ToyotaLaunching The Scion The Firm: Reloaded Deangelo Chaney Saville Johnson Jessica Pollmeier Brandi Ross Shannon Williams
Article Summary • Title: Toyota’s Gen Y Gamble: New Scion Line Sure is Boxy But It’s an Early Success As Youth Shun Dad’s Camry. • Located in TheWallstreet Journal
Article Summary • Toyota Scion was introduced at the price of $13,000 base. • It has been targeted at young adults that are getting their first car • These people tend to be between the ages of 18 and 24 yrs old • The car design is focused on a trend called JDM that is inspired by Japanese culture. • Introduction was started on the west coast of the country where culture is strongly influenced by theatrical releases.
Scion Background • Scion was created by Toyota in 2003 as a car company aimed at the youth market. • Scion means “descendant of” and shows Scion’s clear heritage to Toyota. • Toyota is currently marketing Scion in the U.S., Guam and Puerto Rico. • The currently employ “Pure Price”, which means that the price.
Scion Models & Pricing Scion xA $13,000 – 14,070 Scion xB $14,570 – 15,370 Scion tC $15,580 – 17,780
Scion vs. Mini Cooper • Mini cooper because of exposure was introduces at a premium price. • Mini Cooper was an early adaptor product therefore had penetrated the American market. • Mini Cooper is targeted towards young adults market (18 24) willing to pay for acceptance in culture. • Scion has been introduced for the starting price of 13,000. • Scion was launched post JDM intro in the American market. This results in the company having to practice penetration pricing. • Scion is targeted at young market ( ie 18-24) with limited income.
Marketing Implications • Toyota is currently marketing Scion in the U.S., Guam and Puerto Rico. • Scion uses “Pure Price”. Innovative internet advertisements and monospec trim levels with a wide variety of aftermarket accessories. • “Pure Price”, which means that the price posted whether on the vehicle, in an advertisement or a menu display board in the dealership, is the price the customer will pay.
Marketing Implications • Used penetration pricing in order to gain interest from its target market: younger Americans (18-24) • Start with a lower price so that the customer can customize the car however they want (ex-PSP, paint job, stick shifts, wheels, etc.) • Toyota did not have a young audience, and creating Scion helped them tap into the market • The trend of street racing coupled with Japanese culture is popular, and kids can create their own “street racers” just like they see in movies (Fast and the Furious)
Quiz Time! • What does the name Scion mean? 2. When did Toyota launch the Scion? 3. What was its base price? 4. What does JDM stand for?
Answers: • What does the name Scion mean? Scion means “descendant of” 2. When did Toyota launch the Scion? 2003 3. What was its base price? $13,000 4. What does JDM stand for? Japanese Domestic Market
Sources www.toyota.com www.scion.com Wall Street Journal www.hoovers.com