Scion Research Project


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Scion Research Project

  1. 1. Table of ContentsPhase 1—Situation Analysis and Secondary Research Introduction 3 Company and Brand History 3 Product Evaluation 4 Consumer Evaluation 5 Competitive Evaluation 6 Marketing Environment 6 SWOT Analysis 10 Works Cited 13Phase 2—Primary Research Executive Summary 15 Research Objectives 16 Research Questions 16 Research Methods 16 Research Sample 17 Data Collection and Organization 17 Survey Analysis 18 In-Depth Interview Analysis 28 Discussion and Recommendations 34 Creative Brief 36 2
  2. 2. Introduction:Scion has requested that Masiah Enterprises perform both secondary and primary research to de-velop a comprehensive integrated marketing communications plan. Our ultimate goal is to gain abetter understanding of Scion’s target consumer and to revive the brand by uncovering the per-ceptions of this target audience. When Masiah is able to understand and get into the mindset ofthe target market, we will be able to shift Scion’s marketing strategies to improve sales and com-pany profit. This will be accomplished through quality research data and the translation of theseresearch results into a campaign with an appropriate brand concept and positioning. Masiah willconduct secondary research with a situational analysis on Scion. We will also conduct primary re-search utilizing both qualitative and quantitative research methods which will reveal valuable in-formation about existing and potential Scion consumers. Based on the data Masiah collects fromboth secondary and primary research, we will make conclusions and offer recommendations onthe future marketing communications for the brand with a specific emphasis on advertising andpublic relations initiatives.Company History and Evaluation:Scion was introduced in the United States in 2003 as a subsidiary of Toyota Motor Corporation. Itwas designed to connect with Generation Y consumers in the United States, offering contempo-rary car bodies and stylish interiors. Scion represents a uniquely personal expression for peoplewho demand style and innovation in an automobile and every area of life. Their luxury accessoryoptions can be uniquely customized for each individual, and they exceed those offered by anyother car company while maintaining affordable bottom line prices. Scion is targeted at customerswho are aware of Toyota’s long history of quality, but this parent-company association is down-played in their marketing. Masiah has concluded that this link should be emphasized in order toimprove sales. The Toyota brand name has earned a high degree of respect for over 70 years ofreliable performance, and this brand awareness should not be overlooked.One possible problem with Scion is that they have a lack of car options, offering only three differ-ent models: the tC, xB, and xD. The introduction of new models could possibly expand the brandand increase company profits and awareness. However, there is a continued debate over the sen-timents around this issue. The consumers that are truly passionate about Scion feel that the in- 3
  3. 3. troduction of new models could be detrimental to the brand because Scion’s exclusive dispositionwould be tarnished. These consumers pride themselves on the fact that they are part of a very ex-clusive brand community, and they feel that increased distribution of new car models would dimin-ish the unique quality of the brand. Masiah believes that the expansion of the Scion brand throughthe introduction of new models would be beneficial for the company despite the negative aspect ofincreased distribution.Another potential problem with Scion is the fact that they are a new brand trying to enter the mar-ket and use minimal traditional forms of mass media advertising. They rely solely on event promo-tions and guerrilla marketing to spark word-of-mouth advertising, which makes it difficult to buildwidespread awareness and a broader consumer base for a young new brand. This problem couldpossibly be solved if Scion created a joint venture with a more established brand dealing with a simi-lar target market. One possible partner for Scion could be OnStar Navigation, which would enhancethe quality of the Scion product as well as broaden Scion’s consumer base. Another possible part-ner for Scion could be Geico Auto Insurance, which would also broaden Scion’s consumer base andgive Scion a more responsible brand image. These two joint ventures would allow Scion to access alarger consumer market based on the heightened awareness of these more established brands, yetat the same time Scion would not be associating with any direct competitors. Not only would Sciongain access to a larger market, but an alliance would have the potential to decrease costs and in-crease profits for both brands involved.Product Evaluation:Scion has a flair for bold styling and prides itself on standing out from the crowd. With eye-catchingbody styles, idiosyncratic interiors, and features normally found on luxury cars, Scion aims for a dra-matic first impression. Furthermore, Scion is priced similarly to its competition, with Toyota Corollapriced the same as Scion at $15,450. However, Scion is priced at over $3000 more than Yaris, thelowest priced Toyota vehicle. One issue with the Scion brand is that most people do not associ-ate Scion with Toyota. In fact, many people do not even recognize Scion as simply a subsidiary ofToyota. The reason for this is evident in Scion’s marketing strategy and brand communications. Toy-ota attempts to convey Scion as an independent brand with a hip, young, and innovative image.Thus, Toyota is purposefully avoiding an association of their brand name with Scion. In fact, accord-ing to an article in Automotive News, instead of mixing the Scion vehicles with Corollas and Camrys 4
  4. 4. in the generic showroom, Toyota created a new store for Scion “with metallic frameworks and blackwalls separating the youth vehicles" from the other cars.In conclusion, Scion has attempted to establish itself as a separate brand from its parent companyToyota, which may make or break its reputation as a reliable car brand. As Toyota has gained recog-nition as one of the top premiere car brand companies, it may be tremendously beneficial to pro-mote Scion as part of the Toyota empire in order to boost brand recognition, brand image, andbrand awareness.Consumer Evaluation:Scion’s target market consists of young people, ages 18 to 24, who acknowledge a cultural move-ment of non-conformity and unconventional values. These individuals are Generation Y consumerswho consider themselves part of an underground culture and accept an alternative urban life-style. These consumers have an eccentric taste that caters to creative expression, individual cus-tomization, and excessive accessorizing. Each individual that is part of Scion’s target market is justthat – individual and unique in their style and outlook.Since Scion has only been part of the US auto market for the last five years, there is plenty of poten-tial still