Scion iQ debuts in New York (pg. 5)
03-26-10, 08:28 AM
#16
Why do you say that?
I think it's genius what they've done with Scion. Affordable vehicles with a lot of standard options (some not even available on some more expensive vehicles). Where they make little profit off of sales but more on the accessories and financing. And as a bonus it gets people into the Toyota family brand.
I think it's genius what they've done with Scion. Affordable vehicles with a lot of standard options (some not even available on some more expensive vehicles). Where they make little profit off of sales but more on the accessories and financing. And as a bonus it gets people into the Toyota family brand.
By doing so Toyota basically admitted that they're a brand for stodgy old farts and they need to create another brand to be cool. They essentially accepted and admitted that they had fallen out of touch with the next generation and weren't going to directly try to regain their business.
Scion was a quick fix.
The way that Toyota has progressed since 2004-2005 makes the Scion brand irrelevant and seemingly ill-conceived, IMO. The Camry, Highlander, 4Runner, Tacoma, and Rav4 are all VASTLY different from what they were at the time that Scion was conceived. At that point all their cars were boring and completely uninteresting- dynamically, visually, mechanically. With the latest Camry Toyota completely changed their game, the Highlander is no longer a box on wheels, the 4Runner is cool again, the Tacoma is much more competitive than it was, and the Rav4 is probably the best all around small SUV. This also doesn't include the FJ Cruiser and Yaris, which are two products that have been very popular with younger people. The Corolla is the only dud and it needs significant help.
As a marketing person, I am (and always have been) left scratching my head about how a company that is so trusted and loved, with a 50 year legacy in this country, was so quick to pull some no-name brand out of their back pocket and think that would solve their problem. Yes, Toyota fell out of touch with younger people but that was remedied in just a generation of cars. Scion was a lazy move that was poorly thought out, IMO.
Toyota never had an image problem- they had a product problem. I am 22 and people my age actually talk about wanting to own a Camry SE or Tacoma- I never heard that before they were redesigned. This goes to show that people are willing to buy Toyota products, they just want then to look and drive a little better than their grandfather's Avalon. People my age grew up with our parents owning Toyotas so we trust and know them well. Until recently, they just didn't make anything we wanted to drive.
I would venture to say that Toyota would have sold more xBs and tCs if they were sold with Toyota badges on them. Toyota's history is in small, fun to drive, efficient cars. They got away from that for 8-10 years, freak out about the demographics, and create a brand to do what they are BEST at. It just makes absolutely no sense to me. The "hole" in Toyota's lineup is small and interesting cars, just like what Scion sells, and I don't see a reason NOT to pull those products in-house and close the doors on Scion.
Looking at the Toyota umbrella, I see a place for all of these small cars, except for maybe the xD-
iQ
Yaris
Corolla
xB
tC
FT-86
Each one is a little different, with a different personality, at a different price point.
Main Point: Scion was a quick fix for a problem that Toyota has since remedied.
Funny that as soon as Toyota started making interesting and dynamic cars, Scion sales dropped off.
Last edited by MPLexus301; 03-26-10 at 08:52 AM.
03-26-10, 09:36 AM
#18
But what to do with Scion then? There is still a market out there (similar to MINI) that want cars that are cheap(er) and easily modifiable, that exudes a lot more personality than a Honda Civic. In fact, other brands such as Kia have jumped into the same game.
Scion still has a purpose, but it needs to be marketed properly. Word-of-mouth and the internet (which Scion used extensively initially) are great, but it needs more exposure to the masses (Toyota clientele, not just Scion clientele).
So, is it truly a image marketing issue?
03-26-10, 10:05 AM
#19
I sorta agree with you.
But what to do with Scion then? There is still a market out there (similar to MINI) that want cars that are cheap(er) and easily modifiable, that exudes a lot more personality than a Honda Civic. In fact, other brands such as Kia have jumped into the same game.
But what to do with Scion then? There is still a market out there (similar to MINI) that want cars that are cheap(er) and easily modifiable, that exudes a lot more personality than a Honda Civic. In fact, other brands such as Kia have jumped into the same game.
That whole showroom issue is another challenge. If Scion was really identified as another brand with it's own stand-alone franchise then I think more of a case could be made for keeping them around. However, people know what they are buying- Toyota products with a different badge on the front- so how much progress is really being made? Is it the product or the hype? What is to say that Toyota wouldn't be equally as successful if they branded the cars as their own and used Scion's marketing tactics?
