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The Scions of marketing

April 2005
By Nargess Shahmanesh-Banks    

You can't help but admire a company like Toyota. Back in the late 80s, it needed to capitalise on the growing American luxury car buyer, so Lexus was created to steal potential Mercedes and BMW customers. The brand has been a huge success, outselling the Germans within the first two years of launch. Fast forward to 2002, and the carmaker has invented yet another brand to specifically target the 'youth' market in the US, amongst which Toyota popularity is at an all time low.

The Scion family from left to right: xA, xB and tC
Scion family
The Scion t2B concept
Scion t2B concept

The Scion brand is targeted at what Toyota calls generation "Y", or simply Gen Y who were born between 1980 and 1994 and will by 2010, account for roughly 25 per cent of the US light vehicle market. By 2020, these guys will dominate as much as 40 per cent of sales, resulting in what Toyota has calculated to be 6.5 million units in a 16-million-unit market.

Scion hopes to target 15 per cent of Gen Y, which accounts to roughly 10 million consumers by 2010, who have been hand picked as the 'trendsetters'. "They are the influencers within this generation," explains Brian Bolain, national sales promotions manager for the brand. Most importantly this group is open to new ideas and what they seal with approval, sticks. The Toyota and Lexus brands will approach the other 85 per cent.

The Scion tC
Scion tC
The Scion xB
Scion xB


What's also fascinating about Scion is the unorthodox way the cars are being promoted. The brand is seldom advertised in mainstream newspapers or car magazines instead they are secretly brought to trendy venues or are subtly mentioned in the editorial pages of hip lifestyle magazines. "This would have normally been hard to do, but since we have integrated ourselves in the music industry, we have a natural connection," says Bolain.

He is referring to Scion's sponsorship of DJ and MC (master-of ceremonies) competition, and more importantly its own music label, Scion A/V (Audio Visual). "We help promote independent artists and we host about 75 types of events across the US each month," he boasts. "It's a really grass route method that integrates Scion into people's lives in a non-automotive way. It plants the brand name," he adds. Other industries have been doing this kind of marketing for years, and Bolain admits that the auto world is on a learning curb.

Scion means "descendant" or "heir to", although this hardly relates to the cars. There are three production cars available -- the xA, xB and a more up-market tC launched in June 2003 and 2004 -- and a concept vision named t2B was unveiled at the New York Show in March.

It doesn't really matter what the cars look like. The xA, xB and tC are mono-spec vehicles, with frontal and seat-mounted side and front and rear side curtain airbags for xA and tC as the only factory option. So that the customer must only make a few key choices when purchasing a Scion: model, transmission, colour and accessories. The selling point is that they can be personalised using a choice of around 40 accessories and options available with warranty from Toyota dealers who can install it all overnight. In other words you can be all 'individual' without taking too many risks.

For now, Scion's design process is shared across Toyota's design studios in Japan, Europe and the US. Currently the xA and xB are built at the Takaoka plant and the tC at the Tsutsumi plant in Japan, although Toyota is always looking for local production opportunities.

The cars were inspired by the Japanese BB, which has a similar customer base in Japan. In fact much of the ideas behind Scion seem to have been imported from Japan where there is a culture amongst the trendy youth to personalise their cars to add their individual touch. Bolain doesn't necessarily agree with this, but admits: "We evolved what Japan started to a much greater degree," he admits.

"When we created the line-up we wanted to have our version of the saloon, our version of the coupé and our vision of some sort of utility vehicle," says Bolain. Therefore the xA is a take on a 5-door saloon, the xB has all kinds of utility functions but it is not necessarily a SUV and the tC is almost a luxury car but at a very low level.

The question now for Scion is does to evolve the brand. Does it offer more products or does it let Toyota and Lexus provide for the second stage? The company is thinking along the lines of 'Perhaps these folks will then grow-up into Toyotas and Lexus cars'. "I think we have to examine that opportunity right now," admits Bolain. Over 110,000 cars have been sold since launch amongst these 84 per cent had no Toyota experience. "It almost doesn't matter which brand they land in, it's all business for the corporation, that's the real key."

 

 



 


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