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;


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.