Do Johan & Uwe understand Luxury? OR CADILLAC? - merged/updated - Page 3 - Ford Inside News Community
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post #21 of 185 (permalink) Old 12-15-2014, 09:28 PM Thread Starter
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PART DEUX: Luxury (customers) don't understand Cadillac - BizJournals.com


Cadillac left behind in luxury car sales boom
- BizJournals.com

Dec 15, 2014
Jeff Clabaugh

...Year-to-date total sales gains, by luxury brand, according to Cars.com:
Audi = 15.4 percent
Lincoln = 15.0 percent
Lexus = 13.6 percent
Porsche = 11.8 percent
BMW = 9.5 percent
Mercedes = 6.0 percent
Jaguar = 3.8 percent
Land Rover = 3.3 percent
Infiniti = 2.0 percent
Acura = 0.2 percent
Cadillac = (-5.9) percent

..."Cadillac took a major leap to refresh its image by moving to New York City this year," says Cars.com chief analyst Jesse Toprak. "But the numbers speak for themselves — the brand still has an uphill climb to show consumers they're on par with attractive makes like BMW and Mercedes-Benz."

Audi and Lincoln have seen the biggest surge in sales this year, up 15.4 percent and 15.0 percent respectively. Lexus and Porsche have each seen double-digit gains in sales this year.

While BMW ranks fifth in year-to-date growth, with sales up 9.5 percent, the automaker's 3-Series was the best-selling luxury vehicle in November, followed by the Mercedes C-Class and the Lexus RX...

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post #22 of 185 (permalink) Old 12-16-2014, 05:48 AM
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Re: GM didn't understand...Luxury - Cadillac CMO

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Originally Posted by Andrew L View Post
Maybe your dealership does but NOT ALL. I have posted here several times about both Lincoln dealerships that are near me and both times left a very sour taste in my mouth. I guess it's because I am young and they don't expect me to be looking at a Lincoln or less afford one but I can, and I OWN a Lincoln now that's what makes it even more aggravating. Also its not like I live in a small town or anything the Tampa Bay area is huge and I have been to both Lincoln dealers in Tampa and in Clearwater. However the one time I stopped at a Lexus dealership I was treated WAY differently. Lincoln still has a lot of catching up to do in that department IMO.

Meh......everything you said can be changed from Lincoln to BMW/Merc and Tampa to where I live.

......but you are entitled to your opinions.
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post #23 of 185 (permalink) Old 12-16-2014, 06:52 PM
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Re: GM didn't understand...Luxury - Cadillac CMO

Personally I believe that Cadillac needs time for the product, and the marketing approach to create sales success. This is the first time in many years that Cadillac products truly took a back seat to no one including the Germans.


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post #24 of 185 (permalink) Old 12-24-2014, 04:55 PM Thread Starter
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Does CADILLAC understand Cadillac??

U.S. Auto Sector Tries to 'Out-German the Germans,' Says Cadillac CMO - AdAge
Uwe Ellinghaus Just Wants Cadillac to Be Itself

By Malika Toure. Published on December 17, 2014


Uwe Ellinghaus keeps finding himself in hot water for the things he says. Most recently, he took flack from the auto industry for declaring, "When I recruit people, I do not need 'petrolheads.'" He defends his statement, saying Cadillac's issue isn't the product, it's the brand.

"While there are no great brands without great products, having a great product isn't always sufficient for winning customers over, and this is what we currently experience," Mr. Ellinghaus said...

...He maintains that Cadillac is the last American luxury auto brand...

1. Re-establish Cadillac as a luxury brand
Approximately 40% of all luxury cars in the U.S. are sold in New York and Los Angeles... ...the brand is "really losing out on the coasts," said Mr. Ellinghaus. His solution is to "show that we are a part of target audience's lifestyle," and that the brand can resonate in New York and Los Angeles...

2. Stop trying to out-German the Germans

"I find it funny that being the German [at the] table, I'm always the one saying 'we need some Americana back,'" Mr. Ellinghaus said... ..."What we need to avoid is American cliches -- don't expect James Dean or Elvis Presley to be a part of future communications," Mr. Ellinghaus said. So what is this 'modern Americana,' he seems so determined to convey?...

3. Create a recognizable brand experience

"If you look at our dealer appearances the world over, they do not look the same," said Mr. Ellinghaus... ...The brand lacks consistency and changing that is Mr. Ellinghaus' main goal...

...Look for big changes in 2015. Mr. Ellinghaus says a new look and feel and a new brand point of view are on tap. New creative from recently-appointed global creative agency of record Publicis will roll out early next year. Cadillac will be launching its new top-of-the-line car, the CT6 with a major marketing push between the Academy Awards on Feb. 22 and the New York International Auto Show taking place April 3 through April 12, 2015.

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post #25 of 185 (permalink) Old 01-22-2015, 10:13 AM
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Cadillac boss to introduce 'boutique' store concept to 700 dealers

Emphasis will be on high-tech showrooms, high level of customer service

Mike Colias
Automotive News
January 22, 2015 - 9:37 am ET

DETROIT -- Cadillac plans to ask about 700 of its dealerships to invest in small "boutique" stores that would offer "high technology showrooms" and a higher level of service than they offer today.

Cadillac President Johan de Nysschen plans to outline the plan in an appearance at the Washington, D.C., auto show today and at the National Automobile Dealers Association convention in San Francisco this weekend.

Cadillac's network of slightly more than 900 dealerships includes about 200 "flagship" standalone stores. Another 700, many of which are paired with Chevrolet or other brands, will be asked to convert to "smaller, boutique locations," the brand said in a statement today.

