Hasbro 2007 Annual Report Download - page 10

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GATHERING and DUNGEONS & DRAGONS. We seek to keep our core brands relevant through sustained
marketing programs as well as by offering consumers new ways to experience them. In 2008, we will seek to
continue to expand our core brand portfolio by introducing a PLAYSKOOL line of games that will leverage
our existing preschool consumer insights. In addition, we will seek to continue to incorporate technology into
our existing game brands to align with current consumer interests. In 2007, the Company introduced the
MONOPOLY ELECTRONIC BANKING edition, which allowed for faster, more intense game play. In 2008,
the Company plans to introduce a customizable version of TRIVIAL PURSUIT. In January of 2008, the
Company acquired Cranium, Inc., which develops and markets a wide range of CRANIUM branded games
and related products.
Our boys’ toys include a wide range of core brands such as G.I. JOE and TRANSFORMERS action
figures and accessories as well as entertainment-based licensed products based on popular movie and television
characters, such as STAR WARS and MARVEL toys and accessories. In the action figure area, a key part of
our strategy focuses on the importance of reinforcing the storyline associated with these products through the
use of media-based entertainment. In 2007, sales in our boys’ toys category benefited from major motion
picture releases of SPIDER-MAN 3 in May of 2007 and TRANSFORMERS in July of 2007. In 2008,
SPIDER-MAN and TRANSFORMERS products are expected to be supported by animated television series.
The STAR WARS product line is expected to be supported in 2008 by the release of animated television
programming as well as the release of an animated motion picture. In addition, we will be introducing
products based on the expected major motion picture releases of IRONMAN and HULK, two properties
available under our MARVEL license, and INDIANA JONES. In addition to marketing and developing action
figures for traditional play, the Company also develops and markets products designed for collectors, which
has been a key component of the success of the STAR WARS brand.
In our girls’ toys category, we seek to provide a traditional and wholesome play experience. Girls’ toys
include LITTLEST PET SHOP, MY LITTLE PONY, FURREAL FRIENDS and BABY ALIVE brands. In
2008, we will seek to continue to grow and update the LITTLEST PET SHOP brand by introducing the
VIRTUAL INTERACTIVE PET segment which includes a plush doll that will allow the consumer access to a
website to digitally customize their pets as well as access to games and other features. We also plan to
reintroduce a redesigned EASY-BAKE oven.
Our preschool toys category encompasses a range of products for infants and preschoolers in the various
stages of development. Our preschool products include a portfolio of core brands marketed primarily under the
PLAYSKOOL trademark. The PLAYSKOOL line includes such well-known products as MR. POTATO HEAD,
WEEBLES, SIT ’N SPIN and GLOWORM, along with a successful line of infant toys including STEP
START WALK N’ RIDE, 2-IN-1 TUMMY TIME GYM and BUSY BALL POPPER. Through our AGES &
STAGES system, we seek to provide consumer friendly information that assists parents in understanding the
developmental milestones their children will encounter as well as the role each PLAYSKOOL product can play
in helping children to achieve these developmental milestones. In addition, our preschool category also
includes the TONKA line of trucks and interactive toys and the PLAY-DOH brand.
Our tweens toys category generally markets products under the TIGER ELECTRONICS and NERF
brands and seeks to target those children who have outgrown traditional toys. The age group targeted by this
category is generally 8 to 12 years old. In recent years, we have used our consumer insights and electronic
innovation to develop a strong line of products focusing on this target audience. Our major tweens toys
product lines in 2007 included NERF, I-DOG and the POWER TOUR GUITAR. As demonstrated through our
I-DOG product, an interactive pet that acts as an accessory to an MP3 player, we seek to draw on the
popularity of electronic trends in our tween product offerings.
International
In addition to our business in the United States, Mexico and Canada, in 2007 we operated in more than
20 other countries, selling a representative range of the toy and game products marketed in the North American
segment as discussed above, together with some items that are sold only internationally. The major geographic
regions included in the International segment are Europe, Asia Pacific and Latin and South America. In
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