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June marks Scion's five-year anniversary of being on sale in the United States. At launch, the brand's goals were to bring young customers to the Toyota family, and implement a new business model.
"In five short years, Scion has succeeded in hitting these marks," said Jack Hollis, Scion vice president. "It has the youngest median age in the automotive industry, 31, and nearly 72 percent of owners are new to the Toyota family. These are the elements we measure to determine if the brand is successful. In addition we're proud to have an enthusiastic owner base and to bring new products, processes and marketing to the automotive market."
Scion's first two models were the iconic xB urban utility vehicle and xA muscular subcompact five-door. Next came the tC sports coupe. Most recently the xD four-door aggressive five door hatch subcompact was added to the line-up. Scion has always used innovative marketing to convey its messages about the products and brand.
Youth Marketing Scion's ability to tap into the youth market has not gone unnoticed. The automotive industry has observed and taken note as Scion has managed to break through the advertising and marketing clutter. Today's youth are constantly targeted by marketers so Scion approaches each campaign differently to engage consumers.
For example, to help begin this dialogue with young consumers, Scion advertises in highly targeted, niche lifestyle and tuner magazines and runs TV spots on late night cable. Guerilla marketing efforts, including street teams have also been effective tools in reaching trendsetting youth. Recently, Scion utilized street teams in urban locations to engage consumers and inform them about the latest Release Series vehicles.
Scion also engages consumers on the internet, while providing an entertaining experience. The brand's Broadband entertainment on Scion.com offers six different channels which feature film shorts, music, Radio17, and the inside scoop on Scion events and what's hot globally.
In addition, Scion also has a presence in several virtual worlds, including Whyville, Second Life, Gaia Online and There.com, where users engage the brand either through activities like customizing virtual Scion vehicles, racing virtual Scions, socializing in a larger than life Scion vehicle or learning how cars work. Scion works directly with each world to determine what type of experience would best benefit the site's users and enhance their participation.
Motorsports is another area where Scion is active. The tC has been drag racing for four seasons in various National Hot Rod Association (NHRA), Number One Parts Incorporated (NOPI) Drag Racing Association (NDRA), Battle of the Imports (BOTI) and American Drag Racing League (ADRL) events. Scion drag racers include Leslie Armendariz, Christian Rado, Gary White and NHRA Sport Compact Hot Rod champion, Kenny Tran. Rado also participates in Time Attack events with the tC.
The tC is proving successful in road racing as well with the Marshall Pruett Motorsports Engineering (MPME) team which finished the 25 Hours of Thunderhill endurance road race. The Jackson-Dawson (JD) Communications road race car driven by Dan Gardner placed second nationally in the National Auto Sport Association (NASA) Performance Touring E series.
Scion became a Formula Drift participant this season with young drifting veteran Ken Gushi and the rear-wheel-drive modified RS*R Scion tC.
Lifestyle Marketing The brand's lifestyle marketing is popular with Scion enthusiasts and the creative community. Scion has been supportive of the creative community as personalization, independent thinking and creativity are pillars of the brand philosophy. Each year, Scion hosts over 1,000 music and art events nationwide. These free events provide a different platform for emerging artists to showcase their talent to both new audiences and loyal fans.
Scion's involvement in the artistic community began when the brand commissioned up-and-coming artists to paint vehicles. This evolved into the Installation Art Tour. Scion has raised over $160,000 for charities with a creative focus over the last four years through its annual tour. The traveling exhibit visits select cities nationwide and the pieces are auctioned off at the end of the tour. In addition, the Scion Installation L.A. Gallery in Culver City hosts various shows throughout the year.
Scion also works with artists and builders to create imaginative, outrageous and extremely customized vehicles for the Specialty Equipment Market Association (SEMA) Show every year. Past creatives who have worked with Scion include Mr. Cartoon, Futura, Justin Hampton, David Choe, Mike Giant, and Sage Vaughn.
In its continual effort to show support for artists in the music industry, Scion's own record label, Scion A/V, covers all production, licensing and distribution costs so artists can then distribute their music for promotion. Scion has teamed with artists such as GZA, 45 King, Big Daddy Kane, Percee P, Connie Price and the Keystones, Dakah, Little Brother, and Ghostface Killah.
