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Gi Joe

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Submitted By hansolo
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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 within the industry are also getting weak, with 70% of sales belonging to toys released within the last 3 to 4 years. Manufacturers have also adopted a more short-term goal oriented strategy based on the creation of the “instant gratification” attitude among their target market. Retailers have joined manufacturers in shifting their strategies to focus on multipurpose department stores as the primary location to purchase toys, with the top five players comprising 75% of sales of toys in 2003. This has a major effect on one of Hasbro’s core strengths (see appendix) a unique relationship with retailers which is a key asset to maintaining an inordinate amount of shelf space. .

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

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