CHAPTERS 1 AND 2: HASBRO
SUMMARY
Hasbro is a worldwide leader in entertainment products and services, such as GI Joe, Candy
Land, the Easy Bake Oven, and Monopoly. Hasbro is a $3 billion company with brands in 100
countries and launching 1,000 new products each year. The company attributes its success to
staying ahead and anticipating the changing needs of the marketplace by making games
consistently relevant to consumers. Even with big brands and successful products, Hasbro knows
that if its marketing and distribution strategies are not executed correctly, the products will fail.
World-class logistics and an efficient supply chain are critical for Hasbro to remain competitive
and work with powerful retail stores.
Primarily, the company distributes through big-box retailers such as Wal-Mart, Target, and Toys
“R” Us. Due to this concentrated distribution strategy, it is easier for Hasbro to make changes
and launch products, resulting in a tighter supply chain. It would be substantially harder with a
lot of little retailers. However, the company does use alternate distribution channels to reach
consumers where they shop, such as drugstores, wholesale clubs, online and smaller toy stores.
In these alternate distribution channels, Hasbro knows that it needs to provide a different product
or different packaging to compete. Certain items may be bundled together, resulting in a higher
ticket item, but appropriate for the channel. Hasbro works with the channel members to make
sure their brand is marketed correctly, but the company also makes sure its products fit correctly
in retailers’ product mix and merchandising.
DISCUSSION QUESTIONS:
Chapter 1
1. Chapter 1 in the textbook compares the traditional value chain to the new perspective value
chain. What examples from the video can be interpreted as implementing the new perspective
value chain?
2. What are some basic product line strategies that have brought Hasbro such global success?
3. Discuss what the key customer targets are for Hasbro?
4. Do you believe that Hasbro has a competitive or differential advantage in the marketplace?
1. Put yourself in the shoes of a Hasbro marketing manager—what general marketing/business
processes would you address and/or find crucial?
2. Describe the process of reversing the value chain for a company like Hasbro.
3. Create a perceptual map to compare Hasbro with its competitor brands. What insights can be
gained from such a map?
4. Pick a Hasbro product (e.g., GI Joe or Candyland) and trace its steps through the product life