In addition, since launch the brand has released more than 20 CD samplers that are distributed for free at Scion events and feature up and coming artists. Wax Poetics, Vice Records, Flosstradamus, IHEARTCOMIX, Ninja Tune, Fool's Gold and LA Riots, are just a few of the collaborators on previous CDs.
The Heart of the Brand - Owners "Today Scion is more than 600,000 owners strong. Scion truly values its owners and the enthusiasm they have for the brand," said Hollis. "For many owners the brand is much more than a car, it's a lifestyle."
These owners share a similar passion for vehicle modification and the Scion community is like family. They have always been a driving force behind Scion and Scion has embraced their desire to co-create and co-own the brand. In fact, owners input contributed to the design of the second generation xB. Owners will continue to influence and contribute to Scion as the brand plots its future course.
To celebrate its owners, and provide them with opportunities to meet each other and share their love for the brand with other owners and consumers, Scion has hosted many events on the dealer, regional and national level. Events range from casual barbecues to driving caravans to community projects to meeting at the track. The enthusiasts are invited to meet, mingle, have refreshments, participate in car shows, and enjoy entertainment. Owners value the camaraderie and the fun surprises Scion has to offer them.
Scion also offers owners a VIP experience at select drag and drift racing events. Owners may be offered preferred parking, refreshments and entrance to the venue or a car show.
A Different Process and Product Scion's successful business process focuses on the expectations and behavior of today's young consumers. These consumers perform extensive research before purchasing, rely on word-of-mouth recommendations, use customization in all aspects of their lives and appreciate an authentic and timely transaction.
Scion.com and the dealership showroom let customers explore at their leisure and allow customers to shop in a no pressure environment.
"Scion products are unique to the industry as they are sold monospec, allowing customers to customize their vehicles." said Hollis. Scion's generous standard features include a 160-watt maximum output Pioneer audio system with iPod connectivity; steering wheel audio controls; power windows, mirrors and door locks; air conditioning; an anti-lock brake system; front airbags; front and rear side curtain airbags; front seat-mounted side airbags; and cruise control.
Creativity and personalization are core brand values. Scion offers more than 40 Scion and TRD accessories for each model including alloy wheels, audio, navigation, rear spoiler, shift knobs and fog lights. More than 50 percent of Scion customers modify their vehicle. Additional branded aftermarket accessories are also available through Scion's Optomize program which provides customers access to additional aftermarket parts and accessories via their Scion dealership.
Scion's Release Series vehicles also offer customers a way to express their originality via very exclusive, individually numbered vehicles. The limited quantity Release Series are an innovative package with fresh accessories and a special exterior color not available on standard models. Since inception, Scion has issued five Release Series xBs, four tCs, three xAs and one xD.
In addition to a unique product, customers appreciate Scion's pure price model. The "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 applies to the vehicle, accessories, finance and insurance."We believe that by meeting buyers' expectations and ensuring transparency and efficiency, we will make a solid customer connection at the dealership," said Hollis. "This connection translates into advocacy for our retailers, for us as a manufacturer and the Toyota family."
Scion Customer Experience Scion's business model also includes the Customer Experience Center, which features contact via phone, email, mail and chat. Almost half of the contacts received are phone calls, while email and chat, a popular form of communication with young customers, receive over 20 percent of the volume respectively. Chat, primarily used by customers 21 to 30 years old, launched with the Scion brand and was an industry first.
What's Next? "Scion's goals are the same as they were when the brand started, to attract young trendsetting customers and to bring new customers who had never considered Toyota to the Toyota family of brands," said Hollis.
The brand launched in 105 California dealerships on June 9, 2003 with the xB and xA. In June 2004, Scion's national rollout was complete with 783 dealers and the tC launched nationwide. Scion stopped the production of the xA and xB in December 2006 to prepare for the next generation of product. That same month at an unprecedented owner event, Scion revealed the second-generation xB and all-new xD which went on sale in May 2007 and August 2007 respectively. As of June 2008, 982 out of 1,231 Toyota dealers nationwide are Scion dealers as well. Scion has sold over 620,000 units since inception through May 2008. With polarizing product, targeted marketing and a unique sales process Scion does not try to be everything to everyone.
"Scion will continue to push the envelope in all key areas of its business, from marketing to product, to the in-dealership experience to ensure that the brand stays personally connected to its target and on the leading edge."
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