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Quantitative Techniques For Managers.

Case Study- Downfall of Cadillac


Made by- Anurita Arya Ankit Anuj Sharma

Life. Liberty. And The Pursuit

CADILLAC

Introduction

Cadillac is currently the second oldest American automobile manufacturer. Cadillac was born in 1902 and laid the foundation for the modern mass production of automobiles by demonstrating the complete interchangeability of its precision parts, also establishing itself as America's premier luxury car. Cadillac is the first American car to win the prestigious Dewar Trophy from the Royal Automobile Club of England and adopt the slogan Standard of the World.

Problem

For Many Years the top selling car in North America was Cadillac (1950-88). In 2000 it lost its market position and slipped to 6th rank. The sales dropped down to half of the peak (1978) value in its records. The data was collected and it was found that Cadillac was no longer choice of the youth. Youth was more interested towards manufacturers like BMW and Mercedes.

Target
To

Study the given statistics and find the causes for downfall of Cadillac and Suggest ways for Cadillac to counter its rivals like Mercedes and BMW in order to regain its lost market

Age Mean

This Implicates that Cadillac is most preferred by the elderly. This is followed by Mercedes which is targeting men mostly in their 50s. And BMW targeting young people in their mid 40s

Age Mode

This mode implies that the most people to buy a Cadillac are of age 62. Most people to buy Mercedes are of age 53 Most People to buy a BMW are 46 years of age.

Skewness

For BMW the Mean is greater than median hence it is right skewed this For Mercedes the Mean is again greater than median hence it is right skewed. For Cadillac the Median is greater than mean hence it is left skewed

Skewness

This shows that Cadillac has outliers in age 57 people BMW and Mercedes have outliers in ages 50 and 60 respectively This is a bad sign for Cadillac as it should have a market in youth to regain position while 50 is its outlier.

Age Groups

The Age Groups to buy a Cadillac stand from 57 65 years of age. The age groups to go for a Mercedes are 45 60 years of age. The age group to buy a BMW are 41 50 years of age. This clearly shows that most age groups are comfortable with a Mercedes while Cadillac and BMW only target a particular age group of elderly and youth respectively.

Range

Cadillac is far lacking behind Mercedes and BMW and has the least share of popularity market. Mercedes has the majority of market as a car manufacturer. BMW has a good share which is half of that of Mercedes.

Inter Quartile Range


While BMW and Cadillac has a Very specific crowd Mercedes has a large share of age groups adapting to it.

Sales Means

The pie chart clearly shows Mercedes taking over almost half of the market. BMW has a good share of market. While Cadillac has the least share of market.

Standard Deviation Sales


Mercedes

has most sales variance which shows customers are not loyal Cadillac has most loyal customers. BMW also has fairly good deviation.

Conclusion
Cadillac should have a market amongst the youth to be successful in achieving its aim. While Cadillac 1. Has its market for elderly 2. Has loyal customers. It still needs to expand its popularity share among ages. For that it needs to 1. Target the youth 2. Without losing its current share of elderly.

Conclusion
Cadillac needs to address the youth by 1. Social Networking 2. Innovating in designs like new CTS Sports sedan 3. Innovating its advertising. 4. Creating a youthful tagline for its Sport sedans.

Thank You