This presentation explores the strategy of Hasbro putting its brands on the big screen. We will cover the company's history, past strategies, and the terms of the deal.
2. Company Background
Management
Competitors
Financial Highlights
Alternatives
Decision Making
How Hasbro Entered the Movies
Hasbro’s Role
Results
3. Founded in Providence Rhode Island in 1923
Hassenfeld brothers – Polish immigrants
Company first operated as textile remnant
business
Started making school supplies
“Transformed” into making toys from 1930s to
1960
1952 Mr. Potato Head (first toy to advertise on TV)
1964 G.I. Joe – in 2 years it accounted for 2/3 of
company sales - $40 million
4. 1968 went public
1975 discontinued G.I. Joe
Company in poor financial situation by 1979
1982 G.I. Joe returned
1984 Transformers toy line is launched as well as
cartoon
1980s and 1990s major acquisitions took place
▪ GLENCO – infant products
▪ Knickerbocker Toy Company – Raggedy Ann and Andy
dolls
5. ▪ Milton Bradley – 1984
▪ Coleco Industries – Cabbage Patch Dolls
▪ Tonka Corporation and Tonka’s Parker Brothers unit, the
maker of Monopoly
▪ Kenner Products – Batman figures and Strawberry
Shortcake doll
▪ 1991 - Established operations in Greece, Hungary,
Mexico
▪ Nomura Toys – Japanese toymaker
6. 1995 Mattel approached Hasbro for merger
▪ Hasbro board turned it down due to fear of antitrust
issues
1997 Hasbro purchased license for Star Wars
$600 Million and gave 7.4% stake of company
Steep losses from drop offs in Star Wars toys
and Pokemon cards in late 20th century and early
21st
21st Century - Company started refocusing on
traditional toy lines – G.I. Joe, Monopoly, Mr.
Potato Head
7. Alfred J. Verrecchia
▪ President and CEO
▪ COO from 2001 to 2003
Brian Goldner
▪ Chief Operating Officer
▪ Executive Producer of the first
Transformer movie
▪ Chief Architect of brand drive movies
David D.R. Hargreaves
▪ Chief Financial Officer
8. Mattel
▪ Barbie
▪ Hot Wheels
▪ Fisher Price
▪ American Girl
JAKKS Pacific
▪ Club Penguin
▪ Hello Kitty
10. Hasbro has a history of
purchasing companies
and their brands
Milton Bradley (1984)
Tonka Corporation with
Parker Brothers and
Kenner Brothers (1991)
Wizards of The Coast
(1999)
11. Pros
More product brands for
a diversified brand
portfolio
Expand their limitations
with Hasbro’s
capital/knowledge
Cons
Costly
Underperforming
brands
12. Entering into Licensing
agreements
LucasFilms’s Star Wars
Marvel’s Avengers
Sesame Street Workshop
13. Pros Cons
Have access to The shows/movies may
successful brands not be successful thus
Focus on creating the product lines will
toys/games instead of falter as result
creating new brands and Product line can still
brand identities falter despite success of
Cost effective brand. Remember Lego
and Harry Potter
Limited supply of brands
available to be licensed
14. In the 80’s, Hasbro had two animated
series and comic books showcasing :
G.I. Joe A Real American Hero
(1984) and Transformers (1984)
In addition, spinoffs of these series
were created during the 90’s & early
00’s showcase on various television
networks, animated movies and
comic books. TRANSFORMERS 80'S THEME
On 10/10/10, the Hub was launched.
A joint venture between Hasbro and
Discovery Communications to
launch more programs
showcasing its various
brands.
15. Pros Cons
Successful strategy that Limited control over
worked in the past networks such as time slots
Variety of animation styles Show could get cancelled
Best example would be product line will not
Transformers spinoff succeed. G.I. Joe Sigma Six
Transformers: lasted 14 episodes.
