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The following passage is adapted from a recent Wall Street Journal article titled, “Who’s Buying “Youth” Cars?”
When Toyota Motor Corp. introduced its Scion brand nearly 10 years ago, its goal was to attract a certain buyer it felt wasn’t being addressed by its unexciting Camry and Corollas—namely the hip, tech-savvy and young. Appealing to young buyers means auto makers are designing and marketing to the “millennial generation”—that large group of consumers in their 20s and 30s whose size is second only to the baby boomers who have until now have made up the largest auto market segment. Millennials are about 12–14% of the market, whereas baby boomers are about 40%. One reason auto makers have developed youthful brands and products is to connect with young adults in the hope of keeping their loyalty as they age and later buy more expensive vehicles. For that reason, Toyota introduced lower-priced cars like the Scion xB. However, Scion’s line of funky-looking (i.e., “stylish”) small cars is attracting not just younger buyers but also older buyers like Leslie Olsen, a 65-year-old retired university director from Golden, Colo., who said this about the Scion xB: “It didn’t look like a typical ‘old person’ car. It looks young.” Such unexpected interest from older customers as well as the intended younger buyers has led to the use of a ‘two-track approach’ to promoting the car.
Briefly describe the implications of a “two track approach” for the Scion marketing mix. That is, given Toyota’s desire to reach both segments (the baby boomers and the millennials), what sort of differences are there likely to be in the 4Ps for each segment (“track”)? Note: Credit will be given for well-organized answers. Should be around 200 words.
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