Sep 24, 2004

Greater China: Cadillac targets Benz, BMW as market cools

SHANGHAI: Despite a cooling automotive market, Shanghai General Motors (SGM) has pushed ahead with its launch of Cadillac in the country, unveiling an integrated campaign that pits the brand against luxury competitors Mercedes-Benz and BMW.

Greater China: Cadillac targets Benz, BMW as market cools

Incorporating a 'Dare to be First' message, the campaign features television, outdoor and print executions, and was created by Leo Burnett Shanghai.

Stuart Pierce, brand director for Cadillac at SGM, remained upbeat about the marque's prospects - but admitted that slowing car sales hardly made for an ideal launch environment.

"If we could pick the environment we could launch in, it's probably not the one we would pick," said Pierce. "However, our number one priority in all our communications and marketing is to establish the brand. We're not looking to set any sales records in the first year or two."

China's auto demand has dropped following Government lending curbs, which have led consumers to delay purchases in the expectation of further price decreases. Car prices dropped 13 per cent year-on-year in August.

However, with Cadillac looking to shift units in the luxury end of the market, Pierce remains positive that the brand message will resonate with more entrepreneurial consumers.

"We've done an awful lot of research to determine how to position Cadillac in China," he explained. "With the large number of entrepreneurs in China, some of these people are ready to say 'I don't have to drive a black German luxury car'.

"We really need to position the Cadillac as very different and very unique and target people ready to make a statement about their success."

To this end the 60-second TVC - entitled 'Undetectable' brought together Burnett talent from around the globe, to deliver a spot that showcases the "bold design and innovative technology" of Cadillac's three launch models.

"The biggest challenge for us is the brand image," said Pierce. "We have found that consumers are very brand conscious in China. While they know about Cadillac and know it's prestigious and luxurious, it's still not the 'in brand'."

"We think we can offer them a very different, bold and dynamically designed vehicle," said Burnett Shanghai managing director Donald Chan. "A spirit that connects with Chinese consumers' own desire to break new ground, to be entrepreneurial and to embrace new experiences and brands."

SGM expects most of the luxury sports sedan CTS model, which will launch first, followed by the sports utility SRX at the end of the year and the XLR roadster early next year.

"China's still mostly a sedan market and the CTS is the only one that is a traditional sedan," explained Pierce.

SGM will begin local production of the models at the end of this year.

Media buying and planning was handled by ZenithMedia Shanghai.

Source:
Campaign Asia
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