• by Karl Greenberg , November 12, 2008

The combination of automakers slashing national marketing budgets and doubling down on incentive messages doesn't help a brand's equity ("Saved by Zero," anyone?). With the economy limping along, however, there aren't many alternatives.

Last month's U.S. auto sales were the worst in most peoples' memory and automakers--particularly domestics--are using machetes on their national ad budgets. But at least one dealer association in Southern California has pulled some of its media dollars from "act now" broadcast and print messages to do upscale marketing.

The Southern California Cadillac Dealers Association is running a grassroots program at high-end restaurants and clubs in the Greater Los Angeles area. The effort, via L.A.-based Garrett Associates, puts the CTS, Caddie's entry-luxury car that competes with vehicles like BMW's 3-Series, Audi's A4, and Lexus' IS cars, at upscale restaurants and events throughout the greater Los Angeles and Orange County areas.

As patrons exit to the valet area, they receive a chocolate mint with an embossed card/invitation. The card reads, "Your Valet Service Tonight Has Been Provided Compliments of Your Southern California Cadillac Dealers." The card also includes the location of the nearest Cadillac dealership.

Tom Garrett, VP of Garrett Associates, says he started thinking about doing local-market Cadillac programs two years ago. "I felt like what they were doing [in traditional media] was inefficient and ineffective. We developed it, pitched it and pushed for it. And this summer the dealers agreed to give it a try," he says.

He said individual Cadillac dealers had done grassroots efforts with street team "ambassadors," and Cadillac has been running a national ride-and-drive event. "Our innovation was that the program was built on taking ad funds and doing something of value with it, targeting qualified buyers, and letting that be the catalyst."

The eight- to-ten-week program cost about $125,000 and involved 30 events at as many venues.

Says Garrett: "Tier two TV and radio commercials promoting sales haven't been effective in driving the market. But with this effort, we have the car in front of people with the price tag on it and everyone gets an invitation to visit their local dealer."