Marketing Management Case Study

Toyota’s ‘Scion’(Guerrilla) Brand in US: The Market Positioning Strategies

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Abstract:
Automobile companies in the new millennium are targeting Gen Y, who are estimated to become the largest customer segment, in the USautomobile industry. Toyota, which intends to be the number one player in the global automobile industry, also entered the fray. But Toyota – which has been extremely popular with the baby boomers – is considered to be old-fashioned by Gen Y. To refurbish its staid image, it came out with a new brand, designed exclusively for the Gen Y. Two models ‘xA’ and ‘xB’ were launched under the brand named ‘Scion’. A year later another model, ‘tC’ was added to the line-up. To attract the Gen Y, Scion’s marketing was carefully planned, avoiding conventional marketing strategies. With the help of Attik, a management group based in UK, Toyota resorted to guerrilla marketing. The brand was aggressively marketed before its launch, with ‘un-conventional’ slogans displayed at places where its target buyers gathered. Toyota launched a website and also redesigned showrooms for Scion, to facilitate information search and customisation. The success of Scion has prompted Toyota to adopt these strategies for its other brands too.

Pedagogical Objective:

• To analyse the competitive landscape of US automobile industry
• To understand the characteristics of Gen Y as potential customers
• To discuss the opportunities and threats in developing products for Gen Ycustomers
• To understand the market positioning strategies adopted for Scion
• To discuss whether Toyota will be able to replicate the success of Scion, for its other brands
• To discuss whether Scion customers would eventually adopt and migrate to the other high-end Toyota brands like Lexus and Prius.

Keywords : Branding; Brand positioning; Product customization; New product development; Market positioning; Marketing Strategies Case Study; Consumer behavior; Gen Y (Generation Y); Market segmentation; Product differentiation; Market positioning strategies; Competitive differentiation; consumer preferences; Changing consumer perceptions, Marketing Management; Marketing Mix; Market Segmentation; Product Life Cycle; New Product Development; Consumer Behavior; Marketing Case Studies; MBA; Marketing Course for MBA Marketing Course Case Map; Course Case Map; Case Map

Contents:

• Automobile Industry in US
• Toyota in US
• Generation Y: Profile
• Toyota's 'Scion': Market Positioning Strategies