Cadillac Niche Market

GM is wants to become a niche player in the European luxury car market with the Cadillac brand. A year ago GM pulled the Cadillac out of the European luxury car market because they realized that they were not getting the growth they needed to stay. Now they have a new approach. The Cadillac will be targeted at a small segment of buyers and try to sell only 3000 cars a year. How can they do this and be profitable? Well, the selling approach will be done through a streamlined marketing organization of 20 people and bare bones distribution network.
Low over head means lower costs which means GM can be profitable with fewer sales. In the past GM tried to come into the market with a line extension on the back of the Cadillac brand. The models were specific to the European market designed on existing platforms with features thought to be desired in this market. However, the sales never kept pace with projections. The large design and poor fuel economy of other models did not meet consumer expectations either.
This time Cadillac will focus on key markets like Germany, Switzerland, and Italy. They plan to penetrate these markets with limited models and sleeker designs with better fuel economy. The focus will be a consumer who wants something other than a BMW or a Mercedes. Consumers who want to be the first with new products and technology. With their sights set lower will GM hit their projected sales. What message are they trying to send to the consumers? Are they limiting supply to create more demand? Only time will tell if this marketing strategy will be successful.