Scion Plays Hard to Get
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From: scionlife.com
Scion Plays Hard to Get
According to many sources Scion is going to limit production of its vehicles in order to maintain that "special" feel. Scion is on target to beat its goal of 150,000 vehicles per year -- but instead of producing more cars they are going to limit production to preserve the rareness that comes with the brand name.
TORRANCE, Calif. — To hang on to the "underground" factor, Scion plans to limit the numbers of cars it puts into the marketplace next year, according to a report in The Wall Street Journal on Friday. The Toyota youth brand may also completely ditch television advertising.
The strategy is intended to keep the brand special, especially as it plans a major reworking of its product lineup. The company said recently that it plans to retire the current generation of the boxy xB wagon and the xA hatchback. The brand is on pace to beat its 150,000-car-a-year sales goal by 25,000 vehicles in 2006.
Scion recently moved its online marketing focus from MySpace.com to Secondlife.com because it viewed MySpace as "too mainstream." Scion, which already has extremely limited TV exposure, is expected to focus more on "experiential" marketing, including branded entertainment and event marketing.
What this means to you: If you own a Scion this is good news. If you want a Scion you're going to have to work a little harder to find one.
http://www.edmunds.com/insideline/do...ticleId=117524
TORRANCE, Calif. — To hang on to the "underground" factor, Scion plans to limit the numbers of cars it puts into the marketplace next year, according to a report in The Wall Street Journal on Friday. The Toyota youth brand may also completely ditch television advertising.
The strategy is intended to keep the brand special, especially as it plans a major reworking of its product lineup. The company said recently that it plans to retire the current generation of the boxy xB wagon and the xA hatchback. The brand is on pace to beat its 150,000-car-a-year sales goal by 25,000 vehicles in 2006.
Scion recently moved its online marketing focus from MySpace.com to Secondlife.com because it viewed MySpace as "too mainstream." Scion, which already has extremely limited TV exposure, is expected to focus more on "experiential" marketing, including branded entertainment and event marketing.
What this means to you: If you own a Scion this is good news. If you want a Scion you're going to have to work a little harder to find one.
http://www.edmunds.com/insideline/do...ticleId=117524
Originally Posted by Wall Street Journal
The brand is on track to beat its 150,000-car-a-year sales goal by
25,000 vehicles in 2006. That is a big reason why Toyota has
surpassed DaimlerChrysler AG this year to become the No. 3 auto maker
in the U.S. in sales.
But instead of riding that momentum to increase sales still further,
Scion plans to throttle back production to keep sales from going
above 150,000 vehicles next year. It is part of marketing strategy to
keep the brand special and, above all, cool.
WALL STREET JOURNAL VIDEO
[video]1
WSJ's Joe White2 discusses Toyota's successful strategy and the
company's large margin to fix mistakes, "which the legacy Detroit
companies don't have."
Lyly Lao, who works in sales at West Covina Scion in California,
approves. "I agree with the strategy," she says. "Everybody is trying
to be different, so it's important for Scion to not put too many cars
out there, or they will be everywhere."
Scion also plans to retire the tiny xA hatchback and the current
generation of the boxy xB wagon, dubbed "The Toaster" by some fans.
Sales for both models are up about 20% for the first 10 months of
this year, according to Autodata Corp. The xA is gone, but the xB
will return in a next-generation form, although Scion would not
disclose details about the new model, which will be introduced next
year.
[Tricked Out]
To better position it as an "underground" brand, Scion over the past
year has reduced its television advertising -- never very significant
to begin with -- to a narrow range of late-night and obscure
programs, like shows on Cartoon Network's late-night "Adult Swim"
programming. (On the Oct. 29 episode of "Frisky Dingo" on "Adult
Swim," a Scion tC was talked about by the show's characters.) Now it
is re-evaluating that strategy and may completely get rid of
television advertising so it can focus more on experiential
marketing, including event marketing and branded entertainment. Scion
already launched its own music label for emerging artists and its own
clothing line called Scion Release.
Simon Needham, co-founder of Scion's agency ATTIK, says that in
today's digital-recorder age, traditional television commercials
aren't very effective and are even less so with Scion's target
audience. "I literally TiVo everything so I don't even watch my own
commercials," he says.
