Mizgin Ahmed

Hivi Hurori

Rachel Masingill

Jesus Mendez

Joseph Nguyen

Rebaer Tovi
 Table of Contents

1. Company Description………………………………………………………………………… 2
2. Strategic Focus and Plan……………………………………………………………………… 2
a. Mission……………………………………………………………………………………. 2
b. Goals……………………………………………………………………………………… 3
c. Core Competency and Sustainable Competitive Advantage……………………………... 3
3. Industry Analysis……………………………………………………………………………... 4
a. BCG Matrix for Hasbro…………………………………………………………………... 4
b. Trends in Toy History…………………………………………………………………...... 5
4. Competitor Analysis………………………………………………………………………….. 6
5. SWOT Analysis......................................................................................................................... 7
6. Customer Analysis..................................................................................................................... 7
7. Market-Product Focus................................................................................................................ 9
a. Market and Product Objectives............................................................................................ 9
b. Target Markets................................................................................................................... 10
c. Points of Difference........................................................................................................... 10
d. Positioning......................................................................................................................... 11
8. Product Strategy....................................................................................................................... 12
9. Pricing Strategy........................................................................................................................ 14
10. Channel Strategy...................................................................................................................... 17
11. Promotion Strategy.................................................................................................................. 19
References............................................................................................................................................ 22

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 1. Company Description

Hasbro, Inc., formerly Hassenfeld Brothers, was founded at Providence, Rhode Island, by

Henry and Hillel Hassenfeld in 1923. The Company initially sold textile remnants and school

supplies, but it expanded its product line with toys from the 1940’s onward. The Company is

focusing on the development and marketing of its brand portfolio, including Transformers,

Monopoly, My Little Pony, and more. In addition, the Company has teamed up with Sesame

Street, Marvel and Star Wars to develop a wide range of toys and co-branded games based on

their beloved characters – including Elmo, The Avengers, Spider-Man, Star Wars, and more.

Through the Company's commitment to corporate social responsibility, including

philanthropy, Hasbro is helping to build a safe and sustainable world for future generations and

to positively impact the lives of millions of children and families every year. It has been

recognized for its efforts by being named one of the "World's Most Ethical Companies" and is

ranked as one of Corporate Responsibility Magazine's "100 Best Corporate Citizens."

2. Strategic Focus and Plan

This section covers three aspects of corporate strategy that influences the marking plan:

(1) the mission, (2) goals, and (3) core competency/sustainable competitive advantage of Hasbro.

Mission

The mission of Hasbro is to innovate its brands and continue its global expansion in

emerging markets while committing to the three key areas of its corporate social responsibility

initiatives: product safety, environmental sustainability, and manufacturing ethics.

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 Goals

Hasbro seeks to achieve the following goals by the end of 2020:

 Sustainability goals

1. To reduce waste to landfill at owned/operated facilities by 50 percent from 2012

levels.

2. To reduce energy consumption at owned/operated facilities by 25 percent from

2012 levels.

3. To reduce global Scope 1 and Scope 2 greenhouse gas (GHG) emissions from

owned/operated facilities by 20 percent from 2012 levels.

4. To reduce water consumption from owned/operated facilities by 15 percent from

2012 levels.

Core Competency and Sustainable Competitive Advantage

In terms of core competency, Hasbro seeks to (1) provide and innovate quality toys,

games, and entertainment that allows children and families to enjoy the Company’s brands

anytime and anywhere, and (2) deliver these products while committing to its corporate social

responsibility.

To translate these core competencies into a sustainable competitive advantage, Hasbro

will invest where it can secure the greatest return – on its franchise and partner brands – and

continue penetrating emerging markets and growing its presence in these countries.

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 3. Industry Analysis

Figure 1. BCG Matrix for Hasbro

Star Wars is the big craze My Little Pony is the new

right now due to the fact product for girls that has
that the movie will be potential to do good if
coming out Dec 18, 2015. Hasbro uses the right
A lot of profit can be made marketing techniques to get
before and after the movie is released the product noticed.
because Star Wars is and has been very
popular for years.

Hasbro’s board games Furby has a big decline

have been and continue in sales and profit for
to be stable sellers for four consecutive
the Company. They quarters now.
generate a lot of profit from these
established games.

