Hasbro Games – Pox (A) Case Solution
The Director of Product Marketing “Matt Colin” at Hasbro, is conducting a meeting regarding the launch of a new product “POX”. The key concern behind the meeting is to finalize the best promotional strategy for POX, as the product is quite unique and coming up with a unique promotional strategy is very crucial for the company’s management, as the product launch is related to boosting up the company’s sales revenues. The Product Marketing Director is presented with two options i.e. traditional (TV, print media with a cost of $1.4 million) or non-traditional (creating fictional story related to POX, in a town near by Los Angeles with a cost of $1 million) media, and he must weigh the risks and benefits associated with each promotional option, and devising out the best launch strategy.
Hasbro is going to launch a new game. The company has arranged a meeting to discuss the different aspects related to the POX. Considering the suggestions from employees and the product manager, the company’s management is concerned about the promotional method that can help generate sales for the game. The target market for the company is teenagers. The director of product marketing “Matt Colins”, has two methods on the table, for the promotion of the new product and its launch. The two option revolved around running campaign through traditional and non-traditional media.
Hasbro was foundedin1923 asthe Hassenfeld brothers in Pawtucket, Rhode Island. Initially, it used to sell fabric remnants, but afterwards, it started manufacturing pencil boxes covered with fabric in 1926.The Company-expanded by making toys such as doctors’ and nurses’ kits, in 1940 it became a toy company. During World War II the company entered into plastic fields and the first toy hit was Mr. Potato Head. Till 1968, the company expanded in the toy industry and soon went public.
The company kept growing till 1990 through several acquisitions of the strongest brands in games and became the market leader. With the acquisition of Milton Bradley, the company’s career in the games and puzzle market started. The acquisition of Coleco and Parker Brothers made it a market-leader. The company continued growing till 1999. In the year 2000, the company started facing serious challenges, Hasbro had to adapt to changing marketplace and the focus moved towards software and technology. After all the challenges, the company decided to restructure and lay off the workers by 5%(Godes & Ofek, 2014).
There are two options,which can be used by the company to promote and advertise the new product POX. The focus for both the target markets and customer segment are different for the two options. The options will help with an increasing number of customers, awareness regarding the product, and generating greater sales. The product is expected to be accepted in the market with both of the launch options, but the advertising methods and targets for both the launch strategies are quite different from each other, and it’s important to understand the difference between the two methods, while selecting the best alternative for promotion of POX.
The first option includes the advertisement of the new product to customers by explaining the new features covered in POX and feature them as unique selling propositions. The second option suggests targeting the progressive features to the clients which are more interested in the invention of POX and the story behind it. So, the first option suggests the utilization of traditional resources such as advertisements and print media coverage with a cost of $1.5 million. The second suggests promoting in a non-traditional way i.e. creating fictional story related to POX, in a town near by Los Angeles, which has an expected cost of $1 million.
Advantages & Disadvantages – Traditional v/s Non-Traditional Launch Proposals
In order to choose the best launch strategy, qualitative analysis has been carried out by analyzing the advantages and disadvantages, associated with each option. The detailed analysis of each option is given as below
Traditional Launch Strategy
The advantages of launching POX through traditional media include
·Reaching a large & local audience
Through traditional mediums, the company can reach the local audience.The traditional market is more successful and its methods are tried and tested, as this medium of marketing helps the companies reach and cater to a huge audience. (Kapoor, 2018)
Advertisements through TV and print media are self-explanatory i.e. the company does not need to define the product to each customer as compared to non-traditional marketing, whereby the product description needs to be explained to each targeted person on an individual basis.
The traditional marketing will enable the company to make thelaunch of POX, reach a new audience through TVCs, billboards or other forms of print media. In addition, the traditional media will enable the company to reach a larger population in different demographic locations, as the spread traditional is vast.
·Possibility of Recycling or Reuse
The promotional strategies used in traditional marketing, including pamphlets, billboards, magazines, TV commercials can be accessible in future at any time and these materials can be used or recycled at any future date.
On the other hand, the traditional marketing has disadvantages, which are describes as under
.Usage of Static Text
The static text is used in the marketing of product via traditional methods, which makes it impossible for the company to make any changes in the advertisement through TVC or print media, with ongoing trends and customer preferences i.e. the traditional media becomes less interactive to customers, and may lead to unhappy customers. Along with that advertisements need to be well enough to publish and the company is sure that no more changes will be needed in the future because once the ads are published nothing can be updated.
The traditional marketing campaign is more expensive as compared to non-traditional, as it can be observed through the costs of $1.4 million and $1 million, for the traditional and the non-traditional media respectively. It is because the advertisers will require more from the Hasbro Company, every time a promotional campaign will be required…………………….
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