Case Study:
The case study begins by introducing the vehicle brand Scion. Scion is a brand created by the Toyota Corporation aimed at capturing the market segment of Generation Y consumers. The company initially launched with small hatchback models that retailed for less than $18,000 (Solomon, 2011).
Scion has focused its marketing and creative efforts square at Gen Y consumers. The company seemed to create a culture that catered to this market segments. Gen Y consumers did not respond well to typical advertising methods. This fact led Scion to advertise and market their product in small-scale print advertising that catered to a particular market segment for Gen Y consumers. Scion made it a point to do hands on advertising at events that were attractive to the Gen Y consumer.
Scion learned that Gen Y customers like to have a sense of individualism about their vehicles. In contrast to other vehicle companies, they offered many accessories that were popular with the Gen Y customers. A large majority of this buying sector invested in accessories for their Scions, proving the marketing campaign to be a success.
The company focused on the buying power of this consumer group. As a sector in the consumer market, Gen Y consumers typically had high demands, but operated with low budgets. The company used a strategy of pricing the cars low initially, realizing that the Gen Y consumers would then have available capital to spend on accessorizing their vehicle to their own individual tastes.
The Gen Y consumer group was raised in the internet age. As such, social media and blogs drive them. Scion tapped into this power by creating online meeting places that celebrate what it means to be a Scion owner and build pride and value among these consumers. Through hard work, Scion has created an environment that fosters loyalty and pride in ownership.
Toyota has successfully created a niche brand with Scion. The brand has a loyal following with Gen Y consumers and is poised to be a competitor in the marketplace for many years. Other car companies should take notice at their efforts and focus on the new buying power of this generation and adjust their operations to capture some of the magic that Scion has discovered.
Sources Listed:
Solomon, M. (2011). "Consumer Behavior. Buying, having, and being." 9th Edition. Pp. 534-535. Pearson Hall Publishing.