Scion still has a purpose, but it needs to be marketed properly. Word-of-mouth and the internet (which Scion used extensively initially) are great, but it needs more exposure to the masses (Toyota clientele, not just Scion clientele).
So, is it truly a image marketing issue?
03-26-10, 10:13 AM
#20
Lexus Test Driver
Join Date: Jan 2009
Location: il
Posts: 1,439
Likes: 0
Received 0 Likes
on
0 Posts
I sorta agree with you.
But what to do with Scion then? There is still a market out there (similar to MINI) that want cars that are cheap(er) and easily modifiable, that exudes a lot more personality than a Honda Civic. In fact, other brands such as Kia have jumped into the same game.
Scion still has a purpose, but it needs to be marketed properly. Word-of-mouth and the internet (which Scion used extensively initially) are great, but it needs more exposure to the masses (Toyota clientele, not just Scion clientele).
So, is it truly a image marketing issue?
But what to do with Scion then? There is still a market out there (similar to MINI) that want cars that are cheap(er) and easily modifiable, that exudes a lot more personality than a Honda Civic. In fact, other brands such as Kia have jumped into the same game.
Scion still has a purpose, but it needs to be marketed properly. Word-of-mouth and the internet (which Scion used extensively initially) are great, but it needs more exposure to the masses (Toyota clientele, not just Scion clientele).
So, is it truly a image marketing issue?
i would first change the awful looking 'blade' like logo. it's really cheesy. it's not a timeless design.
and if they are really want to go after younger buyers than please give us more performance oriented tC and maybe even a cheaper Evo/Sti alternative. that would be awesome. i see too many old folks drive xB and etc. those are not for young people.
03-26-10, 10:53 AM
#21
While I understand the marketing dollars spent to create a separate brand is questionable in it being worth it.
Scion vehicles are sold completely differently. They have no haggling. They have TONS of accessories and aftermarket support. They have NO options, just accessories. You almost already know what you're about to buy even before you walk in the place. I think placing the quasi-dealerships in the Toyota dealership is a great idea (except for the upkeep cost). It gets them to walk into a Toyota dealership and get Toyota service. Of course the buyers know they're driving a Toyota with a different badge but that's how they get them to buy Toyotas in the future. People like the fact that they can customize the crap out of their car. They like not having to haggle the price. They like having a VERY fully loaded car from the factory. If you threw the entire brand into Toyota, I think they'd fail. People would say "hey why can't I haggle this Toyota but that one I can. Why can I get all these neat accessories for this car but not that Camry over there? Why am I paying for power windows and locks on this Corolla for nearly 20k when that car right there has it for less?"
As for the sales drops, that's because the tC (their only vehicle you cannot get in any other market as a Toyota) has been around since 2005.
Scion vehicles are sold completely differently. They have no haggling. They have TONS of accessories and aftermarket support. They have NO options, just accessories. You almost already know what you're about to buy even before you walk in the place. I think placing the quasi-dealerships in the Toyota dealership is a great idea (except for the upkeep cost). It gets them to walk into a Toyota dealership and get Toyota service. Of course the buyers know they're driving a Toyota with a different badge but that's how they get them to buy Toyotas in the future. People like the fact that they can customize the crap out of their car. They like not having to haggle the price. They like having a VERY fully loaded car from the factory. If you threw the entire brand into Toyota, I think they'd fail. People would say "hey why can't I haggle this Toyota but that one I can. Why can I get all these neat accessories for this car but not that Camry over there? Why am I paying for power windows and locks on this Corolla for nearly 20k when that car right there has it for less?"
As for the sales drops, that's because the tC (their only vehicle you cannot get in any other market as a Toyota) has been around since 2005.
03-26-10, 11:45 AM
#22
Lexus Champion
Join Date: Dec 2006
Location: NY
Posts: 3,370
Likes: 0
Received 0 Likes
on
0 Posts
that virtually looks like a squarer tc. Lame. The fuse had so much potential.
p.s. If the FT-86 comes out as a scion, I will personally make it my goal to slap the person responsible for that decision.
03-26-10, 12:09 PM
#24
03-26-10, 12:14 PM
#26
Guest
Posts: n/a
Funny how I also said Scion should not have debuted its going to fail and it came out the gate strong to where I was taking my words back...
Then it failed...
Their product like is ugly, underpowered with no class leading MPG. The tC is a fantastic lil coupe that should have been a Toyota.
I agree that they didn't need a new brand, just new products.
I also would hit this IQ wow!!!
