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

Summary

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.

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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.

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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.

Transcript

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[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. And when you look at mga, they have some just Cadillacs of toy brands with the ones I mentioned like Bratz and Little Tykes and there already is a great emotional connection with some of those. What I'm excited to do is what we've been doing over the last year is helping build that emotional connection and that bigger brand message with our consumers and fans.

[Rachel Tippograph]

Welcome to today's episode of Brave Commerce.

[Sara Hofstadter]

I'm Rachel Tippograph, the founder and CEO of Micmac.

[Rachel Tippograph]

I Sarah I'm Sara Hofstadter, president of.

[Sara Hofstadter]

Profitero, and this is a show that talks about what's relevant in E commerce for the world's biggest brands. Sarah we spend a lot of time in this show talking about what's in your grocery cart, but people don't know that you're an avid collector of a few things.

[Rachel Tippograph]

Not too many things. My husband's a collector of a lot of things. I try to pull it back. So it's either got to be really valuable or like just for shits and giggles. I suppose so, yes. My shits and giggles collection includes more than 1200 Pez dispensers. We should probably get PEZ on the podcast, now that I think about it. Do you know that I was actually on a PEZ aficionados podcast? I was a guest.

[Josh Hackbarth]

Wow.

[Rachel Tippograph]

You go deep with this, but not by choice. I was sought out, and I thought it would be fun, and it was a little bizarre, not gonna lie, but, yeah.

[Sara Hofstadter]

What draws you to collecting pets?

[Rachel Tippograph]

It was something my husband started doing in high school, and when we started dating in college, I thought it was adorable. And then I had to travel so much for work. And so whenever I traveled then it was like a little bit of a. A fun opportunity to go into, like, a local candy store in France, Japan, and find new characters and find things that hadn't been done before. And then from there, it took off. I'm not like, one of those people who, like, goes to, like, collectible events or anything like that. I'd have to pay more than five bucks for a pez. I'm not gonna do it, but for me, it's, you know, it's fun, it's playful, and it is in stark contrast to the wine collection. So I guess keeps a little of the kid in me, I suppose, in a little bit of a weird way.

[Sara Hofstadter]

And I guess it also. It's something that you get to do with your husband. It's a shared experience.

[Rachel Tippograph]

It is. Although it's more often me finding one and then taking a picture of it, texting it to him and saying, do we have this one? Shockingly, we don't have a catalog, you know, but, yes, yes, I do have an extensive PEZ collection.

[Sara Hofstadter]

I ask you this because we're about to bring Josh, who is the CMO of probably the largest privately owned toy company. And what. One of the things that now exists in the toy industry, because there's been so many changes, is this third customer. It used to be parents, kids, and now there's a new customer called Kadult. And you fit the bill?

[Rachel Tippograph]

I kind of fit the bill. But you know what? I think there's a lot. And we kind of explored this a little bit in our LEGO episode a couple of years back. The fact that there is this hybrid between the parent and child of people who just, whether due to nostalgia or just enthusiasm for escapism or whatever it is, being able to kind of tap into their inner youth and be able to play. But obviously, we're going to hear from Josh and he's going to talk about his portfolio. But I do remember that over the holidays, people were talking about a lot of these LEGO collections, not like your typical Star wars, but like the ones where you make, like, bouquets of flowers, and it's specifically optimized to the kids all in there. So there's A booming business. I think Josh is tapping into something real smart. And frankly, you know, people are only going to spend so much on products, so sometimes you gotta, you know, expand the market. And this is a great way to do it.

[Sara Hofstadter]

Absolutely. Well, on that note, let's bring Josh onto the show to explore all of the massive changes over the last 20 years in the toy industry. Today, we are very excited to have Josh Hackbarth, the chief marketing officer at MJA Entertainment, onto the show. Hey, Josh.

[Josh Hackbarth]

Hey, how are you?

[Sara Hofstadter]

We're excited to have you. I think, to kick it off, can you just share with the listeners because MGA has some great brands, but folks might not know the corporate name. So if you can tell us what's in the portfolio.

[Josh Hackbarth]

Yeah. So MGA Entertainment is a very large, privately held toy company. I believe the largest privately held toy company in the world. And you are right, not many people know our brand name, MGA Entertainment, but they probably know brands like Little Tykes, Bratz, lol, Surprise Miniverse. The list just goes on and on. We have dominated children's lives for near 50 years now.

[Sara Hofstadter]

Amazing portfolio and you're fairly new to it. A year in or a little less?

[Josh Hackbarth]

I am, yeah. A little less. I think I just passed nine months, actually. So it's been a fun adventure.

[Sara Hofstadter]

You're fully. You've birthed. You've birthed.

[Josh Hackbarth]

I'm a newborn for sure.

[Rachel Tippograph]

Exactly.

[Sara Hofstadter]

Well, so your background, it seems like it's actually perfect for this role because you spent time in retail and you spent time in entertainment, but you actually never spend time just fully working at another toy company. So what was it about the opportunity and why do you think MGA was drawn to your background and what does that signal for the industry?

