Scion - Marketing outside the box
When it comes to marketing its Scion brand, Toyota does things a little differently. For one thing, the brand itself is what gets marketed, not individual models. The idea is for the target audience of 20-somethings to discover the brand, and then decide which model they want. To that end, traditional mediums for car advertising like television and radio are eschewed in favor of the Internet, and by planting Scions at outdoor concerts and festivals where they can be more easily discovered.
The hipster automotive division likes outdoor events so much, they throw their own. Their Web site lists a calendar of Scion-sponsored car shows, concerts, contests, and some festivals that are combinations of all three. These events also provide an opportunity for owners to purchase branded schwag and accessories--something they go for in a big way. More than half of Scion buyers customize their cars.
So far, the marketing approach appears to be working. Sales have increased every year since the brand was introduced, with some 170,000 units sold in 2006. (Admittedly, part of the expansion is attributable to an expanding dealer network.) And Scion claims to have the youngest buyers of any car brand, with an average age of 30, despite healthy sales to gray-haired buyers drawn to the easy xB ingress/egress and pension-friendly pricing.
For all ages, a big part of the appeal has been the prices. Starting under $13,000, Scions have stickered low enough to be within reach of many budget-limited and value-conscious buyers. A low price is especially helpful if you’ve got your eye on some custom tires, wheels, interior trinkets, booming stereo, and maybe a dashboard-mounted flat screen TV or two. (At least owners don’t have to worry about having to watch Scion ads.)
In addition to myriad aftermarket options, Scion is only too happy to help out with an extensive offering of its own custom bits. More than 40 different items from shift knobs to superchargers can be ordered on the newly redesigned xB, and these extras can quickly add thousands to both the cost of the car and pad dealer profits.
The new xB is also $1,620 more expensive than the model it replaces, with a base price of $15,650. That’s with an extensive list of standard equipment including air-conditioning, power windows and locks, and a 160-watt stereo that buyers can always rip out and replace with something beefier--say a couple of thousand watts with a subwoofer roughly the size of a clothes dryer. But that assumes these buyers can afford the $1,620 increase and still have money left over for accessories. Odds are the xB will still be a good enough value to succeed at the lower end of the car-buying spectrum. If it’s too expensive for first-time car buyers, well, they aren’t the only ones who value a good deal.
The real payoff for Toyota may not come from outright xB unit sales, but how well their Scion marketing effort pays off in the long term by bringing young buyers into the corporate family. The Scion nameplate is still so new that many buyers have yet to trade in, but of those who have, 45 percent have purchased either another Scion, Toyota, or Lexus. Interestingly, of that 45 percent, only seventeen percent have gone for another Scion. The rest are probably moving up to Toyotas as they start having families. Or maybe they just need room for a bigger subwoofer.
We just purchased the 2008 Scion xB for $18,360 in a color called "Hypnotic Teal Mica". Check out this blog and ConsumerReports.org for our thoughts and tests on this redesigned model.
Posted by: South Florida New Owner | Aug 3, 2007 2:29:51 AM
I have the same car color with premium radio, automatic. Owned it about a month, prior car was an 2000 Echo 34000 miles, it was a great car till it got totaled in a low speed fender bender. Geico was very fair.
Some Minor Issues on the XB that I notice that you may also notice.
The radio fader unit testing front and rear speakers makes me feel the radio is defective, louder in front than back. Someting is wrong, I am told other owners have simular issues with sound. 160 watts its hard to belive.
OEL display is not in color. Given the sound its hard for me to feel the radio was tuned to the XB.
I would not recommend the premium radio upgrade if the sound is a factor.
I had to add plastic screws installed in reverse on bottem to tag and cover to stop its rattle while driving. I also had to pin in the rear set belts so it would not rattle also.
I am 5 foot 8 inches, find it hard to adjust side view mirrors to remove blind spots. I will be adding small spot mirrors to help.
Roof is very flat and hold water, I do not recommend opening the windows until it runs off. I would consern about long term rust effects.
Adding a towing hitch is not recommend, and with 5 large adults you can execeed the recommend max load.
I wish it had more than one power adapter.
When driving, my guests tell me the car gets a lot of second looks and peaple checking it out, I would expect that for costing a lot more.
I am very suprised about the number of standard features that can reduce insurance cost. This car was $15/month more than the Echo with same full coverage.
Its A/C unit does cool down fast.
It also handles better and is fun to drive.
I would not turn off the stablity system, the change is really noticable.
If given a 30 day return it and pay for the miles. Or keep it. I would keep the car.
A fan web site with a lot of know how is www.scionlife.com , I learn that Toyota even designed an wire nipple to run a extra power wire thru the fire wall. Lots of pictures on the insides and customizations.
I look foward to reading the review when its published.