Automotive News - January 21, 2008 - (Page 24B)

24B • JANUARY 21, 2008 marketing Which brand is stronger — Scion or Prius? Mark Rechtin mrechtin@crain.com The Scion tC Buzz battle Scion generally attracts more specific references in online discussion messages each month than the Toyota Prius, but the hybrid closed the “buzz” gap last year. Take two brands created a few years ago by the same automaker. Give them tentative initial launches, nearly identical current unit sales and feverishly loyal buyers. You’d expect them to have about the same brand strength, right? Not necessarily — if the brands are Toyota’s Prius and Scion. “If you mention Prius to just about anyone of any age, they have heard of it, what it is, what it stands for,” says Scion Vice President Jack Hollis. “That’s not our goal with Scion.” Hollis says Toyota is “fine with Scion being invisible to many but very visible to a small percent.” I can hear the nitpickers screaming that Prius is a product, not a brand. Not so. Nobody outside the industry knows what Hybrid Synergy Drive is. But only people who live under a rock don’t know what a Prius is. That makes the Prius a brand unto itself, like the Chevrolet Corvette. Although the first-generation Prius came to the United States in 2000, Toyota didn’t give the car a real marketing push until it launched the second generation in 2003. After Toyota launched Scion in California in 2003, the brand went nationwide in 2004. Both the Prius and the trio of Scion vehicles sell about 175,000 units annually in the United States. Brand strength usually is measured in repurchase loyalty. But the Prius and Scion brands also work because they attract people who normally might have avoided a Toyota-built product. 35,000 30,000 Message count Scion 25,000 20,000 15,000 10,000 Prius Scion’s goal: Generate below-the-radar buzz within the subgroup of the young and hip. The Prius, in contrast, gets headlines as an environmental superstar. The Toyota Prius 5,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2006 2007 Source: Nielsen Co. news ANALYSIS Hitting the target “The real strength and resonance of the Scion products is within its specific buyer group, but not so much the general market,” says Jim Lentz, president of Toyota Motor Sales U.S.A. Inc. Lentz was vice president of Scion when it was created. About 85 percent of its target youth market knows what Scion is, but only 40 percent of the general market does, Lentz says. Bill Stephenson, head of the automotive practice for Nielsen BuzzMetrics, a media analysis firm in suburban Los Angeles, notes that Scion and Prius attract similar levels of media attention. But the nature of the buzz is different, Stephenson says. A recent Nielsen study concludes that the Prius generates the biggest share of online discussion of alternative-fuel vehicles, with almost 35 percent of total buzz. No other alt-fuel vehicle got more than 4 percent. Scion doesn’t attract nearly the buzz of youth-oriented nonautomo- tive brands such as Apple, Nintendo and Chipotle. But it gets much more positive feedback than those brands, Stephenson says. Welcome to the club “Regardless of purchase motivations, both Prius and Scion owners talk like they are in a special club,” he says. “The difference is that the entrance to the Prius club is marked by a green welcome mat, while the entrance to the Scion club is unmarked and found by referral only.” As it lures youthful tastemakers, Scion also attracts an older, valuedriven crowd. It’s unclear whether that duality turns off Scion’s intended younger audience, says George John, chairman of the marketing department at the University of Minnesota’s Carlson School of Management. John thinks Prius is a stronger brand for Toyota than Scion. Prius buyers will pay more to gain access to Toyota’s hybrid technology, he says. “The price premium paid for a Prius over a comparable nonhybrid car from Toyota is staggering,” John says. “People buy Priuses for reasons that go well beyond the functional reason. There is a brand aura attached to the hybrid concept that Toyota has successfully transferred to other hybrids. “In that respect, Prius is a far greater success story. It has yielded something that has been leveraged across multiple models.” Brand power AutoPacific, a market research firm in suburban Los Angeles, surveyed Prius and Scion owners about why they bought their cars. AutoPacific President George Peterson says Prius owners emphasized brand and vehicle reputation. For Scion owners, he says, image and styling were more important. For brand strength, Peterson says, Prius wins hands down. Four out of five Prius owners say they will consider a Toyota-built car or truck for their next vehicle, according to AutoPacific, compared with three of five Scion owners who say they will return to Toyota. “Toyota is going to have to reconquest about 40 percent of Scion owners to keep them in the family,” Peterson says. Both Prius and Scion owners told AutoPacific that a big reason for their purchases was their trust in the Toyota name behind the product. But that may be changing. “Once upon a time, people bought a Prius because it was a Toyota,” says Doug Coleman, Prius’ product marketing manager. “But now people are buying Toyotas because we make the Prius. It has become a symbol for something more than just a car.” c Fans remember auto commercials with sports themes Mary Connelly mconnelly@crain.com Total recall These were the 10 most recalled auto TV commercials that debuted nationally between August and November 2007. BRAND/VEHICLE DESCRIPTION Auto marketers who want to boost viewer recall of the TV commercials they run during a sports broadcast should link their spots to that sport. That’s the advice of IAG Research, a New York market research firm that ranks the auto commercials that consumers say they recall most and like best. In its study of auto spots that first aired nationally between August and November 2007, IAG says half of the 10 best-remembered spots ran during sports programs and had sports content. Two of the most recalled commercials were for Lexus that ran during the U.S. Open tennis tournament. Topping the list was a 30-second commercial that featured tennis star Andy Roddick and promoted Lexus’ sponsorship of the tournament. A 45second version of the commercial ranked No. 9. Also cracking the top 10 were NASCAR-related commercials for the Chevrolet Silverado pickup, the Toy- A study named this Jeep Liberty commercial featuring a singing wolf as one of the most remembered — and best-liked — auto TV commercials airing between August and November of 2007. 1. Lexus brand 2. Ford Fusion 3. Ford Taurus 4. Ford Edge 5. Chevrolet Silverado 6. Toyota brand 7. Ford Escape Hybrid 8. Chevrolet brand 9. Lexus brand 10. Jeep Liberty Source: IAG Research Tennis star Andy Roddick drives in reverse (30 sec.) Woman swaps Toyota Camry for Fusion (30 sec.) Man swaps Toyota Avalon for Taurus (30 sec.) Woman swaps Nissan Murano for Edge (30 sec.) NASCAR scenes (30 sec.) Racetrack scenes (30 sec.) Young girl and father (30 sec.) Baseball-themed spot (30 sec.) Longer version of Andy Roddick spot (45 sec.) Singalong with SUV driver, woodland creatures (60 sec.) ota brand and a Major League Baseball-themed spot for Chevrolet. It’s often hard for auto advertisers to attract consumers’ attention during sports broadcasts, says Sallie Hirsch-Johnson, IAG’s senior vice president of research. Sports sponsorships improve viewer recall of commercials, she says. Three commercials that were part of the Ford brand’s “Swap Your Ride” ad campaign finished second through fourth on the IAG most-recalled list. Each commercial featured a consumer trading an import-brand vehi- cle for a Ford vehicle for a week. The best-liked commercial during the survey period was a 60-second spot for the Jeep Liberty. It showed a squirrel, a wolf and birds jumping into the SUV to sing along with its driver. The commercial also was among the 10 most remembered auto spots. IAG measures recall of commercials that run on 22 U.S. broadcast and cable networks. It surveys more than 5,000 consumers about how well they remember the content, brands and nameplates of auto spots and how well they like the commercials. c

