It’s not even a contest….Sales results through July 2010 show that, of the three cars priced and marketed to attract first-time Millennial car buyers, the Kia Soul wins over Toyota’s Scion and Ford’s Fiesta by a wide margin.
Kia reports selling 36,657 Souls compared to just 25,660 Toyota Scions (all models). This represents a whopping 229% gain over last year for Kia, but a 22% decline for Toyota’s Scion.
Past month sales tell a similar story. In July 2010, Kia Soul sold 8,020 vehicles (a 66% gain) compared to just 5,753 for Scion’s comparable XD model (a 45% decline).
Nissan’s entry in subcompacts, the Cube, was also down significantly. In fact, the only other subcompact to show gains in July was Kia’s Rio. The newly introduced Ford Fiesta sold just 3349 vehicles.
All three cars are sold at a comparable starting price of just over $13,000 and base price of about $15,000 so the difference can’t be explained by price.
What’s the difference? Marketing. According to the Daily Brand Index provided by Civic Science, the Kia Soul has won the hearts of Millennials.
For those of you who aren’t familiar with the unique Daily Brand Indexes created by Civic Science, each and every day Civic Science asks basic brand questions to hundreds of thousands of young adults about over 700 brands. The questions range from simple awareness to questions about popularity and impact. The indexes provide a real time picture of changes in brand perception.
The data for Fiesta, Soul and Scion XD was gathered during the ten-day period August 11 – August 21. According to the research, Kia and Fiesta have both eclipsed the more established Scion in terms of awareness/visibility. Sixty-nine percent of those surveyed are aware of Kia Soul compared to 78% of those who have heard of the Ford Fiesta. In contrast, only 50% have heard of the more established Scion XD.
What makes this even more remarkable is that many Gen Y’ers are not really into buying a car in the first place. (See earlier post, “Millennials Not Romantic About Their Wheels”)
How did Kia do it? By portraying a quirky personality designed to appeal to first-time car buyers.
“Designed to offer consumers a ‘new way to roll’ with a distinct style and a number of personalization options, Soul is aimed at the young and young-at-heart looking for a vehicle perfectly suited to their personalities,” said Michael Sprague, vice president, marketing, Kia Motors America. “The hamsters’ immediate popularity helped position Soul as Kia’s halo vehicle and showcased the brand’s emerging signature design direction, which, along with quality, safety and value, has propelled Kia to tier-one status.” —The Street
Kia’s launch commercial, featuring the unforgettable hipster hamsters, was named Nielsen’s “Automotive Ad of the Year.,” It also won a Silver Effie for advertising effectiveness. In my opinion this spot rivals the Apple Guy vs. PC Guy ads in suggesting this is a brand for people who are smart and non-conforming.
The Soul ad depicts city and suburban streets inhabited exclusively by hamsters who mindlessly run in place inside their exercise wheels until a Molten Red Kia Soul pulls up to a stoplight and the passenger window rolls down to reveal a trio of paw-tapping, music-loving hamsters who have discovered “A New Way to Roll.”
Portraying Soul as a lounge on wheels with its highly specified audio system that includes speaker lights that pulse to the beat of the music, the hamsters bob their heads to four different music tracks that appear in slightly different versions of the spot to keep each viewing fresh. Viewers with a sharp eye can identify song and artist information on the hamsters’ iPod® screen, and the campaign extended online with each track available for download here. —The Street
In follow up ads, called the “This or That” campaign, the hamsters are shown driving through city streets to the tune of the hip-hop song “The Choice is Yours” by The Black Sheep, highlighting the choice between “This,” the funky and unique Soul, or “That,” boring and mundane appliances on wheels, cardboard boxes or hamster wheels. Of course it helps that the cars also deliver many ways to personalize the ride.
The data from Civic Science suggests the Kia should expect to face some fierce competition later this year as the Fiesta ramps up in the U.S.
In addition to its greater visibility, the Fiesta enjoys greater popularity. When asked which car they would purchase if they could, consumers said they would prefer a Fiesta over either a Kia or a Scion xD by a factor of 2:1!
Fiesta has only been available in the U.S. for two months. With those kind of ratings, the subcompact category could get pretty interesting in the next few months as these skilled Millennial marketing firms go head to head.
It should also be noted that Kia Soul is being investigated for some serious safety complaints which could complicate its otherwise flawless marketing to date.
A big thank you to John Clifford at Civic Science for providing me access to the data. For more information on Civic Sciences, its Brand Index or Quick Response Survey see www.civicscience.com