Scion is so concerned about being up to the moment and beyond that it
has moved its online social-networking marketing focus from
myspace.com3 to secondlife.com4 because it viewed the News Corp.
property as too mainstream. "Because we no longer have to focus on
brand awareness, we can be even more edgy and more risky," says Mark
Templin, vice president of Scion.
George Peterson, president of marketing research firm AutoPacific
Inc., applauds Scion's moves but questions whether dealers will
support Scion's sales decision to put a lid on sales. Mr. Peterson
estimates Scion could sell as many as 250,000 vehicles a year if the
brand lifted production controls.
"How can you get off the drug when you have really popular cars like
the xB?" Mr. Peterson asks. "It's a bold strategy because it will be
tough to hold their volumes."
Ms. Lao of West Covina Scion says her dealership has waiting lists
for Scion vehicles. "We are selling them as soon as we get them," she
says.
She also knows that Scion dealers are helped by the additional profit
gained from the sale of accessories. Most Scion buyers customize
their vehicles, and Ms. Lao says many of the dealer's customers come
to the store once a month to purchase a new after-market product such
as body-side graphics and roof racks for snowboards or bikes.
For Toyota, Scion's importance isn't so much added volume as it is
bridging the gap to younger buyers who consider the company's
mainline Toyota brand vehicles too stodgy. About 80% of people who
buy a Scion have never had a Toyota. And when Scion owners trade in
their vehicle, eight of the top 10 vehicles they opt for next are
either Scions or other Toyota models.
In its continuing efforts for ultimate coolness, Scion has been
concentrating on developing a presence on secondlife.com, an online 3-
D world that is created and owned by secondlife.com users, who are
represented by avatars. But now, General Motors Corp.'s Pontiac brand
has discovered secondlife.com and has created Motorati Island, which
offers users a place to build a car culture in the online community.
Mr. Needham of ATTIK says it's a "24/7 headache" to constantly come
up with the new thing that most people haven't heard about yet.
"Today it's cool, but tomorrow it's not," he says. "So we have to
move that quickly to retain credibility. As soon as I start hearing
about something too much, I'm over it."
But Mr. Needham says the challenge is tempered by Scion's Mr.
Templin, who "has the guts to put his feet into something that might
not work."
25,000 vehicles in 2006. That is a big reason why Toyota has
surpassed DaimlerChrysler AG this year to become the No. 3 auto maker
in the U.S. in sales.
But instead of riding that momentum to increase sales still further,
Scion plans to throttle back production to keep sales from going
above 150,000 vehicles next year. It is part of marketing strategy to
keep the brand special and, above all, cool.
WALL STREET JOURNAL VIDEO
[video]1
WSJ's Joe White2 discusses Toyota's successful strategy and the
company's large margin to fix mistakes, "which the legacy Detroit
companies don't have."
Lyly Lao, who works in sales at West Covina Scion in California,
approves. "I agree with the strategy," she says. "Everybody is trying
to be different, so it's important for Scion to not put too many cars
out there, or they will be everywhere."
Scion also plans to retire the tiny xA hatchback and the current
generation of the boxy xB wagon, dubbed "The Toaster" by some fans.
Sales for both models are up about 20% for the first 10 months of
this year, according to Autodata Corp. The xA is gone, but the xB
will return in a next-generation form, although Scion would not
disclose details about the new model, which will be introduced next
year.
[Tricked Out]
To better position it as an "underground" brand, Scion over the past
year has reduced its television advertising -- never very significant
to begin with -- to a narrow range of late-night and obscure
programs, like shows on Cartoon Network's late-night "Adult Swim"
programming. (On the Oct. 29 episode of "Frisky Dingo" on "Adult
Swim," a Scion tC was talked about by the show's characters.) Now it
is re-evaluating that strategy and may completely get rid of
television advertising so it can focus more on experiential
marketing, including event marketing and branded entertainment. Scion
already launched its own music label for emerging artists and its own
clothing line called Scion Release.
Simon Needham, co-founder of Scion's agency ATTIK, says that in
today's digital-recorder age, traditional television commercials
aren't very effective and are even less so with Scion's target
audience. "I literally TiVo everything so I don't even watch my own
commercials," he says.