"The boutique concept would feature exclusive Cadillac consumer touch points, highly trained sales and service staff and luxury amenities," the statement says, citing interactive digital displays that would allow customers to configure their vehicles, for example.

In an interview last week, de Nysschen said he has no plans to cut the number of dealerships, saying the network's market coverage can be an advantage over competitors. But he said dealerships that don't have Cadillac as their focal point will be expected to invest.

"I am definitely going to be in disagreement with dealers who think they can sustain the business for Cadillac by selling Cadillac out the backdoor of a Chevy store," de Nysschen said.

Work in progress

In the interview, de Nysschen stopped short of insisting that every Cadillac dealership would need to have a standalone store. It's unclear whether the boutique concept -- which he said still is a work in progress -- would allow for a separate Cadillac showroom that is attached to a dealership that sells other brands.

"I want wherever it is feasible to have dedicated, standalone Cadillac stores," he said. "In those areas where it is not feasible -- and there will be many -- we want to come up with a concept where we can have a small footprint, boutique-like store that is very premium in its expression and size-appropriate, also in terms of its investment."

In Cadillac's statement today, de Nysschen cited the $12 billion in product investments that he announced last week, planned over the next several years. He said dealers must be willing to make their own investment in facilities and "upgrades to the customer experience" in return.

Cadillac envisions "virtual showroom" technology that would allow customers to configure their vehicles, such as color and interior choices, through interactive digital displays, possibly even holograms.

De Nysschen conceded in the interview that the size of Cadillac's dealer network is larger than he would like if he was starting from scratch. But, contrary to recent rumors among Cadillac dealers that he wants to cut hundreds of stores, de Nysschen insisted: "I have no plans to cut the network."

He said Cadillac's reach into non-urban markets where BMW, Mercedes and Audi don't have stores can be an advantage, especially in giving customers access to service. But he said the customer experience must improve across Cadillac’s retail network.

"We are going to have to work with our dealers and also invest a little bit in getting our people on the showroom floor trained up for a new approach to selling the cars," he said. "It's not a matter of, as the customer walks in, to explain to him how fortunate his is, because today we've got a good deal going."

Improve dealer profits

De Nysschen also has said that he wants to improve Cadillac dealers' profitability. He is exploring "a revised dealer margin and bonus system that encourages and rewards the right behaviors, which also includes investment in facilities and people."

He said he would like to improve new-vehicle margins and "do more indirect holdback support" to reward dealers who invest in facilities, boost marketing and expand their courtesy transportation fleets, for example.

Many Cadillac dealers have renovated or rebuilt their stores in recent years through a similar General Motors incentive program, Essential Brand Elements, which pays dealers for each new car they order from the factory. De Nysschen said that model won’t work for Cadillac. He has been slashing production in a bid to boost the exclusivity of Cadillac’s vehicles and reduce the incentives required to sell them.

http://www.autonews.com/article/2015...to-700-dealers
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post #26 of 185 (permalink) Old 01-22-2015, 10:16 AM
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Re: Cadillac boss to introduce 'boutique' store concept to 700 dealers

Sounds alot like what Lincoln is already doing or implementing.

I can speak from personal experience that at least my local Cadillac dealer sucks.
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post #27 of 185 (permalink) Old 01-22-2015, 11:30 AM
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Re: Cadillac boss to introduce 'boutique' store concept to 700 dealers

I love that Lincoln leads them here. Any marketing major will confirm that Lincoln did a better job of recognizing that a customer focused marketing solution can be more beneficial in this segment, than a product focused marketing solution. Sure product matters, but it is a smaller percent than many realize. Cadillac put far too much emphasis on copying the Germans, hoping that would add brand awareness. I am not so sure it has. I too used to believe that if you build the best product you can, people will find out and that is 95% of it. I don't know where that percent is in reality, but I guess it depends on how you define 'best.' Best at what, exactly? That is where the customer experience comes into play.

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post #28 of 185 (permalink) Old 01-22-2015, 11:41 AM
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Re: Cadillac boss to introduce 'boutique' store concept to 700 dealers

^
Did I sound kind of smart in that last paragraph, or was it all in my head

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post #29 of 185 (permalink) Old 01-22-2015, 12:32 PM
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Re: Cadillac boss to introduce 'boutique' store concept to 700 dealers

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^
Did I sound kind of smart in that last paragraph, or was it all in my head
Last paragraph, first paragraph, middle paragraph, I don't know, I see only one paragraph!
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post #30 of 185 (permalink) Old 01-22-2015, 12:36 PM
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Re: Cadillac boss to introduce 'boutique' store concept to 700 dealers

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Originally Posted by wingsnut View Post
I love that Lincoln leads them here. Any marketing major will confirm that Lincoln did a better job of recognizing that a customer focused marketing solution can be more beneficial in this segment, than a product focused marketing solution. Sure product matters, but it is a smaller percent than many realize. Cadillac put far too much emphasis on copying the Germans, hoping that would add brand awareness. I am not so sure it has. I too used to believe that if you build the best product you can, people will find out and that is 95% of it. I don't know where that percent is in reality, but I guess it depends on how you define 'best.' Best at what, exactly? That is where the customer experience comes into play.
Lexus has been building high quality, high feature premium (but soulless) cars for going on three decades now and are no closer to joining the big three. I don't know that if Lincoln or Cadillac did both, best in class dealership experience and best in class vehicles that it would be enough in the short term to overcome the perception that the big three are superior. I'm not suggesting that the differences between the US two and German three are only perception, but that perception is going to be the biggest hurdle to overcome.
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700, boss, boutique, cadillac, cmo, concept, dealers, introduce, johan, luxury, merged or updated, store, understand, understandluxury, uwe

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