2008 Cadillac CTS Case Competition

1. 2008 Cadillac CTSCase Competition Presented By: American Marketing Association

2. Goals Road Map Word Association Primary Research Secondary Research Internet Survey Communication Strategy Advertising Plan Creative Brief Media Plan Measuring Strategy Effectiveness Contents

3. Goals • Increasing Cadillac’s Conquest Rate • Decreasing The Average Age Of Cadillac Consumers • Improving The Image And Reputation Of The Cadillac Brand

4. “Research Road Map” Primary Research “Audience Car Ownership” “Wishful Purchasing Behavior” “Brand Perception” – word association (Qualitative Survey, Internet Forums & Visit Dealership) Secondary Research “Proposed Target Markets” Choose & Survey Target Market “Research Competition” (Lexus, BMW, Mercedez, Acura, Infiniti and Audi) ‘Research Communication venues’ Communication Strategy Communication Platform (Focus Group) Advertising Plan

5. Primary Research“CadillacPerception - Word Association”

6. Primary Research “Cadillac CTS” Perception - Internet Forums (blogs) N=268 Positive Feedback Negative Feedback Satisfied Loyalty Upgrade Reliable American Underperformed Tacky Sources: http://www.cadillacfaq.com/survey/results7php (November 11th, 2006) and http://leftlanenews.com/2007/01/08/2008) –Cadillac-CTS (Jan1, 2007)

7. Primary Research“Cadillac CTS” – Interview with Sales Consultants • James Wood Auto Park • Tom Dempsey (sales consultant) • CTS • Move up- first timers • Late 20’s to early 30’s • Either drive foreign or are downsizing from bigger vehicle • Cadillac • People want to be associated with Cadillac • Younger people just want to own Cadillac for status • Older people own Cadillac for comfort, performance, and status • New Platform: Life Power  New Experience • Life – achieving things, reward for hard work • Power – powerful car, in charge of your own life • New Experience – everyday new opportunities, luxury, quality

8. Primary ResearchPositioning Platform - Focus Group • “Life Power, New Experience” • Portrays the feelings: • of being in control • that opportunity awaits • that you can look forward to new experiences everyday • you’ve achieved a milestone in life and are looking for more • Capitalistic America • Both positive and negative • If capturing this feeling, incorporate all nationalities representative of U.S. • Come here for opportunities; work hard deserve Cadillac

9. Internet Survey (N=134) • Top vehicles owned by respondents: • -Toyota, Ford, Honda, Nisan and Chevrolet • Younger population plans to purchase next vehicle in the next 3-4 years • >$ 50,000 household income respondents plan to purchase vehicle in 1-2 years

10. Internet Survey(N=134) • Most utilized media to seek information about cars • -Internet 79%, Television 31% and Magazine 29% • Most likely to influence respondents purchasing decision • Myself, Spouse and Friends • Most likely luxury vehicle to purchase • -Lexus, BMW, Mercedez and Infinity

11. Internet Survey(N=134) • Most desirable attributes in a luxury car describe what a Move Up values in a • luxury vehicle: • -Feeling of Accomplishment, lively, utilitarian, richness of experience, powerful engine, premium, innovative • smooth, safety as main focus, stylish, fuel efficient, good value and comfort • We consider the following lifestyle responses to be descriptive of the Move Ups market segment • -Traveling, listening to music, internet, reading, shopping, theater, walking, cooking, dancing, biking

12. Internet Survey(N=134) • Most respondents access internet daily from home and work • Sample Characteristics: • Over 60 percent of respondents were 36 years and older • Over 60 percent of respondents made more than $50,000/year • 38 Percent younger respondents • 62 Percent older respondents

13. Secondary ResearchCompetition (Positioning) • Lexus • BMW • Mercedes • Acura • Infinity • Audi Gianni

14. Secondary ResearchCompetition (Positioning)

15. Target Market – Pro’s and Con’s

16. Chosen Market – “Move Ups” New Professionals that have established credibility within themselves and those around them. They are ready to try something new, spread their wings and demonstrate their success.

17. Positioning Platform Cadillac CTS “Life Power, New Experience” • Portrays the feelings: • of being in control • that opportunity awaits • that you can look forward to new experiences everyday • you’ve achieved a milestone in life and are looking for more

18. Creative Brief • Objective: Create Cadillac CTS “Life Power, New Experience”among men and women in the move up segment, to increase the conquest rate of the 2008 Cadillac CTS.

