John A. Frascotti, global chief marketing officer at Hasbro, stated that there are not a lot of brands in the world that reach the same emotional connection across generations like Transformers do. Hasbro created the Transformers franchise in 1984 with Japanese partners to target boys near the age of 5 years old. Since then, the company has expanded outside of their intended audience with new toy lines that are intended to appeal to everyone, from toddlers to adults.
Transformers is one of the most valuable brands among toy makers. In 2011, Hasbro reported a record $960 million in sales from Transformers and Beyblade, according to its annual reports. Unfortunately, the growth of Transformers is not consistent and has fallen without the help of Transformers movies on the big screen. In the fourth quarter of 2012, Hasbro reported a net income of $130.3 million, a 6.3% decline from the previous year.
The company started building the brand into a global franchise back in 2007, which now includes video games, live-action movies, publishing, and theme park rides. Investors are expecting a decline in sales for this year and anticipate a rebound in 2014 when the next movie is due for release. Analysts stress the importance for the company to keep the brand fresh in non-movie years.
The company is also seeking to capture new fans through new lines of age appropriate toys, games and television shows. In 2011, the company released “Rescue Robots,” a line that features robots who are first responders targeting children ages 3 to 7 and designed to take the focus off of the adult themed main characters. “The goal there is to take what you have and bring an age-relevant message, which is to get away from the battle and the fighting and focus on the heroic nature of Transformers,” said Jay Duke, global vice president for the Transformers brand at Hasbro.
