Hasbro 2012 Annual Report Download - page 12

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The Company’s innovative product offerings encompass a broad variety of toys including boys’ action
figures, vehicles and play sets, girls’ toys, electronic toys, plush products, preschool toys and infant products,
electronic interactive products, creative play and toy-related specialty products. Games offerings include action,
board, card, electronic, trading card and role-playing games. In addition, in order to further expand our brands,
we license certain of our trademarks, characters and other property rights to third parties for use in connection
with digital gaming, consumer promotions, and for the sale of non-competing toys and games and non-toy
products, or in certain situations, to utilize them for toy products where we consider the out-licensing of brands to
be more effective. We also seek to expand awareness of our brands through entertainment, including television
and movies. Hasbro Studios LLC, our wholly-owned production studio, produces television programming
primarily based on our brands and distributes such programming globally. Hasbro Studios 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 brand blueprint 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 as
well as creating a digital environment for certain products through the use of digital applications and internet
websites. In addition, digital applications have also been created to extend storylines for certain brands and to
interact with certain analog products. While certain media-based entertainment benefit only one particular
product category, others, specifically major motion pictures, can impact more than one product category. In
2012, sales of MARVEL products were significantly increased by the major motion picture releases of
MARVEL’S THE AVENGERS and THE AMAZING SPIDER-MAN. Our net revenues from BATTLESHIP
products were positively impacted by the major motion picture release of BATTLESHIP, by Universal Studios. In
2013, the Company anticipates product offerings based on expected theatrical releases of G.I. JOE:
RETALIATION from Paramount Pictures; IRON MAN 3, THE WOLVERINE and THOR: THE DARK WORLD
from MARVEL; and STAR TREK INTO DARKNESS from Paramount Pictures.
We market our brands under the following primary product categories: (1) boys’ toys; (2) games; (3) girls’
toys; and (4) preschool toys. Descriptions of these product categories are as follows:
Our boys category includes a wide range of brand offerings such as NERF sports and action products,
TRANSFORMERS action figures and accessories, SUPER SOAKER water blasters and KRE-O construction
sets, as well as entertainment-based licensed products based on popular movie, television and comic book
characters, such as BEYBLADE tops and accessories as well as MARVEL and STAR WARS toys and
accessories. BEYBLADE, STAR WARS, AVENGERS and SPIDER-MAN products were each supported by
animated television series produced and distributed by third parties in 2012, while TRANSFORMERS was
supported by an animated television series produced by Hasbro Studios. In 2013 we plan a reinvention of the
TRANSFORMERS brand across all of our platforms, including television programming, online and mobile
games, licensed products and a full line of toy products based on TRANSFORMERS BEASTHUNTERS. As
noted above, STAR WARS, AVENGERS and SPIDER-MAN were also supported by major motion pictures
during 2012. In addition in 2013, MARVEL products, particularly IRON MAN, WOLVERINE and THOR
products, will be supported by the major motion picture releases of IRON MAN 3, THE WOLVERINE and
THOR: THE DARK WORLD; 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 category includes an assortment of well known brands delivered on various platforms, including
board, off-the-board, digital, action battling, trading card and role-playing games. Major game brands include
MAGIC: THE GATHERING, MONOPOLY, BATTLESHIP, TWISTER, OPERATION, CONNECT FOUR,
GAME OF LIFE, YAHTZEE, JENGA, ELEFUN & FRIENDS, TRIVIAL PURSUIT, CRANIUM,
CANDYLAND, CLUE, SIMON, SORRY!, KAIJUDO and RISK. In 2011 we created our Gaming Center of
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