Strategy Implementation

FTMBA, Trimester 4, 2022-23

Case Analysis
Hot wheels case study

Submitted By: Group 8

Name SAP ID Roll No.

Shubhangi Agarwal 80512100434 D008
Aviraj Singh Sekhon 80512100412 D018
Arvind Singhal 80512100388 D028
Tejas Yadav 80512100368 D048
Sirnam Priyanka 80512100083 D058

Faculty: Dr. Mukund Prasad

1
1.What has made Hot Wheels such a successful brand over the course of nearly 50 years?

These elements have contributed to the 50-year success of the Hot Wheels brand at Mattel:

 Increasing the variety of its digital products: As a result of age compression, there was an
increased desire for digital toys at an early age. Hot Wheels joined the market for digital toys
by licencing its intellectual property to game developers in response to this void.
 Mixed Play: While the need for digital items was on the rise, physical toys were also in high
demand and held a sizable portion of the toy market. This eventually led to the
establishment of the mixed play category, which combines physical and digital products.
These items were in accordance with market demand. Smart cars are an example of mixed
play toys.
 Acquisition of other leading organisations: Due to the acquisition of firms such as Fisher-
Price and in-house top brands such as Barbie, the brand value and recall of Hot Wheels have
increased significantly.
 Product Development and Innovation: From the beginning, Hot Wheels has been focused on
innovating the product based on market need or supply gap. Hot Wheels' introduction of
metal axles for free-spinning wheels in toy vehicles, for instance, was an important
innovation in the toy car market. In addition, the Hot Wheel cars were easy to handle and
manipulate, making them an ideal product for children.
 Brand Value Hot Wheels possessed a high brand value. With the advent of new models, the
die-cast automobile model saw only minor modifications. As a Mattel Inc. brand, Hot Wheels
enjoyed a positive reputation, and consumers liked its products.
 Emotional Benefits: Hot Wheels shifted their positioning to a "development mindset" by
incorporating "Competition," "Creativity," and "Exploration."
 Low Price: The price of Hot Wheels cars has been approximately $1.00 for almost 50 years,
making them a good value for the money.
 Hot Wheels has always invested in technology to maintain a competitive advantage, as
evidenced by the incorporation of artificial intelligence (AI) into toy automobiles. It could
adhere to the customer-designed path.

2. What effect, if any, do changing childhood play patterns and the shift to digital experiences have
on the future of Hot Wheels?

 We are a part of a world that is rapidly advancing and changing all the time. Specifically,
technology, digital connections, and the ages at which children are first exposed to subjects
like these are all undergoing significant shifts.
 These shifting patterns of play among children as well as the change toward the experience
of playing video games digitally will have a significant impact on the future of Hot Wheels. As
a marketer, your objective should be to pique the interest of your ideal customer base while
simultaneously generating a sense of urgency and a strong desire to make a purchase.
 It is essential to have an understanding that customers continue to mature and adapt to the
environmental situation in which they find themselves; as a result, their expectations for
products continue to evolve along with them.
 Therefore, it is not the best strategy to keep to one pattern, method, or stencil that has
always looked to be functioning over the course of many years in order to react to changes.
The video game company Hot Wheels needs to take a look at its rivals, such as Sony

Page | 2
 Interactive, Nintendo, or Activision Blizzard, and come up with something fresh to satisfy the
needs that other companies have already addressed.
 Hot Wheels needs to go with the transition and introduce a new feature that will keep the
target engaged and possibly even win back some previous consumers because the target
segment that was once established has shifted to new technology and digital capabilities.

3. What innovations can Hot Wheels explore in the digital space? What could be a compelling value
proposition of a Hot Wheels pure-digital experience?

The entry of Hot Wheels into the digital arena enables a whole new trove of possibilities to become
available. Customers, both new and existing, can be enticed to follow along and become a part of a
new and more comprehensive image by being invited by slogans such as "Reinvent your journey" or
"Join us on this adventure." The value that results from taking that first step into the digital age can
be evaluated from the point of view of the client as well as the perspective of the organisation. The
innovation is all about interacting with others, meeting people from all over the world, and being
able to autonomously construct something that is more than simply a racetrack with a plastic car.
This is what the innovation is all about for customers and product users. It gives the customer with
creativity, ideas for the future, and problem-solving, all of which are things that a lot of people crave,
and parents are seeking for those qualities in the toys that they buy for their children. On the other
hand, Hot Wheels is in the process of developing a new image that will enable the company to win
back lost customers, keep the ones it already has, and automatically increase its CLV given that it
now takes more than a plastic car to be included.

4. If you were the Global Brand General Manager for Hot Wheels, which growth plan would you
recommend to Mattel’s new CEO? Why?

If I were the Global Brand General Manager for Hot Wheels, I would suggest that they go in the
route of mixed play since it combines traditional forms of play with new forms of play, such as digital
play, to produce toys that are able to come to life. It may be very advantageous to cover a wide
variety of functional, speed, power, and performance elements in order to maintain the original
brand identity and business statement in their roots, while at the same time adapting to the new
digital generation by including interactive online sources that customers can use. Covering a wide
variety of functional, speed, and performance elements may help to maintain the original brand
identity and business statement. As a consequence of this, the older the consumers are, the greater
the desire for increased digital contact, and as the Global Brand General Manager, I believe that it is
vital to cater to the preferences of the target audience. To summarise, by deciding to implement this
particular innovation, Hot Wheels will maintain the image and personality of the brand and will not
be able to pull off an entirely different brand identity. This will ensure that the brand's existing
customers continue to show interest in the product while also creating a welcoming platform for
new or less engaged customers who are interested in learning more about the brand through its
properties of challenge, novelty, customization, and social play. Additionally, it offers multiple
opportunities for success due to the fact that "both sides" can be a motivation or desire for an
individual to make a purchase. This indicates that younger children can transition into the digital
approach, and older individuals have the opportunity to rediscover their love for the original die-cast
car when they are drawn into the field of digital marketing.

Page | 3