A Marketing an Icon

Presented by
Deryl Joseph Graceson Binu Sebastian Huseni Kapadia Jasmeet Singh Priyanka Anchalia Riya Sil

Integrating Marketing Programs and Activities

Creative and original thinking is necessary to create fresh new marketing programs. Marketers are increasingly trying a host of unconventional means of building brand equity.

Personalizing Marketing Concepts

Experiential marketing
One-to-one marketing Permission marketing

Experiential Marketing
Promote the product in a way that connects it with the audience in a unique and interesting manner. Experiences can come in 4 varieties:
Entertainment Education Aesthetic Escapist

One-to-One Marketing
1. Identify consumers, individually and addressable 2. Differentiate them by value and needs 3. Interact with them more cost-efficiently and effectively 4. Customize some aspect of the firms behavior 5. Brand the relationship

Permission Marketing
1. Offer the prospect an incentive to volunteer. 2. Offer the interested prospect a curriculum over time, teaching consumers about the product. 3. Reinforce the incentive to guarantee that prospect maintains the permission. 4. Offer additional incentives to get more permission from the consumer. 5. Over time, leverage the permission to change consumer behavior toward profits.

Product Strategy- Perceived Quality and Value

Performance Features Conformance quality Reliability Durability Serviceability Style and Design

Product Strategy
Perceived quality and value
Brand intangibles Total quality management and return on quality Value chain

Relationship marketing
Mass customization After marketing Loyalty programs

Pricing Strategy
Sachet Pricing Combination Pricing

Simplified Pricing Plan

Invitation Pricing Loss Leader Pricing Value Pricing Psychological Pricing Prestige Pricing

Event Pricing

Channel Strategy-Marketing Channels

Direct Channel
High product info. High customization. Lot size big. Quality high.

Indirect Channel
Critically available. High after sales service.

Premium product.

Direct and Indirect Channel Strategy

Indirect Channel Strategy Push and Pull Strategy Channel Support Cooperative Advertising Direct Channel Strategy Company owned stores. Others like shops in retail stores , etc.

Problem Statement
Billy Lagor dilemma
Use Traditional media (TV ads, print media etc) Traditional media + entertainment Nontraditional forms of Marketing (DVDs, video games, trading cards, books, full length feature film)

TOY INDUSTRY ANALYSIS

4 Major Product segments

20.9 billion Industry

CAGR : 5% to 7%

Non- electronic toys Electronic toys and games Non- electronic games and puzzles Children's vehicles

SEGMENTATION BASED ON AGE AND TYPES OF PRODUCT

Baby Toys Lad Toys Children Toys
under one year baby or toddlers school going kid aged 6 to 8 Most selling in terms of quantity

Most money is spent on toys for this aged kid

Tend to be more sophisticated with complex design & here child drives the buying decision

aged between 9 to 11

TOY INDUSTRY ANALYSIS

TOY INDUSTRY CHALENGES

Intense competition from electronic entertainment Target market constantly changing due to fickle nature of children, faster maturity of children and changes in young

children population
Therefore short PLC and high failure rates of new toys Seasonal cash flows
Innovation is key in toy industry & to succeed one must create a WOW moment for kids by designing toys that have fun, innovative features and includes new technologies with engaging content

HASBRO Inc.
Founded in 1923 by Henry and Helal Hassenfeld (Hassenfeld Brothers Incorporated). 1930s Start of Toy Manufacturing, medical sets for juniors, 1950s Mr. Potato Head. 1968 Company changes name to Hasbro Industries and goes public.

1984 Acquisition of Milton Bradley.

1995 Merger Fail with Mattel (5 billion offer)

HASBRO Toys and Games:

Mr. Potato Head G.I. Joe (The Rising Cobra) Star Wars Monopoly

Important Acquisitions
Tonka ( owned by Parker Brother) OddzOn product Galoob toys Wizards of the coast

G.I.JOE
Since its inception on of the companys most reliable properties. The toy industry had evolved in radical ways over the past 40 years and Hasbro has also changed but G.I.JOE is one of the brands that has managed to endured despite all the changes in the market. Core message- A REAL AMERICAN HERO Concept devised from Stan Weston, G.I.JOE was introduced in 1964 and was termed as action figure with 21 moving parts

 Within a year Hasbro was selling $23million worth of G.I.JOE toys in the 1964 toy market Over the next 30 years the brand received various product extensions, updates and revivals In 1978, G.I JOE was discontinued but was then reintroduced in 1982 as a team of Real American Heroes

 Sales over the years had fluctuated. The part that made G.I.JOE a fascinating brand is that even when sales had dropped and other brands had come and gone, G.I.JOE brand awareness has remained incredibly high and the brand has always recovered 42% boys in U.S aged between 5 to 12 out of 10 million

G I JOE Consumer Segment

Boys age 5-7 Boys age 8-10 Boys age 11-12 Adult segment age 20-50

G.I.JOE teams Marketing Strategy

The brand has a broad iconic appeal. G.I.JOE is a national symbol of heroism, not just for young boys but for adults to Over the past several years the company had adopted a more conservative portfolio management approach. Hasbro began repackaging, modernizing out of retirement classic brands such as CANDYLAND,TRIVIAL PURSUIT, MY LITTLE PONY and SUPER SOAKER.

 The company began reducing its reliance on licensing. G.I.JOE had demonstrated the two key characteristics of a core brand- longevity and extendibility In the toy industry, Barbie was one of the few(along with Lego) to achieve megabrand status

 The best selling toy in the history of the industry, Barbie dominated the fashion doll segment with roughly 50% market share. After 40 years, Mattel was still selling 1.5million each week with an ad budget of $100million and an annual sales revenue of $780 million.

Traditional Marketing Approach

Whereas in comparison G.I.JOE was bringing in roughly $88million with an ad budget of $10million. G.I.JOE marketing team was considering 3 different options. Use traditional forms of advertising(TV, print, web) and continuous product innovation to stimulate both retailers and customers. Alan Hassenfeld had once said: the key to this business is shipping the market 90% complete and leaving 10% hunger out there to live another day.

 The goal was to ensure that G.I.JOE dominated the green aisle the same way Barbie dominated the pink aisle

Manage the G.I.JOE brand with limited Forms of Entertainment

Play a supplementary role to the traditional marketing approach with limited forms of entertainment. Ex- Hasbro was currently running a collection of 60 sec animation which could be converted to a 44 min narrative DVD. The DVD could be bundled with selected G.I.JOE merchandise.

 Would become a source of information about characters, different personalities and background, equipment, vehicles, etc. Example- Mattel during holiday season launched Nutcracker Barbie it had also introduced a Nutcracker DVD. Cost for making a 44 min DVD would be between $1-$2million which is huge.

Manage the brand with Multiple Forms of Entertainment

Adopts a nontraditional approach involving a number of different product forms including toys, video games, DVDs, etc. Recent examples- Pokemon, Yu-Gi-Oh and other licensed brands all averaged over $130 million return

 Hasbro received inquiries from a major Hollywood producer. In a good movie year, total licensed toy could exceed $250 million thus establishing G.I.JOE as a megabrand No licensing fee, no cost for the movie only generate royalties from the movie.

CONCLUSION
But because we are small and lean , we have to be thoughtful about where to focus our resources. Determine the long term strategy , understanding the trade offs. We can develop the greatest strategy in the world , but if we arent capable of executing well, it wont do us a bit of good.

THANK YOU