Hasbro`s Kidult-Centric Business Strategy: Navigating Nostalgia for Success?
| Case Code: MKTG461 Case Length: 13 Pages Period: Pub Date: 2024 Teaching Note: Available |
Price: Rs.400 Organization : Hasbro, Inc. Industry :Retailing Countries : United States Themes: Brand Strategy Product Strategy & Design, Brand Development,Segmentation |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Hard Times For Hasbro
In September 2017, former leader of the toy retail industry, Toys R Us closed its operations after years of declining sales and mounting debt. Most analysts attributed the company’s decline to the management’s inability to adapt to changing consumer behavior, incorporate the latest technologies, and bring innovation into its business model. According to The NPD Group , after four straight years of growth, toy sales in the US in 2018 fell 2% from US$ 22 billion in 2017 to US$ 21.6 billion , the key reason being the bankruptcy of Toys R Us. As Toys R Us accounted for about 10% of Hasbro’s sales, the latter suffered lower sales and profits, restricted distribution, and unpaid debts..
The Changing Toy Landscape – The Emerging Kidults Segment
According to analysts, Kidult was a nickname given to a person generally aged 12 years and older who had childlike tastes and bought toys for themselves. Kidults enthusiastically purchased merchandise like action figures, Lego sets, and dolls – often perceived as traditionally intended for kids..
Hasbro’s Kidult Strategy
From the mid-2010s, many of the toy companies began to contemplate embarking on previously unthought-of strategies to push demand in the toy industry. One of these was venturing into the newly emerging and fast growing Kidult market segment. Between June 2021 and June 2022, Kidults reportedly accounted for 14% of US toy sales, up from 9% in 2019. Within this category, the age bracket of 18 and above constituted a quickly expanding segment; between September 2021 and 2022, this subset of toy consumers experienced a notable 19% growth rate..
Way Forward
Hasbro’s loss of market share within the toy industry stood as one of its primary business challenges. Additionally, the company faced the task of distinguishing itself effectively from strong competitors like Mattel Inc..
Exhibits
Exhibit I: Hasbro’s Blueprint 2.0
Exhibit II Hasbro Financials Year to Date (YTD) Major Segments
Exhibit III: Hasbro Franchise and Partner Brands
Exhibit IV: US Toy Market Size (2019-22)
Exhibit V: Hasbro Revenue History (2010-2022) (In US$ Million)
Exhibit VI: Hasbro Inc.’s Timeline
Exhibit VII: US Market Share by Category for Hasbro and Mattel, as of 2017
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