left untapped for market penetration. As a result of Scions positioning, its users are gener-ally expressive, urban, and individualistic young people. Those not using the product and not affili-ated with the brand are older generations and, of course, those that are too young to drive a vehi-cle. Older generations tend to not be affiliated with Scion due to the fact that they are more out oftouch with the alternative lifestyle and non-conformist ideology that Scion is appealing to as theirtarget market.However, this target market may be unnecessarily narrowing their prospective consumer base toomuch. By focusing on the young and energetic personality of Scion, they can appeal to a much widerpopulation of young people ages 18 to 24, not just those that are part of an underground culturalmovement. Even though targeting these individuals helps build a committed consumer base that isloyal and dedicated to the Scion brand, it is important to reach out to those that can be potentiallycommitted as well. All young people, those that are athletic, in tune with pop culture, part of thevideo gaming crowd, and especially those that are passionate about cars and racing cars, should beconsidered part of the Scion potential consumer base. 5
  5. 5. Competitive Evaluation:Scion has a very unique and quirky brand personality that tries to appeal to the Gen Y crowd bypriding themselves in having low, pure prices and emphasizing the customization of each car. Whileother car dealerships try to appeal to consumers by buying their business (negotiating prices), aScion consumer is buying a car they actually want. People who purchase Scions are most likelyyoung, innovative, and trendy. A Scion is affordable, fuel efficient, as well as eco-friendly. It is safeto say that a competitor of Scion would also have low priced, affordable cars that target youngadults as well. Nissan cars are a very likely competitor for Scion; they already have a good followingof consumers in the urban market. Scion tries to counter this by pursuing people in the urban mar-ket through hosting non-traditional promotional activities and events. Scion also has an advantagein pursuing these potential consumers by being a part of the Toyota communities.There are only three different models of Scions out at this time: tC, xD, and xB. Each model has itsown unique set of features and its own personality. Naturally, there are three different types ofcompetitors for each model of Scion. The exclusivity and self customization of each model allowseach model to be special. The Mazda3 is a notable competitor of the Scion tC. Both are sports carsand target a younger demographic. The Mazda3 differentiates itself by marketing its speed in theZoom Zoom campaign. The Hyundai Tiburon also has a very loyal fan base that is a competitor ofthe Scion tC. All three cars target the same audience and are relatively affordable compared to allthe other cars in the market. The Scion xB is noted as one of the greenest, most economical vehiclesavailable. The Jeep Wrangler is also known to be very eco-friendly and it is a big competitor of ScionxB in that respect. The Scion xD has a hatchback body style that is well-liked, largely due to its fuelefficient, practical, and versatile design. Hatchbacks can be used like miniature SUVs, and are usu-ally designed based on a small sedan. Hatchbacks are an affordable, efficient alternative to SUVs.Scion xD, along with Subaru Impreza, Toyota Matrix, and the Mini Cooper are all cars with these fea-tures of affordability and practicality in mind. Many competitors of the Scion xD resemble thehatchback body style of a car and are relatively inexpensive.Marketing Environment Evaluation:In the past year, the marketing environment associated with the automotive industry has experi-enced several threats that have left the industry on an unstable foundation. The increase in oil 6
  6. 6. prices in conjunction with shifts in cost of raw materials and economic instability have led to pricingpressures.The state of the economy is most responsible for the necessity of Scion and its competitors to adhereto consumers demands by taking part in this pseudo-price-war. The state of recession that has led tothe failure of once prestigious investment banks and the downfall of Freddie Mac and Fannie Mae,has consumers concerned about their investments and assets. Because automobiles are consideredto be major purchases to most, and it is commonly understood that they depreciate in value as soonas they leave the lot, and many consumers do not feel that this is an appropriate time to commit topurchasing a Scion, or any automobile for that matter. High gas prices have made buying a car lessappealing, and while Scion attempts to combat this market issue with its fuel-efficiency, its competi-tors are following suit. Intuitively, a weak economy with high gas prices results in a lower demand forvehicles, and as demand goes down and supply goes up, the cost of vehicles must decrease, leadingto less overall profit for Scion and all automotive companies.Another factor in the market is the rise in importance of the earth and environment. Hybrids are amarket trend that for the most part adheres to the needs of environmentally astute consumers, andas of now, Scion fails to take advantage of this opportunity. Likewise, more extreme technologicalopportunities to make a more environmentally acceptable automobile such as the possibility of theelectric car, is a possible trend that Scion should begin to prepare for to stay competitive amongst en-vironmentalists in the coming years.Partially for economic reasons and in some situations for environmental concerns, the public trans-portation sector has had increased success and is becoming much more competitive. It is cheaperand better for the environment to commute via public or mass transportation, and the only approachthat Scion has to compete with this fact is that its reasonable price makes it accessible to many moreconsumers in their target demographic.What all of this means for Scion as a brand is that they will have to continue to be one of the mostreasonably priced automobiles in the market, otherwise the consumers that actually are prepared topurchase vehicles will not be able to afford Scion despite any constraints posed by the econ-omy. They have to continue to have a strong promotional campaign because there are less consum-ers prepared to purchase a car in the marketplace, so when consumers are ready, Scion has to be thefirst thing that comes to their mind. While Scion needs to cut costs where possible in order to keep 7