Scion is so concerned about being up to the moment and beyond that it
has moved its online social-networking marketing focus from
myspace.com3 to secondlife.com4 because it viewed the News Corp.
property as too mainstream. "Because we no longer have to focus on
brand awareness, we can be even more edgy and more risky," says Mark
Templin, vice president of Scion.
George Peterson, president of marketing research firm AutoPacific
Inc., applauds Scion's moves but questions whether dealers will
support Scion's sales decision to put a lid on sales. Mr. Peterson
estimates Scion could sell as many as 250,000 vehicles a year if the
brand lifted production controls.
"How can you get off the drug when you have really popular cars like
the xB?" Mr. Peterson asks. "It's a bold strategy because it will be
tough to hold their volumes."
Ms. Lao of West Covina Scion says her dealership has waiting lists
for Scion vehicles. "We are selling them as soon as we get them," she
says.
She also knows that Scion dealers are helped by the additional profit
gained from the sale of accessories. Most Scion buyers customize
their vehicles, and Ms. Lao says many of the dealer's customers come
to the store once a month to purchase a new after-market product such
as body-side graphics and roof racks for snowboards or bikes.
For Toyota, Scion's importance isn't so much added volume as it is
bridging the gap to younger buyers who consider the company's
mainline Toyota brand vehicles too stodgy. About 80% of people who
buy a Scion have never had a Toyota. And when Scion owners trade in
their vehicle, eight of the top 10 vehicles they opt for next are
either Scions or other Toyota models.
In its continuing efforts for ultimate coolness, Scion has been
concentrating on developing a presence on secondlife.com, an online 3-
D world that is created and owned by secondlife.com users, who are
represented by avatars. But now, General Motors Corp.'s Pontiac brand
has discovered secondlife.com and has created Motorati Island, which
offers users a place to build a car culture in the online community.
Mr. Needham of ATTIK says it's a "24/7 headache" to constantly come
up with the new thing that most people haven't heard about yet.
"Today it's cool, but tomorrow it's not," he says. "So we have to
move that quickly to retain credibility. As soon as I start hearing
about something too much, I'm over it."
But Mr. Needham says the challenge is tempered by Scion's Mr.
Templin, who "has the guts to put his feet into something that might
not work."
Senior Member
SL Member
Joined: Apr 2005
Posts: 264
From: Pomfret, CT
This is interesting.... i wish they were just limiting on the cars then the limit on the information that scion even gives to scionlife.com because were all dieing to see what the new scions will look like to replace the xa and xb I know I am....
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SL Member
Joined: Aug 2006
Posts: 537
From: College Station, TX
I for one am really glad that they are limiting production b/c I am soooo sick of feeling like scions are becoming the next eclipses ... I see them everywhere ... and I was the first one in my town to have on and NOW there are 4 other CSMs alone ... I need that to stop, lol.
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Joined: Aug 2006
Posts: 537
From: College Station, TX
[quote="JohnathonSull"]Exactly! I'm driving down the freeway and pass 5 other xBs in 20 minutes.[/quote
Doesn't it SUPER suck? Even though I don't see many xBx around and I see even less xAs both of which I love.
Doesn't it SUPER suck? Even though I don't see many xBx around and I see even less xAs both of which I love.
They don't even know what they are called!
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Team ScioNRG
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Posts: 944
the only problem I see with limiting production is that (oem) parts won't be as plentiful so their prices will be higher... and aftermarket companies won't invest into making (stockin) thier parts...
I used to buy extra bumpers for my civics and replace them when they get mangled from road debris...
I will be doing it less if the prices where that much higher...
Another thing I found was that toyota doesn't budge much in thier parts department...
I used to get 10 percent over cost on honda OEM parts... like brake pads belts and stuff... with toyota they don't cut me any deals... and it pretty much forces me to get aftermarket stuff...
I believe that is why I don't use trial and error on interchanging toyota parts...
I used to buy extra bumpers for my civics and replace them when they get mangled from road debris...
I will be doing it less if the prices where that much higher...
Another thing I found was that toyota doesn't budge much in thier parts department...
I used to get 10 percent over cost on honda OEM parts... like brake pads belts and stuff... with toyota they don't cut me any deals... and it pretty much forces me to get aftermarket stuff...
I believe that is why I don't use trial and error on interchanging toyota parts...
