Cadillac brand & reputation director: "We dont want to be an automotive brand"

[12,000 RPM]

http://www.thetruthaboutcars.com/2014/11/cadillacs-director-brand-reputation-strategy-dont-want-automotive-brand/#more-953897

In an interview held at Cadillac's new business headquarters in New York City's trendy SoHo district with Fortune, Melody Lee, 'director of brand and reputation strategy' for General Motors' luxury brand, had some interesting things to say about the move to NYC, about the brand, and about herself. Other than to say that it's just quite possible that outstanding product is a little bit more important to a company's success than Ms. Lee seems to think, I'm not going to comment on her remarks because I think they speak for themselves and, frankly, I think they don't bode well for the brand. You can read them and offer your own commentary after the jump. The engineers and designers at GM have given Cadillac the best products that it has had in decades, but automotive history has many examples of fine vehicles that were crippled in the marketplace by the very people trying to market them.

Thus spake Melody Lee:

    "I'll often say, 'Well, do you want a millennial's perspective?' You have one right here."

    "Everyone in New York is always just a little bit ahead of everyone else and we need to be the brand that stands for that."

    "I don't buy products, I buy brands. I don't use Apple computers because they are the best computers, I use them because Apple is cool. We need to show drivers what the Cadillac lifestyle is all about."

    "We want to be a global luxury brand that happens to sell cars. We don't want to be an automotive brand."

Hat tip to Pete DeLorenzo for spotting the interview with Lee.

The floor is open for your discussion now.

Wat a train wreck. A self-writing Greek tragedy.

Say what you want about the Germans today but their come up was built on product and understanding + quickly responding to their market, not this MBA smoke and mirror bullshit. Caddy's cars are decent now, but if they put as much effort into delivering value as they did into marketing... well, they probably wouldn't need a "brand and reputation" director.

[Galaxy]

"I don't buy products, I buy brands. I don't use Apple computers because they are the best computers, I use them because Apple is cool.

Just be glad that this fool is not in the engineering department.

[FlatBlackCaddy]

"Good news everyone"

[FoMoJo]

The most interesting thing, imo, is her name.

[veeman]

That's a stupid article trying to paint her as a dumb person.  The writer takes her words and takes them out of context implying she thinks that the product doesn't matter.  She doesn't say that at all.  She's saying that she's focusing on marketing Cadillac as a "cool" brand which is crucial for it's success.  Here's a much better article on her:

http://fortune.com/2014/11/18/cadillac-brand-director-melody-lee/

[Galaxy]

That's a stupid article trying to paint her as a dumb person.  The writer takes her words and takes them out of context implying she thinks that the product doesn't matter.  She doesn't say that at all.  She's saying that she's focusing on marketing Cadillac as a "cool" brand which is crucial for it's success.  Here's a much better article on her:

http://fortune.com/2014/11/18/cadillac-brand-director-melody-lee/

Nope, that article is not better. And no one is trying to paint her as a dumb person, she does that hereself. "I don't buy products, I buy brands," explained Lee. "I don't use Apple computers because they are the best computers, I use them because Apple is cool. There is no context that makes that acceptable. For a supposed marketing expert to say something that utterly stupid is baffling. And it would not surprise me if she is soon the ex Director of Brand & Reputation.

[hotrodalex]

Who cares?

[2o6]

BMW and Audi have a very strong brand. Lexus is starting to create one, and Lincoln's, Cadillac and Infiniti have really terrible branding.


These cars are more aspirational, and Cadillac has to create an air that goes beyond the initial product

[CALL_911]

Lexus hasn't had the coolest brand image, but they've been able to get past that with impeccable quality

[Rich]

What this dummy doesn't understand is that Apple is considered cool because of years of great product. 

It's all about the product.  Yeah, you need some marketing, but you can't build a sustainable brand based on marketing (as Lincoln is trying to do right now)

[FoMoJo]

Lexus hasn't had the coolest brand image, but they've been able to get past that with impeccable quality

Interesting.  Perception is a powerful marketing tool.  Toyota/Lexus have gotten away with a lot of quality issues, over the last few years, because of customers' perception.  We should keep in mind, though, that perception is only skin deep.  Put a nice face on something and people will believe it has quality.