  7. 7. sales costs low, they should also put available resources into developing a more environmentally ac-ceptable product, to take advantage of that market trend.Scion is a brand focused primarily on bringing in audiences aged 18-24, and therefore caters to the un-derground music and artist scene. For example, according to Automative News, "Instead of traditionaladvertising, Scion prefers underground events, such as the exhibits it has sponsored in New York andLos Angeles for up-and-coming artists. Artists were paid about $10,000 apiece to create paintings thathave to do with squares and cubes. The art never mentions Scion." They also launched their own hiphop record label to promote aspiring hip-hop artists. Rather than only focusing on using traditionalmedia, they promote their brand through word-of-mouth by sponsoring night club events and ownerrallies. They showcase these events on their website, hoping to foster passionate ownership andstrengthen brand image.In an effort to follow the social networking trend popular among their target audience, Scion decidedto create a Do-It-Yourself website in which users and owners can create their own crests by addingsymbols, colors, and elements to their unique "crest." The website, is an innovativeway to cultivate buzz on the internet and contribute to the viral marketing of Scion. (New York Times,Do-It-Yourself Logos for Proud Scion Owners). This is just one of the ways this youth brand is trying tostand out amongst the clutter.Marketing / Public Relations / Promotional Approach:A major contributor to Scion’s success is its ability to market in a manner that allows it to stand outamongst its competitors to its Generation Y target audience. Scion promotes on the foundation oftrendiness and attitude. The brand itself is marketed, not only the individual cars.Scion sponsors car shows, concerts, contests, and some festivals that are combinations of all three. Itreaches its target audience with events such as the Scion Rally (nationwide video game contest), onlinesweepstakes, and DJ sessions held at local clubs. It also is used in product placement, including “Onthe D.L.” a film in the Tribeca Film Festival. Utilizing product placement in independent films, in con-trast to more mainstream media, is consistent with its trendy appeal. In essence, Scion has abandonedtraditional marketing approaches and has invested resources in focus groups and more resources atnight clubs in attempt to attract young people. “Toyota has held parties, featuring musicians and fash- 8
  8. 8. ion folks, and has been stationed at art galleries, independent film openings and "rave" parties in Cali-fornia. At each venue, Scion representatives are throwing around the word "Scion," trying to build aslow but steady rapport with the kids.”Several aspects of the marketing campaign encourage the consumers to visit the website. Once there,consumers can customize their own model, listen to hip tracks, and download Scion desktop back-grounds. The key to Scion’s promotional strategy is to get Scion in the minds of the target audience,and impress them enough to tell their friends. 9
  9. 9. SWOT AnalysisSTRENGTHS • Scion is known for being trendy, hip, and appealing to Gen Y consumers. • The parent company of Scion is Toyota, a brand that is respected and known by many. (Although currently, Scion does not associate with Toyota within its marketing.) • Scion has original features and customization options such as iPod capability that helps ap- peal to its youthful target market. • In addition Scion vehicles can be equipped with 40 different post-production accessories in- cluding: subwoofers, decals, and optional supercharger (which can allow a Scion to go to 160 – 200 horsepower). • The ability to personalize the vehicle separates it from competitors that have minimal cus- tomization options. Personalizing can make the vehicle seem more appealing and possibly special to consumers. • Price is arguably inexpensive, compared to other vehicles. Scion xD starts at $15,320, xB $16,420, and tC $17, 670. • According to online reviews, Scion is perceived to be well-made. Part of this perception is derived from the fact that Scions are produced in factories that utilize technology that has evolved from the Toyota brand. • Scion is recognized to have economically sound gas mileage ranging from 22-27 city/ 30-33 highway, miles per gallon. • Scion utilizes an innovative integrated marketing communications approach which includes: • Guerilla marketing (using posters and ads in movie theaters and TV to direct consumers to website) • Buzz Marketing, public relations efforts, some commercials, contests, festivals, Scion Rally- video game contest 10
  10. 10. WEAKNESSES • Does not utilize Toyota in its marketing efforts, so the perception to many is that there is no developed brand backing up Scion. • The marketing is directed at a specific part of the market, separating itself from any con- sumers who do not fit into the young or trendy market. • Scion ordered a recall of moon roofs because there were circumstances in which debris would come into contact with the moon roof and it then it would break—potentially harming both the driver and any passengers. • Interior is very revealing: shows every pebble, cat hair, etc • Web site issues including pop-ups and issues in terms of compatibility with Safari. • The models have names that consist of two letters, which is perceived by some to be damaging to brand recognition. • Some consumers do not find Scion vehicles to be aesthetically appealing, primarily xB and xD models which are recognized by their “boxy” design.OPPORTUNITIES • Because eco-friendly vehicles such as hybrids are seeing more popularity than in the past, and in a way are hip in their own right, Scion could potentially produce a “green” car and target it to the same target market who can appreciate the trendiness, and also to envi- ronmentally-conscious drivers who Scion has not catered to in the past. • American vehicle manufacturers such as Ford and GMC are crumbling in the midst of the financial crisis and asking for a government bailout to save the jobs of thousands of these employees. This has led to a negative perception of these American companies. As a part of Toyota, Scion is a foreign vehicle company, and Scion can take advantage of the failing American vehicle brands by more vigorously promoting themselves. • If Scion can aggressively market themselves globally to build brand awareness and ideally form a positive attitude. 11
  11. 11. • It is apparent that while the global economy is suffering, China is more resilient to the econ- omy crisis, especially in comparison to the United States. It may be of benefit for Scion to in- troduce their vehicles in China, or other countries whose economies are less wavering.THREATS • The recession that the United States is facing is prompting people to feel less comfortable making what purchases that are traditionally considered to be “big” purchases. Because peo- ple are forced to pay more for necessities, and have less to spend in general, it will be difficult for Scion, (or any automaker) to be successful within the current market. • Car sales fell to a 16-year low as would-be buyers were unable to get credit. • Rise in alternative and mass methods of transportation. If more families are just buying one car, or more people are carpooling or taking bus’ or subways, there are less people who need or want to by any vehicle, including Scion automobiles. • Attached to the bailout bill is a carbon tax that regulates consumption, and can be a potential barrier to the success of the automobile industry. • The fluctuation of fuel prices is a discouraging factor in people purchasing Scion or any vehi- cles. While the cost of gas has currently dropped, many are weary that gas prices can and most likely will rise again without warning. When combining what Masiah has found to be Scion’s strengths, weaknesses, opportunities, and threats, it is apparent that Scion should take advantage of the brand awareness and atti- tude of their parent company Toyota, while at the same time emphasizing the uniqueness of the Scion brand which includes customization and innovative marketing. Also, considering the current economic environment, it may be beneficial to open up to a less specific target audience, and stress reasons that demonstrate that Scion is an economical choice in automo- bile, such as fuel efficiency and relatively reasonable cost. Also Scion can grow in this unsta- ble economic environment by marketing globally, and stress the value of purchasing a foreign automobile, as US automakers are crumbling. 12
  12. 12. Works Cited"2008 Scion tC." MSN Autos. 10 Dec. 2008 < compare.aspx?year=2008&make=Scion&model=tC>."2008 Scion TC Comparison." Automotive. 2008. 10 Dec. 2008 <>."Automotive Marketing Online: Negotiating the Pranks." e-Marketer June 2008 (June 2008): 1-19. 12 Dec. 2008 <>.Cina, Mark. "Toyota Uses Unique Marketing Strategy For Scion." Popular Mechanics. July 2002. 9 Oct. 2008 <>."New 2008 Scion XD." US News. US News. 26 Aug. 2008. 10 Dec. 2008 <>.Olenick, Michael. "My Toyota Scion: A Blue Car." Weblog post. The Technology Blues: Blue Ocean Strategy for Technology Businesses. 12 Feb. 2008. 12 Dec. 2008 < my-toyota-scion-blue-car.html>.Palmeri, Christopher, Ben Elgin, and Kathleen Kerwin. "Toyotas Scion: Dude, Heres Your Car ." BuisnessWeek 9 June 2003. 9 Oct. 2008 <>."Scion Buyers Guide." The Auto Channel. 2008. 10 Dec. 2008 <>.Scionlife. "Jeri Yoshizu, Scion Sales & Promotion, Interview." ScionLife. 9 Oct. 2008. 9 Oct. 2008 < scion_marketing.html>.Travers, Jim. "Scion - Marketing outside the box." 9 Oct. 2008. 9 Oct. 2008 < scion_marketing.html>.Vasilash, Gary S. "Extroverted & Specialized: Scions Strategy." Automotive Design and Production. 10 Dec. 2008 <>. 13
  13. 13. Phase IISecondary Research 14
  14. 14. Executive SummaryAs a subsidiary of the Toyota brand name, Scion holds a unique position as a young and innovative brandbacked by a company that enjoys decades of quality assurance and reliability. The Scion brand is trendyand hip; the core target audience is composed of young consumers aged 18-24 who value non-conformity and unconventional values. These consumers seek to uniquely express themselves, a traitthat is catered to by Scion’s abundance of customizable features. These features include an iPod charger,neon light accents, LCD screens, and satellite radio, among others.Masiah’s creative brief illustrates how we want Scion’s target market to perceive the brand, with a focuson innovation, style and individuality. Scion should market itself as a stylish and reliable but fresh face inthe automobile industry. Many other car companies who try to offer these same features cannot com-pare because they stray too far from Scion’s affordable bottom-line pricing. One of the most significantaspects of Scion marketing strategies is the fact that Scion downplays their association with Toyota inorder to target a younger, more hip and stylish target market. In doing so, they sacrifice the positivegoodwill that could result from being connected with a solid and reputable company like Toyota.To assess the target market and its views on Scion, Masiah conducted online surveys and in-depth inter-views. Through primary research Masiah tested consumer intention to purchase a Scion based on gen-der, the effect of age on consumer awareness, and how brand attitude was affected by the prior knowl-edge of a connection with Toyota. Overall we discovered that gender did not have a significant impacton purchase intention- it was not statistically significant enough to support our research question. On thesubject of age, the participants over 30 years old were more aware of Scion than those who wereyounger. This is interesting because the Scion brand is targeted towards younger consumers, yet they arenot any more aware than older ones. Finally, Masiah discovered that brand attitude was significantly cor-related with knowledge of a Toyota-Scion relationship. People who liked Toyota had opinions of Scionthat were consequently elevated. Although Scion is marketed strategically, they could benefit from fo-cusing on reliability more in their advertising. Also, they should include the Toyota name in their ads, andmove to more traditional media formats instead of all guerrilla and underground marketing. 15
  15. 15. Research Objectives • Find out what people currently think about Scion • Find out what characteristics of a car attract consumers • Find out how people relate scion to other car brandsResearch Questions How does gender have a significant influence on the intent to purchase a Scion? How does the consumer’s age affect brand awareness of Scion cars?Hypothesis If consumers knew that Toyota owns Scion, their brand attitude towards Scion would be more fa- vorable than the brand attitude of consumers who did not know.Research Methods Masiah has chosen to utilize a series of in-depth interviews and an online questionnaire asmethods to obtain insight that can be valuable to the Scion brand. We find that in-depth interview isthe best method to obtain qualitative data because it allows us to select a dependable sample. Be-cause we seek to gather information about awareness and perception of Scion, in-depth interviewsallow us to get the most out of open-ended questions because there is no group pressure to swayparticipants. It also allows Masiah as the interviewers to have more time and flexibility in a one-on-one setting. It also gives us the opportunity to get detailed information and draw conclusions aboutthe brand relationships of consumers with non-Scion brands, in order to draw conclusions on howScion can be improved. We want to use an online questionnaire (through Survey Monkey) because it is a quickmethod of obtaining thorough and quantifiable information. The use of an online survey is appropri-ate because through our secondary research Masiah has learned that Scion’s target market is mostlyyoung and trendy drivers, and this demographic is likely to be comfortable with the internet and fa-miliar with online surveys. This will also help us to avoid a significant sampling error. 16
