Hasbro 2011 Annual Report Download - page 12

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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 and BABY ALIVE. In 2011,
the MY LITTLE PONY brand was supported through television programming produced by Hasbro Studios.
LITTLEST PET SHOP was refreshed during the fourth quarter of 2011 with the introduction of WALKABLES,
TEENSIES and SPARKLE PETS. LITTLEST PET SHOP will also be supported by television programming
developed by Hasbro Studios and is expected to be distributed to THE HUB and internationally during the
second half of 2012. The LITTLEST PET SHOP brand is further supported by digital gaming through our
strategic 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. Preschool products include PLAY-DOH modeling compound and playsets as well as a
portfolio of core brands marketed primarily under the PLAYSKOOL brand, including but not limited to 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
ELEFUN BUSY BALL POPPER. Our preschool category also includes certain TONKA lines of trucks and
interactive toys, including the CHUCK & FRIENDS line. In addition, we introduced PLAYSKOOL HEROES
under the PLAYSKOOL brand which introduces characters from MARVEL, STAR WARS and
TRANSFORMERS to boys at a preschool age. The CHUCK & FRIENDS line was and will continue to be
supported by television programming, while the preschool TRANSFORMERS line will be supported by
television programming on THE HUB beginning in the first quarter of 2012. In 2011, sales in our preschool
category also benefited from the introduction of several educational and interactive products under our licensing
agreement with Sesame Workshop that provides us with the licensed rights to produce products based on the
SESAME STREET portfolio of characters, including ELMO, GROVER 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 that their children will encounter as well as the
role each PLAYSKOOL product can play in helping children to achieve these developmental milestones.
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 described above. Our toy, game and puzzle products are primarily developed by a global
development group while our global marketing function 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. 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 broad licensing programs, including digital media
and lifestyle products. The following is a discussion of each segment.
U.S. and Canada
This segment engages in the marketing and sale of our product categories in the United States and Canada.
The U.S. and Canada segment’s strategy is based on promoting our brands through innovation and reinvention of
toys and games. This is accomplished through introducing new products and initiatives driven by consumer and
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