4
 Trends in Toy Industry

Licensed Toys. Consumers will be looking for the top licensed properties in toy aisles.

According to The NPD Group’s retail tracking service (which represents 80 percent of U.S. retail

sales), sales of licensed toys amassed $3.7 billion – up 6.9 percent from 2014 (Brill, 2015a).

“Toys based on famous brands and entertainment, digital properties usually represent

about 30 percent of total spending on toys in the U.S.,” says Adrienne Appell, TIA trend expert

(Goldman, 2014). Among the strong licenses in the play figures/play sets from 2014 are: D.C.

Comics, Disney, Marvel, Monster High, Teenage Mutant Ninja Turtles, Transformers, and The

Penguins of Madagascar (“Play Figures/Play Sets,” 2014).

Building Toys. Construction sets, such as Keva Planks, Lego, and Laser Pegs, are in

demand. This trend reflects a favorable attitude toward sets that allow consumers to construct

and customize to suit their play pattern. In 2014, building sets jumped 13 percent and accounted

for $1.85 billion in sales, according to The NPD Group. Sales of construction toys remain on the

upswing with retail sales reaching $771 million, according to NPD, from last December through

February – up from $671 million during that same period the previous year (Brill, 2015b). Sales

of scientific toys and educational toys grew as well, by 17 percent and 25 percent respectively

(McGregor, 2014). Target audience for building sets is mainly children.

Digital Interactivity. There is demand for interactivity between the physical and digital

worlds, such as Activision’s Skylanders, Disney Infinity, and Nintendo’s Amiibo. According to

The NPD Group, Americans spent $3.4 billion on gaming content in Q3 (July through

September), a 17 percent increase over the same period in 2012. NPD also notes that digital

games and downloadable content spend grew by 35 percent year-over-year, totaling $1.72 billion

in the same period (Cioletti, 2013).

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 4. Competitor Analysis

The main competitors in the market are Mattel, Learning Curve, Bowen Designs, and

Fisher-price. Hasbro’s market is up to $8.91 billion, higher than Mattel’s $6.75 billion. The total

revenue for Mattel is $5.9 billion, and Hasbro’s total revenue is $3.7 billion. The company size

for Mattel is about 28,000 employees, and Hasbro has about 10,000 employees. Both Mattel and

Hasbro are the top two competitors in the toy market. Mattel’s market has dropped over the years

while Hasbro’s market has increased with the new brands it has developed. Hasbro is a

monopolistic competition with the large number of sellers, being unique, substitutable and

having the right price for the product. For example, Hasbro owns the rights to Monopoly and Mr.

Potato head, while Mattel owns the rights to Barbie and Hot Wheels. By each of the companies

acquiring ownership rights for a unique product line, these firms have the unique ideas.

Strengths of Competitors. There is much strength for each of the competitors. For

example, Mattel’s strengths are its domestic and international brand recognition, upward trend in

financial statements, and industry-leading R&D for new toys in a continuously changing

environment. Their strengths also include having a variety of large volume of products that

appeal to a wide audience, and being one of the largest and most recognized toy makers globally.

Weaknesses of Competitors. One of Mattel’s weaknesses is its failed merger with The

Learning Company, which led to slowed growth, seasonal sales, smaller target audience than

other toy companies, and some of the materials used in production of toys being harmful.

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 5. SWOT Analysis

Figure 2 shows the internal and external factors affecting the market opportunities for

Hasbro. Stated briefly, this SWOT analysis highlights the great strides by the Company.

Figure 2. SWOT Analysis for Hasbro

Strengths Weaknesses
 Owns several properties in toys  Relies on few major distributors
and games market
Internal  Constantly speculating on youth
 Alliance with major Hollywood market’s preferences
studios
 Dependent on third-party
 Strong capital position manufacturers from abroad
Opportunities Threats
 Brands benefit from exposure  Global recession
across different media
External  Dependent on holiday sales
 Technological integration
 Increased dependence on
technology

6. Customer Analysis

In terms of customer analysis, this section describes (1) the initiation of problem

recognition through promotion, (2) information search and alternative evaluations of products,

(3) purchase decisions of customers, and (4) post-purchase behavior of customers.

