G.I. Joe has been a brand in the market for toys since its launch in 1964 with $3 billion in sales over the last 20 years, with 16% of the market share. Despite the brands success the GI Joe is positioned as a physical product, as appose to an all-encompassing brand and the toy market has volatile sales depending upon trends created by consumer demand. Hasbro is now challenged to take the G.I. Joe brand to the next level and market it in such a way that will allow the brand continues to thrive while preserving the brands legacy.
One major issue facing G.I. Joe besides their competitor Barbie (Mattel) is that the industry has changed drastically in the last decade. The target customer for G.I. Joe is a shrinking market due to technologically savvy youths who prefer playing electronic games as opposed to playing with action figures. In addition, lifecycles ...view middle of the document...
Based on the SWOT analysis below it is my recommendation that Hasbro’s new strategy should revolve around adopting a nontraditional marketing approach involving a number of different product forms to maintain demand. This includes creating new products to update current GI Joe toy lines, full-length feature film, video games, trading cards, DVD’s and a content- rich website Under this option, the marketing of G.I. Joe would not be geared toward selling toys but, rather, promoting the G.I. Joe story which in turn will sell more toys.
One key to Hasbro’s future success will rely heavily on its ability to develop new toy technologies conducive to growing the G.I. Joe brand by providing an array of different products for all age groups. Another facet of the new strategy will be to align with Hollywood and the gaming industry through exclusive licensing agreements. Intellectual property is another critical element to G.I. Joe maintaining and increasing market share, as it gives 3rd parties rights to popular characters for motion pictures, video games and other forms of popular media. This helps alleviate marketing expenses while helping G.I. Joe achieve blockbuster success. For example, toys associated with Star Wars, Spider Man, etc. have all averaged four-year returns over $130 million in sales.
The potential for success is huge because even the strongest advertising and promotion campaigns can’t compare to the increase from having a strong movie franchise and even though this option will require a significant amount of effort to work with Hollywood to maintain the vision of the brand, this strategy is appealing nonetheless. Hasbro would also bear no licensing fees or cost for the movie, in fact, most films typically earn annual royalties in the several.
It is my opinion that this option will maximize the potential of the brand while preserving the rich history of G.I. Joe and securing its future.