Cadillac Stalls After Changing Advertising Agency

[jlmartin99]

Greetings,

An interesting article regarding Cadillac's marketing.

JLM


http://www.autonews.com/apps/pbcs.dl.../70924009/1170

Cadillac stalls after shop swap
Lack of 'memorable' marketing, new-product drought blamed, but automaker believes new CTS will shift momentum

Jean Halliday
Advertising Age
September 24, 2007 - 8:24 am EST


After trading in its agency and advertising campaign, Cadillac is losing sales -- and with them, the momentum it had been showing.

General Motors' luxury brand figured to be a comeback story earlier in the decade, said Art Spinella, president of CNW Market Research, but in the past 18 months, the percentage of auto shoppers considering Cadillac has been flat.

In the first half of the year, the brand's consideration ranking was its poorest since 2003. Not only that, the age of consumers aspiring to own a Cadillac rose to nearly 36 years old this year from 30 three years ago, CNW found -- bad news for a brand that's been trying to appeal to more youthful buyers.

So what's to blame? Spinella cited two things: Cadillac's marketing "slacked off in being memorable" and an 18-month drought of new models.

Frustration

Last year, Cadillac dropped its edgy "Break Through" campaign with a catchy Led Zeppelin song after nearly a four-year run when it moved its account without a review to Modernista, Boston.

Since then, many Cadillac dealers have been frustrated at a six-month dry spell in advertising and the "Life. Liberty. And The Pursuit" work in the past year, according to a dealer on the East Coast. But while Daniel Jobe, chairman of the dealer council, admitted "there have been some issues," he said it's not fair to point the finger at Modernista.

This much is clear, however: U.S. sales for Cadillac are down 10% to 134,584 vehicles through August vs. the same period of 2006. And Cadillac hopes to move the needle with the launch of the second-generation, entry-level luxury CTS sedan.

GM will spend an estimated $60 million on a blitz for the CTS. That's up nearly sixfold from the $11 million it spent last year in measured media for the CTS, according to TNS Media Intelligence. The new push began Sept. 16 and runs though mid-November, but a follow-up phase is due early next year.

Game-changer

Maureen Bickford, national advertising manager, said the marketer believes the CTS can do for Cadillac cars what the Escalade did for its SUV lineup. Liz Vanzura, marketing director at Cadillac, said the brand "is focusing on CTS as a halo vehicle to being people into the brand."

Doug Scott, senior VP of consultant GfK Automotive, said that strategy is sound. "If you think about how people are going to enter a luxury brand, it has to be from the bottom up." But GM needs to keep the car in people's minds with advertising. "You have to keep the drums beating for it. You can't go extensively dark."

"By no means is Cadillac cooked, only that there are some seams coming unravelled," Spinella said. He also called marketing until now "invisible" compared to the Led Zeppelin spots.

Vanzura said dealers are "overwhelmingly supportive" of the CTS launch ads and that the top 100 U.S. dealers who saw the ads at a meeting earlier this month gave the work a standing ovation. The creative in the integrated-media launch blends the emotional and the rational, she said....

[CrunkedRL]

I always thought using Cadillac's heritage would be a good idea to leverage their marketing campaigns to show how far they've come over the years. The new CTS is hot and it will build some momentum and hopefully some substanability for the brand over the next couple years. But it can't go with it alone and future product forecasts are too far off the mark for me.

[jlmartin99]

Originally Posted by CrunkedRL

I was thought using Cadillac's heritage to leverage their marketing campaigns to show how far they come over the years. The new CTS is hot and it will build some momentum and hopefully some substanability for the brand over the next couple years. But it can't go with it alone and feature product forecasts are too far off the mark for me.