Problem Recognition Through Promotion. Hasbro’s products are directed almost

entirely towards children, so it is much simpler to trigger needs that will initiate the purchase

process. Since Hasbro works in a monopolistic competition, the main tool for company

marketers will be promotion. A customer’s desire for a product could be triggered by advertising

toys and games that are new and much more enjoyable to play with. If the need is currently being

met by other games or toys, then it is important to promote any improvements to their products.

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A terrific example of this would be reselling the game of Monopoly, since it is a well-recognized

board game that has been around for years. Plenty of family households have the original game,

but there are many reiterations which are based on different shows and movies like Shrek,

Pokémon, and The Avengers. It provides an incentive for buying the same game but with a

change in style. Customers desire this rehash since it is perceived as much more enjoyable with

the inclusion of a favorite show, film, or music artist.

Information Search and Alternative Evaluations. There is not necessarily much

information to consider when buying a toy or game from Hasbro except for finding the price.

Alternative evaluations can be a bigger issue because some children want to know that they will

be able to play with their friends or be considered cool for having a certain toy. Competing

alternatives for products can be mainly evaluated by price and how entertaining the toy is. Since

it is mainly children that purchase products from Hasbro, parents or guardians will not

necessarily be willing to spend $100 on a toy. Despite how “cool” a toy can be, price can play a

huge role in parents deciding which company’s product their child receives. Packaging would

play a huge role in what action figure a child would like to purchase. If the toy looks amusing,

there would certainly be much more motivation to buy and play with it.

Purchase Decision. Since Hasbro’s toy and games are not expensive, most customers

prefer not to buy their products while they are on sale or during any other promotion. They are

certainly purchased more whenever gifts are to be given, but overall, they are simply objects to

keep children entertained and happy. There is no need to wait until Christmas to buy a $20

Transformers toy that a person’s child has been wanting. There is no huge difference in whether

a Hasbro product is bought online or in a store. It is simply a matter of whether the customer

wants the product right now or in a couple of days.

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 Post-Purchase Behavior. Cognitive dissonance could occur with a child that does not

find a toy or game as interesting as they thought they would. Either the product simply was

something the child lost interest in, or their friends did not find it as appealing, which lowers the

perceived value of the toy. An effective way to prevent any form of anxiety or disapproval is to

have the toys endorsed by individuals that are popular to children. Seeing a person’s favorite

athlete, actor/actress, or even cartoon character with your product would reinvigorate the child’s

interest. Another method would be to include different activities you can do with a toy within its

packaging. There can also be variations on how to play a board game to keep things interesting.

7. Market-Product Focus

This section describes the marketing and product objectives for Hasbro and the target

markets, points of difference, and positioning of its lines of toys and games.

Marketing and Product Objectives

Hasbro is a global brand that has committed to creating the world’s preeminent toys.

Hasbro has learned that a successful toy company does not just produce toys; it has to

manufacture a whole popular culture. Part of Hasbro’s mission is to “provide some of the highest

quality and most recognizable play and recreational experiences in the world, and inspire play

through its brands.” The Company’s toys are instantaneously recognized by millions of

Americans, and it has prevailed in the area of board games and puzzles. Its marketing objective

is to remain dedicated to increase its toy brands, and it is testing all angles. These are detailed in

three areas below:

 Current Markets. To expand its core brand, Hasbro has sought out to produce movies and

entertainment in their current markets. It currently has a production company called

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 Hasbro Studios, which has successfully allowed them to expand into television and help

their current markets.

 New markets. In 2016, Hasbro is planning to takeoff a new toy line in North America,

Latin America, and in Europe. The toy line is based on a Japanese video game called Yo-

Kai Watch, which has already launched and sold 6.5 million video game units. With this

achievement, the Company is ready to bring this new brand to new markets through

numerous platforms.

 New products. Hasbro’s stock has ascended 30 percent this year, and their trades are at a

52 week high with much more progression to come. The Company has new upcoming

movies such as Frozen 2 and Star Wars, which are proposed to cause more toy sales for

Hasbro.

