Closing Case TOYOTA SCION GOES SOCIAL FOR

ADVERTISING AND MARKET RESEARCH

The Problem

The automotive industry is a global multibillion-dollar business where competition is very

intense. At stake is not only how many cars can be sold, but also how much profit can be made
and how to survive in economic downturns.

Toyota has been known for decades for its manufacturing innovations. Now it’s taken an
innovative lead on the Web. Here, we look at one of its newest brands, the Scion, geared toward
Generation Y (Gen Y), which includes those born between 1980 and 1994. As of 2009, Gen Y
and Gen X (the generation before Gen Y) combined are expected to account for at least 40
percent of vehicle sales. The problem faced by Scion has been how to reach Gen Y and Gen X.

Using Social Computing

Scion is using segmented advertising as its major media-based strategy in social networks. The
company also uses search engine marketing, mass advertising, and one-to-one targeted
marketing, all of which are aimed at increasing brand recognition.

Here are some representative activities:

 Scion uses display ads that reach urban audiences via sites such as blastro.com and
hiphopdx.com(Rodgers 2007). Scion works with these sites to develop ad content in a
way to make it attractive to the sites’ membership. This ranges from photo galleries to
social networking profile pages to offering interactive features.
 In August 2007, Scion launched Club Scion, a threestory virtual nightclub with dance
floors, music, and hot tubs. Each level of the club reflects a different Scion model, which
includes the xA hatchback, xB SUV, and tC sports coupe.

 Toyota targets children as a means to influence their parents. In April 2007, Toyota
began placing its Scion on whyville.net, an online interactive community populated
almost entirely by 8- to 15-year-olds. Toyota hopes Whyvillians will do two things:
influence the users’ parents’ car purchases and grow up to buy Toyotas themselves. The
power of younger consumers has grown stronger in recent years. According to
MediaBuyerPlanner.com (2006), a study by Packaged Facts showed that 39 percent of
parents of 10- and 11-year-olds say their children have a significant impact on brand
purchases.

 Scion maintains a presence in several large virtual worlds, including secondlife.com,

whyville.net, there.com, and gaia.com. Each virtual world lends itself to a different
marketing strategy. In Whyville, where users tend to fall between the ages 8 and 15, the
 company launched a virtual driver’s education program. Since there.com is populated by
older teens, Scion made sure to create a more provocative social environment.

 Toyota made effective use of the Internet by using live chat to attract the 18- to 24-
year-old audience. The campaign includes the use of microapplication ads that allow
consumers to stencil designs over the picture of the Scion.

 To capitalize on wireless technology, in 2004 Toyota launched a mobile advergame

(game to advertise a product), called “Scion Road Trip.” Players earn virtual miles when
they send e-cards to friends and get back responses. The campaign lasted for several
months.

 For the 2008 model xB SUV, Scion created a special Web site (want2bsquare.com).
Visitors to the site can earn points by playing games, watching videos, and e-mailing
others about the site. The site features eight microsites, including user community
features; each has a unique theme and its own design. There are microsites that focus on
music, resemble a Monty Python set, feature a haunted house, and include a town square
and an urban zoo.

 Toyota also created its own social network site called Scion Speak, where Scion
lovers can socialize, communicate, and play. Scion owners can choose from hundreds of
symbols and create customized logos for their cars. They can then download the logo and
make window decals, or have them painted on their cars (for a fee).

 Finally, like several other automakers, Scion is creating its own broadband channel.
These channels are a way to move from push to pull marketing, where the consumer
decides what materials to view and when. A content-rich, broadband-friendly site is an
always-on marketing channel to which people will return.

The Results

According to MarketingVox.com (2007a), Scion has 80 percent brand recognition, a very high
value. As of April 2007, Scion was the number one brick-and-mortar e-tailer among consumers
35 years old and younger. Scion had not even made it into the top 25 sites in 2006; the amazing
jump to the number one ranking was due to the interactive and community-oriented nature of the
Scion online experiences.

The Scion Web site is highly personalized. Sophisticated customization tools allow people to
build their own virtual cars on the site. This online information is then integrated offline—a local
dealership locates the desired or similar vehicle for each virtual car builder and contacts them for
a test drive. Other digital frills like a social network for Scion car buyers and a Web site that
plays music and lists concert information create a superb brand experiences. Let’s look at some
of the specific advertising activities.
 The brand’s Scion City in Second Life generated 10,000 blog posts between April
and June 2007 and is the third most recognized brand behind Reuters in Second Life
awareness.

 The on-site chat feature provides a forum for hundreds of conversations per week.
Prior to the chat, users are asked a few questions, one of which is where they live.
Interestingly, Toyota found that many of the chatters reside in areas where Scion is not
even available, providing valuable information for dealer expansion plans.

 The New York Times reported that visitors to the site had used the word Scion in
online chats more than 78,000 times; hundreds of virtual Scions were purchased using
“clams,” the currency of Whyville; and the community meeting place “Club Scion” was
visited 33,741 times.

 SMS (short messaging service or text message) is being used to alert players of their
accrued virtual miles and weekly contest events.

 Toyota Scion is now using Twitter to stay in contact with its customers
(twitter.com/scion).