2015 cadillac escalade ben petron director of marketing
TRANSCRIPT
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2015 Cadillac Escalade
Ben Petron
Director of marketing
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Preview S.P.S Large luxury SUV Industry Competitors Lincoln Navigator Lexus LX Our Product: Cadillac Escalade Comparative analysis table Conclusion Recommendation Q+A
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Specific Purpose Statement
• At Cadillac we strive to give consumers the best product on the market. The new 2015 Cadillac Escalade can bring in a large profit for the company while the consumers will have the finest SUV in the market.
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SUV Industry• The industry is spread out by multiple companies
including Cadillac, Lincoln, and Lexus. • More companies are leaning toward the smaller
crossovers that save a lot on gas mileage and are more compact.
• Although true, the Large SUVs are still big in the industry used for a lot of families and consumers who want more space and the safety that a bigger vehicle brings.
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Industry Trends
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Auto Trends
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40%
18%17%
25%
Large Luxury SUV Sales in 2013
Cadillac EscaladeLexus LXLincoln NavigatorRange Rover
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Main Competitors
Lincoln Navigator Lexus LX
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Lexus LX
“The eight-passenger LX offers the capability to deftly go where most vehicles dare not tread, along with a spacious cabin filled with refinement and technology. The result is a driving experience taken to new heights.”
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Features• 7,000-lb towing capacity• LEXUS ENFORM APP SUITE• Rear seat entertainment system • Pre-Collision System• 5.7L V8 Engine• 12 mpg city, 17 mpg highway8 passenger seating • Starts at $82,930• Rearview Camera• Touch screen and Navigation system
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Pros + Cons
• Luxurious interior• Best off-road capability• Comfortable ride quality• Real leather in all seats• Curtain airbags for all
three rows• Easy to use technology
• Most expensive out of competitors at $82,930
• Meager cargo space• Not as flashy as
competitors• Hardcore off-road
body type may be road kill for target audience
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Sales• Lexus sales have grown
20% in the Middle East in the first six months of 2014, with 21,598 units sold across the region.
• Leading the charge is the LX, which has sold 9,178 units and make up a staggering 43-percent of total Lexus sales in the area.
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Lincoln Navigator
“The luxury SUV that defined the category now offers improved utility, craftsmanship and comfort. Consider it a brand new take on an iconic vehicle with every ounce of its original soul.”
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Features• City 15/Hwy 20/Comb 17 MPG• V6, EcoBoost, 3.5 Liter• 8 Passengers• Rearview Camera• Push to start• Starts at $61,480• Voice Activated Navigation with SYNC and touch
screen. • THX II Certified 5.1 surround audio system
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Pros + Cons
• Spacious seating in all three rows
• Vast cargo area• New and improved look• Can tow more than the
competition • More Technology than
previous models
• The cheap plastics on the doors and center stack.
• Not a big engine, only a V6 3.5L
• Very poor handling• Too bulky when
driving • Outdated compared to
the Competition
Pros Cons
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Sales• From a high of almost
44,000 units sold in 1998, the Lincoln’s numbers have steadily dwindled. Since 2009, the Navigator has struggled to surpass 8,000 units annually, with a high of just over 8,600 sold in 2013. Meanwhile, Cadillac moved over 22,500 Escalades the same year- Autobytel.com
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2015 Cadillac escalade
“The next generation Escalade. Cadillac’s crown jewel, a brand new level of design, craftsmanship and detail that has transformed it into the epitome of luxury.”
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Features• 14/21 mpg• 420-hp, 6.2-liter V-8• CUE touch-sensitive entertainment system with
navigation• 16 speaker Bose surround sound• Heads up display speed, tachometer, navigation and
more• Wireless charging for mobile devices• Built in Wi-Fi• Front and 2nd row heated/ cooled seats• Starting at $72,970• 7 passenger seating• 8,300 lbs towing
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Pros + Cons
• The interior is real wood and leather giving a refined luxury look
• Excellent 5 star safety ratings
• Top of the line technology (Cue and HUD)
• Built in WiFi, Wireless Charging
• Bigger engine then rest of competition
• CUE system is hard to understand and is complicated
• Price is high at $72,970
• Tough on gas• Cramped third row.
The third row was designed as a ‘ kid friendly’ seating area and as such, as little leg room for adults.
Pros Cons
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Reviews
• The Escalade was ranked number 1 for large luxury SUVs by the U.S. News Best cars.
• Test drivers say the redesigned Cadillac Escalade's luxurious interior, sharp handling and supremely powerful engine are unmatched by most rivals.- US News
• The NHTSA gives this big SUV 5-star ratings in each of three side-impact protection assessments.
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Profit Gains• year-over-year sales gains has the Cadillac
Escalade with a +84% change from 2013 to 2014. • GM’s margins on the Escalade are around 20
percent to 30 percent while a mid-size sedan such as the Malibu might be 4 percent to 6 percent, Sullivan said, “It’s like a printing press” for money!- Bloomberg.com
• At the base price of $72,970 and a profit margin of 30% that’s a $21,891 earning, multiply that by the number of Escalades sold, and Cadillac is making a lot of money.
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Comparative Analysis Table
Cadillac Escalade
Lincoln Navigator
Lexus LX
Fuel Economy City 14/ Hwy 21 City 15/ Hwy 20 City 12/ Hwy 14
Retail Price Starting at $72,970
Starts at $61,480
Starts at 82,930
Engine 6.2L V8 3.5L V6 5.7L V8
Passengers 8 8 8
Towing Capacity
8,300 Lbs. 9,000 Lbs. 7,000 Lbs.
Wi-Fi Ready Yes No No
Entertainment System
Yes Yes Yes
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Conclusion• The Cadillac Escalade is the number 1 choice for
large luxury SUVs for its top of the line technology.
• Great gas mileage compared to the competition.• Family friendly• Prices similar to competition • New sleek design that blows way competitors • Top safety pick amongst Large Luxury SUVs
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Recommendation
• I recommend that the new Cadillac Escalade should be put out into the market no later than January of 2015.
• This allows the consumers to have brand new cars in time for the holiday season, and start their new year off right.
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Q+A