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An ad published on January 2nd, 1915 changed the car industry forever.
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2) In 1901, Henry Ford launched his first car manufacturing company, Henry Ford Company. Due to a dispute, Henry Ford left the company and started Ford Motor Company.
The Henry Ford Company became Cadillac.
The Henry Ford Company became Cadillac.
3) Ford Motor Company was focused on creating affordable cars. In 1905, you could purchase their car for $400.
Cadillac was focused on the luxury market and would retail between $2,000 to $2,800.
Cadillac was focused on the luxury market and would retail between $2,000 to $2,800.
4) Cadillac's excellence would be recognized by the world when it won the Dewar Trophy, an award rewarding excellence in automobiles, in 1908 and 1912.
It birthed the Cadillac slogan, "Standard of the World"
It birthed the Cadillac slogan, "Standard of the World"
5) Cadillac's luxury brand was a combination of engineering and design accomplishments. The company introduced complete interchangeability of its precision parts.
It had the first full electrical systems, the clashless manual transmission and the steel roof.
It had the first full electrical systems, the clashless manual transmission and the steel roof.
6) But Cadillac came under pressure from a competitor, Packard Motors.
Packard Motors introduced a car with a V6 engine. Cadillac then built a car with a V8 engine, the first of its kind.
Problem solved? Nope!
Packard Motors introduced a car with a V6 engine. Cadillac then built a car with a V8 engine, the first of its kind.
Problem solved? Nope!
7) The V8 engine car had a lot of problems. Stephen Fox, the author of Mirror Makes, wrote:
"Skittery at first, prone to short circuits and fires ... Packard made the most of Cadillac’s problems.”
"Skittery at first, prone to short circuits and fires ... Packard made the most of Cadillac’s problems.”
8) Cadillac's reputation as a luxury, dependable car brand was under threat.
They hired famed copywriter, Theodore F. MacManus to solve it.
He had a solution... "The Penalty of Leadership"
They hired famed copywriter, Theodore F. MacManus to solve it.
He had a solution... "The Penalty of Leadership"
9) On January 2nd, 1915, the ad "The Penalty of Leadership" ran in the Saturday Evening Post.
10) The ad was different:
• Black in white as opposed to in color
• A long essay
• The word Cadillac or even the automotive industry aren't mentioned in the ad copy
The craziest part? The ad only ran once.
• Black in white as opposed to in color
• A long essay
• The word Cadillac or even the automotive industry aren't mentioned in the ad copy
The craziest part? The ad only ran once.
11) It was a smashing success. The ad focused on Cadillac, not its competition. The brand was in a league of its own:
“That which is good or great makes itself known, no matter how loud the clamor of denial. That which deserves to live – lives,”
“That which is good or great makes itself known, no matter how loud the clamor of denial. That which deserves to live – lives,”
12) The ad helped keep Cadillac's reputation intact. McManus wrote:
"The real suggestion to convey is that the man manufacturing the product is an honest man, and that the product is an honest product, to be preferred above all others."
"The real suggestion to convey is that the man manufacturing the product is an honest man, and that the product is an honest product, to be preferred above all others."
13) The company received requests to run the ad every week for 30+ years but turned it down every time. The ad was so famous, Elvis Presly kept a copy of it at his house, Graceland.
14) Cadillac ended up becoming the premier luxury car brand. In 1980, 1 out of every 3 luxury cars sold in the US were Cadillacs.
Packard went defunct in 1958.
Packard went defunct in 1958.
15) Many insiders suggest this ad helped Cadillac establish itself as the luxury American car brand of the 20th century.
Marketing experts recognize it as one of the greatest ads ever created.
Marketing experts recognize it as one of the greatest ads ever created.
Sources:
- https://www.businessinsider.com/cadillac-rise-fall-luxury-brand-market-industry-2019-10
- http://larrymarder.blogspot.com/2007/08/1915-cadillac-had-problem.html
- https://mascola.com/insights/retro-ad-of-the-week-cadillac-1915-the-penalty-of-leadership/
- https://www.businessinsider.com/cadillac-rise-fall-luxury-brand-market-industry-2019-10
- http://larrymarder.blogspot.com/2007/08/1915-cadillac-had-problem.html
- https://mascola.com/insights/retro-ad-of-the-week-cadillac-1915-the-penalty-of-leadership/
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