Toyota's big push

Motoring editor ALASTAIR SLOANE outlines the carmaker's latest global marketing strategy aimed at the coming-of-age driver.

In the beginning, it was called the Genesis marketing group, a team of Toyota disciples who met in the United States in 1998 to plot ways to "connect with the internet-generation reaching driving age and entering the car market".

That's what one of the Genesis leaders said the team was charged with doing. Now it calls itself Scion, as in descendent or heir. In this case from Genesis. But it has the same aim - one day to put Americans who aren't yet old enough to drive in Toyotas.

"It's an important emerging consumer group that will total more than 60 million potential customers by 2010," says Scion executive Jim Lentz. "With Scion, Toyota is taking a major step to reach out and connect with them. "

Toyota has just launched its youth-oriented Scion arm in the US. It showed off two concept vehicles, the bbX and ccX (X is for the X generation), both of which offer a strong hint of the direction Scion will take with its new line of products.

The carmaker says Scion is designed to stand alone. Yet it is also a name meant to convey a clear link to the heritage of the Toyota brand.

"Toyota's research shows that the under-driving-age group already seeks out the newest trends in style and innovation," says Lentz.

"Although this group represents only a slice of the net-generation as a whole, its influence is substantial and therefore extremely important - so important that we have dedicated a new line of products and services that will not only attract them, but retain them."

Scion has also set up a website, designed by Los Angeles agency Fresh Machine. It will offer photos and video previews of the brand's cars, along with music downloads and other content such as articles on hip youth culture and not necessarily cars.

"Our approach was to create a lifestyle experience for website visitors," says Fresh Machine founder Rick Bolton.

"The site aims to communicate the values of the Scion lineup. The site is hip, streamlined, technological without being geeky, and loaded with visual imagery. As Scion moves forward, the values embodied on the site will be tied to specific cars."

Scion will launch in America in June next year with two vehicles. One will be an adaptation of the bbX show car, which is based on a vehicle now available in Japan called the "Black Box", aimed at Japan's youngest buyers as a melding of entertainment-art and basic transport.

The bbX is a multi-purpose concept that Toyota says combines aggressive styling, expansive people- and cargo-hauling capability, and a thoughtful approach to versatility.

The Scion operation coincides with Toyota's announcement that it aims to nail down 15 per cent of the global vehicle market by 2010. At present it has 10 per cent.

The sales target is part of Toyota's 2010 Global Vision, a wide-ranging outline of the carmaker's long-term direction. The last time Toyota announced a long-term vision was its "2005 Vision" set in 1996.

It says that changes in global political, economic, social and next-generation technological trends means it is time to set a new direction and carry out concrete reforms.

It plans to shift to a profit structure supported by three bases: Japan, North America and Europe. At present North America and Japan account for the bulk of its earnings.

In Japan, Toyota says it will strengthen its sales structure and enhance competitiveness in domestic production.

It will "boldly take a worldwide review of existing corporate structures, frameworks and methods", and is considering forming a global headquarters to perform global management functions.

The company also says it will "select and concentrate on business areas and technology fields and alliances (including mergers and acquisitions)" to reform structures.

Toyota New Zealand began its campaign to appeal to younger buyers 18 months ago by introducing the Echo TS, a sports version of its award-winning hatchback.

The TS stands for Toyota Sport, a world brand created to give Toyota a youthful, competitive image. The idea is to emphasise the carmaker's expanding role in motorsport.

Meanwhile, Toyota is concentrating on increasing its 14-year reign as New Zealand's best-selling brand as it goes into the second quarter of the year trailing Holden.

Land Transport Safety Authority figures show that Holden at the end of March had sold 3309 cars and commercials for 17.5 per cent of the market. Toyota sold 3119 for 16.5 per cent and third-placed Ford 2975 for 15.7 per cent.

In fourth place was Mitsubishi with 1714 sales for 9 per cent, followed by Nissan with 1593 (8.4), Honda 1095 (5.8) and Mazda 714 (3.8).

The European high-flyer in New Zealand over the past three months was BMW, with 532 sales, followed by Peugeot (391), Volkswagen (358), Mercedes-Benz (260) and Audi (237).