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Case Study "Scion's Quest to Crack Gen Y"

Please see the attachment.

1. Summarize the key facts of the case.

2. Discuss how income, social class, and age interact in Toyota's marketing strategy. How do income and social class affect age as a means of segmentation for the Scion?

3. Select another vehicle that you believe is marketed based on the age of potential consumers. How is the marketing similar? How is it different?

4. Should Toyota attempt to broaden the appeal of the Scion? How might Toyota accomplish this?

(Answer each question in 200-350 words)


Solution Preview

1. The case study is about distinction created by Scion among young customers. Toyota launched an entirely new division for young drivers in 2004 which was called Scion. It was launched in only two models:
• The small, wedgy four-door xA hatchback, and
• The odd looking four-door xB hatchback
According to Jim Farley, Vice President of the division, Scion is a "laboratory for understanding the quirks and demands of Generation Y". The marketing strategy for Scion is based on core characteristics of the Gen Y.
-80% of Scion customers purchase atleast one accessory to make the car their own
-Scion is priced low so that young customers can afford it and accessories are available in plenty so that they can spend on it when their pocket allows. This enables the company to enjoy benefits of increased volumes as well as constant inflow from accessories.
-Gen Yers are strongly influenced by internet. Scion has strong online presence which allows young customers to customize their vehicle. Two-third of customers do that before visiting the showroom.
-Scion customers are among the youngest in the industry, the average age of owners range from 26 to 38 while the average age of industry is over 40.
-85% of Gen Y shoppers recognize the Scion brand
2. Toyota has done demographic segmentation for Scion based on age, income, and ...

Solution Summary

A case study for "Scion's Quest to Crack Gen Y" is provided.