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Hasbro CEO reveals the magic behind the toymaker's earnings beat
As the world migrates online, Hasbro (NASDAQ: HAS) Chairman and CEO Brian Goldner said his company has taken advantage of new-age trends that are paying off for the legacy toymaker.
"We are creating social-media-type games that now allow people to play face-to-face, but we're also creating digital games. And what we're finding out about our brands is they really resonate in that mobile gaming space," Goldner told " Mad Money " host Jim Cramer on Monday.
Shares of Hasbro closed up almost 6 percent on Monday after the company delivered an earnings beat that was boosted by new digital initiatives.
"It really starts with customer insight," Goldner said. "We spend a lot of time getting proprietary consumer insights, really understanding our audience, and then we are surrounding them with storytelling."
Watch the full segment here:
Hasbro's latest digital venture, Hasbro Gaming Crate, plays on the pre-paid subscription trends brought about by companies like Unilever's Dollar Shave Club.
The service, which launches this summer, will send a package of three never-before-played games chosen by gaming experts to subscribers four times a year.
Goldner said the idea is to get customer feedback on brand new games as a way of "profitable experimentation," then roll the successful games out to Hasbro's retailers after the fact.
"We are very connected to our consumers and customers all around the world. We take direct feedback. And we've really thought about this in a multitude of ways," the CEO said.
Some of the ways that Goldner said Hasbro's method of "customer immersion" has contributed to business include a push to make more ethically sourced, sustainable products packaged with biodegradable plastics.
"And then, of course, inclusion," Goldner added. "Inclusion in our workforce, inclusion in the kinds of people that we portray and the way that we think about our products and diversity. Even our board of directors, we're thinking about diversity and how we build a board that's with wonderful capabilities and a diverse background."
And with new "Guardians of the Galaxy," "Spider Man," "Star Wars" and "Transformers" movies as well as Hasbro's "My Little Pony" animated feature film on the slate for 2017, the experiential toy company is nowhere near the end of its continued success.
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