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Competitive Markets and Marketing Strategies for Scion

The "It" Car for Gen Y?

In 2003, Toyota introduced an entirely new brand into the market. Scion ( is owned by Toyota, sold side-by-side at Toyota dealerships, and buyers have financing arranged through Toyota Motor Credit Corp, but that's where the relationship ends. Scion targets, and aims to represent, a younger, hipper market than the dependable Camry or Corolla. Scion's xA sedan, xB "breadbox", and sporty tC are marketed straight at "Generation Y," people born after 1977.

Scion is attracting and grabbing this market in a variety of ways, mixing product design with pricing with target marketing, resulting in a heady, irresistible brew. So far, it's working. In its first quarter, Scion sold nearly 33,000 cars, more than established brands such as Volvo and Suzuki. As Scion grows its customer base, it plans to release more cars onto the market...but not to the point of easy availability and the rows of same-looking cars one usually sees at dealerships.

Using the following articles, the Internet, and your course resources, address the following questions:

1. How is Scion addressing its target market with regard to positioning and the product itself? Is the product design its own form of positioning? How?

2. Scion is aggressively targeting a specific age group. What are the advantages and drawbacks?

3. What elements of societal marketing can you identify in Scion's: Product, Pricing, Positioning, Advertising
Submit your 1-2 page paper to the Drop Box.

Review the following articles:

Edmund's Vehicle Overview - Scion Xa
First Drive: 2004 Scion xA and xB
Scion marketing targets Gen Y drivers
Here Come the Bratty Boomers
Breaking, Fully Integrated Scion Campaign From ATTIK Conveys Marque's Appeal for Personalization
Outside-the-box Scion scores with young drivers
Scion's peppy tC has right image at the right price

Consider the idea of positioning. In other words, how a company distinguishes itself from others in the marketplace for competitive advantage. Start on page 308 to read more. Societal marketing is another concept in this project that states that a company should market effectively and efficiently to enhance not only the consumer's well-being, but society's as well. See pages 26-27 for additional information.

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How is Scion addressing its target market with regard to positioning and the product itself? Is the product design its own form of positioning? How?

Target market loves accessories so more accessories to personalize vehicles, Target market needs more performance and so, is cranking out performance-oriented cars.

Today's youth want adventure and so Scion was created to be edgy, urban and, especially, underground. Flooding the streets with its quirky, distinctive vehicles would endanger its clutch on the cool factor, executives have decreed.
Target market is Web savvy; Scion's Web site gets a million hits a month. Two-thirds of buyers configure their cars with the colors and options they want on the Web site before they walk into the dealership.

Target market is individualistic and by offering over three dozen dealer-installed options, Scion hopes to give its buyers unprecedented opportunity to customize their cars on the front end.

Much has been made of the Scion xB, which looks like nothing else on the market, save for a passing resemblance to Honda's Element. In addition, it has tremendous passenger- and cargo-carrying capability for its size, making it an inexpensive way to lug about friends and gear. The smaller xA five-door hatchback, meanwhile, could almost pass for a regular Toyota. The image target market wants is satisfied by Toyota From some angles, it looks like a bigheaded toddler version of the Toyota Matrix. And indeed both cars emphasize space efficiency through their tall seating positions and easy-folding rear seats.

Target market wants an impressive choice of features and Scion is positioned to have such features. Antilock brakes, air conditioning, a six-speaker Pioneer stereo with a CD player, a 60/40-split-folding rear seat, a tachometer and power windows, locks, mirrors and steering -- in short, an impressive list for the lower end of the economy car segment.
The positioning of the Scion is considerably improved with its features. The xA is sold as a single trim level. Each one comes with ABS; air conditioning; power windows, locks, mirrors and steering; a six-speaker Pioneer stereo with a CD player; a rear wiper; rear defroster; a tachometer; and a 60/40-split-folding rear seat. The only ...

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This solution provides a discussion on marketing the scion in 1382 words.