Table of Contents Feed for the Digital Edition of Automotive News - January 21, 2008

Campi will move fast to buy global Ford rolls out new F series — but will it stay No. 1? GM will push metro megastores BMW: We may need a 'green' brand Competition claims traditions German summit Toyota: We have enough plants for now Chinese pitch innovation, not just price Mercedes in, Cadillac out as sponsor of Masters golf tournament Auto show walkaround: Chasing the YIPS around Detroit New Acura TSX will get a diesel Toyota: We'll crack 35-mpg CAFE before 2020 Audi predicts 1 million global sales in 2008 Toyota crosses over into tricky segment LETTER TO THE EDITOR: Digital edition is a 'quantum leap' KEITH CRAIN: Here they come, ready or not EDITORIAL: Incentives war isn't the answer to sales downturn LETTER TO THE EDITOR: Toyota over Chevy? Don’t be too sure DIGITAL EDITION: You did your homework Chrysler concepts show brand tweaks Chrysler: 'Hemi is not powertrain of the future' Some of what we heard at the Detroit auto show Corvette has a future — but maybe a lighter, greener one Nissan exec: Cube is coming to America Subaru relies on new Forester Farley: Ford must groom the market Ford still funds Jag, Land Rover product development Ford will probably develop its new rwd cars in the U.S. Volvo considers North American production Good design: Solving problems, making a statement Horbury wants a more aerodynamic F-150 Hyundai upgrades next Sonata's interior M-B could build C class in U.S. VW hints at vehicles for new N.A. plant Customer demand for CTS sedans strains production capabilities at Cadillac GM to test ZR1 carbon fiber weight savings Honda Pilot has more room, power Indiana plant will boost Honda's flexibility Zetsche sees 20% diesel mix for Mercedes-Benz GM hopes to have E-Flex test vehicles ready by June GM to increase Enclave output Cadillac aims high with Provoq Pontiac to launch G8 marketing in March Big-truck sales fall 43.5% in Dec. Personnel Buckle up for a rocky '08, economists warn Canada sales up 2.4% in '07 Gioia: Ford hybrids will be profitable by year end American Honda opens workplace diversity office Dealers From CDs to Sync: Auto industry races to adapt in-car IT trends Microsoft exec sees a car as 'another room in the house' China's Geely plans plant in Mexico Chrysler exec: China exporters need time Murtaugh: Nissan deal won't affect Chrysler-Chery venture Strike by writers makes TV iffy for auto marketers Super Bowl auto advertisers get pre-game jitters Final Say GM bumps buyout total to 46,000 GM considers U.S.-made Astra Good Karma: Mean, green, fighting machine Purves confirms it: The end is near Rehab for designers: A change can do you good Tata's achievement: Redefining 'cheap' Fans remember auto commercials with sports themes Which brand is stronger — Scion or Prius? Engine advances bring cleaner emissions a step closer Suppliers to the 2008 Ford Focus Varable compression ratio makes a comeback Change the engine's stroke Integrate components to boost efficiency Reduce the size of the engine Eliminate the cams and count the savings ZF expects surge in new orders American Axle's rising son may be another Dauch Honda taps Web for workers Trelleborg unit adds tech center Kia restricts hiring at Ga. plant to Web applicants Magna pursues Ogihara Supplier personnel Age of intelligent transportation is getting closer Plastic spoiler saves weight Automotive News' cartoonist looks at 2007 8 will enter European Automotive Hall of Fame Pininfarina lifted family business to new heights Merciless cost cutter Calvet rescued PSA Opel boys turned bicycle venture into automaker Giacosa fathered the Fiat 500 JCI to supply batteries to Chinese automakers Automakers will spend more on digital ads Ford snares star role in return of 'Knight Rider' GM Certified markets online to Hispanics Writers' strike could benefit auto marketers

Automotive News - January 21, 2008

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