Junior Member
Joined: Nov 2006
Posts: 21
From: So Cal
i was at longo this morning picking up parts and looked around and they only hadabout 20-30 scions out on the floor so maybe this already started ... on the parts .... i get 30% off retail on all toyota parts honda i only get 25% so maybe you need to get to know your parts dept. a little better buy them a soda it always makes them remember you ... i have in the past sent them pizza and drinks if they really hooked me up and saved me alot of money ...
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Joined: Jun 2005
Posts: 466
From: Suburban Philadelphia
This is really brilliant marketing. Think about it:
1) Start with existing mass-produced chassis and drivetrains, thereby minimizing R&D costs.
2) Build the cars in plants that would otherwise require expensive updating to handle new designs.
3) Sell through existing dealerships, requiring no investment in infrastructure.
4) Spend almost nothing on marketing and advertising, normally a huge chunk of the budget with any new model introduction.
5) Sell for list price. No discounts.
Obviously, in order to try this you have to be Toyota to begin with, and with the wrong cars they might have fallen on their faces. But they didn't risk much, and the payoff was to reap huge profits by finding a way to repackage and sell their existing technology.
Now the brand has some momentum and cachet, so eliminating paid advertising entirely seems logical, and limiting production just enough to sustain demand is also a smart move.
What's awe-inspiring is that it's one of those rare cases where the marketing brilliance is actually matched by the quality and desirability of the product. Everybody wins.
RichC
1) Start with existing mass-produced chassis and drivetrains, thereby minimizing R&D costs.
2) Build the cars in plants that would otherwise require expensive updating to handle new designs.
3) Sell through existing dealerships, requiring no investment in infrastructure.
4) Spend almost nothing on marketing and advertising, normally a huge chunk of the budget with any new model introduction.
5) Sell for list price. No discounts.
Obviously, in order to try this you have to be Toyota to begin with, and with the wrong cars they might have fallen on their faces. But they didn't risk much, and the payoff was to reap huge profits by finding a way to repackage and sell their existing technology.
Now the brand has some momentum and cachet, so eliminating paid advertising entirely seems logical, and limiting production just enough to sustain demand is also a smart move.
What's awe-inspiring is that it's one of those rare cases where the marketing brilliance is actually matched by the quality and desirability of the product. Everybody wins.
RichC
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Joined: Jul 2006
Posts: 2,320
so smart, indeed. Now there will be more people than ever who WANT a Scion, and possibly people who never get a Scion even though they wanted one. This will make their future attraction to Toyota even stronger!
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Scion Evolution
Joined: Nov 2003
Posts: 501
From: My-Am-Eeeeee
Actually, what's happened is Toyota has realized they cornered and "caught" the market they were hoping for. It is a successful product so they no longer have to advertise or push hard for the product, because well, they're selling like hot cakes.
It worked, they got what they wanted, and now they can save money on commercials, adverts, and pushing the brand.
Good job Toyota. Thumbs-up to yous
Also: Supply and Demand: No, sorry, we're limited on our numbers and you can't have one. Translate to: GIMME GIMME GIMME, I WANT IT MOOOORE....
Same thing Microsoft did witht he 360, Sony with the PS3, and Nintendo with the WII.... Tell someone they can't have and they'll want it more.
It worked, they got what they wanted, and now they can save money on commercials, adverts, and pushing the brand.
Good job Toyota. Thumbs-up to yous
Also: Supply and Demand: No, sorry, we're limited on our numbers and you can't have one. Translate to: GIMME GIMME GIMME, I WANT IT MOOOORE....
Same thing Microsoft did witht he 360, Sony with the PS3, and Nintendo with the WII.... Tell someone they can't have and they'll want it more.
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Team N.V.S.
Joined: Sep 2003
Posts: 350
From: Esparto/Sacramento, Ca
Originally Posted by AKgoalie7
Also: Supply and Demand: No, sorry, we're limited on our numbers and you can't have one. Translate to: GIMME GIMME GIMME, I WANT IT MOOOORE....
Same thing Microsoft did witht he 360, Sony with the PS3, and Nintendo with the WII.... Tell someone they can't have and they'll want it more.
Same thing Microsoft did witht he 360, Sony with the PS3, and Nintendo with the WII.... Tell someone they can't have and they'll want it more.
