Hot wheels at Mattel: Reinventing the wheel Case Solution & Answer

Hot wheels at Mattel: Reinventing the wheel Case Solution


The company was initiated by Harold matt and Elliot Handler in 1945. The company was one of the largest toy-making companies with the manufacturing of 800 million toys-annually. The company is considered as the largest toy selling company, whose products include:barbie dolls, hot wheels and matchbox cars, fisher price, mega blocks and Uno games. The company has significant production of the products in China i.e. 65% and Mattel sold their products to 150 countries. Mattel had the mission to “create the innovative products and experience that inspire entertain and develop children through play”. Mattel depends on two business streams Walmart and target both make 30% of company revenue. Mattel’s main operation is selling the products physically in stores and the company is also mainly focusing on the promotions and marketing of the products. Hot Wheels was the top-selling product with 16.5 per second. Though the car style was changing throughout the year amidst which, hot wheels were one of the most recognized toys. With the change of generations the hot wheel cast car also changed with time, hot wheels are was functional, speedy, and powerful cars. The playing patterns of children were also changing, the kids were moving from physical toys to digital games. Children were more into iPad and iPhones for their games. So it was high time for Mattel to retain its customer base and upgrade its product. The company had two options, one was launching mixed play game products or focus on t5he physical resources. The basic problem that the company is facing is the significant decrease in its sales.

What is Hot Wheels’ value proposition? Is it unique relative to other industry players?

Hot Wheels at Mattel was successful because of the innovative culture the company follows. According to the records, the value proposition for the company is the highly rapid innovation into the products and their marketing and promotional activities. The excellent TVCs and advertisements made hot wheels the most popular and highest selling products. The advertisements made wider customer range and the company has many movies and books as part of their advertisement strategy this was a strong strategy in the industry that hot wheels were using whereas in the industry other companies did not have any plan or strong advertisement like Mattel had. Branding was the value proposition for the company. The branding strategies of hot wheels were unique in the industry because the others in the industry were not following the same strategies and their focus was not on the advertisement and branding. As part of the advertisement, the company used to arrange the race for people who are interested in cars to increase loyalty and brand awareness.

What is your recommendation for how to position the Hot Wheels mixed play platform to kids? How about to parents?

As hot wheels mixed play was launched based on changing consumer’s patterns and preferences so the best positioning strategy that hot wheels should go for would be doing shows and animated movies to give and present the demo of how the mixed play would work and how it would make the parents life easy. The children are more into the digital gadgets and have less motor activity that is also not beneficial for the children, so the company should make parents realize the disadvantages or the harm that children get from the usage of gadgets. So that would be an effective way to position the mixed play. Parents are easy to target because when it comes to children parents do not take any type of risk and try to avoid situations that hurt the children. Hot wheels should focus on the customers’ focused positioning strategy as well as a character-based positioning strategy to position their newly launched mixed play platform for kids. Parents should be approached through the characteristics of mixed play because it will allow their children to be involved in physical as well as safe and digital activity………………………

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.


Share This