The Homa Files

Bottom line: After years of decline, Cadillac is trying to regain its luxury aura.

But given its older and less affluent owner base, that’s an uphill battle.

* * * * *

Excerpted from BusinessWeek, What Cadillac Is Learning from the Ritz, June 17, 2010

Last year, General Motors spent $354 million on marketing for its Cadillac division — more than any other luxury car maker in the U.S.

The branding campaign was largely ineffective: In 2009 Cadillac sold all of 109,092 vehicles, its worst year since 1953.

The brand’s product lineup needs refreshing, the average age of its buyers is a less-than-youthful 62 (13 years older than typical BMW owners), and Cadillac hasn’t been the top-selling luxury auto brand in the U.S. since 1997.

What to do? Sell like the Ritz.

It’s taking a cue from the hotel chain’s attention to customer service to restore a brand that’s sorely lacking in luster

In its effort to reconnect with upscale customers, GM has brought in trainers from Ritz-Carlton to show Cadillac dealers how to create a consistent sales experience across the U.S.

Cadillac has copied Ritz’s pocket-size “Credo” cards, which explain how customers should be treated.

Ritz employees also have $2,000 that can be used to make up for a bad experience or surprise a guest with a better one.

So Cadillac service chiefs are now given greater flexibility to extend OnStar subscriptions, provide free maintenance, or even reduce service charges for customers who are unhappy.

GM also is trying to garnish the brand image. Cadillac recently removed most references to mass-market icon GM from its Web pages and e-mails.

Still, no image remake can fully succeed until Cadillac comes up with more stylish models that can attract younger buyers.

For now, the company’s image will likely remain dinged as it continues churning out land yachts which appeal mainly to buyers in their 70s.

“They don’t need another  geezer-mobile.”

Full article:
http://www.businessweek.com/magazine/content/10_26/b4184024360730.htm?chan=magazine+channel_news+-+companies+%2B+industries

This entry was posted on July 6, 2010 at 6:43 am and is filed under Mktg - Brands. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.