Toyota is to rollout its youth brand Scion across the US next month.
Toyota is to extend its US brand Scion, launched in California last summer, in a bid to reinforce the message that its products are full of youth and vitality. The focus on youth is a key strategy by which Toyota is hoping to maintain its impressive recent performance.
Last week Toyota reported a net profit of $10.2 billion for the business year just ended, a 55% increase on the previous year. Vehicle sales growth has been the primary profit booster, as it sold around 6.7 million vehicles last year.
These impressive global figures propelled the Japanese manufacturer to second place in the automotive sector after General Motors in terms of vehicle sales. The group recorded strong sales of both its Toyota and its luxury Lexus brands.
Toyota’s success, along with that of Japanese rivals such as Honda and Nissan, is proving that to be a winner in this industry, it is vital to focus on what the target market wants. Toyota has designed its new models with special features so they can be marketed for the younger generation.
Toyota’s creation of a third brand in the United States, called Scion, is indicative of this new outlook. Scion is closely identified in its marketing with youth culture, including a hip hop music streaming facility on the brand’s website. Scion is currently made up of two vehicles with a third to come later this year once the brand has been rolled out across the US, a process expected to begin next month.
For years, Toyota’s strategy has been that of a follower in the market, unable to develop its own distinctive style of cars. However, it appears that by cultivating the futuristic image associated with all things Japanese, Toyota has found a look that appeals to customers. The company’s performance in the last year has been extraordinary, and to keep up its growth, the Japanese manufacturer will need to expand its younger image to other regions of the world and introduce new models that will appeal to other markets.
SOURCE: Datamonitor COMMENTWIRE (c) 2004 Datamonitor. All rights reserved. Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon.