Cadillac Challenge


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Project completed during Graduate school in 2007.

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Cadillac Challenge

  1. 1. Title Page Ari Ratner Casey Rand Diamond White Marcus Brown Sruti Dhulipala In Pursuit of You The 2008 CTS Launch
  2. 2. Road Map Creative Work Our Road Map Goals Research Target Audience 2008 Launch Strategy Budget & Returns The Media Plan A Brand Story Insights
  3. 3. To influence prospective luxury car buyers to own a Cadillac Revitalize Cadillac’s image by aligning the CTS with a younger target Our Goals To attract younger people to the brand
  4. 4. There exists an abundance of research on luxury product consumers, luxury cars, and the automobile market. The focus was on what insight can be derived from all of this… Cadillac * “Some people think the only vehicle we have is an Escalade. There is an awareness gap, and people don’t know our portfolio exists.” * Cadillac sales rose 37% in 2005 from 2001 * Cadillac CTS sales rose 2.5% in 2005 from 2001 -- most other entry-level luxury cars sales declined Luxury Cars * “The American consumer is looking for American luxury.” * “Premium luxury is going to grow faster than mass market in the next few years.” (LexisNexis) * Overall luxury sales, about 13% of the total vehicle market, is expected to grow annually 2% Research Sources Wall Street Journal Edventure Informational Packet The Luxury Institute LexisNexis
  5. 5. Negatives & Positives <ul><li>Negatives: </li></ul><ul><ul><li>The success of the Escalade has overshadowed the rest of Cadillac’s product line. Many people can’t name any of your other cars. </li></ul></ul><ul><ul><li>The perception among younger people is that the brand is for old people: “Cadillac’s owners range in age ‘from 65 to dead’.” </li></ul></ul><ul><ul><li>American cars have gotten a bad rep’ and Cadillac is not spared: “The problem is that Cadillac really isn't on the same level as the imports in terms of technology, quality, and brand cachet.” </li></ul></ul><ul><li>Positives: </li></ul><ul><ul><li>The design of the CTS is catching the attention of younger people. </li></ul></ul><ul><ul><li>A Cadillac is still a Cadillac -- meaning, it continues to be a symbol of hard-earned </li></ul></ul><ul><ul><li>success. </li></ul></ul><ul><ul><li>Consumers are now demanding a superior customer service experience and Cadillac </li></ul></ul><ul><ul><li>ranks the highest in the car buying experience. </li></ul></ul>Insights Source USA Today
  6. 6. Don’t waste time *To attract younger people to the brand These groups primarily consist of professionals of a higher age group. * Revitalize Cadillac’s image by aligning the CTS with a younger target They aren’t in the entry-level luxury car market at this stage. Loyalists Alpha Males Baby boomers Don’t bother wasting time Source Edventure Informational Packet
  7. 7. Introduce The Young & Relentless Who we are targeting <ul><ul><li>Aspirationals </li></ul></ul>The Young & Relentless (TY&R) Delectable Moms Their common link: They create the world they want to live in, never being defined by the way it’s been done. The Young & Relentless are more focused on how they’re going to do it. Life Mottos: Obstacles are what you see when you take your eyes off the goal. The only risk is not taking any risks. Total population of 25-35: 38,692,519 Total employed: 32,037,408 Annual HHI $60,000: 16,250,857 College Educated: 23,000,000
  8. 8. Aspirational Profile Key challenge: “ We don’t live to work, we work to live!” 25-35; Skews male; Some college +; Avg. HHI $65,000; Skews single; Corporate or creative jobs, some entrepreneurs They view Cadillac as their grandparents’ car. They don’t consider Cadillac in their list of luxury cars which include BMW, Infiniti, Lexus, & Acura. “ Don’t call them Yuppies. That’s too 80’s. Too reminiscent of an obsession with upward mobility….[TY&R] care more about their individual career and their quality of life.” The Aspirationals
  9. 9. Aspirationals think What aspirationals think? My life goes beyond the office into the things I’m passionate about like my band or cycling. My friends and I aren’t influenced, we influence. I like brands that demonstrate an understanding of my individuality.