  16. 16. Research Sample Because our research questions include variables such as age and gender, Masiah feels it isimperative to collect data from a sample that includes both females and males, as well as respondentswho are over and under the age of thirty. While sheer logistics will lead to much of our online surveyrespondents being college students, we will send the survey to many non-college students and peopleover thirty to get a sample that could provide insight into our research questions. We will recruit ap-proximately 120 respondents to have a manageable sample that will allows us to draw succinct conclu-sions. This sample will be notified about the survey through online networking sites such as Facebook,as well as electronic mailing lists that include a sample that we hope will lead to insightful results. Be-cause in-depth interviews are not about generalizability or standardization but instead detailed anduseful consumer insights, we will take advantage of our ability to choose a nonrandom sample, andinterview a diverse group of twelve participants. Six of these participants will be females and six willbe males, and likewise, six will be over thirty and six will be under thirty. This method allows us to ob-tain valuable information that addresses our research questions regarding the relationship betweenage and gender with Scion.Data Collection and Organization We will collect our in-depth interview data, by following a well-designed discussion guide thatwill gear our discussion about brand relationships with cars, and slowly move it into perception andawareness of Scion. This will give us the opportunity to stay on track, while at the same time have thefreedom to ask questions based on their responses to previous questions. Also, the discussion sheetwill lead to responses that will provide insight about what consumers from different demographicslook for in a car, and what they currently feel about Scion. This information can be used to improvethe Scion brand. After the interviews are conducted, we will sort the answers out by question, thenbreak down the different responses by category. We will discover differences and connections be-tween variables and draw conclusions based on these responses. For the online questionnaires willutilize Survey Monkey to create our online survey. While survey Monkey organizes our data, we willmanually enter it into SPSS software to find connections in related variables, analyze the data, anddraw conclusions. 17
  17. 17. Survey AnalysisDEMOGRAPHICSBecause of the minimal budget provided we decided to conduct an online survey to a conveniencesample of 119 University of Texas students and some slightly older individuals in order to get a betterinsight for answering our research questions and hypothesis. Since Scion focuses its marketing on theGeneration Y consumer, it is appropriate that our data accurately reflects a college population withless emphasis on other age ranges [see Graph below].As seen in the above bar graph, the majority of the individuals, approximately 80% fell between theages of 18-25. Our data is skewed to the right primarily because we used a convenience sample. How-ever we also managed to collect data of individuals within older age ranges simply because wewanted to gain insight into not only Generation Y consumers, but older generations as well. 18
  18. 18. The above table gives more insight into the distribution of age groups and their frequencies. Again, itis clear from this table that we had many individuals aged 18-25 with exactly 95 subjects which weassume to be college students and the Generation Y consumer.We managed to collect a relatively even amount of data from both male and female subjects asshown in the bar graph above. This even representation of male and female individuals would ensurethat the possibility of sample error would be minimized. 19
  19. 19. How does gender have a significant influence on the intent to purchase a Scion? GENDER N MEAN STD. DEVIATION STD. ERROR MEAN How likely or unlikely is it that Male 61 2.300 1.188 0.152 you w ould purchase a Scion Female 58 2.640 1.307 0.172 vehicle?Independent Samples Test t-test for Equality of Means t df Sig. (2-tailed) Mean Difference How likely or Equal variances -1.499 117 0.137 -0.343 unlikely is it assumed that you w ould purchase a Equal variances -1.495 114.562 0.138 -0.343 Scion vehicle? not assumedBased on our survey analysis, there was no significance between gender and the intent to purchase aScion vehicle. As shown in the above tables, the significance level is .215, which means the data thatwas collected for questions “How likely are unlikely is it that you would purchase a Scion vehicle,” and“Please indicate your gender” in the survey were not statistically significant. The mean purchase in-tention for females was 2.640 compared to the mean for males which was 2.300. As such, Masiahwould like to propose that Scion focus on both male and female consumers when developing theirstrategy campaign. 20
  20. 20. Crosstabulation of Purchase Intention How likely or unlikely is that you w ould purchase a Scion vehicle? Unlikely 2 3 4 Likely Total FEMALE 17 8 16 13 4 58 MALE 19 19 12 8 3 61 TOTAL 36 27 28 21 7 119As seen from the cross tabulation above, the distribution amongst males and females shows that pur-chase intention based on gender follows a very general, slight trend. The data is relatively evenly dis-tributed, but slightly more females lean towards the “likely to purchase” side whereas slightly moremales lead towards the “unlikely” category when compared to one another. However, this data is notstatistically significant; therefore Scion should concentrate on a appealing equally to both genders intheir marketing strategies. 21
  21. 21. How does the consumer’s age affect brand awareness of Scion cars? A g e F requenc y 5.00% 4.20% 10.90% 18-25 26-35 36-45 46-100 79.80%As mentioned in the demographics section of this analysis, the above graph indicates frequency forconsumer age who took part in the study. The majority of respondents were in our 18-24 year oldtarget market, with significantly lower numbers in the other age categories. ANOVA Please indicate how you feel about the Scion brand: Sum of Squares df Mean Square F Sig. Betw een Groups 0.155 3 0.052 0.051 0.985 Within Groups 116.484 115 1.013 Total 116.639 118The above data indicates that age and brand awareness are NOT related. The significance level is .985. 22
  22. 22. It is important to understand how age affects brand awareness of Scion cars. Scion prides itself in cre-ating a brand that is solely for Generation Y consumers, and it is interesting to see how aware otherage groups are. Although the data is not statistically significant, it shows some important data.Although not significantly significant, this graph shows that individuals in the 18-25 range were themost aware of the Scion brand out of any age group. This indicates that Scion is effectively using itsadvertising to target these Generation Y consumers. However, since many older consumers are un-aware of the brand, Scion should emphasize marketing strategies that make this segment more awareof the brand. 23