Target Markets

Hasbro’s target market is mainly children ranging from ages 3-12 (22 percent). The

female to male ratio for that audience is almost even. The females come out to be roughly 54

percent and males at 46 percent (2009 Quantcast). The Company has placed a heightened

concentration on “tweens,” which are kids ages 8-12. Hasbro offers a variety of games, trading

cards, DVD games, puzzles, and electronic learning aids that appeals to their target market. The

toy industry is a highly competitive market so Hasbro is determined to meet its customers’ needs.

The Company distributes its products in different ways so that its target market reaches its

offerings.

Points of Difference

Differentiation is the most imperative strategy to competitors in the toy industry.

Hasbro’s strategy is offering consumers a product that is unique and affordable. The two main

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competitors in this industry are Hasbro and Mattel. There are a smaller number of companies that

also use these strategies to gain a competitive advantage. This is why differentiation is extremely

important. The points of difference for Hasbro are as followed:

 Superior product quality. Quality is an exceedingly important part of the toy industry.

One of the best ways to improve the image of the company is to improve the quality.

Quality is always at the forefront of Hasbro’s company strategy.

 Superior product variety. Having a variety of products is key to ensuring that consumers

keep returning. Hasbro stretches out a product line as long as it remains popular. The

Company uses the strategy of “rolling mix.” The strategy involves designing a line of

products, and, after a certain amount of time, they reduce and sometimes eliminate that

product line and bring in a new set of products.

 Flexible Delivery. Flexible delivery is imperative in determining if a toy line will sell or

miss its opportunity to get in the hands of children. For example, Hasbro uses the release

of the new Star Wars films to its advantage by developing a line of Star Wars action

figures. The timing was perfect, and they sold a tremendous amount of toys.

Positioning

Hasbro has chosen to position themselves as an innovator in the toys and games industry.

As an innovator, the Company has a differentiation business model developed around particular

functional strategies that have allowed them to stay competitive in the market. Hasbro has some

efficiency in their business operations that allows them to offer cheaper product prices to its

consumers. However, this is not its main focus because many of its competitors have positioned

themselves as being able to offer cheaper prices as well. Hasbro devotes most of its attention to

coming up with fresh and innovating ideas for their products and their systems, which is how it

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has positioned itself in the market as an innovator. Referring to the perceptual map, the Company

has many products that fall in the least and most expensive selling range. The two products that

fall in the most expensive, high-selling range are FurReal Friends and Furby. One of the highest

selling, least expensive products is My Little Pony, which is a highly recognized product around

the globe.

8. Product Strategy

Packaging. For years, Hasbro has been hard at work to reduce the environmental impacts

of its products and packaging. The Company uses natural resources and recycled materials, and it

commits to sustainable sourcing. Hasbro conducts screening level life cycle assessments (LCAs)

on specific products to find ways to reduce the environmental impact for all categories of

merchandise. At least 85 percent of paper and board packaging used by Hasbro is from recycled

material. In 2010 alone, the Company saved 34,000 miles of wire in the first year by eliminating

the use of wire ties in packaging. Hasbro’s Packaging Engineering team makes sustainability a

priority. The Company removed the plastic bags that toy game instructions came in which

removed 800,000 pounds of material worldwide, and it reduced the ridged packaging weight for

different products by up to 34 percent. In 2011, Hasbro issued a Paper and Forest Procurement

Policy, which ensures the wood it purchased is from fiber-based materials; the vendors it buys

from must show credible third-party certification that the raw materials they have commits to the

policy. The Company also has a third-party testing lab that guarantees the strict policy is met.

Hasbro has over 100 different products ranging from action figures, board games, Play-Doh and

a wide variety of other toys. The Company constantly comes out with new products every year

based on new trends, cartoon shows and popular kid’s movies.

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 Competition. Hasbro is the producer of childhood favorites such as Mr. Potato Head,

Nerf guns, My Little Pony and board games under Milton Bradley brands. It is the #2 toy maker

in the U.S. so it does have some competitors. Mattel is its biggest competitor as it is the #1

producer of toys. Couple other competitors are LEGO and Jakks Pacific Inc., Fisher Price,

Bowen Designs and Learning Curve. They are trying to differentiate their company by

promoting themselves as a family oriented establishment. Another way they are differentiating

themselves from competition is by going through with their plans to develop mobile versions of

classic board games to capitalize on strong growth in digital gaming.