  10. 10. Yummy Mummy Profile “… the impossible balance between the single sexpot she used to be, the woman she's become, the professional she works hard to be, the wife she aspires to be and the mother she has to be…” “ I always get the job done with practicality and style!” They want a car that fits their lifestyle and image and don’t think Cadillac can fit the bill. 27-35; Some college; Avg. HHI $75,000+; Skews married; Has a career that gives them autonomy so they are able to work & play. Key challenge: The Delectable Moms
  11. 11. Yummy Mummy thinks What Delectable Moms think? “ I’m a mother and that’s the most important thing I'm going to do, but I am also this fascinating, savvy, sexy, wonderful woman and nothing’s going to change that.” “ I didn’t give up my 4” Black Stilettos when I became a mom, I just brought them down to 3”!
  12. 12. Car Market Says “ I bought this car because it attracts the opposite sex.” The Luxury Car Market Lexus Infiniti G35 “ I bought this car because it is trendy.” BMW Acura “ I bought this car because it lets people know that I have made it.” “ I bought this car because it attracts the opposite sex.” “ I bought this car because it’s affordable.” Source Personal Interviews
  13. 13. Car Market Says “ I bought this car because it attracts the opposite sex.” Creative Brief The Young and Relentless: Aspirationals and Delectable Moms Target audience If you believe in yourself, you believe in the CTS. This car was made from your spirit - not made for your spirit. Reasons to believe To influence prospective car buyers to own a Cadillac To attract younger people to the brand To revitalize Cadillac's image by aligning the CTS with a younger target Goals Most important takeaway Instead of telling this ambitious bunch this car is made for you, Cadillac made a car generated from you. What we need A print and TV campaign for cable channels and a website for
  14. 14. Strategy: Reach The Young & Relentless on the move Our Strategy Position: The CTS was born from your image. Our target is forever moving. They are headed to work, to daycare, to happy hour, meetings, book clubs, networking party's and to find enough time to sit in front of the TV is a luxury. Our plan is to bring the CTS to them at the places they spend most of their time; at work, on the computer or with their family.
  15. 15. Creative traditional Print Creative #1
  16. 16. Creative traditional Print Creative #2
  17. 17. Creative traditional Television Creative #1
  18. 18. Creative traditional Television Creative #2
  19. 19. Online 70 % of media users say that at one time or another they try to absorb two or more forms of media at once. Media Mix Traditional Marketing Brand Awareness, Brand Familiarity and Purchase Intent are highest when all media are used. Our target has more media choices than any previous demographic segment. They have embraced communications technology personalizing to meet their media preferences for entertainment, news, and information. Source iFOCUS 56% 26% 18%
  20. 20. Aspirationals Media Distribution Magazines Television * Average HHI $60k+ * Magazines - Total Audience of 11,109,200 * Television - Upscale, content -driven audience. Source USA Today MRI Plus Subscribers
  21. 21. Online Delectable Mom’s Media Distribution Magazines Television * Majority have above $75k HHI * Magazines - Total Audience of 11,109,200 * Television - Educated, upscale audience. * Highest concentration of female viewers * Average consumer of mommy blogs is 29 Source USA Today MRI Plus Subscribers
  22. 22. “ My experience at the dealership was great. The salesman approached me as soon as I entered. I informed him I was not buying a car - just researching. He brought me outside to show me the vehicle and features. He then brought me back inside to give me some literature about the car. I felt very good when I left.” - Leigh Stevens, 31 Marketing Ideas Groups/Individuals can go to the website to sign up for a test drive of the 2008 CTS. By putting in their name, number, email address, selecting a time slot and address for pick up they can expect a 2008 CTS to arrive at the selected time for their test drive. We are encouraging small groups and clubs to sign up together to take advantage of this offer. #2 Ranked dealership experience among luxury car competitors. Higher ranked than all other direct competitors. Source The Dealership comes to you. You come to the dealership
  23. 23. Marketing Geography Austin Cincinnati Boston Washington, D.C. Atlanta Seattle San Francisco Chicago “ They’re going to go after young people the way cities went after IBM” The Young and Relentless make up at least 12% of the overall population in the cities below - Over 3.5 million. The youth message is getting through in cities where women and younger people have broken through the leadership ranks.
