Hasbro 2010 Annual Report Download - page 5

Download and view the complete annual report

Please find page 5 of the 2010 Hasbro annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

rated shows on the network, including Transformers
Prime, G.I. Joe Renegades, Family Game Night, My
Little Pony Friendship is Magic and Pound Puppies.
Steve Davis and the team at Hasbro Studios
have done a great job bringing Hasbro brands
to life for The HUB and for international markets
as they play an integral role in the development
of immersive brand experiences globally.
Internationally, television is an extremely powerful
tool in building brand equity. In 2010, Hasbro Studios
entered into programming agreements with Corus in
Canada, where our shows are currently airing on YTV,
Teletoon and Treehouse; and with Turner Broadcasting’s
Cartoon Network in the UK, Spain, Sweden, Norway,
Denmark and the Middle East. In early 2011, we added
Mediaset in Italy with their Italia Uno channel to the list
of highly rated kids’ networks airing Hasbro Studios
shows. We expect to see Hasbro Studios programming
in additional regions throughout the world by Fall 2011.
Lifestyle licensing is another important element
of the brand blueprint. In 2010, we were pleased
to welcome Simon Waters to Hasbro to lead our
global lifestyle licensing and publishing e orts.
Simon brings tremendous experience in this area,
most recently from The Walt Disney Company,
where he served as Vice President, Global Franchise
Development and Strategic Marketing.
Finally, as we re-invent, re-imagine and re-ignite
our games brands, it is important to note that more
people are enjoying Hasbro’s games than ever
before, in new and di erent ways as we expand them
digitally to consumers globally. In fact, in 2010, our
brands experienced a greater than 50% increase
in mobile downloads. We continue to leverage our
relationships with Electronic Arts, Activision and others
to grow our gaming audience and create immersive
experiences for consumers across several platforms.
Global Brand Activation & Emerging Markets
Over the past several years we have reorganized our
company to execute our business globally. Key to the
achievement of our medium-term target of a better
than 15% operating profi t margin, is the development
of larger, more global brands which allow us to
capitalize on economies of scale and e ciencies.
Signifi cant to this global brand activation is the
development of our business in key emerging markets.
Since 2007, we have opened o ces in Brazil, Russia,
the Czech Republic, Romania and China. In 2010,
we opened new o ces in Peru and Korea and most
recently in early 2011 we opened an o ce in Colombia.
Also, we have o ces in other emerging markets, such
as Chile, Turkey and Poland and in India, where we
have a joint venture. In total, more than 300 people
are working in these markets to establish Hasbro as
the leading branded play company worldwide.
The emerging markets are delivering strong growth
on the performance of Hasbro brands and those
of our partners. Key market performance in 2010
included revenue gains of 68% in Russia, 58% in
Brazil and 27% in China. We continue investing
in marketing and advertising to build our local
presence and gain share as we build a long-term
profi table business in the emerging markets.
Activating and Executing in 2011
2011 is the fi rst year in a multi-year strategic plan in
which we will have signifi cant initiatives across all
elements of our brand blueprint – in television, in
movies, in digital gaming, in licensing, and, of course,
most importantly, across our portfolio of toys and
games. We have had years with successful initiatives
in each of these areas before, but 2011 will allow us to
truly activate and execute across our brand blueprint
in the most comprehensive manner to date.
Specifi cally, Transformers: Dark of the Moon is scheduled
to debut in theatres on July 1, 2011. In partnership with
global retailers, we have TRANSFORMERS toys and
games, licensed consumer products and digital games
across all platforms.
In television, we have a full year of The HUB and the
initial airing of Hasbro Studios programs outside the U.S.
Finally, we will continue to cultivate and grow our
strategic long-term partnerships. We are committed
to being the best, most innovative partner with the
TO OUR SHAREHOLDERS