2004 Scion xA

Scion, the new car marque from Toyota Motor Sales (TMS), Ú.S.A., Inc, started selling its first two production models, xA and xB, in approximately 105 California dealership showrooms on June 9, 2003. The Scion brand was created to suit the demands of an emerging culture of new car buyers.

"Scion's target buyer is information rich, time poor and highly technology savvy," said Jim Farley, vice president, Scion. "Scion caters to this influential generation with unique products, a distinctive dealership environment and a revolutionized sales process, all complemented by an astonishing sticker price."

The Products
Scion's products all share three key characteristics: style, versatility and surprise. The long-term styling goal focuses on vehicles that are expressive, but subtle. Versatility can be found in the numerous combinations of passenger and cargo configurations. The element of surprise is seen in the high-quality materials and the long list of standard equipment.

Simplicity is important to Scion's key buyers, and the extensive standard specifications list was derived with this key objective in mind. Both the xA and xB are mono-spec vehicles, with side and side curtain airbags for xA as the only factory option. As a result of this approach, a customer must only make a few key choices when purchasing a Scion: model, transmission, color and accessories.

In addition to wheel covers and audio, Scion has developed approximately 40 accessories for each vehicle that are covered under the standard Scion limited warranty of three years or 36,000 miles, whichever comes first. Consumers can choose from a wide array of appearance enhancements and even underhood items, such as a cold air intake or a strut tower brace. The aftermarket will weigh in with a wide variety of items like superchargers and lowering kits.

"We've worked with SEMA (Specialty Equipment Manufacturers' Association) to transfer technology from Toyota's development side to aftermarket manufacturers who want to develop products for Scion vehicles," said Farley. "This is the first time that a Japanese carmaker has participated in this program, and we look forward to great results."

The Dealer and Process
Scion's target market made it clear that they want a dealer involved with the sales transaction. To them, the dealer represents credibility for the brand and the sales process, but they want a different relationship with the salesperson. Target buyers point to timeliness, simplicity and comfort level as the three essentials in a sales experience.

"We looked at the traditional process, talked with Gen Y and identified improvements to three key processes - information-gathering, inventory management and the retail experience," explained Farley.

Scion.com and the dealership showroom let customers explore at their leisure and draw their own conclusions. Scion inventory management utilizes a pull philosophy rather than the traditional push method. This customer-driven approach helps ensure that the right car is matched to the right customer. Research showed that although Gen Y wants a more timely transaction, most are willing to wait about a week for their custom-built car. By using a pooled inventory approach, dealers will be able to get the car they need, equipped the way their customer wants it.

Each Scion dealer will undergo extensive training to learn more about this unique target audience and how to provide a sales process tailored to their needs. In addition to the normal two-day off-site product training, each dealership will participate in six days of customized, in-dealership education. The Scion Covenant, key standards that focus on improving the customer experience through sales and marketing, and image and facilities, will be introduced across all dealerships, with applications customized for each retailer's specific circumstance.



In California, about 65 percent of Scion dealers will install the showroom within their current dealership. The rest will either expand their showroom or have a separate facility.

"Scion is more than just product. We believe that by reflecting the buyers' expectations for consistency between Scion.com and the dealership, and ensuring transparency and time efficiency, we will make an emotional connection at the dealership," continued Farley. "This connection translates into a lifetime advocacy for our retailers and for us as a manufacturer."

The Pure Price Solution
The Scion "Pure Price" solution is a way to meet the buyers' desire for consistency and transparency. It means that the dealership's advertised price equals the actual transaction price. This principle should apply to accessories, finance and insurance.

This "Pure Price" is supported by base Manufacturer Suggested Retail Prices (MSRP) of $12,480 for xA and $13,680 for xB. The xA and xB, equipped with automatic transmissions, are $13,280 and $14,480, respectively. These prices acknowledge the Scion target's budget while giving them an unprecedented level of value.

The Market
Gen Y is emerging as a tremendous force in the marketplace and will eventually rival the Baby Boomers for dominance. By 2010, Gen Y will account for roughly 25 percent of the Light Vehicle Market. In 2020, they will account for 40 percent of the market, resulting in 6.5 million units in a 16-million-unit market, a number that no manufacturer can afford to ignore.

