LAUNCH AND ABANDON? NOT CADILLAC CTS!
In “Launch and abandon.” “Launch and leave.” Whatever you call it, it’s an often repeated phenomenon in the auto industry. In case you’re not aware, it’s when ad spend of a new or redesigned model is cut back soon after launch. This month, Compete takes a look at one model launch that has not followed this practice and has enjoyed sustained demand growth.

The new 2008 Cadillac CTS was launched late in Q32007 and received significant media weight. Typically, launch support is immediately reflected in demand as measured by an increase in Compete shopper counts. That was certainly the case with CTS. Demand began to improve prior to the launch and continued to rise as support began in September. No launch and abandon here, however, as ad support was sustained through December which helped to maintain initial launch demand. In fact, CTS demand reached an all-time high in December of just under 60,000 shoppers.
Sustaining ad spend is critical not only in maintaining launch demand but also to a new model’s ability to compete with it key competitors.In addition to driving CTS demand, sustained ad spend has enabled CTS to attract the attention of import rivals. Despite the January decline in demand, shoppers of key rivals 3 Series and C-Class shopped CTS at record highs. Cross-shopping of CTS among import rivals has consistently improved since launch which increases conquest potential. Sustaining this interest is also critical if CTS is to be seen as a viable alternative to it the imports.
Compete data helps OEM marketers quickly and more accurately assess model performance. Understanding how a vehicle responds to marketing and the extent to which it is making inroads with the competition are tangible insights that drive critical marketing decision making.