Beast Wars Lots of competition
(96-99) against other networks TV
programming
16. Building off the brands’
successes from the past, Hasbro
now enters the realm of
featured films to extend these
brands to new heights Transformers Trailer
Aligning with certain studios
that will respect the brands such
as Paramount/DreamWorks
and directors that can deliver
such as Steven Spielberg or
Michael Bay
17. Pros Cons
Expanding market share Cost
New technology in movies New area for Hasbro by
vs. the anime from the 80’s going into this venture
Revive/create new product Not finding the right
lines creative talent who will
Semi-familiar with the respect the brand or
entertainment industry deliver an exciting movie
through TV programs Die hard fans disappointed
Don’t have to worry about or upset with the movie
networks competing
against TV programs
18. Brian Goldner Joins
Hasbro in 2000
Success of Spider Man
movie reinforces idea of
brand name could
resonate as a motion price
Goldner vision “re-invent,
re-ignite, and re-imagine
core brands to create new
experiences for consumer
19. Studios rejects Hasbro Transformers concept
In 2003, Goldner contacts Bonaventura of
Paramount Pictures about using GI Joe brand
Producers Don Murphy and Tony DeSanto
optioned the film rights and began writing a
Treatment for Transformers
Steven Spielberg signs on as Executive
Producer
DreamWorks Studios sold to Paramount’s
Parent company Viacom
20. Spielberg recruits
Michael Bay as director
Bay travels to RI and
meets with Goldner to
learn:
▪ What Transformer brand is
about
▪ Stories that had to be told
▪ Family tree of characters
and how they relate with
each other
21. Movie released and becomes blockbuster hit
during summer of 2007
Grosses more than $700 million worldwide
Spurned 2 sequels that debuted in 2009 and
2011
Laid the groundwork for other Hasbro brands
to enter the big screen
Re-sparked the brand on a massive scale that
other brands like Kre-O work solely adjunct
to the Transformers brand
22. Movie Domestic Foreign Gross Total Opening Awards
Gross ($) ($) Worldwide Weekend ($)
Gross ($)
Transformers 319,246,193 390,463,587 709,709,780 70,502,384 Nominate
(2007) with #1 in for 3
4,011 theaters Oscars
Transformers: 402,111,870 434,191,823 836,303,693 108,966,307 Nominate
Revenge of the with #1 in for 1
Fallen (2009) 4,234 theaters Oscar
G.I. Joe Rise of 150,200,000 151,800,000 302,000,000 54,700,000 None
Cobra (2010)
Transformers: 352,390,543 770,805,646 1,123,196,189 97,852,865 N/A
Dark of the with #1 in
Moon (2011) 4,088 theaters
24. No money from box office revenue
Revenues from movie tied to product sales:
Transformer toy sales for 2007: $470 Million
up from $30 million when Goldner joined in 2000
68 Years OldAlfred J. Verrecchia, Chairman of the Board of Hasbro, Inc. since 2008. President and Chief Executive Officer of Hasbro from 2003 to 2008. Prior thereto, President and Chief Operating Officer of Hasbro from 2001 to 2003. Director of Iron Mountain Incorporated. Mr. Verrecchia previously served on the board of directors of CVS Caremark Corporation from 2004 to 2007 and of FGX International Holdings Limited from 2009 until 2010. Mr. Verrecchia began his more than 40 year career with Hasbro in 1965 in the Company?s finance department. Mr. Verrecchia took on roles of increasing financial and operating responsibility during his career, serving eventually as Senior Vice President of Finance, then Chief Financial Officer, then Chief Operating Officer and ultimately as President and Chief Executive Officer. Mr. Verrecchia was a key architect of the Company?s turnaround strategy in 2000, which focused on leveraging the Company?s core brands, reducing costs and lessening the Company?s reliance on its licensed business
68 Years OldAlfred J. Verrecchia, Chairman of the Board of Hasbro, Inc. since 2008. President and Chief Executive Officer of Hasbro from 2003 to 2008. Prior thereto, President and Chief Operating Officer of Hasbro from 2001 to 2003. Director of Iron Mountain Incorporated. Mr. Verrecchia previously served on the board of directors of CVS Caremark Corporation from 2004 to 2007 and of FGX International Holdings Limited from 2009 until 2010. Mr. Verrecchia began his more than 40 year career with Hasbro in 1965 in the Company?s finance department. Mr. Verrecchia took on roles of increasing financial and operating responsibility during his career, serving eventually as Senior Vice President of Finance, then Chief Financial Officer, then Chief Operating Officer and ultimately as President and Chief Executive Officer. Mr. Verrecchia was a key architect of the Company?s turnaround strategy in 2000, which focused on leveraging the Company?s core brands, reducing costs and lessening the Company?s reliance on its licensed business
68 Years OldAlfred J. Verrecchia, Chairman of the Board of Hasbro, Inc. since 2008. President and Chief Executive Officer of Hasbro from 2003 to 2008. Prior thereto, President and Chief Operating Officer of Hasbro from 2001 to 2003. Director of Iron Mountain Incorporated. Mr. Verrecchia previously served on the board of directors of CVS Caremark Corporation from 2004 to 2007 and of FGX International Holdings Limited from 2009 until 2010. Mr. Verrecchia began his more than 40 year career with Hasbro in 1965 in the Company?s finance department. Mr. Verrecchia took on roles of increasing financial and operating responsibility during his career, serving eventually as Senior Vice President of Finance, then Chief Financial Officer, then Chief Operating Officer and ultimately as President and Chief Executive Officer. Mr. Verrecchia was a key architect of the Company?s turnaround strategy in 2000, which focused on leveraging the Company?s core brands, reducing costs and lessening the Company?s reliance on its licensed business
Hasbro Fact Sheet
Hasbro Fact Sheet
Habro Fact Sheet
Beast Wars http://www.imdb.com/title/tt0115108/ Sigma Six http://www.imdb.com/title/tt0478074/episodes
Kre-O is a construction toy product similar to Legos and K-nex