Hot Wheels at Mattel: Reinventing the Wheel
In 2017, Chris Down, Global Brand General Manager for Hot Wheels, and his team from the Advanced Play Group within Mattel, Inc., were considering which innovation path to pursue in order to “future proof” the Hot Wheels franchise going forward. Hot Wheels was the number one selling toy in the world (by unit volume), however, play patterns among children were rapidly changing and children were moving on from physical toys to digital play at a younger and younger age. Hot Wheels needed to determine how to respond. One option considered was the development of a new “mixed-play” product that blended physical and digital play. Another option was to considerably expand its pure digital initiatives to meet the age compression challenge head on. The last option was to focus its time and resources on physical toys and develop a special collection of die-cast cars for the 50th anniversary of the brand coming up in 2018.
Hot Wheels parent company, Mattel Inc. had seen revenues and operating income drop for the past three years. It was unclear if Mattel’s new CEO, Margo Georgiadis, would be supportive of a new play experience as the cornerstone of Hot Wheels’ growth plan. Down had to decide which alternative his team should push for.
Suggested Preparation Questions:
1. What has made Hot Wheels such a successful brand?
2. What are the implications of the changing childhood play patterns and their shift to digital experiences for the future of Hot Wheels?
3. How do you envision a Hot Wheels mixed-play experience? Should it lean more into the physical or the digital world? What segment of children would you recommend Hot Wheels should target with a mixed-play experience?
4. What innovations can Hot Wheels explore in digital space? What would be the value proposition of a Hot Wheels’ pure digital experience?
5. As a retailer, would you be supportive of a digital transformation of the Hot Wheels? 6. Given Mattel innovation culture and financial situation, how much risk would you be willing to take?
7. If you were the Global Brand General Manager for Hot Wheels, which growth plan would you recommend to Mattel’s new CEO? Why?
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