedes stands on its own.
So GM can also steer younger buyers toward its other, less premium names. Cadillac hired a new chief marketing officer, Deborah Wahl, in early March. It is a sign that the company is pursuing a new direction, Churchill said. Sign up for free newsletters and get more CNBC delivered to your inbox. Get this delivered to your inbox, and more info about our products and services.
General Motors : Cadillac targets millennial women in brand revival and SUV push | MarketScreener
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Cadillac releases the XT4 crossover late this month, the first of 11 models it plans for a total reinvention of its global lineup. Though the brand has made much headway globally, Cadillac is not attracting many buyers on its home turf. The company has been heavy on sedans in an SUV market, has had issues with dealers and has not been able to connect with key groups of customers.
VIDEO Cadillac is reinventing its entire lineup after years of losing US market share. The Bottom Line.
Marketing Strategy Of A Business
De Nysschen is trying to build the brand by establishing a high price and sticking to it come hell or high water, and I think it is working against them. Johan has sent it down a path that dealers are engaging in and excited about. That means that rather than trying to emulate the top-selling German nameplates, Ellinghaus has positioned Cadillac as a luxury auto brand that's uniquely American: entrepreneurial, fashion-forward and art-focused—and now, one that calls one of the world's most cosmopolitan cities home.
Because younger drivers embrace art, fashion and culinary experiences, Ellinghaus has staffed up with individuals who have no automotive experience at all but, rather, marketers from the fashion and luxury worlds. Golf and motor sports sponsorships, which have long appealed to baby boomers, are out.
Brand experience center Cadillac House—part coffee shop, part art gallery, part car showroom—is in, as is Road to Table, a dinner-party series hosted by celebrities and celebrity chefs. His mission of attracting younger drivers involves reversing the game. The older consumers German luxury brands have courted in the U. Mark Mann. Adweek spoke with Ellinghaus at Cadillac's SoHo headquarters in New York about how he is redefining the brand by embracing its challenger position.
Cadillac has a bold plan for the future — now it just needs the right cars
Adweek: You're attempting to change the way people think about Cadillac and present it as a brand that represents American luxury. How has your earlier career at Cadillac's No. For decades, BMW's goal was to beat Mercedes. That really motivated people working there. When it happened and BMW became No.
I realized that once you're so successful, the willingness to take risks goes down. You want cars that are safe solutions, but not necessarily brave solutions.
The appetite for having cars that have very distinct design, very distinctive driving characteristics was compromised by the desire to remain No. Cadillac is a challenger brand. When I came here after being at BMW for 15 years [with Montblanc in between], many people were either hoping I'd do the same things or were scared that I would do the same things.
I realized immediately that Cadillac has a completely different heritage.
Cadillac is distinctly American and unique.