Marketing Mix

In the past, Hasbro based its toy making on the sex of its target market. The Company

marketed their toys strictly to boys or strictly to girls. Now it has opted for different versions of

products that appeal to both boys and girls. An example is the Nerf guns. They are the same

shooters and projectiles it markets to boys but in prettier packaging to attract girls. Hasbro

understands that the society today is very different than when the company first started. With that

in mind, the Company is identifying an underserved opportunity market with this branding and is

using a more eco-friendly packaging strategy.

The pricing strategy for Hasbro is to build on what it is already doing well: to re-imagine,

re-invent, and re-ignite its portfolio of brands and also deliver innovation by appealing to

different lifestyles so families can enjoy Hasbro’s brands anytime and anywhere. There is a rise

in input prices for toy makers, which increases prices of products as a result. Hasbro knows

costumers do not want to pay higher prices, so the Company is working hard on cost reductions

to offset inflation in supplies.

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 As far as product placement, Hasbro uses many television shows to help get their

products noticed. Recently, the Company showed its board games Monopoly, Twister, and

Dungeons and Dragons styled on popular television shows. Toy commercials on kid networks is

also another way Hasbro uses product placement. This makes its products gain popularity

because celebrities are using its products, so that makes the consumers want to buy it too.

For promotional strategies, Hasbro has a desire to make use of the media to be more

effective on staying at the top of toy making. The Company has been seen to move away from its

traditional product focus to reinventing itself as a family entertainment company. It has

refocused to a more sophisticated media strategy with a capability to offer a broader range of

entertainment. Hasbro used to rely heavily on television advertising, which is something the

Company is in the process of changing so that it will have other opportunities to grow itself as a

business.

9. Pricing Strategy

The main goal of Hasbro’s products is to offer children and tweens temporary, yet

engaging entertainment. The value is relatively low for the actual consumers, the parents who

buy the toys, since the toys are priced high, but they themselves do not get much benefit or use

out of the products. They do not get entertainment out of the toys, but the benefits they might

enjoy include keeping children entertained and making children happy by buying a toy that they

want. However, since parents and adults are not the target demographic for the products, that

small benefit is not enough to make the toy valuable to them.

However, the value is higher for children, the targeted demographic who do use the

products. They get to enjoy toys based on their favorite brands and characters, as well as enjoy

14
the more technologically advanced products Hasbro has developed recently. But the value for

children is not extremely high because these toys are not expensive investment products such as

video game consoles, which have more uses and provides more quality, immersive

entertainment. Hasbro products are mid-priced merchandise that children enjoy but are not

highly invested in. This means that there is more reason for families to buy new toys relatively

consistently because children always want the newest, latest product, and there is not a lot of

commitment to that mid-priced toy they already have.

Regarding the pricing strategy, Hasbro would be more of a sales-oriented company. The

Company has major competitors like Mattel, so its main goal would be to have as many sales as

possible in order to increase their market share. Hasbro also produces huge numbers of toys and

has large inventories of their many product lines, so a sales-oriented goal will help sell all of

those inventories it had built up. With big holidays like Christmas, sales and discounts offer

incentives for parents to buy Hasbro products. While it may cause a dip in profits, it causes more

people to buy Hasbro products over its competitors. As a rule, Hasbro products are less

expensive to produce than large, complicated products such as televisions or cars, so there is less

of an emphasis on return on investments or making up the money in profits. Instead, the focus is

on selling as many products as possible to get an edge over competitors and selling their large

inventories of products.

As for the actual price of Hasbro’s products, it depends of many factors. One of the major

factors would be the price of competing companies’ toys, which Hasbro has to stay competitive

with. A new technological advance or a new kind of toy being released might drop the price of

older, less advanced types of products and games. Also, if sales or profit goals are not being

reached, then the company may have to raise the price in order to reach a monetary goal or lower

15
the price to reach a sales goals. Finally, if Hasbro wants to reach a larger market, then the

Company might lower the price of its products to make it more accessible to more potential

customers.

