WotC Hasbro slapped by bank of america for destroying customer goodwill

[tomBitonti]

“Within its Wizards segment, Hasbro continues to destroy customer goodwill by trying to over-monetize its brands.” — Bank of America

Never thought I would see a company slapped by an investor, analyst, or investor for trying to increase profits. You are seriously doing it wrong for this to happen.

My take is that over-monetization was determined to be profit losing. Sure, charge more. But if too many customers are lost, profits will end up less. This is basic supply/demand stuff.

I expect a key missing component to the strategy is increasing demand. Say, creating a new product space. A robust, integrated, easy to use, socially accessible VTT would do that. But, that must be made real — execution is key. A successful movie will help.

Keeping a strong, dedicated customer base seems essential, too.

TomB

 

[jmartkdr2]

“Within its Wizards segment, Hasbro continues to destroy customer goodwill by trying to over-monetize its brands.” — Bank of America

Never thought I would see a company slapped by an investor, analyst, or investor for trying to increase profits. You are seriously doing it wrong for this to happen.

The math is wrong; they’re killing a half-billion assest for 100 million dollars, which is throwing away 400 million.

If they could squeeze out a half billion it would be the “correct” business play. But the money ain’t there.

 

[Zardnaar]

There's a difference between monetizing your brand correctly vs wrong.

Shooting whales short term is great, long term you run out of whales.

 

[Whizbang Dustyboots]

There's a difference between monetizing your brand correctly vs wrong.

Shooting whales short term is great, long term you run out of whales.

See: what hedge funds are doing to the local newspaper industry in the United States.