Greetings CrunkedRL,

I liked the new Cadillac marketing theme. But as this article points out Cadillac all but stopped advertising for six months and little prior to that. I found this be true here in the NY, NJ and CT area where I live and work. I have commented before there was nothing out here in terms of advertising to see or read about Cadillac. Cadillac changing marketing groups and not spending on marketing during this transition has materialize into contributing to lost sales and mind share. Time will tell if the new marketing push and the new CTS can drive up awareness of Cadillac offerings, but clearly, based on this article the lack of marketing has had an effect on Cadillac being visible to luxury buyers.

JLM

[JBsZ06]

New CTS and the marketing campaign is ingenious.

Great television ads to promote new CTS.

[megeebee]

Originally Posted by jlmartin99

http://www.autonews.com/apps/pbcs.dl.../70924009/1170

"there have been some issues," he said it's not fair to point the finger at Modernista.

Then who?

Originally Posted by jlmartin99

He also called marketing until now "invisible" compared to the Led Zeppelin spots.

I agree. I have never thought Modernista!'s work was attention getting. Pretty pictures, to be sure. But it takes more than that these days.

[JM9777]

I think the new CTS ads are pretty good.

It's tough to create buzz when you don't have any new or hot products. The pace of new Cadillac models has just been too slow. Look at BMW or Mercedes, two brands that Cadillac aspires to be compared to, and the size of their product portfolios. When you have 13 model lines like BMW or 12 model lines like Mercedes, it's easy to keep the buzz up because you're introducing a new model every 6 months.

[jlmartin99]

Originally Posted by JM9777

I think the new CTS ads are pretty good.

It's tough to create buzz when you don't have any new or hot products. The pace of new Cadillac models has just been too slow. Look at BMW or Mercedes, two brands that Cadillac aspires to be compared to, and the size of their product portfolios. When you have 13 model lines like BMW or 12 model lines like Mercedes, it's easy to keep the buzz up because you're introducing a new model every 6 months.

Hi JM9777,

I understand your point of new product and that is my very point. When you do not have new product, marketing and advertising become even more important to keep your products in the mind of the buyer. Marketing and advertising main mission is to create interest. In my view, when Cadillac was making plans to change marketing companies, in concert with that, Cadillac should have made plans to give the Cadillac line up more advertising face time to ensure that when there are new products announcements, the customer still has nice memories of the Cadillac brand.

I suspect, Cadillac missed this opportunity due to cutting cost. But there really is no reason to stop marketing or advertising when you have a slow down in new products, that is all the more reason to advertise your current product line up.

JLM

[noelvm]

Originally Posted by JM9777

I think the new CTS ads are pretty good.

It's tough to create buzz when you don't have any new or hot products. The pace of new Cadillac models has just been too slow. Look at BMW or Mercedes, two brands that Cadillac aspires to be compared to, and the size of their product portfolios. When you have 13 model lines like BMW or 12 model lines like Mercedes, it's easy to keep the buzz up because you're introducing a new model every 6 months.

Boy, you can say that again. They had a lot of hype for the CTS-V and where is it? Delayed for another year and the coupe delayed for another two years.

Somebody at GM needs to get their head out of their a$$. Those two cars alone could probably increase Cadillac's total sales 10%. They might have been able to save the STS or at least improve its sales by sprucing up the interior and exterior colors which were really drab, but instead they have decided to just scrap it and try something else.

Maybe they will have some time to rethink some of their production goals now that production is zero.

noelvm

[uboys]

Originally Posted by noelvm

Boy, you can say that again. They had a lot of hype for the CTS-V and where is it? Delayed for another year and the coupe delayed for another two years.

Somebody at GM needs to get their head out of their a$$. Those two cars alone could probably increase Cadillac's total sales 10%. They might have been able to save the STS or at least improve its sales by sprucing up the interior and exterior colors which were really drab, but instead they have decided to just scrap it and try something else.

Maybe they will have some time to rethink some of their production goals now that production is zero.

noelvm

What one earth are you talking about? Huh?

When--ever--has the CTS-V come out at the same time as the CTS? Who "hyped" the next-generation CTS-V?