By judging the demand of its products, Hasbro can decide the pricing. If Hasbro is

releasing toys for a popular movie or brand like Frozen or Star Wars, the Company can expect a

very high demand for that merchandise. Similarly, if Hasbro is releasing products with more

advanced technology, then that will increase the demand. The Company can also begin to

produce new products or market older ones towards older demographics such as tweens (ages 8-

12) and teens. Hasbro has done this with their product line of Nerf guns, and that has definitely

increased the demand for those products, since they’re reaching new potential customers.

Finally, for Hasbro’s pricing objectives, the Company could use both skimming and

penetration price objectives. Penetration pricing can be used for new toys that are not

technologically advanced or unique such as action figures, stuffed animals, or play sets. Those

types of toys are not new and innovative, so there is not going to be much change in the demand

for them and no need to raise/lower their price. Instead, they are consistent in both price and

demand.

For more unique products, such as electronic games, unique play sets, or new types of

Nerf guns, price skimming may be used. Since the design and technology used in those types of

toys are constantly changing, the demand for older toys will also drop significantly as soon as the

new design or type of toy comes out. Therefore, it may be useful to price those innovative

products higher because there are no other kinds of that product. When newer game technology

comes out and the demand for the older kinds of toys declines, Hasbro can lower the price. This

will make up for the high costs of the development that went in to these new kinds of toys.

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 It is also important to keep up with the prices of toys produced by the competitors. If

Mattel releases a similar product to Hasbro’s product, but Hasbro’s product is priced much

higher, then Mattel’s product will sell more naturally. By being highly competitive with pricing,

Hasbro can make sure that it is not losing demand and customers to other toy companies.

10. Channel Strategy

Figure 3. Distribution Map of Hasbro

Toys "R" Us
Wholesaler
Walmart
Manfacturer

Wholesaler Target

Hasbro Transport Consumer

Hasbro’s distribution network is quite simple since it has a dual distribution channel to

enhance the buying experience of the consumers. Products can be bought directly through

Hasbro’s website, which utilizes its internet marketing channels. They can also be purchased

indirectly through various retailers ranging from pharmacies with toy sections to full-blown toy

stores like Toys “R” Us. Retailers, such as Toys “R” Us and Walmart, provide customers with

17
terrific convenience, a varying and wide product selection, and prices that are affordable, since

the purchasing decision is left upon the parent/guardian of a child a majority of the time. For boy

and girl toys, the relative price range lands between $5-$30 at Toys “R” US, and Walmart and

Target relatively have the same prices. The channel length of the company is not quite extensive,

but the actual distribution process of Hasbro has undergone various changes to satisfy the needs

of a changing market. Beginning with how the Company deliver its merchandise to the retailers

for its indirect channel, Hasbro’s trucks load up their products from various production factories

built all across the globe. Once the trucks are loaded, the products are drove to their location, or

they are delivered to the nearest pier if the destination is overseas. If delivered on freights, then

the enormous vessels arrive at piers closest to the final location of the toys. The products are

drove in trucks once again until they reach distribution centers which send the products to

retailers. Hasbro’s latest channel strategy is straight-forward and simple, but the Company

continues to work towards improving its distribution worldwide.

With its improved distribution comes the intensive breadth of its channel. Since toys are

not considered exclusive items, it is easy for Hasbro to sell their products in a wide-range of

outlets. The Company is able to sell in major retailers such as Walmart and Target, but it is

excluded from basically any location that does not have a toy or games section. Hasbro’s channel

depth also varies with its distribution, especially since many of its products are made offshore.

Hasbro does integrate backwards with its manufacturing, but the Company also have third-party

manufacturers and subcontractors. As for channel conflicts that can affect choices in distribution,

Hasbro uses information from various factors to make its decisions. Consumer factors are quite

simple because the merchandise sold is directed mainly towards one demographic across the

globe. The same logic applies to the actual products made since they are cheap, standardized, and

18
mainly sold through intermediaries. The grandest factor and challenge Hasbro has faced is

minimizing its carbon footprint. The Company’s greatest motivator in enhancing its channel

strategy is its impact on the environment. This comes as no surprise since the Company

distributes across the globe utilizing trucks, railroads, barges, and container ships, all of which

require incredible amounts of energy to function and produce high levels of emission

(“Operations”). Hasbro realizes its impact on the environment, so the Company works closely

with both carriers and manufacturers to reduce its damage by improving logistics (“Operations”).

