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Inside Scion
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| While competitors fiddle with rebates, is Toyota building the next cool thing -- on the road and in the showroom? |
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| Updated |
Jun 10, 2004 22:25:19 |
| Rating |
 86 ( -10 -11.62% ) | | Author | Brian Chee |
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Description:
Inside Scion
While competitors fiddle with rebates, is Toyota building the next cool thing -- on the road and in the showroom?
Writer's Notes
Scion Model Lineup
Scion xA
MSRP Range: $12,480 - $13,280
Scion xB
MSRP Range: $13,680 - $14,480
Related Stories
Scion xB
Scion xA
Scion at the
   Auto Show
New Vehicle Preview
Comments or suggestions about this review? Send an e-mail to: editor@autobytel.com
Autobytel Inc. operates the popular automotive websites Autobytel.com, Autoweb.com, Carsmart.com, and Autosite.com.
xxx
We were somewhere between the Baby Boomers and Generation X, and they called us lost. No label. No flair. The lost generation, with nowhere to go and nothing to do but punch a clock for the next 40 years. We didn't have an image. We didn't even have our own car identity. Companies didn't spend millions of dollars figuring out who we were; they knew already - we were our parents.
So we bought old Camaros, or just bought a Geo and drove the thing into the ground. For us, automakers churned out such classics as the Maverick, the Pinto and the Sprint. The hippie generation of the sixties - they got multi-colored VW Beetles, Buses, and Pony cars. The X Generation, well, they were too disaffected to have fun on the road.
And now there is Y. They have an idealistic streak. They want their piece, but they want to do it their way. They don't believe in "experts," thanks mainly to the Internet. They want - strive - to be different.
And they have Scion. More than a car, it's a stab at defining the persona of the next generation of new car buyers, a sketch profile of the 18 to 20-something person with that very first car loan in his pocket. One thing is certain - they're smarter than us. They use the Internet. They learn everything they need to about cars and they don't accept that they should be afraid of car salespeople. They refuse to think that buying a new car is a battle between Good and Evil.
And they're right.
Buying a new car doesn't have to be fraught with fear and loathing; it can be a relatively simple process, a mutually-satisfying experience where Joe Buyer gets a quality car that he wants and the dealership gets a quick transaction at an acceptable profit margin. Some may call it order-taker vs. salesperson, but this is what Scion is about. True, it's also about a box of a social car with a durable interior and an underpowered engine - and really, it all comes down to the car. But mostly, it's about convincing the up-and-coming generation of car buyers that Toyota is willing to adapt their sales and inventory process to fit their comfort level. Judging from consumer and dealer response since the introduction of Scion in California, it seems like Toyota's Scion experiment is on the mark.
It's an experiment that really begins when a person walks into the showroom. Scion sales reps are, by design, low-key. They wear sports shirts and know how to work computers. Checkered sports jackets and haggling are not allowed. Scion salespeople are trained to be prepared for a group of buyers who are very computer-savvy, know the product, know exactly what they want, and most importantly, look and act 180 degrees differently than the typical Toyota customer.
"Every member of the 105 initial California dealerships went through a three-phase training program - first, management attends an off-site meeting, then the entire group goes through a six-day on-site training program, and we follow-up on an ongoing basis with online training," said Brian Bolain, national sales promotions manager for Scion. "We ask that they involve more than just the salespeople, but the entire group."
Bolain's responsibilities have included the coordination of the overall Scion product lineup, as well as positioning and marketing strategy. Bolain also said that Toyota supports the training program with mystery shopping reviews, and a bonus allocation of product - the more dealers sell Scion in the 'Scion Way' - the more they get to sell. "It's a direct reward for behaving in the way the customer wants." According to Bolain, the first wave of dealers have gone over and above what Toyota has asked. "We asked that they reserve 400 square feet of space for Scion," he said, "which is barely enough room to showcase a car." Most have developed Scion areas that range from 650 to 2000 square feet.
Whether the cars match the image is, of course, up to each individual who considers a Scion vehicle, but Toyota is doing cartwheels to attract the youth culture. For the first time, it has shared proprietary technical information with outside companies; this affiliation with SEMA (Specialty Equipment Manufacturers Association) outfits has so far resulted in several new custom versions of the xA and xB, on display at such youth-events as the Los Angeles Auto Salon.
This 'Scion Way' is in full swing in Northern California. George Love, general sales manager of Melody Toyota and Scion, one of the initial 34 flagship Scion dealerships, has found the training to be valuable, as long as dealerships take the necessary steps to move forward and adapt. "It's important, because the group must have the mindset that they aren't going to look like the typical Toyota customer - the cars are different, there's 40 different accessories, they have to approach it differently," said Love. "The training is great, and it's important to continue. Something we use to bridge all of our departments is in-store focus groups. This way, we find creative ways to accessorize the cars."
Inevitably, it comes down to the cars. It always does. Scion will be successful if the cars are affordable, and capture the imagination of a new wave of buyers. To that end, Scion has launched several youth-oriented and pseudo-grassroots marketing campaigns via the Internet, print and pavement events, such as ride-and-drives. According to Bolain, this approach has proven to be a hit. Of the 4100 people who drove during the ride-and-drive events, 1100 became actual dealer referrals. "That's a 27% rate, where 11% is typical," said Bolain. "And the Scion web site has already registered 15,000 users."
Whether the cars match the image is, of course, up to each individual who considers a Scion vehicle, but Toyota is doing cartwheels to attract the youth culture. For the first time, it has shared proprietary technical information with outside companies; this affiliation with SEMA (Specialty Equipment Manufacturers Association) outfits has so far resulted in several new custom versions of the xA and xB, on display at such youth-events as the Los Angeles Auto Salon. "We've worked with SEMA (Specialty Equipment Manufacturers' Association) to transfer technology from Toyota's development side to aftermarket manufacturers who want to develop products for Scion vehicles," said Bolain. "SEMA has been a wonderful partner for the last year and a half."
If the relationship with SEMA shows prospective buyers what they can do with Scion, Toyota has made it easier to make it a real option by building simple, mono-spec cars that are highly customizable -- for people with limited funds who place an emphasis on being unique. And according to Love, that's exactly what's happening -- most people who buy the xA or the xB are accessorizing heavily. "The larger wheels are most popular, then the stereo. After that, most people are interested in the tinted windows, the light groups and the sunroof."
Like a sunroof on a clear and starlit night, it works out beautifully for all parties. Young consumers get a decent car at an affordable price that's easy to personalize, and Toyota gets to introduce their product quality to consumers at a younger age than ever before. "There's not a lot of profit in it per car," said Love. But in the long term the money's still worth it. Of the people who buy Scion, at least 60% would never, ever buy a Toyota. This way, we introduce Toyota and, hopefully, they'll be impressed enough to consider Toyota for their next car."
--Story by Brian Chee
Prior to joining Autobytel, Brian spent 15 years working as a writer in the southern California area. His work has appeared in a wide variety of regional newspapers and online publications, including the Orange County Register and OCnow.com. Brian's appreciation for automobiles began when he attended his first Long Beach Grand Prix in 1976. Later, his interest in new cars and racing was nurtured while working as a reporter for a chain of Los Angeles-area local city newspapers. Brian is a member of the Automotive Press Association, the Motor Press Guild, the International Motor Press Association and the California State University Advisory Board for Internet Writing. |
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