It's not the V that is the problem, it's the lack of other new models. They keep *****footing around with a proper lineup. They need to keep the DTS for old-times sake, and get a 3-Series and 7-Series competitor, not to mention X5 and X3.

[Bravada]

I don't think the lack of models has anything to do with it. If you have good cars, they will be selling well throughout their lifecycle (provided you keep updating them so that they don't get outpaced). If you have poor cars, they won't. If you have many cars, you can cover up sagging models with new launches, but it is costly to generate buzz for that many models.

Quite a lot of Mercedes models launched recently proved to be flops, and they hardly kept people excited (Viano anyone?) The new S-Klasse and the ever popular E-Klasse are enough to keep Mercedes desirable, even with minimum advertising.

[PAULSTS1]

Elsewhere it was written about how to not make "One Hit Wonders"...This is very true. First you must have something to advertise, even though improved the new CTS, does not a whole Brand make, and now with the GM Strike, is it's launch "cooked"?

Though I have tried not to sound like my parents.. but I told you so, Cadillac should have released a whole CTS line: Sedan, Coupe/Convertible/SUV...then Modernista could really run with it, and they might have gotten a sale from me, even though I am disappointed with the poorly executed DI V6 NVH! And before the fanatics start to bash me: Ever ride a Honda or Nissan 4 cylinder? They are smooth as silk, NVH is definitely not Cadillac or luxury.

Before you advertise have something dramatic/innovative to sell! Not a half baked product, that will only please 2 out of 10 people that walk into a showroom. Also the STS interior should have been upgraded, with the stunning new exterior, it could have been marketed as more refined and executed.

I don't blame Modernista, it's the Bean Counters again!

[jlmartin99]

Originally Posted by PAULSTS1

Elsewhere it was written about how to not make "One Hit Wonders"...This is very true. First you must have something to advertise, even though improved the new CTS, does not a whole Brand make, and now with the GM Strike, is it's launch "cooked"?

Though I have tried not to sound like my parents.. but I told you so, Cadillac should have released a whole CTS line: Sedan, Coupe/Convertible/SUV...then Modernista could really run with it, and they might have gotten a sale from me, even though I am disappointed with the poorly executed DI V6 NVH! And before the fanatics start to bash me: Ever ride a Honda or Nissan 4 cylinder? They are smooth as silk, NVH is definitely not Cadillac or luxury.

Before you advertise have something dramatic/innovative to sell! Not a half baked product, that will only please 2 out of 10 people that walk into a showroom. Also the STS interior should have been upgraded, with the stunning new exterior, it could have been marketed as more refined and executed.

I don't blame Modernista, it's the Bean Counters again!

Hi PAULSTS1,

Your statement simply is not the case for any brand manager wanting to keep their product fresh in the minds of buyers. Mercedes-Benz advertised their E Class with no changes to their product for years and it worked. Marketing and Advertisings primary mission is to create interest and GM/Cadillac decided not to invest in marketing when they needed it most. There is no reason not to have a marketing campaign to drive awareness and value of your product portfolio and I suspect Cadillac understands this, but decided to limit cost and the results are showing its impact in loss sales momentum. By the way, this is basic marketing 101, this is not complicated, but it is expensive to keep the message of your products alive and well thought of in the minds of luxury buyers.

The luxury brand segment is very crowded and Cadillac will not have the luxury of movie stars to like their product and promote them due to personal preference. GM/Cadillac must be constantly beating the drum of Cadillac's wonderful products, they cannot afford to let a year and half go by without a very strong and aggresive presence in marketing and advertising.

I am a perfect example in where I work and live NY/NJ/CT. I can easily walk down my office and talk with colleagues and ask them whom do they think about when they are considering luxury car choices, and most of the time I can hear them say, Lexus, Mercedes-Benz, BMW and Audi are at the top of their consideration. Cadillac, Infiniti, Acura and Jaguar are mentioned but to a much less degree. I understand this is by no means scientific, but it goes in part to my thinking, the lack of marketing and advertising Cadillac is one of the key reasons for slowdown in car sales.

