Hasbro Case
Hasbro Case
By Jane Chiang
Executive summary
In 2001, Hasbro released a handheld electronic game, P-O-X and first introduced it to the 1600 boys in Chicago schools by giving them free P-O-X, along 10 more free P-O-X to each boy to give out to their friends. This advertising technique quickly spread this “coolness,” which is having a P-O-X on hand among young boys. However, this game was seem violent and made the parents “uncomfortable,” especially after 9/11 happened. Although many children believe that P-O-X taught them many things, such as think before you act, work as a team, figure a way out to next level, and etc., it is too addictive for them and affect their school performance. A lot of parents also think how Hasbro directly advertising their new game to the children without going through the parents is very inappropriate.
Situational Analysis
Rather than introducing a new game by releasing a TV channel or printing advertising poster, which was expected to cost 1.4 million dollars, Hasbro chose to give out total of 17600 free P-O-X to young children in Chicago. Although this technique is effective, it also raised worries and problems among parents. Below is the strength, weakness, opportunity, and threat of traditional and non-traditional advertising strategy.
SWOT Analysis-Traditional Strategy(TV channel, gamer magazine advertisements.)
- Strength:
- Wide spread
- Companies use easy and catchy message: easy for consumers to remember
- Weakness:
- High costs
- Establishing children’s interest is hard
- Opportunity:
- More chances to be seen or heard
- Boost company’s public image
- Threat:
- There are too many toy commercials, too many choices for children
- Parents control/reject their children from buying new toys
- People get annoyed when they see too much advertisement
SWOT Analysis-Non Traditional Strategy(Give out free P-O-X to children)
- Strength:
- Cheaper cost
- More effective
- More targeted advertising
- Weakness
- Parents do not like this strategy— viral marketing
- Slow message delivery
- Opportunity
- Boost company’s image
- Children share toys at schools.
- Threat:
- Too many free P-O-X in the market before Hasbro started selling it
- It is more difficult to control-company can’t remove the games they gave out like remove TV commercial or radio advertisement when problem raises
Problem Definition
What was the issue? | Many parents believe that how Hasbro used viral marketing stealthy is inappropriate. |
Why is it important? | P-O-X created arguments between children and parents regarding the impact of P-O-X brought to young children. |
Who is affected? | Children and parents |
What social/cultural factors shape this problem? | Hasbro targeted at 8-13 year-old boy, the age when children are developing their thoughts and personality. P-O-X is too addictive for young children and affected their school performance. In addition, “Video games remain largely segregated by sex… Teachers are no longer supposed to tolerate boys who fight and enthuse about weapons — even dodge ball has been banned on many playgrounds —but brutish competition is still the norm on video screens”(Tierney). It is ironic that how P-O-X could potentially lead young children to do violent actions while some of the sports are banned, especially 911 tragedy happened a few months after Chicago leased P-O-X, then two months after 911 elsewhere in USA. Also, parents think that young children do not have a strong ability to control themselves from spending too much time on games. |
Why is it worth the investment? | According to Hasbro Inc., P-O-X was first available in Chicago on May 12, 2001 and then released the system elsewhere in USA in November 17, 2001. Although “P-O-X wasn’t, ultimately, a big national hit: after the September 11, 2001, terrorist attacks and the anthrax attacks that followed, parents and retailers weren’t interested in a game about infection,” no doubt this non-traditional marketing strategy is influential. It is also frequently cited in the marketing education (Mattison). Hasbro Inc. did not successfully make a huge profit out of P-O-X, but they tested and learned a new marketing technique. |