Mattel puts moms behind wheel for crash course on Hot Wheels
As sales of its toy cars decline, the firm shifts its focus to selling mothers on benefits, writes MATT TOWNSEND.
Earlier this month, influential mommy bloggers gathered in a penthouse suite at Manhattan’s Royalton Hotel for a brunch of bloody marys, mimosas and a buffet. Their host was Matt Petersen, a Mattel Inc. vice-president who runs its North American boys’ toys and games division. In town for a toy fair, Petersen had invited the women to discuss one of the great mysteries of modern life: why moms don’t know how to play Hot Wheels with their sons.
For Mattel executives, pondering such questions is far from a trivial marketing exercise. The world’s largest toymaker pulls in more than $1 billion a year from sales of its iconic toy car brands, including its Big Three — Hot Wheels, Matchbox, and Tyco R/C products. The more Mattel executives understand the disconnect between moms and their sons when it comes to these tiny vehicles, the better shot they have of bridging that divide and selling more toy cars.
“By talking to Mom, we’re extending the conversation to the actual purchaser,” Petersen says. “I know it sounds so silly. It’s kind of like ‘ Why didn’t you do that forever ago?’”
Understanding boys’ play patterns is not a problem mothers have with Mattel’s Batman or Buzz Lightyear action figures because those are essentially dolls. Building blocks are easy to understand, too, as a good way to spur a child’s creativity. Toy cars? Not so much.
Sales of Mattel’s three big car brands declined one per cent in the fourth quarter. And Hot Wheels, the company’s biggest boys’ business, hasn’t seen growth in the U.S. for three years. With growth of traditional toys stalling, especially in the U.S., as more children turn to mobile devices for play, Mattel will have to find ways to reinvigorate big brands like Hot Wheels that generates about 15 per cent of its total sales.
Until recently, toymakers could count on television ads to generate enough “pester power” to drive sales. Yet in an age of video game consoles and tablets, the effectiveness of TV commercials has waned, leaving toymakers hustling to find new ways to connect. Moms, not dads, buy the overwhelming majority of toys, so selling mothers on the benefits of the boy-car connection is key to stopping the slump, according to Petersen.
At the brunch, moms and executives sat at a long table with a Hot Wheels track running down the middle. The ensuing discussion ranged from how playing with Hot Wheels can help develop hand-eye coordination to what it would be like to ride in a race car.
Raijean Stroud, a 32-year-old mother from Chicago who attended the breakfast, said she wants to better understand her four-year-old son’s love of cars.“
I’m a girly girl. So it’s kind of hard to understand how these little plastic machines can be so much fun, versus a Barbie that you can change her clothes, cut her hair, and do whatever you want.”
Lawrence Balter, a child psychologist who writes parenting books, says Mattel might be onto something.
“There’s always a little puzzlement on the part of mothers about what their sons find so interesting in some of the toys they choose,” he said.
Besides reaching out to mothers through bloggers and social media, Mattel is planning to dedicate part of the Hot Wheels website to them. Content may include the benefits of vehicles, tips on playing with cars and using them to teach science and math.