Situational Analysis Hasbro Inc. owns the very successful brand, 6. 1. Joe that is an icon in the toy industry. (3. 1. Joe has been a dominate factor in the market for toys since its launch in 1964. The brand has been able to stand the test of time and its creators have successfully preserved the brand throughout the years. Hasbro’s challenge is to market the 6. 1. Joe brand in such a way, so that it can become a mega brand like its competitor Mattel with its mega brand Barbie. The toy market has volatile sales depending upon trends created by consumer demand.
The market is also very easonal in which sales are typically best during the Christmas shopping season. The target customer for Hasbro Inc. is a shrinking market due to technologically sa’. n. y youths who prefer to graduate to playing electronic games as opposed to playing with action figures. The target customer is now very segmented to young boys and older collectors that are loyal to the brand. Hasbro Inc. has to discern how to use the strong brand 6. 1. Joe to thrive while preserving the brand. Formulation of Options Hasbro Inc has the optional of using a traditional approach to marketing the 6. . Joe brand, which has proven successful historically in the toy business. Hasbro Inc. can also choose to market the line with additional media included as an added feature to the purchase. Hasbro Inc. can also do nothing, 6. 1. Joe’s brand is recognizable to most America families, and the product dominates the aisle in the toy stores because of its good relationships with retailers such as Walmart and Target. One final option is to market the brand by using multiple forms of entertainment, which is a multi-faceted strategy that has proven successful with other brands.
Analysis of the Options Hasbro Inc. has the option of using a traditional marketing approach to market its 6. 1. Joe brand. This can be accomplished by using television advertisements, printed advertisements, and websites, while introducing additional features of the product line. This option has worked for Hasbro Inc. in the past with the 6. 1. Joe brand, as well as its other brands. The advertisements have driven sales for the toy industry because of the ability to reach large numbers of prospective consumers at the same time.
Children watch the commercials that flood the television and desire the toys hat are featured in these advertisements. The advertisements on television and print are expensive, but the return on investment is measurable and the method has proven effective for decades. This option should not be pursued by itself because consumers are more sophisticated in their search for goods and services, even children search websites to obtain product information and rely on online communities to shape their opinions of consumer products. Hasbro Inc. also has the option of marketing 6. 1.
Joe with additional material included, such as a short movie on DVD. This option is good because it will expose newer generations to 6. 1. Joe’s storyline and create new excitement about the product line. Production costs for the DVD option could also prove to be expensive for Hasbro Inc. and possibly not accomplish its full intent. This option could spark interest in the product, but should not be pursued because it would not fully integrate the Hasbro Inc. also has the option of continuing to ride the success of its iconic brand and not pursue any additional plans of action. . 1. Joe has brand recognition tantamount to few others in the toy industry. The product line is always current because of product innovation and market research that the organization continues to invest in the brand over the years. Hasbro Inc. enjoys good relationships with its retailers and has secured shelf space to be able to dominate the action fgure section of the toy aisles. The brand recognition allows it to be first choice to consumers when faced with choosing one brand over a substitute product. However, using this lackadaisical approach could allow 6. 1.
Joe to fall by the wayside as so many other popular brands have. The toy market is unpredictable and the consumers are looking for the next best thing. The competition is fierce and should be managed wisely. Hasbro Inc. should not pursue this option because it does not fit into the strategy of keeping the brand on toy shelves. Hasbro Inc. could also manage the 6. 1. Joe brand with multiple forms of entertainment, such as toys, trading cards, video games, DVD’s, books, an innovative website or a movie. This approach has proved successful with many other toy brands.
This would allow 6. 1. Joe to recapture some of the older boys that it would ormally lose after they turn to playing video games or using the internet. This option would be good for Hasbro Inc. because they do not have to compete with the other toy companies of the licensing rights or pay minimum royalties because they own the brand. This strategy would also allow 6. 1. Joe to become a mainstay in American Homes because of its diverse product line. Younger boys would play with the action fgures, while the older children would enjoy the video game or online experience. Hasbro Inc. ould also capitalize on the collectors by featuring special roducts available exclusively online for purchase and create an online community on its website to cater to its diehard 6. 1. Joe fan base. Recommendation Hasbro Inc. should manage the 6. 1. Joe brand with multiple forms of entertainment. The market has evolved since the organizations launch and will continue to evolve as technology progresses. The consumption of entertainment goods is a choice made by the whole family and not Just the parents anymore. Children are bombarded with advertisements as they view their favorite television shows and movies.
The children then put pressure on the parents to make those urchases, in most cases parents will indulge their children and buy. Children are also information seekers through media sources and internet communities. They also rely on opinions from other children as to their attitude toward certain products. Children are also competitive with their toy collections and video games, if their classmates and friend have the action figure or video game, they want the same things. Hasbro Inc. has a competitive advantage with the 6. 1. Joe brand because they own the rights to the brand and should capitalize on this opportunity.
They do not ave to compete for the licensing as they do with other products they do not own, this will create additional revenue for the organization. Plan of Action Hasbro Inc. should start by making some strategic partnerships with video game designers and book publishers. Hasbro Inc. should also negotiate a movie deal for a full length feature film to create a strong demand for the 6. 1. Joe branded products. the storyline and the 6. 1. Joe name, is to the brand and create a binding agreement which allows Hasbro Inc. to approve anything that strays away from the main story ine.
The full length feature film should be the first form of entertainment to roll out. The buzz of a movie will create demand for the product from collectors and for parents who had 6. 1. Joe when they were growing up. Collectors will want to showcase and purchase valuable toys, and probably be willing to pay a premium for exclusive collector’s editions. Parents will want to share the experience with their children, to have something they can both relate to. The buzz for an upcoming feature film will create the demand for the other form of entertainment such as toys, rading cards, video games, books and the website site.
Success of this multi-faceted approach can be measured by the increase in sales; management should review sales quarterly to monitor the changes in consumer demand. The sales should be segregated into different divisions such as, action figures, books and video games. This should be done in order to identify the lines of business that are profitable and to ensure additional resources are not allocated to lines that will not produce a return on investment. Success of this plan can also be measured by determining if the target market for the 6. Joe brand has expanded from younger boys into other desirable categories. The window for marketing to young boys should increase because of the multiple forms of entertainment available to appease different age groups. Hasbro Inc. should be able to capture market share in the action fgure, video game, and online community markets. Market research should be conducted to determine if this initiative has been accomplished, and to measure consumer attitudes toward the 6. 1. Joe brand. (3. 1. Joe has the potential to be a mega-brand like its counterpart Barbie, if it is managed strategically.