Hasbro 2010 Annual Report Download - page 12

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MONOPOLY, TRIVIAL PURSUIT, BATTLESHIP, GAME OF LIFE, SCRABBLE, CHUTES AND
LADDERS, CANDY LAND, TROUBLE, MOUSETRAP, OPERATION, HUNGRY HUNGRY HIPPOS,
CONNECT FOUR, TWISTER, YAHTZEE, CRANIUM, JENGA, SIMON, CLUE, SORRY!, RISK, BOGGLE,
TRIVIAL PURSUIT, GUESS WHO? and BOP IT!, as well as a line of puzzles for children and adults,
including the BIG BEN and CROXLEY lines of puzzles. WIZARDS OF THE COAST offers trading card and
role-playing games, including MAGIC: THE GATHERING, DUEL MASTERS and DUNGEONS &
DRAGONS. We seek to keep our game brands relevant through sustained marketing programs, such as
FAMILY GAME NIGHT, as well as by offering consumers new ways to experience these brands.
In our girls’ toys category, we seek to provide a traditional and wholesome play experience. Girls’ toy
brands include LITTLEST PET SHOP, MY LITTLE PONY, FURREAL FRIENDS, BABY ALIVE and
STRAWBERRY SHORTCAKE. In 2010, the MY LITTLE PONY brand was supported through television
programming on THE HUB beginning in the fourth quarter of 2010. This programming will continue in 2011.
In addition, the LITTLEST PET SHOP brand will be supported by expanded digital gaming through our
partnership with Electronic Arts, Inc. (“EA”).
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. In addition, 2011 will be the first
year of our agreement with Sesame Workshop that provides us with the licensed rights to produce products
based on the SESAME STREET portfolio of characters, including ELMO, BIG BIRD, and COOKIE
MONSTER, among others. Through our preschool marketing programs, 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 certain TONKA lines of trucks and interactive
toys, including the CHUCK & FRIENDS line, and the PLAY-DOH brand. The CHUCK & FRIENDS line was
supported by television programming on THE HUB in the fourth quarter of 2010, which will continue in 2011.
Segments
Organizationally, our three principal segments are U.S. and Canada, International and Entertainment and
Licensing. The U.S. and Canada and International segments engage in the marketing and selling of various toy
and game products as listed above. Our toy, game and puzzle products are developed by a global development
group. We also have a global marketing function which establishes brand direction and assists the segments in
establishing certain local marketing programs. The costs of these groups are allocated to the principal
segments. Our U.S. and Canada segment covers the United States and Canada while the International segment
primarily includes Europe, the Asia Pacific region and Latin and South America. The Entertainment and
Licensing segment engages in the out-licensing of our trademarks, characters and other brand and intellectual
property rights to third parties for non-competing products and also conducts our movie, television and online
entertainment operations, including the operations of Hasbro Studios. In addition, our Global Operations
segment is responsible for arranging product manufacturing and sourcing for the U.S. and Canada and
International segments. Financial information with respect to our segments and geographic areas is included in
note 18 to our consolidated financial statements, which are included in Item 8 of this Form 10-K.
The Company’s strategy is focused around re-imagining, re-inventing, and re-igniting its existing brands,
and imagining, inventing, and igniting new brands, globally through the development and marketing of
innovative toy and game products, providing immersive entertainment experiences for our consumers, and
expansion of our brands into other consumer products through a broad licensing program. The following is a
discussion of each segment.
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