Hasbro 2011 Annual Report Download - page 11

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distributes television programming to Hub Television Networks, LLC (“THE HUB”), a joint venture with
Discovery Communications, Inc. (“Discovery”) which operates a television network in the United States
dedicated to high-quality children’s and family entertainment and educational programming. Internationally,
Hasbro Studios distributes television programming to broadcasters throughout the world.
Product Categories
A key part of our strategy focuses on the importance of reinforcing the storyline associated with our brands
through the use of media-based entertainment, including television, motion pictures and digital media. While
certain media-based entertainment benefit only one particular product category, others, specifically major motion
pictures, can impact more than one product category. In 2011, our net revenues were positively impacted by the
major motion picture releases of TRANSFORMERS: DARK OF THE MOON, based on our TRANSFORMERS
property, and THOR and CAPTAIN AMERICA: THE FIRST AVENGER, from MARVEL. In 2012, the major
motion pictures G.I. JOE: RETALIATION, based on our G.I. JOE property and BATTLESHIP, based on our
BATTLESHIP property as well as THE AVENGERS and THE AMAZING SPIDER-MAN from MARVEL are
expected to be released. Also, STAR WARS: EPISODE I — THE PHANTOM MENACE from Lucasfilm is
expected to be re-released in 3D.
We market our brands under the following primary product categories: (1) boys’ toys; (2) games and
puzzles; (3) girls’ toys; and (4) preschool toys. Descriptions of these product categories are as follows:
Our boys’ toys category includes a wide range of core brand offerings such as TRANSFORMERS and G.I.
JOE action figures and accessories, NERF sports and action products, SUPER SOAKER water blasters, KRE-O
construction sets and TONKA trucks and playsets, as well as entertainment-based licensed products based on
popular movie, television and comic book characters, such as BEYBLADE tops and accessories and MARVEL
and STAR WARS toys and accessories. BEYBLADE, STAR WARS and SPIDER-MAN products were each
supported by animated television series produced and distributed by third parties in 2011, while
TRANSFORMERS was supported by an animated television series produced by Hasbro Studios. During 2012,
MARVEL products, particularly SPIDER-MAN and AVENGERS products, will be supported by the major
motion picture releases of THE AMAZING SPIDER-MAN and THE AVENGERS; STAR WARS toys and
accessories will be supported by the theatrical re-release of STAR WARS: EPISODE 1 — THE PHANTOM
MENACE in 3D; and G.I. JOE products will be supported by the major motion picture release of G.I. JOE:
RETALIATION. In addition to marketing and developing action figures and accessories 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.
Our games and puzzles category includes several well known lines, including MILTON BRADLEY,
PARKER BROTHERS and WIZARDS OF THE COAST. These brand portfolios consist of a broad assortment of
games for children, tweens, families and adults. Core game brands include MONOPOLY, BATTLESHIP,
SCRABBLE, OPERATION, CONNECT FOUR, TWISTER, YAHTZEE, JENGA, BOGGLE, ELEFUN &
FRIENDS and BOP IT!. Other game brands include but are not limited to TRIVIAL PURSUIT, GAME OF LIFE,
CRANIUM, CANDYLAND, CLUE, SIMON, SORRY! and RISK. WIZARDS OF THE COAST offers trading
card and role-playing games, including MAGIC: THE GATHERING, DUEL MASTERS and DUNGEONS &
DRAGONS. In 2012, we plan to extend the DUEL MASTERS brand through the introduction of KAIJUDO: RISE
OF THE DUEL MASTERS which is expected to be supported by television programming developed by Hasbro
Studios. 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. We also seek to extend
awareness of our brands through social and mobile platforms. In 2011, in order to reinvigorate our games and
puzzles category, we created the Hasbro’s Gaming Center of Excellence in Rhode Island to centralize games
marketing and development while building on Hasbro’s strategy of re-imagining, re-inventing and re-igniting core
brands as well as inventing new brands. In February 2012 we announced a global partnership with Zynga, Inc.
(“Zynga”) which provides Hasbro with the rights to develop a wide range of game and toy products based on
Zynga’s social network gaming brands, which currently include FARMVILLE, CITYVILLE and WORDS WITH
FRIENDS. We expect to introduce products under this agreement in fall of 2012.
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