  23. 23. If consumers knew that Toyota owns Scion, their brand attitude towards Scion wouldbe more favorable than the brand attitude of consumers who did not know.HYPOTHESIS TABLES 1 One Sample Statistics N Mean Std. Deviation Std. Error Mean Please indicate how you feel about the 119 3.17 0.994 0.091 Scion brand Please indicate how you feel about the 119 3.47 0.999 0.092 Scion brand One Sample Test Test Value = 0 95% Confidence Interval t df Sig. (2-tailed) Mean Difference of the Difference Low er Upper Please indicate how you feel about the 34.761 118 0.00 3.168 2.99 3.35 Scion brand Please indicate how you feel about the 37.916 118 0.00 3.471 3.29 3.65 Scion brandFirst we analyzed the data using a T-Test and concluded that the data is statistically significant with asignificance level of .000. We designed the survey so that the same question of “Please indicate howyou feel about the Scion brand” is located both at the beginning and the end of the survey so that theyhad time to read the article. Based on the data, many individuals’ opinion of Scion brand increased sig-nificantly from 3.17 to 3.47, which means they felt more favorable towards Scion after completing thesurvey. 24
  24. 24. HYPOTHESIS TABLES 2 One Sample Statistics N Mean Std. Deviation Std. Error Mean How likely or unlikely is it that you w ould 119 2.46 1.254 0.115 purchase a Scion vehicle? If Scion used the Toyota brand nam e in its m arketing w ould 119 3.33 1.128 0.103 you be m ore likely to purchase a Scion? One Sample Test Test Value = 0 95% Confidence Interval t df Sig. (2-tailed) Mean Difference of the Difference Low er Upper How likely or unlikely is it that you w ould 21.418 118 0.00 2.462 2.23 2.69 purchase a Scion vehicle? If Scion used the Toyota brand nam e in its m arketing w ould 32.174 118 0.00 3.328 3.12 3.53 you be m ore likely to purchase a Scion?In order to thoroughly analyze all aspects of our hypothesis, we decided to examine the purchaseintent if Scion used the Toyota brand name in its marketing as well. The results were also ex-tremely significant, with a significance level of .000. The mean difference increased from 2.46 to3.328 on a scale of 1 to 5, which means consumers are more likely to buy a Scion using Toyota’sbrand name in its marketing strategy. 25
  25. 25. This bar graph distributions shows that potential consumers are more likely to purchase Scion withknowledge of its association with Toyota, and there is a left skew on the graph. Based on all the previous data as well as this graph, Masiah decided that it would be beneficial for Scion to include the Toyota brand name in its marketing in order to increase consumers’ brand attitude towards Scion. 26
  26. 26. HYPOTHESIS TABLES 3 Descriptive Statistics Mean Std. Deviation N Please indicate how you feel about the 4.32 0.911 119 Toyota brand Please indicate how you feel about the 3.47 0.999 119 Scion brand Correlations Please indicate Please indicate how you feel how you feel about the Toyota about the Scion brand brand Pearson Correlation 1 0.29 Please indicate how you feel about the Sig (2-tailed) 0.001 Toyota brand N 119 119 Pearson Correlation 0.29 1 Please indicate how you feel about the Sig (2-tailed) 0.001 Toyota brand N 119 119The above table indicates that there is a direct correlation between how consumers feel about Toyota inrelation to Scion. The data indicates that if consumers like Toyota, they also like Scion as well. The samecould not be said that if they like Scion they will like Toyota as well. 27
  27. 27. In-Depth Interview AnalysisWhy Conduct In-Depth Interviews? Masiah chose to conduct twelve in-depth interviews for the qualitative portion of the primaryresearch. This decision was made due to the fact that in-depth interviews provide detailed back-ground information to the interviewer, produce a substantial volume of information, allow for lengthyobservation of non-verbal responses, and allow interviewers the opportunity to form new questionsbased on each respondent’s previous answers. Furthermore, in-depth interviews contain open-ended, non-directive questions that allow the respondent to answer truthfully and freely on anytopic. Masiah wanted to conduct primary, qualitative research that provided more time to focus onindividual respondents, more flexibility in terms of the direction of the interview, and more accurateresponses on topics and issues. It was important for Masiah to conduct interviews where no grouppressure existed so that the respondent was not influenced by other subjects when answering theinterviewer’s questions. That way, there was no potential for influencing a change of opinions or con-tamination by the other respondents. It was also important to Masiah that each respondent wouldhave equal interview time so that in-depth probing of each respondent and their ideas would be pos-sible. For these reasons, Masiah felt that the most appropriate form of qualitative research andanalysis would be to conduct in-depth interviews.What Was the Method of Research?1. Define the Research Questions & HypothesisThe method used by Masiah for conducting the in-depth interviews was to first define the researchproblem. This was characterized by the two research questions and overall research hypothesis de-termined by Masiah. They are as follows: 28
  28. 28. Does gender have a significant influence on the intent to purchase a Scion? How does the consumer’s age affect brand awareness of Scion cars? If consumers knew that Toyota owns Scion, their brand attitude towards Scion would be more favorable than the brand attitude of consumers who did not know.2. Select a SampleThe next step of Masiah’s method of conducting in-depth interviews was to define a narrowaudience and then purposively select a sample. This was done by selecting an equal number ofmale and female individuals for study, as well as ensuring that of these individuals, there was anequal number of respondents over thirty years of age as there were respondents under thirtyyears of age. Masiah was also careful to select a non-random sample that was somewhat ethni-cally diverse, so as to create a representative sample and to minimize sample bias. With thissample selection process, Masiah was able to conduct in-depth interviews that were not af-fected by the gender, age, or ethnicity of the respondents.3. Prepare Interview MaterialIn Masiah’s method of conducting qualitative research, the step that followed the selection of asample was the preparation of the in-depth interview material. It was necessary for Masiah toplan the in-depth interviews in detail so that each interview would be conducted in exactly thesame manner. It was important to have all of the interviews be conducted the same way be-cause doing so would produce reliable research results. Therefore, Masiah produced a pre-planned script of discussion questions for each of the interviewers to follow during the in-depthinterviews. However, alteration of the script was encouraged so that each researcher couldcreate new questions based on the respondent’s previous answers and be able to provide morethorough answers to the questions. 29
