Hasbro (www.hasbro.com) is a worldwide leader in entertainment products and services, such as GI Joe, Candy Land, the Easy Bake Oven and Monopoly. Hasbro is a $3 billion company with brands in 100 countries and launching 1,000 new products each year. In 2006 Hasbro employed approximately 6,000 persons worldwide, approximately 3,400 of whom were located in the United States. Hasbro’s principal operating segments are US Toys, US Games and the International. Total turnover outside United States of America amounts to 38 per cent in 2006. Hasbro faces increasing internationalization and consolidation among key customers, the large retail chains. With fewer channel members, Hasbro has the ability to make more substantial improvement in supply-chain efficiency and effectiveness. However, it gives each channel member more power. The mega retailers represent more than 50 per cent of Hasbro’s sales,making it very important to have their support for any new product launch. In other words, world-class logistics and an efficient supply chain are critical for Hasbro to remain competitive and work with powerful retail stores. Primarily, the company distributes through big-box retailers such as Wal-Mart, Target and Toys‘R’ Us. Due to this concentrated distribution strategy, it is easier for Hasbro to make changes and launch products, resulting in a tighter supply chain. It would be substantially harder with a lot of little retailers. However, the company does use alternate distribution channels to reach consumers where they shop, such as drugstores, wholesale clubs, online and smaller toy stores. In these alternate distribution channels, Hasbro knows that it needs to provide a different product or different packaging to compete. Certain items may be bundled together, resulting in a higher ticket item, but appropriate for the channel. Hasbro works with the channel members to make sure their brand is marketed correctly, but the company also makes sure its products fit...
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