Brave Commerce: MGA Entertainment’s Josh Hackbarth on Building Toy Brands for the Modern Consumer

Released on March 18, 2025

Overview

In this episode of Brave Commerce, hosted by Rachel Tipograph, Founder & CEO of MikMak, and Sarah Hofstatter, President of Profitero, the spotlight shines on Josh Hackbarth, Chief Marketing Officer at MGA Entertainment. Hackbarth delves into the evolving landscape of the toy industry, exploring how MGA navigates modern consumer dynamics, harnesses technology shifts, and builds enduring emotional connections with both children and adult collectors.

Introduction to Josh Hackbarth and MGA Entertainment

[05:28] Josh Hackbarth:
"MGA Entertainment is a very large, privately held toy company... brands like Little Tykes, Bratz, LOL Surprise, Miniverse. We have dominated children's lives for near 50 years now."

Hackbarth introduces MGA Entertainment, emphasizing its extensive portfolio and status as the largest privately held toy company globally. Brands like Bratz and LOL Surprise exemplify MGA’s impact on children's lives and the broader toy market.

Hackbarth’s Journey to MGA and Its Implications for the Industry

[06:40] Josh Hackbarth:
"Gone are the days where you can make a great product and put a commercial on Saturday morning cartoons and it's under everyone's Christmas tree. It is much more aligned to what we did on the entertainment side, which is build big emotional connections to larger brands."

Hackbarth discusses his unconventional path to MGA, highlighting his extensive experience in both entertainment and retail. This unique background equips him to steer MGA towards building deep emotional connections with consumers, moving beyond traditional advertising methods to foster lasting brand loyalty.

Adapting to Rapid Technological Shifts in the Toy Industry

[11:32] Josh Hackbarth:
"Now that we're getting kind of beyond streaming and more into social and digital engagement, it's interesting because we're able to keep that conversation going without your traditional content."

Hackbarth elaborates on how technological advancements, particularly the rise of social media and digital platforms, have transformed toy marketing strategies. Unlike the era of Saturday morning commercials, MGA now leverages continuous digital engagement to maintain consumer interest and adapt to rapidly changing trends.

Balancing National and Retail Media Spend

[13:58] Josh Hackbarth:
"Mga, are we doing the heavy lifting on building that awareness for our brand and then how are we working with whatever that channel of distribution is to really kind of turn that conversion."

Hackbarth explains MGA’s strategic approach to media spending, emphasizing the importance of brand awareness coupled with effective distribution channels to drive conversions. The dynamic nature of modern marketing requires daily assessments rather than weekly reports to ensure strategies remain effective and responsive to consumer behavior.

Embracing the “Kadult” Consumer

[16:57] Josh Hackbarth:
"We've kind of seen that. The other thing that we've seen is in partnering with the big entertainment studios is that pop culture and fandom really goes all ages."

Hackbarth introduces the concept of "Kadults" – adult consumers, often without children, who purchase toys for nostalgia, collectibles, or as a form of escapism. MGA targets this demographic with high-end collectibles, limited editions, and partnerships with major entertainment franchises, recognizing the significant market potential beyond traditional parent and child segments.

Managing Global and Local Market Dynamics

[16:02] Josh Hackbarth:
"Influencers are very different. You can't really do a global influencer campaign. It's very, very hyper specific, hyper local."

Addressing the challenges of operating in a global market, Hackbarth stresses the need for localized marketing strategies. While traditional television remains effective in regions like Europe, influencer marketing requires a more tailored approach to resonate with diverse cultural nuances and consumer behaviors across different locales.

Cultivating Creative and Agile Marketing Teams

[15:49] Josh Hackbarth:
"Helpful marketers are creatives at heart. And so I think that's what fuels a lot of the team is like, let's find that thing that's really going to cut through and make everything else work more efficiently."

Hackbarth highlights the importance of creativity and agility within marketing teams. With no fixed playbook, MGA encourages its marketers to innovate and seize unique opportunities, whether through big stunt activations or leveraging trending memes, to maintain cultural relevance and effectively engage consumers.

Final Thoughts: Embracing Bravery and Adaptability

[19:44] Josh Hackbarth:
"I've completely uprooted my life and dove into a new thing... like, you know, I was very comfortable in the entertainment world, and picking up and dropping into a completely new industry is something that can be very, very scary and is much easier to not do."

In a reflective moment, Hackbarth shares his personal philosophy on bravery and adaptability. His willingness to embrace change and venture into new industries underlines MGA’s dynamic approach to leadership and innovation, fostering a culture that embraces challenges and drives continuous growth.

Key Takeaways:

1. Emotional Connection Over Traditional Advertising: MGA prioritizes building lasting emotional bonds with consumers through strategic branding and storytelling, moving beyond the limitations of traditional toy advertising.

2. Adaptability to Technological Changes: Embracing digital and social media platforms allows MGA to stay relevant and maintain ongoing engagement with consumers in a fast-paced market.

3. Expansion Beyond Traditional Demographics: By targeting "Kadults," MGA taps into a lucrative market of adult collectors and nostalgic consumers, diversifying its consumer base and revenue streams.

4. Localized Marketing Strategies: Successful global operations require tailored approaches that consider cultural differences and local consumer preferences, especially in influencer marketing.

5. Cultivating Creative Agility: Encouraging creative thinking and flexibility within marketing teams enables MGA to respond swiftly to trends and capitalize on unique opportunities, ensuring sustained cultural relevance.

6. Leadership Through Bravery: Hackbarth’s leadership philosophy underscores the importance of courage and adaptability in navigating industry shifts, fostering a resilient and innovative organizational culture.

Notable Quotes:

• Josh Hackbarth [05:28]:
  "We have dominated children's lives for near 50 years now."

• Josh Hackbarth [06:40]:
  "Gone are the days where you can make a great product and put a commercial on Saturday morning cartoons and it's under everyone's Christmas tree."

• Josh Hackbarth [11:32]:
  "We're able to keep that conversation going without your traditional content."

• Josh Hackbarth [16:57]:
  "Pop culture and fandom really goes all ages."

• Josh Hackbarth [15:49]:
  "Helpful marketers are creatives at heart."

Conclusion

Josh Hackbarth’s insights reveal MGA Entertainment’s strategic evolution in the toy industry, emphasizing emotional branding, technological adaptability, and market diversification. By embracing these principles, MGA continues to lead as a dynamic and resilient player, adeptly navigating the complexities of modern commerce to build beloved toy brands for today’s diverse consumers.