2015 Cadillac Escalade

Ben Petron

Director of marketing

Preview S.P.S Large luxury SUV Industry Competitors Lincoln Navigator Lexus LX Our Product: Cadillac Escalade Comparative analysis table Conclusion Recommendation Q+A

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.

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.

Industry Trends

Auto Trends

40%

18%17%

25%

Large Luxury SUV Sales in 2013

Cadillac EscaladeLexus LXLincoln NavigatorRange Rover

Main Competitors

Lincoln Navigator Lexus LX

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.”

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

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

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.

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.”

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

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

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

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.”

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

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

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.

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.

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

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

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.

Q+A