[12,000 RPM]

Who cares?

For starters, anyone who took the time to post in this thread.

But thanks for playing 

[2o6]

Do you not see the amount of branding and brand identity that BMW has? Ever been in a BMW lifestyle center? What about all of the tours, European deliveries, and other non product related BS they have? (Little mini cafe's, museums, etc and all of the BS that Wimmer and Colin posts on)

VWAG has a lot of that too.

GM has none of that.

[veeman]

While Lexus may not be considered "cool" on this forum, it has amazing marketing and is a very aspirational brand for a lot of young people, particularly women, with money.

The whole red gift wrap bow on a Lexus as a Christmas present, with a background of a real nice house and snow and laughing running kids, and model looking Dad and Mom in wool coats - that's been playing now this time of year for probably close to a decade. 

And the Lexus ES isn't that great a value or car...  It's OK.  Sure sells well. 

[MX793]

Marketing the image and lifestyle over product has been a huge boon for Harley-Davidson.  I read a piece a while back where somebody got ahold of a sales handbook for H-D and it's all about selling the image of the bike rather than the machine itself.

[12,000 RPM]

Do you not see the amount of branding and brand identity that BMW has? Ever been in a BMW lifestyle center? What about all of the tours, European deliveries, and other non product related BS they have? (Little mini cafe's, museums, etc and all of the BS that Wimmer and Colin posts on)

VWAG has a lot of that too.

GM has none of that.

I mean BMW's branding/brand identity is all good and well, but what % of their customers do/see any of it? The component of BMW's brand that does the heavy lifting is the reputation and legacy it has built over the last 40 years. Same with Mercedes and to a lesser degree VWAG. I mean in the late 90s/early 00s I would dare say Mercedes and VWAG were damn near as poorly built as GMs in their worst period. OK maybe not as bad, but close considering how bulletproof Mercedes were not even 10 years prior. and yet people kept buying the cars and today nobody cares. The Germans figured out how to sell the dream and have pretty good product behind that.

[FlatBlackCaddy]

Do you not see the amount of branding and brand identity that BMW has? Ever been in a BMW lifestyle center? What about all of the tours, European deliveries, and other non product related BS they have? (Little mini cafe's, museums, etc and all of the BS that Wimmer and Colin posts on)

VWAG has a lot of that too.

GM has none of that.

Not true, they have an outdated museum with a hole filed with cars.

And free balloons for the kiddies.

[FoMoJo]

I mean BMW's branding/brand identity is all good and well, but what % of their customers do/see any of it? The component of BMW's brand that does the heavy lifting is the reputation and legacy it has built over the last 40 years. Same with Mercedes and to a lesser degree VWAG. I mean in the late 90s/early 00s I would dare say Mercedes and VWAG were damn near as poorly built as GMs in their worst period. OK maybe not as bad, but close considering how bulletproof Mercedes were not even 10 years prior. and yet people kept buying the cars and today nobody cares. The Germans figured out how to sell the dream and have pretty good product behind that.

Quite true.  I believe it's still valid to say that most who buy BMW, Audi and, especially, Mercedes, is for status.  As for Lexus, they are still exercising "the passionate pursuit of perception".

[FoMoJo]

Not true, they have an outdated museum with a hole filed with cars.

And free balloons for the kiddies.

[Submariner]

When I think of Cadillac, I think of old mafioso and guys who fancy their sisters.

The lady who is saying tha Apple is big because it's cool is clueless.  You need to build a good product before you have a shot at cultivating that image.  The ATS V looks promising, but what do they have besides that?  Nothing else in their lineup stands out against the competition. 

[2o6]

When I think of Cadillac, I think of old mafioso and guys who fancy their sisters.

The lady who is saying tha Apple is big because it's cool is clueless.  You need to build a good product before you have a shot at cultivating that image.  The ATS V looks promising, but what do they have besides that?  Nothing else in their lineup stands out against the competition.

