Quantative Techniques for Managers

8/4/2019 Quantative Techniques for Managers

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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

Documents

Quantative Techniques for Managers