Gen Y values emotional attributes in addition to rational elements often coveted by Boomers. It is critical that Gen Y buyers be allowed to discover things, like new brands, at their own pace. They also demand authenticity - things need to be "real." And finally, they treasure their relationships with family and friends and have a strong sense of community.

One segment of Gen Y is comprised of trend-leaders, or people who like variety and who are not afraid to try new things. More importantly to an automaker, these are the people who believe that their vehicle is more than a form of transportation - it's an expression of their individuality.



To date, Scion's buyer profile suggests that Scion has hit its target. The median age for Scion buyers is 35, and 57 percent are male. Most importantly, 75 percent of these buyers are new to the Toyota family of brands.

To reach this buyer, Scion's marketing focused predominantly on males around 22 years old. Targeting is further directed at college-educated individuals with an above average income for their age.

The Message and Methods
Scion marketing has an urban feel and generates awareness among buyers who have a command of their own style. Scion has been and will continue to generate interest and increase awareness through its interactive Scion.com Web site, a hybrid lifestyle/automotive magazine and participation in aftermarket and lifestyle events and shows.

ATTIK, Scion's advertising agency, conducted several research studies with clear results for Scion's campaign. Scion's positioning focuses on the idea of "Driving : Remixed." Those exact words are not used, but its meaning reflects changes made to product, sales process and marketing. The message being sent is that a customer can configure a Scion to be very individualized. Scion's tag line is, "what moves you." This has not only a rational element, given that Scion is a car brand, but an emotional element as well, posing a provocative question to consumers.

Scion's Web site has been active since March 2002, and now registers nearly 300,000 visitors per month. This Web site not only serves as an informational portal for consumers, but the demographics of the online user base reaffirm Scion is attracting its intended target.

The vast majority of Scion.com Web site users are under the age of 35 and male. They've demonstrated a strong propensity to participate with Scion's evolution, evidenced by the rapidity with which they respond to the numerous surveys posted online. Scion.com allows customers to discover the products on their own terms at their own pace. For print, Scion will continue to publish issues of the lifestyle/automotive magazine with constant updates to the information, at least twice annually.

Over the past two years, Scion has been highly visible and active in the aftermarket/tuner segment through events such as Hot Import Nights and Import Revolution. While participation in tuner events is one clear link to a buyer group, Scion's affiliation with SEMA forms the foundation for involvement with the aftermarket. This is an effort to ensure that Scion buyers will enjoy a wide range of custom products from which to choose.

The Development
The development of the Black Box (bB), the Japan-market predecessor to the current Scion xB, was the foundation for Scion's xB. The bB was brought to market at half the cost of a normal development project with the elimination of hand-built prototypes prior to start of production. Virtual assembly, virtual crash-testing and pull-ahead production tooling allowed nearly a 50-percent reduction in development costs. Development of the xB began a few months after the launch of the bB.

The development of the xA was folded into the overall developmental program of the Japan-market vehicle called the ist. The xA and xB were designed to anchor the entry-level price position for a line of products that will explore many new directions.

"The xB and xA represent the foundation for a Scion brand of products that will grow and evolve," said Tetsuya Tada, chief engineer for the xA and xB. "To succeed long-term, its products and its process will need to continually delight and surprise the target audience."

The Future
The Scion xA and xB went on sale June 9, 2003 exclusively in California. In February 2004, the market will expand to cover the south, southeast and east coast. A few short months later, in June 2004, Scion will simultaneously complete the national rollout and launch the third Scion vehicle, the tC sports coupe. This staggered rollout allows sufficient time for ramp-up of production and further refinement of Scion's new distribution and sales processes.

Throughout its launch, Scion will continue to focus on a marketing approach that is experiential, with high quality consumer interaction, providing consumers the opportunity to learn about Scion in an authentic manner. For example, consumer drive programs allow consumers to experience the cars in a non-threatening environment. These successful events have already covered two-thirds of the country, and will continue this spring for xA and xB. They will be repeated for the tC introduction beginning in early June.

"Scion is not Toyota's youth strategy. It is a vital and important part of it," said Farley. "Scion is a laboratory for change and innovation that will continue to explore new ways to stay relevant and spark the interest of this new generation for many years to come. And finally, Scion will be imitated. Our competitors will quickly realize that the real risk is to do nothing."

Source - Scion Media