Hasbro 2014 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2014 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 127

  • 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
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127

During 2014, the Company released products based on the theatrical release of TRANSFORMERS: AGE OF
EXTINCTION from Paramount Pictures as well as three theatrical releases based on MARVEL properties,
CAPTAIN AMERICA: THE WINTER SOLDIER,THE AMAZING SPIDER-MAN 2,andGUARDIANS OF THE
GALAXY. In 2015, the Company anticipates product offerings based on the following planned theatrical releases:
AVENGERS: AGE OF ULTRON from Marvel Studios, STAR WARS: THE FORCE AWAKENS from Lucasfilm Ltd.
and JURASSIC WORLD from Universal Pictures.
We market our brands under the following primary product categories: (1) boys; (2) games; (3) girls; and
(4) preschool toys. Descriptions of these product categories are as follows:
Boys’ franchise brands include the NERF line of sports and action products and TRANSFORMERS action
figures and accessories. Our boys’ category also includes SUPER SOAKER water blasters, G.I. JOE action
figures and accessories and entertainment-based licensed products based on popular movie, television and comic
book characters, such as MARVEL and STAR WARS toys and accessories. In 2014, the TRANSFORMERS
brand was supported by the major motion picture release of TRANSFORMERS: AGE OF EXTINCTION as well
as an animated television series produced by Hasbro Studios which was distributed on a global basis. MARVEL
products, particularly those based on CAPTAIN AMERICA and SPIDER-MAN, were supported by the 2014
major motion picture releases of CAPTAIN AMERICA: THE WINTER SOLDIER and THE AMAZING SPIDER-
MAN 2, respectively. MARVEL products were also supported by the re-introduction of archived MARVEL
characters with the 2014 major motion picture release of GUARDIANS OF THE GALAXY. AVENGERS,
SPIDER-MAN and STAR WARS products were also each supported by animated television series produced and
distributed by third parties in 2014 and 2013. In 2015, the Company expects to market products supported by the
following major motion picture releases: AVENGERS: AGE OF ULTRON, STAR WARS: THE FORCE
AWAKENS and JURASSIC WORLD. 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 TRANSFORMERS, STAR WARS and MARVEL brands.
Our games category includes an assortment of well-known brands delivered on various platforms, including
board, off-the-board, digital, trading card and role-playing games. Franchise brands included MAGIC: THE
GATHERING and MONOPOLY, and other major game brands included BATTLESHIP, BOP-IT,
CANDYLAND, CLUE, CONNECT 4, CRANIUM, DUEL MASTERS, ELEFUN & FRIENDS, GAME OF
LIFE, JENGA, OPERATION, RISK, SORRY!, TRIVIAL PURSUIT, TWISTER, and YAHTZEE. In recent
years, we have focused on investing more heavily in fewer initiatives and have centralized our games marketing
and development. In conjunction with our focus on fewer initiatives, we focus on brands that can capitalize on
the trend-driven nature of the gaming industry. We also continue to evolve our approach to gaming using
consumer insights and offering gaming experiences relevant to consumer demand for face-to-face, off-the-board
and other game play including the launch of new play patterns. In 2014, the game brands we focused on included
SIMON, with the introduction of SIMON SWIPE, as well as THE GAME OF LIFE, TROUBLE, OPERATION,
ELEFUN & FRIENDS, CONNECT 4 and CHUTES & LADDERS. Furthermore, and as mentioned above, in
July 2013, we acquired a 70% majority stake in Backflip to expand our expertise and product offerings in the
mobile gaming arena. Backflip’s game titles are distributed primarily through the Apple APP Store and
GOOGLE Play Store. In 2014, Backflip game titles included DWARVEN DEN, PLUNDERNAUTS,
SPELLFALL and SEABEARD. In 2015 and beyond, Backflip plans to introduce additional game titles based on
Hasbro brands.
In our girls’ category, we seek to provide a variety of contemporary and engaging play experiences. Girls’
franchise brands include LITTLEST PET SHOP, MY LITTLE PONY, NERF REBELLE and PLAY-DOH DOH
VINCI. Girls’ challenger brands include BABY ALIVE, EASY BAKE, FURBY and FURREAL FRIENDS. The
LITTLEST PET SHOP and MY LITTLE PONY brands were supported by television programming produced by
Hasbro Studios in 2013 and 2014 and will continue to be supported by television programming in future years.
These brands are further supported by digital gaming with licensed partners. In 2013, the MY LITTLE PONY
brand was re-imagined with the successful launch of the brand extension MY LITTLE PONY EQUESTRIA
GIRLS product line which was supported by the release of animated movies in 2013 and 2014. 2013 also marked
expansion of our NERF brand into the girls’ category with the introduction of the popular NERF REBELLE
3