Cadillac's Marketing and Business Strategy

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Cadillac's Marketing/Business Strategy Massachusetts Introduction The Cadillac belongs to a luxury car segment that was earlier dominated by Packard in the US and by Benz in Europe. The positioning of the Cadillac and twenty years of struggle to make it number one has paid off today even though General Motors is in trouble. The Cadillac survives as a separate entity in the luxury market and this again is the result of a most brilliant strategy. History and Present Position America's most prestigious automobile manufacturers were the Packard in the segment that now is ruled by Cadillac. With fifty-nine years of history Packard defined the market segment for luxury line of autos. However after World War II years in 1956 Packard folded and it happened ironically when the US was in the biggest automotive booms in history. The fall of the Packard could also be attributed to the General Motor's strategy that with the Cadillac tried to knock off Packard. While Packard was the 'prestige car' the Cadillac was offered as an alternate. During the 1930's and up to 50s the market for Cadillac was low, and nowhere near that of Packard. Cadillac was the second car in the luxury market. Carefully the Ford offering was sustained in spite of loss. Then Packard made the fatal mistake of entering the low price car segment, which was simply disastrous because it lost the 'prestige car' segment. (Ward, 1995) That prompted GM to take over the segment, and Packard did not do well in the

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