That's true, but creating a brand that people want to buy can go a long way despite actual good product

[FoMoJo]

When I think of Cadillac, I think of old mafioso and guys who fancy their sisters.

...and pimpmobiles.

[12,000 RPM]

That's true, but creating a brand that people want to buy can go a long way despite actual good product

It can only go so far. Like fat girl Myspace angles. Might get people talking for a little bit. Wont get people buying

Cadillac's problem is still product. With good product marketing is pretty simple and easy.

[veeman]

They're both very important (product and marketing).  Cadillac can sell more ATS/CTS with better marketing.  Although NYC isn't really a car place, there is uber wealth in NYC and there is lots of suburbia in New Jersey, New York, and Connecticut filled with people whose employment is in NYC.  All of the people who own 2 bedroom apartments in NYC, most of which are over 1 million dollars, also own cars.  NYC is also one of the biggest travel destinations in the U.S.  Having your marketing headquarters in NYC makes good sense.

Her Apple analogy falls short because their product is amazing but there's plenty of very successful product out there in which the product itself is ho-hum.  Movado watches and Corona beer come to mind. 

The whole division of toyota/lexus is really just a marketing tool and a very successful one.       

[hotrodalex]

What's wrong with trying to create the brand image at the same time as new product? I swear you guys pick at every little step Cadillac takes even if it's a step in the right direction because you want them to jump straight to the end. That's not possible...

BMW, Mercedes, Porsche, Ferrari, etc. all have amazing branding. If Cadillac wants to play with the big boys, they need to as well. Apple products are bought because they are Apple products. The young people that buy them don't have a clue about which products are actually the best. Just which ones are popular and cool. Want an even better example? Beats headphones. Decent headphones for $100, but sold at 3x that. Why? Branding. Image. Coolness.

[12,000 RPM]

They're both very important (product and marketing).  Cadillac can sell more ATS/CTS with better marketing.  Although NYC isn't really a car place, there is uber wealth in NYC and there is lots of suburbia in New Jersey, New York, and Connecticut filled with people whose employment is in NYC.  All of the people who own 2 bedroom apartments in NYC, most of which are over 1 million dollars, also own cars.  NYC is also one of the biggest travel destinations in the U.S.  Having your marketing headquarters in NYC makes good sense.

Not really for a few reasons.

First of all NYers are damn near European when it comes to brands. I lived in those million dollar apartment neighborhoods. I have a picture somewhere of about 5 E46 325is parked back to back or across the street from each other. Secondly I dont see how marketing HQ in NYC helps if the product isnt conducive to what NYC wants. If Hummer moved its HQ to NYC that would not help them sell Hummers. Plus in any case they should have done the market research before committing to building an all new platform. What can this new HQ do to help with cars they are already committed to building?

What's wrong with trying to create the brand image at the same time as new product?

No amount of branding can help sell the wrong product, which is what Caddy has.

"Fighting the Germans" in 2014 means PHEVs, CUVs, and generally finding HOLES in the market the Germans don't have covered, not trying to infiltrate their core business. Outside of the PHEVs thats pretty much how Lexus got to where it is today (as well as a more consistent lineup, and making the most of its blank sheet reputation + timing).

Im hard on Cadillac because it seems like they are blowing opportunities back to back

[hotrodalex]

Wrong product according to you, which means nothing.

[12,000 RPM]

No, to the market too, given missed sales targets, low transaction prices and high rebates

Average sport sedan market buyer doesnt give a shit about 10/10ths dynamics or "Brembo brakes".... and isnt gonna buy a damn Cadillac over a BMW/Mercedes/Audi or even a Lexus

Plus the ATS/CTS give no reasons to be bought over their German competitors. Can anyone give any reasons besides "someone mite want something different"

[hotrodalex]

Okay. What do the Germans offer over Cadillac?

[MX793]

Okay. What do the Germans offer over Cadillac?

They didn't peddle crap from 1980 through the early 2000s?  Caddy drove buyers away.  If they want to win them back from the Germans, they need something that will make people leave their German cars.  Offering the same thing as the competition with a different badge isn't going to cut it, and it's unlikely the Germans will screw up badly enough to drive their customers away.