  24. 24. Creative traditional Website
  25. 25. New Age Mommy From then to now. An documentary chronicling the lives of 5 women who are Delectable Moms. TV is filled with images of sexy singles in “reality” shows, game shows, or with high-powered careers; without much in between. This is the first time a film will document the lives of the extraordinary phenomenon of women who maintain their identity as a sexy sophisticate with a high powered career going through the changes of adding mom to the script. Fans of the film will also be able to peak into these ladies lives by visiting their online photo journals. Documentary: Modern Mommy Product Placement
  26. 26. Budget Measuring Metrics: Media Scheduling “ Advertising’s best results achieved when all media works in synergy.” Source Marketing Evolution ROI Online click through Website impressions The number of test drives in target cities
  27. 27. Sales History Expected Unit sales for 2008 CTS: CTS Unit Sales 2006 Sales - 54,571 2005 Sales - 54.434 2004 Sales - 53,106 2003 Sales - 47,629 2002 Sales - 35,479 Sales growth from 2005 to 2006: 0.25% 54,707 Sources Lexis Nexis Edventure Informational Packe
  28. 28. Return on Advertising Investment Expected Unit sales for 2008 CTS: 54,707 Sources Edventure Informational Packet TNS Media and Automotive News Center Return on Sales: $2,047,815,000 x 2.5% = $51,195,375 Advertising Cost Per Vehicle Sold: Traditional Advertising: $628 Online Advertising: $250 Marketing: $493 Media Budget: Traditional Budget: $16.808,175 Online Budget: $4,844,000 Marketing Budget: $7,846512 Total Units Sold: Traditional Advertising: 26,764 Online Advertising: 19,376 Marketing: 15,915 Total: 62,055 CTS Sales: 62,055 x $33,000 = $2,047,815,000 Base Cost of CTS: $33,000 Return on Advertising Investment: $51,195,375 - $30,000,000= $21,195,375= 71% ROI ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Units Sold: 14% Increase
  29. 29. Fulfilling our Requirements COMMUNICATIONS STRATEGY  CREATIVE BRIEF MEDIA PLAN EFFECTIVENESS METRICS    Television Print Outdoor Billboard Direct Mail Emerging Media Traditional Media Events/Test Drives Interactive Customer Retention Documentary Banner Ads AdWords
  30. 30. CTS Brand Story I need a new car. The '99 Altima has been good to me, but it's time to upgrade. I worked hard through college, stayed focused and was determined to land a job at the biggest internet biz on the east coast. I deserve an upgrade. So I'm looking at the 3 Series, A4, and CTS . I've always loved BMW, Audis --but there's something about the CTS. I first saw one at the 2006 Auto Show; a striking, different look. After checking out Edmunds, JT Power, and of course talking to friends ; the feedback is neck-in-neck when it comes to performance, reliability, and luxury. But when I read in Entertainment Weekly that Cadillac was bringing the test drive experience to people, then saw an online ad for , I had to try it out. And it was the coolest experience. I was like, &quot;why aren't all car companies already doing this?” The CTS Crew was even better than I thought it would be. The crew was informative and similar to me. They even had baby seats for the mom's test driving . A totally new spin on the car buying experience I won't forget. I can't get it off my mind --and I don't want to. It's got my attention. I'll make a trip to the CTS dealership this weekend.