More about the Scion and Youth Marketing
Good examples of other initiatives. Seems to be a US focus so far. Space for someone in Europe to take the initiative?
Young riders
Car makers zooming in on youth
By Matt Nauman
Mercury News
Outside of True, a hip-hop clothing store on once-hippie Haight Street in San Francisco, 18-year-old college student Thomas Estrada stepped forward to check out the new car designed for his generation.
Gen Y, meet Scion.
Scion, from Toyota, targets Generation Y -- the emerging group of consumers now 9 to 23 years old. It's just one of a new breed designed for the younger crowd.
What makes a Gen Y car?
They're smaller, cheaper, faster and -- with a lot of speakers -- louder.
``I think it's cool, something different,'' said Estrada, who drives a 2001 Nissan Xterra sport-utility.
Scion, which goes on sale in California next week, tries hard to be trendy without seeming to try too hard. Other car makers are building heavily accessorized cars, like those featured in the ``2 Fast 2 Furious'' film sequel that opens today.
Both are aimed squarely at a generation -- of 63 million -- that buys only 5 percent of new cars now, but will buy 25 percent by 2010 and 40 percent by 2020.
``Boomers have long been the dominant generation that most marketers have targeted during the past 20 to 30 years,'' said Brian Bolain, Scion's sales promotions manager. ``That's all about to change.''
While Toyota's multimillion-dollar Scion experiment is the most radical move -- it's a new franchise but the cars will be sold through existing Toyota dealerships -- it's certainly not the only push toward hooking Gen Y buyers.
Other efforts
• Honda, already one of the most popular brands with young buyers due to its affordable, reliable and easily customized Civic, put the Element sport-utility on sale earlier this year. Billed as a dorm room on wheels, its ungainly profile allows maximum flexibility inside.
• Dodge added horsepower to its Neon compact sedan, creating the SRT-4 that is sold as the quickest production car under $20,000.
• Mazda just released a 2003.5 version of its Mazda Speed Protege, a $20,000 small sedan that seems to have emerged from a tuner shop with its loud stereo, rear wing and fancy wheels.
Researchers identify several car brands -- VW, Saturn, Hyundai, Jeep, Suzuki, Nissan, Mazda and Pontiac -- as doing well with the youngest buyers, mainly because they offer affordable products with at least a bit of cool quotient.
Toyota, which sold more cars than anyone except Ford in 2002, is seen as moving in the wrong direction.
``Our cars tend to be more Mom and Dad cars,'' said Steve Cornelius, a San Jose Toyota dealer who started selling cars in 1976. ``The big concern was we were turning into Oldsmobile.''
So, next week, Cornelius will open Stevens Creek Scion in a separate facility from his Toyota store. It'll have the high-tech look and feel that will be Scion's signature, with computer kiosks to provide information and a 50-inch plasma TV to set the tone with music and images.
Toyota has spent much time and money in researching Gen Y. It quickly found that they don't like to be marketed to, said Bolain. So, working with the San Francisco office of Attik, a British advertising agency, Toyota executives created a plan heavy on not being heavy-handed with a strong Internet component, plenty of so-called guerrilla marketing and lots of partnerships with trendy magazines.
``It's critical that Gen Y buyers be allowed to discover things, like new brands, at their own pace,'' Bolain said.
That's why nobody stepped in front of Estrada, the San Francisco State student, when he walked on Haight Street. He wandered over to see what was up with these cars he hadn't seen before.
The people doing the talking didn't look as if they worked for a big car company, like Toyota.
One had dreadlocks. All wore Adidas shirts, jackets, shoes and pants that look right in step on the street.
``It totally makes sense for them to come out with a car for their future generation of customers,'' said Barbara Coulon, vice president of trends at Youth Intelligence, a New York market-research firm focusing on the under-35-year-old market. ``Mitsubishi and VW already have that hipper, younger feel.''
Echoed Mike Bush, who edits the Youth Markets Alerts newsletter, ``The less it feels like marketing, the better chance a company has with striking a chord with this group.''
That's why a Scion was on display when music-magazine XLR8R (pronounced ``accelerator'') celebrated the holidays at a Colma bowling alley.
Toyota seems to understand that they need to make the Scion desirable, said Andrew Smith, XLR8R's publisher.
`Beyond function'
``It's got to go beyond mere function if you're talking about reaching a hip, urban crowd,'' Smith said.
Something bigger is going on with the birth of Scion -- the evolution of branding, said Chris Cedergren, analyst with Iceology, an automotive research firm in Thousand Oaks.
Two decades ago, it was thought that a strong brand would stay strong with each passing generation.
``That's no longer the case,'' he said. ``Brands now have to continue to evolve their image not only to keep loyal buyers, but to attract new buyers.''
B.J. Birtwell, Chrysler's youth marketing manager, applauds Toyota for trying Scion but says his company's Dodge SRT-4, a fast, affordable car is an equally valid approach. The success of ``The Fast and The Furious'' proves it. The mostly young owners of sport compact cars spent more than $2.3 billion on parts (not including wheels) in 2002, up 440 percent since 1998, and automakers want in on that action.
``The brands that are going to be on top will have a unique and complete understanding of this future consumer,'' Birtwell said. ``As popular culture continues to embrace cars as part of who the youth is, I see this market continuing to grow. It used to be just about growing fast. Now it's going fast and looking good while you're doing it.''