Mizgin Ahmed

Hivi Hurori
Rachel Masingill
Jesus Mendez
Joseph Nguyen
Rebaer Tovi

Table of Contents
1. Company Description 2
2. Strategic Focus and Plan2
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

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 1940s 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
1

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.
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 Companys 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.

3. Industry Analysis
Figure 1. BCG Matrix for Hasbro

Star Wars is the big craze

right now due to the fact

My Little Pony is the new

product for girls that

has
that the movie will be
coming out Dec 18, 2015.
A lot of profit can be made
before and after the movie is released
because Star Wars is and has been very
popular for years.

potential to do good if
Hasbro uses the right
marketing techniques to get
the product noticed.

Hasbros board games

have been and continue
to be stable sellers for
the Company. They
generate a lot of profit from these
established games.

Furby has a big decline

in sales and profit for
four consecutive
quarters now.

Trends in Toy Industry

Licensed Toys. Consumers will be looking for the top licensed properties in toy aisles.
According to The NPD Groups 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 Activisions Skylanders, Disney Infinity, and Nintendos 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).
4. Competitor Analysis
The main competitors in the market are Mattel, Learning Curve, Bowen Designs, and
Fisher-price. Hasbros market is up to $8.91 billion, higher than Mattels $6.75 billion. The total
revenue for Mattel is $5.9 billion, and Hasbros 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. Mattels market has dropped over the years
while Hasbros 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, Mattels 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 Mattels 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.

5. SWOT Analysis
5

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

Internal

Externa
l

Strengths
Owns several properties in toys
and games market
Alliance with major Hollywood
studios
Strong capital position
Opportunities
Brands benefit from exposure
across different media
Technological integration

Weaknesses
Relies on few major distributors

Constantly speculating on youth

markets preferences

Dependent on third-party
manufacturers from abroad
Threats
Global recession

Dependent on holiday sales

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. Hasbros 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 customers 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.
A terrific example of this would be reselling the game of Monopoly, since it is a well-recognized
6

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,
Pokmon, 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 companys 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 Hasbros 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 persons 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.
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
7

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 persons favorite
athlete, actor/actress, or even cartoon character with your product would reinvigorate the childs
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 worlds 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 Hasbros 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 Companys 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
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. Hasbros 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
Hasbros 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. Hasbros
strategy is offering consumers a product that is unique and affordable. The two main 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 Hasbros company strategy.
9

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
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

10

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. Hasbros 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 kids movies.
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.
11

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 Hasbros 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.
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

12

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 Hasbros 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
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

13

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 Hasbros 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
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 812) and teens. Hasbro has done this with their product line of Nerf guns, and that has definitely
increased the demand for those products, since theyre reaching new potential customers.
Finally, for Hasbros 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
14

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.
It is also important to keep up with the prices of toys produced by the competitors. If
Mattel releases a similar product to Hasbros product, but Hasbros product is priced much
higher, then Mattels 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

15

Wholesale
r
Manfactur
er
Wholesale
r
Hasbro

Transpo
rt

Toys "R"
Us
Walmart
Target
Consum
er

Hasbros 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
Hasbros 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
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, Hasbros 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
16

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. Hasbros 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. Hasbros 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
mainly sold through intermediaries. The grandest factor and challenge Hasbro has faced is
minimizing its carbon footprint. The Companys 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 Californias PierPASS program in order to reduce its harm to the environment.
17

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

Hasbros primary way of advertising its products is through its entertainment and content
creation. Unlike Mattel, its biggest competitor, Hasbros 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 80s, Hasbro has always
thought of ways to work their toys into shows that children would like and want to buy toys
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
18

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
Hasbros 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 Hasbros 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.
Hasbro also engages in traditional marketing with television commercials. They air
mainly on childrens television channels like Nickelodeon and Disney channel, and they are fastpaced 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.
19

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 Companys advertising and sales promotions are all
focused on pull marketing instead of push marketing. Hasbros 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.

References
BRILL, P. (2015a). Properties at Play. Gifts & Decorative Accessories, 116(1), 222-224.
BRILL, P. (2015b). Under Construction. Gifts & Decorative Accessories, 25-28.
GOLDMAN, K. M. (2014). What's in Store for Holiday 2014?. Gifts & Decorative Accessories,
34.
Play Figures/Play Sets. (2014). Gifts & Decorative Accessories, 110.
McGregor, L. (2014). CHILD'S PLAY. Earnshaw's Review, 98(2), 14-17.
Cioletti, A. (2013). GET iN THE GAME. License! Global, 16(6), 44-48.
Hasbro, Inc. SWOT Analysis. (2015). Hasbro, Inc. SWOT Analysis, 1-8.
https://www.behance.net/gallery/15901291/HasbroMattel-SWOT-Analysis
https://prezi.com/-ew9l91zoeen/mattel-vs-hasbro/
https://finance.yahoo.com/q/co?s=HAS
http://www.slideshare.net/egalt/hasbro-report-5817680
http://www.wikinvest.com/stock/Hasbro_(HAS)
http://lasvegassun.com/news/2015/nov/12/why-the-toy-industry-is-having-its-best-year-in-a/
http://investor.hasbro.com/releasedetail.cfm?ReleaseID=937130
http://files.shareholder.com/downloads/HAS/1005006785x0x855070/87E9310D-C777-44D9B5D8-BC00D4B225FA/Hasbro_Q3_2015_Earnings_Presentation_FINAL.pdf
http://www.forbes.com/sites/niallmccarthy/2015/04/13/the-most-successful-movie-franchises-inhistory-infographic/
https://en.wikipedia.org/wiki/Hasbro_Studios#Filmography
http://csr.hasbro.com/en-us/responsible/our-approach
http://www.adweek.com/news/television/after-rocky-few-years-hasbro-s-tv-strategy-changingagain-163083
http://www.businessinsider.com/how-hasbro-decides-which-toys-it-will-turn-into-movies-2014-7
http://www.licensemag.com/license-global/hasbro-magic-branded-play

20

http://www.marketingmagazine.co.uk/article/1344376/hasbro-marketing-boss-kids-used-playoutside-dont-even-look

21