19. Creative Brief Project Summary: • The 2008 Cadillac CTS has been re-designed to provide style, technology and performance at the opulent level; creating an awakening of envy and lust for the CTS to consumers and luxury car competitors. • Cadillac’s current positioning is failing to meet and satisfy its target segments wants and needs. Only being picked up by a few niche segments in the global industry, Cadillac CTS is seeking to redefine its once national and global presence and identity – to promote the CTS’s unique dynamics and styling to an emerging, new professional global audience. • Cadillac CTS would like to increase its conquest rate through print and interactive identity campaigns. • Immediate goals include advancing marketing and promotion of the CTS via both traditional and non-traditional methods carried out through a lucrative marketing plan. • A significant goal is to re-create Cadillac’s current diminishing perception. • Long-term, the Cadillac CTS will be a car and a legend for clients and company – with the eventual build out of consumer loyalty and industry envy.

20. Creative Brief Target Audience: • Move-ups are currently mid-level professionals driving vehicles such as Camrys, Civics, Accords, etc. and are on the way up the corporate and social ladder. • These consumers are looking at vehicles to decide which will provide the highest feeling of accomplishment, innovation, and style to satisfy their increasing automobile expectations. • These individuals, more than likely, have already heard of the Cadillac CTS, and are looking elsewhere because of the fading brand perception. • Cadillac CTS's typical consumers are a VP of Marketing for a high-profile television studio. He is considered ‘old school’ and has been in the industry for over 20 years, starting from initial television production and set design. He has an interest in technology, but rarely uses his computer for anything but email, calendar and contact information. He is on a shared studio T-1 network connection, and when online uses the Netscape 4.0 browser – the one that came with the computer and has not been updated. He is rarely online, and usually only when directed to the web. He looks at competitive studio advertising, marketing and promotional efforts, and when away from work never goes online.

21. Creative Brief Perception/Tone/Guidelines: • Dynamic, accomplished, contemporary, exciting, stylish, enviable • Elegant, semi-corporate, high performance, value, brand recognition • Differentiate segmentation strategy between males and females with new Cadillac CTS marketing & branding efforts in a new and different way • Print, television and internet advertisements should be consistent • Eye catching and memorable Communication Strategy: • The new communication strategy, for males and females, will be noticeably distinctive for the move up demographic. The goal is to heavily penetrate the market ahead of the CTS arrival, creating a want. During this time we will be focusing on the emotions and lifestyle the CTS portrays, along with its product features. Once the car arrives in dealerships we will keep the same ads, with the added “reward yourself” or “come to the dealership and try yours” promotions. During this time, we want the move ups in the dealerships trying out the CTS.

22. Creative Brief Competitive Positioning: • Cadillac CTS has many competitors in the luxury car industry, many of which currently have higher market share and a stronger brand image. Highlighting the quality, style, emotions, atmosphere and overall product features will allow for Cadillac to develop a breakthrough branding and positioning platform which will separate Cadillac CTS from its competition.

23. Advertising Plan • Differentiated Segmentation Strategy • Focus on males and females in the move-up demographic • Chosen Media • Print, Television & Internet • Advertisements strategically placed in media channels most enticing to the target market. • Primary research shows this demographic to be active, business minded, and socially savvy. The media that best correlates with this market are magazines such as Sports Illustrated, Men’s Health, Time, Smart Money, Elle, W and Cosmopolitan. • Majority of the advertisements should appear in the first three months of cars arrival and then reduce the amount of TV, Internet, and print advertisements for the rest of the year.

24. Women’s Mood Board • Modern/Vintage • Audrey Hepburn Feel • CTS Is Centered Around A Chic, High End Lifestyle • Black, Grey & Pearl • Portray Feminine Socialite Feel • Highlight Emotions & Lifestyle • “Classy & Fabulous” • -Coco Chanel • “Little Black Dress” Of Cars • Every Woman Wants One • Safe, Classic, & Trendy

25. Men’s Mood Board • Urban/Retro Feel • CTS Outside Hip Night Club > Meet And Greet Setting • Neon, Modern Dressed Young Professional, Bold Colors, Exciting, Fun Atmosphere • Portray masculine socialite feel • Highlight Product Features • 300 Horsepower V6 • Advanced All Wheel Drive • Boss Surround • Ultra-view Sunroof • Adaptive Forward Lighting

26. Media Plan Costs

27. Media Plan

28. Measuring Strategy Effectiveness • How to Measure? • 1. Use day after recall to access the attention grabbing power of ads. • 2. Use Brand perception research to access if Cadillac CTS Life Power, New Experience” is coming through. • Track dealer traffic to see any changes after the new campaign.

29. References 1Spending Power of Young Adults – US- November 2006, Mintel International Group Limited; U.S.A.

30. Gianni Barberri Amber Burke Clint Dunn Dustin Ipson Leonardo Herrera Participants