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Quantitative Techniques For
Managers.
Case Study- Downfall of Cadillac
Made by- Anurita Arya
Ankit
Anuj Sharma
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Life. Liberty. And The Pursuit
CADILLAC
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Introduction
Cadillac is currently the second oldest Americanautomobile manufacturer.
Cadillac was born in 1902 and laid the foundation for themodern mass production of automobiles by demonstrating
the complete interchangeability of its precision parts, alsoestablishing itself as America's premier luxury car.
Cadillac is the first American car to win the prestigiousDewar Trophy from the Royal Automobile Club of Englandand adopt the slogan Standard of the World.
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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) valuein 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 likeBMW and Mercedes.
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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
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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
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Age Mode
This mode implies that themost people to buy aCadillac are of age 62.
Most people to buy
Mercedes are of age 53 Most People to buy a
BMW are 46 years of age.
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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
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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 marketin youth to regain position while 50 is its outlier.
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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.
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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 sharewhich is half of that of
Mercedes.
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Inter Quartile Range
While BMW and Cadillac
has a Very specific crowd
Mercedes has a large
share of age groups
adapting to it.
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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.
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Standard Deviation Sales
Mercedes has most
sales variance which
shows customers are
not loyalCadillac has most
loyal customers.
BMW also has fairly
good deviation.
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Conclusion
Cadillac should have a market amongst the youth to be
successful in achieving its aim.
While Cadillac
1. Has its market for elderly2. Has loyal customers.
It still needs to expand its popularity share among ages.
For that it needs to
1. Target the youth2. Without losing its current share of elderly.
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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.
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Thank You