How Brian Goldner Is Transforming Hasbro Into a Global Entertainment and Brand Powerhouse
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TRANSFORMERS’ 25 T H A NNIVERSARY How Brian Goldner is transforming Hasbro into a global entertainment and brand powerhouse. based on a broader range of brands,” says Goldner. In addition to the gaming and theatrical partnerships, Hasbro has also developed a theme park attraction based on the Transformers brand with Universal Parks & Resorts and Dreamworks that will first debut in 2011 at Universal Studios in Singapore and then in Los Angeles. Furthermore, to support its push into entertainment, Hasbro has recruited several executives with strong entertainment backgrounds and restructured its business with global leaders responsible for its core brands. By Tony Lisanti Goldner, who is arguably Hasbro’s biggest promoter, also embraces the complexity of Transformer characters such as ike the precision accuracy and symmetry Street—an especially meaningful accolade during the current Optimus Prime, not only in his approach to corporate that transforms an average automobile into a worldwide economic downturn. strategy, but also in the execution of each brand. bot character with a distinct personality and Wrote a Piper Jaffray analyst in November following Hasbro’s And there is no better example of the mission, Hasbro president and chief executive analysts meeting: “…. analysts’ day supports our thesis that not strategic changes and accomplishments officer Brian Goldner has been leading the only is the toy company the best in the sector, but perhaps the than the unparalleled worldwide transformation of this venerable toy company into a global highest-quality company in the universe. The company is taking focus this year on the 25th entertainment entity, brand and licensing powerhouse, and every opportunity to exploit its brands and leverage its leading anniversary of digital leader. product innovation…. And the company has spared no expense in Transformers and the Goldner has identified the company’s bountiful portfolio of developing the most attractive portfolio of consumer products in release of the second iconic brands—including Transformers, G.I. Joe, Monopoly, the toy sector. It’s clear that there is plenty of room to grow to build movie Revenge of the and Trivial Pursuit—as so much “more than meets the its brands and market its product lines for years to come. Although Fallen—plus the big eye” or just straightforward lines of toys and board games the retail environment is difficult at best, we expect Hasbro to screen release of G.I. transforming them into global lifestyle brands that embrace emerge as the best player in the sector for the holidays and 2009.” Joe: The Rise of the Cobra, the realm of entertainment from blockbuster theatrical to Since 2004, Hasbro has grown from $2.9 billion in sales to a based on the action figure television to live events. projected $4 billion in 2008 (4.5% increase over 2007), according created in 1964. Since taking over as president and chief executive officer to a financial analysis by Needham & Company. In 2007, Transformers, last May when Hasbro veteran Al Verrecchia retired, the Needham projects total sales of $4.29 billion in 2010. which was highest grossing 45-year-old “toy kid” has been focused on core strategies, In addition to its partnership with Paramount and Dreamworks non-sequel, posted $708.3 but also on the summer of 2009, which could prove to for Transformers and G.I. Joe, several other deals have reinforced million at the box office be a milestone year for two of the 85-year-old company’s Goldner’s commitment to entertainment and digital products. worldwide, and yet ranked No. 5 major brands—Transformers and G.I. Joe--and no doubt a Hasbro inked a six-year deal with Universal to produce at least behind Shrek the Third, Spider- testimony to the ceo’s corporate vision and legacy. four movies beginning in 2010 or 2011 based on such brands Man 3, Harry Potter and the Order Goldner’s strategy is based on an “immersive brand as Monopoly, Candy Land, Clue, Ouija, Battleship, Magic, The of the Phoenix, and Pirates of the experience” and on the three-R mantra that has become Gathering and Stretch Armstrong. In 2007, Hasbro signed an Carribean: At World’s End, which was the often-quoted answer to various questions about the exclusive deal with Electronic Arts to produce digital games for the No. 1 box office movie of the year company’s business—“Reinvent. Reignite. Re-imagine.” many of its brands (except Transformers and G.I. Joe which are with $961 million worldwide, according But unlike other companies with a clever, catchy and being handled by Activision). In 15 months, EA has produced to Box Office Mojo. well-defined strategic mission, Goldner’s focus on people about 30 games based on various Hasbro brands. If the movie sequel becomes reinforces that Hasbro practices what it preaches. And “We couldn’t be more pleased with the success of our a mega box office bonanza, that’s another reason why it has become a darling of Wall partnership with EA and in 2009 we will launch even more games Transformers’ performance at retail 30 www.licensemag.com February 2009 February 2009 www.licensemag.com 31 TRANSFORMERS’ 25 T H A NNIVERSARY worldwide, considering the it’s all about “more than meets the eye,” a comprehensive brand, product phrase Sam Witwicky (Shia LaBeouf) uses when and promotional initiatives, could answering his high school heartthrob when she be significant. asks what he’s like. The phrase has also become According to Hasbro, Transformers generated the basis for product development and promotions. $487 million in sales in 2007 (up from $100 Goldner believes that Transformers, while million in 2006). Needham estimates revenue from historically strong in many established global Transformers in 2008 at $395 million and $585 territories, will continue to grow in popularity in million in 2009, a 48% increase, representing 14% emerging markets as well. of total revenue, significantly larger than Star Wars “We have been increasing our investments in a and Spider-Man. number of new markets [in 2008], including opening And certainly with numbers like that, Hasbro’s offices in Brazil, Russia, China and the Czech retail and licensee partners are benefiting and Republic. Our brands have proven worldwide appeal becoming even more critical components in helping and as we increase our presence around the globe, Hasbro to develop new and exciting promotions and we expect to grow our emerging market business products for consumers. significantly over the next few years,” Goldner told Goldner recalls his original discussion with analysts during a third-quarter earnings conference director Michael Bay prior to the first Transformers call in November. movie about making the brand come to life. “Michael The phenomenon of Transformers, which was wanted fans to second guess and be able to look into first introduced in 1984, is stronger than ever and any parking lot wondering if any of the cars could be a key factor in Hasbro’s growth as well as a bona Transformers,” Goldner says. fide example of its transformation into a global “It’s a very simple human story,” he adds. And, entertainment and brand licensing powerhouse. © The Way to Play The cornerstone of Hasbro’s growth marketing organizations with a deep to expand the strategy is a proprietary understanding of the consumer has also digital footprint brand development enabled Hasbro to produce consistent to make our methodology known as brand messages and products for its brands available “Way to Play.” properties, including Transformers, to consumers who want “It is a holistic way which has a long and deep connection to play them on all types to ignite creative ideas, with consumers. of platforms.” to reinvent our brands According to Frascotti, there are four ■ Entertainment. “Immersive and to create new game- elements to the methodology: experiences in theatrical, television, changing initiatives,” ■ Product innovation. “Our design and publishing and theme park rides are explains John Frascotti, engineering teams are continuously critical components of our brand global chief marketing developing exciting innovations to reinvention.” John Frascotti officer, who joined Hasbro keep our brands front and center for “Despite economic conditions that a year ago from Reebok. our consumers.” we are all experiencing,” Frascotti “Way to Play is a global approach ■ Licensing. “This enables us to says, “We [at Hasbro] remain steadfast to brand building that ensures extend our brands across a wide in our commitment to grow our brands, consistent global execution.” spectrum of product categories to continue spending against our In addition, a centralized global brand beyond toys and games.” brands, and to continue to invest in marketing structure with regional ■ Digital gaming. “We will continue entertainment to drive these brands.” 32 www.licensemag.com February 2009.