- Mattel
- Repositioning an Old Brand for New Growth
For 25 years, Hot Wheels existed as a one product brand selling 1/64th scale die cast toy cars to boys from 6-12 years old. The problem, due to retail constraints, die cast could only be sold at $.99 - a level which resulted in a net financial loss due to continual increases in manufacturing costs overtime. The challenge was to bring profitability to this fully distributed, well know brand. The answer, leverage the attributes of the brand, extend it into new segments of the wheeled category and introduce new profitable toy car/sets.
Mattel knew that Hot Wheels stood for racing, speed and performance. Under the direction of Ascension strategists, the brand was lead into new segments of the wheeled category carrying higher price points and higher profit potential. Within 12 months, Hot Wheels sales grew from $75 million to over $125 million through new race sets and battery powered, remote control vehicles. The repositioning of the Hot Wheels brand has been the primary reason for Hot Wheels becoming and maintaining its position as one of the largest and most profitable toy brands worldwide.