Its concern has led the Company to join the U.S. EPA SmartWay Transport Partnership and use

Southern California’s PierPASS program in order to reduce its harm to the environment.

Overall, Hasbro has expanded its distribution across the globe with its improved logistics

and growth in countries like Russia and Turkey. With its new “milk runs” distribution strategy

created to eliminate the need for multiple trucks to distribute products, the Company is making

great strides to show its concern for its consumers and the environment. Hasbro has become

much more efficient and effective, and it is clearly reflected by its increase in globalization as

well as its reduction of its carbon footprint. Hasbro may simply sell toys and games for children,

but the Company continues to improve its business strategies to meet its goals and objectives.

11. Promotion Strategy

Hasbro’s primary way of advertising its products is through its entertainment and content

creation. Unlike Mattel, its biggest competitor, Hasbro’s products all come from a wide range of

television shows and movies. Hasbro also has a history of making television shows from their

toys. Starting with the G.I. Joe and Transformers animated shows in the 80’s, Hasbro has always

thought of ways to work their toys into shows that children would like and want to buy toys

19
from. By creating television shows that children watch, it adds another layer of connection that

children have to their toys. Instead of just imagining storylines and situations they can put their

toys into, children can build off of the storylines they love in the toys’ corresponding television

show, which make their play value more fun and engaging. Hasbro even ventured into having its

own channel, The Hub, where the Company played its own cartoons. However, it was eventually

rebranded as Discovery Family.

Another promotion connection that Hasbro has is that the Company also produces films

that are (if not loosely) based on its toys and games. Originally starting with animated feature

films of its existing television shows, Hasbro has ventured into large-budget, live-action films.

The most popular of these films is the Transformers film series, which it became the 10th highest

grossing film series of all time and grossed $1.3 billion dollars domestically. Hasbro also

produced other less successful films based on its other shows or even its board games. While the

films are marketed more broadly, ranging from children to movie-going adults, the fact that

Hasbro’s name and products are represented in the movie provides major exposure to its brand.

Children will be excited to buy toys based on these blockbuster films.

Hasbro has another major connection to films – the Company has always been at the

forefront of the best toy licensing of outside films and television. Hasbro has the exclusive rights

to make toys based on the Star Wars franchise, and it also licensed to make toys from the

extremely popular movie Frozen. While Hasbro’s own toys are not directly showed in the

movies since the movies are not sponsored or produced by Hasbro, the Company gets to make

toys based on the films. Children who see and love the movies will then want to buy the toys

based on them.

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 Hasbro also engages in traditional marketing with television commercials. They air

mainly on children’s television channels like Nickelodeon and Disney channel, and they are fast-

paced and exciting to get kids interested in the toy ranges. With commercials, the Company can

market every single one of its products, ranging from big-name licensed toys to its standard

board games. The commercials give exposure to the toys that are not featured in their own

television shows and movies. Also, Hasbro can partner with other third-party companies that it

licensed with, such as Disney or Marvel, to make the toy commercials even more recognizable

and desirable.

As for sales promotions, Hasbro is pretty direct in its sales marketing. The Company sells

its products mainly through major retailers such as Target or Toys “R” Us, so it can benefit from

having in-store displays for its toys and also having the retailers market the toys themselves.

Those stores also run sales promotions and deals independently, so around Black Friday or the

holidays they will have price reductions on the toys, which encourages people to buy the toy.

Hasbro focuses on advertising and sales promotions but not public relations. Toys usually do not

require positive and in-depth reviews to be popular, so paying for someone to review or promote

its toys would not be very effective. The Company’s advertising and sales promotions are all

focused on pull marketing instead of push marketing. Hasbro’s toy brands are all very well

established, so the Company does not have to worry about introducing entirely new products to

consumers. Instead, Hasbro is focused on getting kids interested in these popular toy brands, and

bringing their parents to buy them.

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