Our Work – Strategic Solutions
New Channels, Customers, and Consumers
The Strategic Challenge
Prior to 2001, RC (radio controlled) sports were a niche category. Consumer participation was limited by retail availability, high prices, and a very steep learning curve. While the RC sports’ customer base was aging; younger consumers were playing video games, and the retail distribution channels were inefficient. As a market share leader, Horizon Hobby, was concerned their opportunities for future sales growth were very limited.
RC (radio controlled) sports participation faced an array of challenges, including:
Retail distribution limited to independent hobby shops.
Relatively few product choices, offered in small, cramped, often intimidating environments.
Extremely high price points – $500+, cost prohibitive as a “toy”.
Difficult and steep learning curve – hours of training to use successfully; months to master.
The Solution
Create and introduce a new RC sports “category entry” Brand, addressing very barrier to
category entry.
The HobbyZone line was moderately priced, easy-to-use, available for purchase in mass merchants and big box stroes, and bridged the gap between RC “sports” and toys.
Sold in hundreds of new outlets – mass merchants and toy retailers; priced at $75
Toy as well as “sport” sku’s;
Ready-to-Fly right out of the box;
Results
RC Sports category growth in both hobby shops and toy/mass merchant retailers
HobbyZone expanded distribution, price points, and use base.
Horizon Hobby increased retail sales and revenues in 2002 and 2003.