And in regards to NVH with Cadillac's V6 DI in my direct comparison to Mercedes-Benz C Class and BMW 3/5 Series, none of these are similar to Honda or Toyota and I would not want the feeling of a sewing machine when driving my perform sports sedan. I had that with my Lexus and I find the balance of Cadillac's Northstar to be my preference. The new CTS did not exhibit any negative NVH with its base engine or DI engine anything other than them both were powerful and smooth. However, I guess it would depend if full throttle is your normal driving expression. And I must admit, in driving the new CTS aggressively it did not exhibit the NVH comments found in some of the professional reviews to date. But I would also suspect I have not driven the CTS in race track testing conditions to yield these results. Quite honestly, of all of the reviews regarding the new CTS NVH was not noted by every reviewer and I did not experience anything I would consider unpleasant to any degree.

JLM

[jlmartin99]

Originally Posted by Bravada

I don't think the lack of models has anything to do with it. If you have good cars, they will be selling well throughout their lifecycle (provided you keep updating them so that they don't get outpaced). If you have poor cars, they won't. If you have many cars, you can cover up sagging models with new launches, but it is costly to generate buzz for that many models.

Quite a lot of Mercedes models launched recently proved to be flops, and they hardly kept people excited (Viano anyone?) The new S-Klasse and the ever popular E-Klasse are enough to keep Mercedes desirable, even with minimum advertising.

Hi Bravada,

You comments are logical but not born out in sales. There are plenty of wonderful cars that do not sell to their potential, due to lack of awareness of buyers. And the example of Mercedes-Benz E Class advertised for years without any updates to their product, but more importantly Mercedes-Benz's Marketed and Advertised Mercedes-Benz brand products, Cadillac did not. Simple Marketing and Advertising 101 and Cadillac decided not to engage for whatever reasons, though I would suspect it is cost cutting the drives the final decision not to keep the Cadillac brand in front of luxury buyers.

That is now in the past and it does explain some of the sales slow down. But now they have decided to launch Marketing and Advertising with the new CTS. Well there is logic in that, but they will need an ongoing marketing plan for Cadillac and all of its brand models through out their product life cycle. I understand that there are plans for Cadillac ongoing marketing and advertising for the long term and that is refreshing to hear.

JLM

[noelvm]

Originally Posted by uboys

What one earth are you talking about? Huh?

When--ever--has the CTS-V come out at the same time as the CTS? Who "hyped" the next-generation CTS-V?

It's not the V that is the problem, it's the lack of other new models. They keep *****footing around with a proper lineup. They need to keep the DTS for old-times sake, and get a 3-Series and 7-Series competitor, not to mention X5 and X3.

Who hyped the next V???????? Where have you been??? Mars????? How about Lutz for one and every major Mag including Motor Trend. They could sell 10,000-15000 Vs right now if they had them.

That makes the CTS-V a major player in my opinion. We're not talking some specialty car that they sell 500 a year of.

noelvm

[BigAls87Z28]

CTS-V isnt just some car you can rush out. Same goes for Camaro, Corvette, or any other major sports car or sedan. You cannot rush a car that will be put in the hands of die hard enthuisasts and expect good-enough to make it. Good enough means that they will get beat by thier nieghbors 911, good enough means that they will be outclassed at the track, good enough could make someone go to another car that does it the BEST. Good enough can cut it for family sedans, good enough can cut it for a compact car, but good enough will not keep enthuiasts in your showrooms. And with that, goes a lot of money, both in the initial car purchase, along with cars to drive when they are not driving that performance car, along with aftermarket parts, not to mention the effect that if you make the best, that its gawked over by other enthuisats who just didnt want to accept good enough.