  29. 29. 4. Conduct the In-Depth InterviewsThe final step was to conduct the in-depth interviews. Masiah wanted to create an environ-ment for the interviews that was comfortable and relaxed and conducive to natural conversa-tion. This was done by conducting the interviews in familiar, lounge environments such asliving rooms and coffee shops. Refreshments were also provided by the interviewer to therespondents so that they were happy and eager to participate, which in turn, propagatednatural and honest responses from the subjects.What Insights Were Discovered?Based on the results of the twelve in-depth interviews that were conducted, Masiah has collectedvaluable information about brand insights and insights about consumer sentiments toward Scion andtheir parent company Toyota. With the results of the in-depth interviews, Masiah has also made con-clusions about the relationship between gender and intent to purchase Scion, as well as the relation-ship between age and brand awareness. The following is a summary of the key findings of the in-depth interviews and the outcome of the qualitative research conducted by Masiah.Insights About Research Question #1The first research question that Masiah identified was to determine whether gender has a significantinfluence on the intent to purchase Scion. During the interviews, all of the participants were askedwhether they thought that the Scion brand seemed to be more suited for men or women. Some ofthe in-depth interview participants even commented on how they felt Scion’s advertising efforts wereaddressing gender and which gender was targeted more, concluding that men were more targeted.In general, the results of the interviews revealed that the participants were somewhat conflicted onwhich gender Scion actually appealed to more.Of the six female participants, half of them thought that the Scion brand appealed more towardswomen, two of them felt that it appealed more towards men, and one participant felt that it was 30
  30. 30. equally appealing to both genders. Of the six male participants, more than half of the participants (fourparticipants) thought that the Scion brand appealed more towards men, one of them felt that it ap-pealed more towards women, and one of them felt that it was equally appealing to both genders. Themajority of the women interviewed said that they thought that Scion was more appealing to women,whereas the majority of the men interviewed said that they thought that Scion was more appealing tomen. Out of all the participants, male and female, the overall group sentiment was that the Scionbrand and its products are more appealing to men than women, and that the brand is more masculinethan feminine. Therefore, the results of the in-depth interviews indicate that in terms of the first re-search question, the participants believe that a male would be more inclined to purchase a Scion than awoman, and that ultimately, gender does have an influence on the intent to purchase a Scion.Insights About Research Question #2The second research question that Masiah identified was to determine whether the consumer’s ageaffects brand awareness of Scion cars. During the interviews, all of the participants were shown an im-age of a Scion car and then asked whether they knew the brand name of the car. If the participant wasable to identify the brand name of the car, it was assumed that that participant was aware of the brand.After that, the results of the interviews were compared to the age of the participants. As part of ourresearch design, we interviewed six individuals over the age of 30 and six individuals under the age of30, so as to keep the results unbiased. The in-depth interview participant sample was selected non-randomly, which may be an issue that accounts for any researcher bias or any possible error. In gen-eral, the results of the interviews revealed that the participants over 30 years of age were more awareof the Scion brand than the participants under the age of 30.Of the participants that were over the age of 30, five out of the six participants were aware of the Scionbrand. Of the participants that were under the age of 30, four out of the six participants were aware ofthe Scion brand. Overall, the majority of the participants were aware of the Scion brand, yet whencomparing the two age groups, the participants over 30 years old were more aware of the brand thanthe participants under 30 years old. Therefore, the results of the in-depth interviews indicate that interms of the second research question, the consumer’s age appears to have an affect on the brandawareness of Scion cars. 31
  31. 31. Insights About the Research HypothesisThe overall research hypothesis that Masiah determined was that if consumers knew that Toyota wasthe parent company of Scion, their brand attitude towards Scion would be more favorable than thebrand attitude of consumers who did not know. This was examined during the in-depth interviews byfirst asking the interview participants what they thought of the Toyota brand. The participants werethen asked what they thought of the Scion brand. After that, the interview participants were askedwhether they knew the name of the company that owns Scion. If the participant was unable to identifythe parent company of Scion, or incorrectly named the parent company of Scion, they were then toldthat the parent company of Scion was in fact Toyota. After knowing this, the participants were againasked about their perception of the Scion brand, so as to determine whether it changed after knowingthat Scion is owned by Toyota.If the participant correctly named the parent company of Scion, their brand attitude went unchangedafter they were told that Toyota owns Scion. If the participant incorrectly named the parent companyof Scion, their brand attitude was either unchanged, made worse, or made better after being told thatToyota owns Scion, depending on their perception of the Toyota brand. In general, the results of the in-depth interviews indicated that the majority of the participants knew that Scion was owned by Toyota.The results also indicated that, more importantly, the consumers with a negative brand attitude to-wards Scion before knowing it was owned by Toyota had a positive brand attitude change of heart afterfinding out that Scion is owned by Toyota.From the results of the in-depth interviews, it is clear that most of the participants were aware of thefact that the parent company of Scion is Toyota. Only three out of the twelve participants did not knowthis fact. However, of the three participants that did not know that Scion is owned by Toyota, all ofthem positively changed their opinion of the Scion brand after knowing that Toyota is its parent com-pany. From the interviews, all of the participants had a positive attitude towards the Toyota brand.Out of the twelve participants, nine of them were already aware of the fact that Toyota owns Scion.Therefore, their brand attitudes went unchanged. Eight of the participants had a reinforced positivebrand attitude towards Scion, one of the participants was neutral, and none of these nine participants 32
