Press Release

Cadillac Announces Plans to Target a New Market with Catera

10/23/96

Catera Targets a New Market for Cadillac

WARREN, Mich., Oct. 21 -- Catera is more than a new
midsize luxury sedan for Cadillac. Catera also presents the
opportunity - and the challenge - to reach out to a new generation of
customers who are distinctly different from traditional Cadillac
buyers.

One way to think of the difference is that Catera prospects are young
enough to be the sons and daughters of typical Cadillac DeVille
owners. And when it comes to luxury cars, the two generations have
vastly different tastes and expectations.

To reach this new breed of buyers, Catera is designed to provide
exceptional ride, handling and performance, without compromising the
luxury and safety for which Cadillacs are known. In short, Catera will
make luxury more fun.

"We've done a lot of research to prepare for a successful entry into
this competitive segment, and we've learned that midsize luxury sedans
represent a rational indulgence for their buyers," said Dave Nottoli,
Catera brand manager. "The so-called indulgences like sporty
performance, high levels of safety and technology, and luxury
appointments make these cars a good value in the eyes of these
customers," Nottoli said.

In addition, owners regard midsize luxury sedans as personal
cars. They often have more than one vehicle in their households,
including a sport utility or minivan that they use for chores or to
ferry people around. "Their personal car is one they view as an
extension of themselves, enhancing their daily driving and reflecting
their values," Nottoli said.

About 60 percent of midsize luxury car buyers come from import cars,
and many of them are making their first luxury car purchase, said
Charlie Stannard, senior vice president planning director at D'Arcy
Masius Benton & Bowles, Bloomfield Hills, the agency responsible for
the irreverent advertising that introduces the Catera as "The Caddy
That Zigs."

Although vehicles in Catera's segment are often referred to as "entry-
level luxury cars," that label wrongly suggests that buyers aspire to
larger or more expensive luxury cars when they return to market.

"In the consumer's mind, these are complete luxury cars," Stannard
said. "Their owners love them, and they love the service and attention
they get from their dealers. And these cars are just the right size
for them."

Catera prospects are knowledgeable and demanding consumers. They
typically spend a longer time researching and shopping than
traditional luxury car buyers, and they will go elsewhere if they
aren't satisfied with a product or service. It's expected that about
half of Catera buyers will be women.

The Catera generation came of age in the late 1960s and early 1970s,
challenging the values of the previous generation. While they have
mellowed with time, many continue to view Cadillac as a brand for
their parents.

"The words 'fun' and 'Cadillac' don't normally go together in their
minds," Nottoli said.

"The idea of a fun Cadillac intrigues them. It says that the Catera is
smaller, more agile and contemporary - a new kind of Cadillac that
just might be for them."

To convey the fun personality of the Catera, advertising uses an
animated duck, a red-bodied version of the merlettes that appear in
the Cadillac Crest. The Catera duck appears on the Crest facing the
opposite way of its five siblings signaling that the Catera represents
a new direction for Cadillac.

In addition to the advertising, an unconventional direct marketing
effort was used to help introduce the Catera.  Out of an original
mailing targeting 500,000 prospects, 85,000 of them signed up for a
fantasy road trip.

Those who signed up received a series of postcards from a foursome
made up of comedian Dennis Miller, actress Annie Potts, sportscaster
Al Michaels and Olympic gold medalist Florence Griffith Joyner. The
postcards described Catera's unique features and benefits in a
lighthearted way. Everyone who came along for the ride was offered a
choice of souvenirs - Starbucks coffee, Vermont maple syrup or a
"Tunes for the Road" compact disc inspired by the Rock & Roll Hall of
Fame in Cleveland. They will also receive a video about Catera along
with an invitation to test drive one at their local Cadillac dealer.

"People who have driven Catera in early test drive programs tell us it
compares very well with the leading midsize luxury cars," said
Nottoli. "Like all of our advertising and marketing efforts, the
Catera fantasy road trip is designed to encourage people to test drive
a Catera."

The Catera fantasy road trip was developed by the Catera brand team at
Cadillac and the Catera Brand Partnership at DMB&B and Clarion
Marketing & Communications, a promotional and direct marketing agency
based in Greenwich, Conn. Both DMB&B and Clarion are units of The
MacManus Group.