"Scion's Quest to Crack Gen Y"

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1. The key facts of the case are that Toyota launched a car Scion that was targeted at the Gen Y. The car was launched in 2004 and was instantly a success. 175,000 Scions were sold each year. The age of Scion customers is between 26 and 38. Scion has also achieved high brand recognition in that segment.
The critical issue presented here is that Toyota has carefully studied the characteristics of its target segment, and has developed a car that appeals to the youth segment successfully. Gen Y customers are not affected by traditional advertising; Toyota advertized in lifestyle magazines belonging to youth niches. Gen Y is individualistic so Toyota offers a large number of options that allow customers to "customize their cars". Gen Y is relatively well-off and Toyota has priced the Scion low and has offered a large variety of options. Gen Y is web savvy and the Scion has a well developed web site that allows customers to customize their vehicles online.
The critical issue being presented is that if the quirks and demands of the target segment are well understood and are satisfied through a product, the product is well received and its sales revenue targets are realized. The Scion is an example of such a product.

2. Income, social class, and age interact in Toyota's Scion strategy in several ways. According to Pay Scale, the average salary of Gen Y is $39,700. The Scion was priced at less than $18,000 which is half the yearly earnings of an average Gen Y. From the perspective of technology Gen Y feels that technology is the force for social action. The ...