  32. 32. had a negative attitude towards Scion. Out of these nine participants that were already aware of the factthat Toyota owns Scion, nine had a positive attitude towards the brand and of these individuals, two ofthem liked seeing the article and having the Toyota brand emphasized in Scion’s advertising. Therefore,with the results of the in-depth interviews, Masiah has concluded that if consumers knew that Scion isowned by Toyota, their brand attitude towards Scion would be more favorable than the brand attitude ofconsumers who did not know.What Conclusions Can Be Drawn?With the insights that have been discovered, Masiah is now able to fully understand the target consum-ers’ behaviors, perceptions, and attitudes towards the brand in comparison to its competition. As a re-sult, Masiah has generated a central theme for the brand’s position and designed an effective marketingcommunications campaign that effectively addresses these perceptions and attitudes to the benefit ofthe Scion brand. The results of Masiah’s primary research, qualitative and quantitative, have thereforeanswered the research questions outlined by Masiah in Phase I and have confirmed the hypothesis deter-mined by Masiah as well. The final conclusions drawn from the in-depth interviews are that: A. Gender has a significant influence on the intent to purchase a Scion. B. The consumer’s age affects brand awareness of Scion cars. C. If consumers knew that Toyota owns Scion, their brand attitude towards Scion would be more favorable than the brand attitude of consumers who did not know.With these conclusions about the research questions and the research hypothesis, Masiah can make in-formed decisions and suggestions about the position of the Scion brand. The results of the in-depth in-terviews have shown that many new connections can be made in terms of the Scion brand and its parentcompany Toyota. New connections can also be made in terms of consumer gender and age targeting,which can make a significant impact on the success of the Scion brand as well. With these new insights,effective changes in marketing communications efforts can be made to enhance the Scion brand and itsoverall consumer perception. 33
  33. 33. Discussion and RecommendationsAfter a thorough analysis of Masiah’s research findings in both our situational analysis and our primaryresearch, we have concluded that with the current state of the economy it is necessary for Scion totransform its marketing efforts.One of our most informative results expresses that within the age groups we evaluated, there is no sig-nificant statistical difference regarding age and brand awareness, and even more revealing is that thereis no significant difference between age and brand preference. Scion currently markets to trendyyouth, and this is a target that they should continue to pursue through the guerilla marketing, andother nontraditional methods; however, knowing that age does not significantly impact brand attitude,it would be unreasonable to not open up the target market to an older generation, and use traditionalmarketing efforts to reach them.Additionally, Masiah discovered that there is no statistical significance regarding gender and purchaseintent. However, based on our qualitative data results, it is apparent through the sample that we inter-viewed that the perception of many is that features and style of Scion models are geared towards men.While in-depth interviews traditionally lack generalizability, the results do provide insight into existingperceptions regarding Scion and action should be taken to dismiss these views. Thus, Masiah recom-mends that Scion makes efforts to equal their marketing towards men and women. If they use a guer-illa marketing approach and sponsor a video game contest, they can also sponsor a fashion show, orother events or methods that usually appeal to women. If they use traditional advertising, they can de-pict a man as well as a woman enjoying the gender neutral features that Scion possesses.Through our quantitative research, Masiah has discovered that there is a strong connection betweenScion and their parent company Toyota’s brand name that is going untapped. When we evaluatedbrand preference before and after revealing that Scion is owned by Toyota, more people had a favor-able opinion of Scion after finding out about the connection. When we asked if our participants wouldbe more likely to purchase Scion if it used the Toyota brand name in its marketing, the data representsthat they would be more likely to purchase. Finally there was a clear and evident positive correlationthat expresses that people who like Toyota also like Scion. Also, almost all of our respondents alreadyknew the connection between Scion and Toyota, however, most of them were impressed by this factbecause they have a positive opinion of Toyota. Our recommendation is that Scion takes advantage ofthis knowledge and emphasize that they are a part of Toyota and have equal reliability and other posi-tive attitudes that consumers connect with Toyota. 34
  34. 34. Our current recommendations include: 1. Stressing reliability in marketing (because one of the main consumer insights evident in our qualitative research is that reliability is the unifying product feature seen as important to consumers). 2. Utilize more traditional advertising including television, radio, and print advertisements as a method of reaching a greater (and older audience). 3. Make a stronger effort to equalize marketing efforts between men and women and stress beneficial gender neutral features. 4. Scion should utilize positive attitudes that exist regarding Toyota, in order to improve both brand awareness, perception, and purchase intent of Scion. 35
  35. 35. SCION Creative BriefWhat are we advertising? Scion AutomobilesWhy are we advertising? To encourage trial purchase and increase brand awareness among new users. Also to streamline Scion’s image with their target audience.Whom are we talking to? Young men and women aged 18-24. They are Generation Y consumers who accept an alternative urban lifestyle. They acknowledge non-conformity and hold unconventional values that cater towards creative expression and individuality.What do they currently think? They are either unfamiliar or mildly familiar with the Scion brand. They are unsure of the brand because of its relatively short time on the market, but they like that it is different and fresh compared to other brands.What do we want them to think? We want consumers to perceive Scion as the hippest, most customizable auto brand made for artistic, in-touch urban youths. Scion needs to be seen as unique, fresh, and innovative.What’s the SINGLE most important thing we can tell them? Scion is innovative and unique, yet accessible.Why should they believe it? Scion is the most customizable automobile brand on the market with the ability to fit the individual needs and desires of the target market. They have contemporary car bodies and stylish interiors while maintaining an affordable bottom-line price.Are there any creative guidelines? The required tone should be edgy, bold, and hip. High energy and exciting. It should incorporate artistic and musical elements as well in order to appeal to the interests of the young target market. 36