[Josh Hackbarth]

Totally, yeah. I have a very windy path on how I ended up here. I will say the toy industry is very unique in and of itself, as most industries are, but I think toys is. It's just a special place. I've been toy adjacent for a long time, as you were saying. So I spent the last decade on the studio side really building big entertainment franchises. And then I spent better part of a decade before that on the retail side, so trying to drive experience in stores and online. You know, I think what was really exciting about this opportunity is when you think about toys, 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. And when you look at mga, they have some just Cadillacs of toy brands with the ones I mentioned like Bratz and Little Tykes. And they're already is a great emotional connection with some of those. What I'm excited to do is what we've been doing over the last year is is helping build that emotional connection and that bigger brand message with our consumers and fans.

[Rachel Tippograph]

There's also so much that's happening in culture right now that I think, you know, coming from your entertainment background, there's probably to a certain degree enough that you can capitalize in real time. How do you think about that from the perspective of almost like a manufacturing way, when you see whether that's from an influencer perspective or just streaming all those different things that are moving at a much faster speed than, let's say, manufacturing. How do you think about compelling events and compelling cultural moments and the role that you guys play and how that differs from your prior experiences?

[Josh Hackbarth]

Yeah, it's a great question. I mean, it seems trends rise and fall at a much faster rate than they ever have. Right. And so to your point, like when we're monitoring trends on the products we're making and the brands we're building, by the time we're off of the line and in stores, that trend could have passed. We look at a couple of different things. I think one is trying to see the macro through the micro of the trends. So what's kind of sticking, right? Is it just a meme that's going to go away in a week? Or is it something that we can grab on, but we also can grab onto that in a couple of different ways. One is because we have such a wide variety of products for all demos from kids to adults. Depending on what that trend or meme is, we can grab onto it from a marketing perspective. You see that with our brat social handles, like we're probably one of the more culturally relevant toy brands out there with that. And then on the product side, the wonderful thing about this company is we move so fast. One of our core strengths is we are able to execute very, very quickly and capture some of that energy. I think the important thing though is back to the earlier point is how are we building brands versus just chasing trends?

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[Sara Hofstadter]

Josh, when you and I have spoken in the past, I loved your articulation of this evolution of how it's no longer about putting the toy under the tree after a commercial spot, but now you're building like longevity and ip. You tied it to technology shifts and so yeah, yeah, I would love for you to unpack for us how you think these shifts in technology are impacting the toy industry and marketers at large.

[Josh Hackbarth]

Yeah, I mean you have to go back a ways on this one, right? So you know, if you go back to, let's call it late 90s ish, the majority of your toy advertising or a lot of your entertainment advertising as well, what's happening on your core linear channels, your free to air ABT mvp, TBS kind of station as cable started to proliferate in the, you know, late 90s, early 2000s, you see some of that shift go over there, you're still doing though kind of traditional TV advertising. When streaming came about, it kind of shifted everything, right? Like when you're building an entertainment franchise or trying to drive that, let's say you have content that based off of your toy franchise, you Want the kind of weekly engagement, you want that appointment viewing, you want your consumers to see it every week, you know, there's new episodes, etc. As the streaming kind of push came in the late aughts. Is that what we call it? 2009, 2010 and kind of the early 2010s and binging became much more of a thing. It actually became much more of a challenge to drive that message for longevity. Right. And so you were getting it through, you know, maybe your big theatricals were able to do it because they have a big burst of a couple hundred million dollars of marketing. But for your average kind of TV driven franchise, it was, it was much harder. I think 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. Right. Like it's, you know, before we were doing let's say 52 episodes of 22 minute series or something like that. Now we're able to like kind tell those stories in a lot of new ways. I think that's all tied to. So yes, our marketing is shifting, but also the way that fans are embracing entertainment and consumer, let's call it toy driven franchises is much different than it ever has been in the past.

[Rachel Tippograph]

Fascinating. Now that you've added the element of being in the making of physical things.

[Josh Hackbarth]

Yeah.

[Rachel Tippograph]

This whole new world of retail media. You said you've been at the job nine months. It's all right. Whatever you got here is already dated.

[Josh Hackbarth]

Yeah.

[Rachel Tippograph]

How do you guys think about that balance of media spent between national and retail media, paying the piper of the customer while also being mindful of all the different things you're trying to achieve across each of these franchises.

[Josh Hackbarth]

You know, it's funny, before I came here into the toy industry, I've never paid as much attention as I have to the funnel, you know, the marketing funnel, where we're getting our awareness up top and then we're really trying to drive conversion at the bottom. When we talk about all of the levers that we're able to pull. Again, gone are the days where you can just throw a brand spot on TV and great, we're going to get 15 million eyeballs on that thing. Now it's much more precise when we look at things like how we're partnering with our retailers. It's really to drive that conversion. 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. I would love to say there's a formula. There is not. It changes every single day. That's the other thing is like weekly reports aren't enough anymore. You have to look daily. And are we hitting the right consumers?

[Sara Hofstadter]

You've said, and you said it here, there's no playbook anymore for what we're doing. But how do you move billions of dollars in revenue if there isn't like an operating cadence? How do you manage the team?

[Josh Hackbarth]

Yeah, there's standard things that you'll still do. Right. Like at the end of the day, regardless of what channels you are, you still have to get eyeballs on your messages. There's a lot of different ways that we do that. Some is through, you know, big stunt activations where you're getting more organic, but some of it is just like whatever channel you're on, we want to make sure our messages are there. So there is kind of this baseline that we're doing. I think where I get excited is where's that other 30% going to come from? Like, what's the thing that is really shifting that we want to grab onto, whether it's a big event, whether it's a trend, whether it's a music video, like whatever that is. And so I think what helpful marketers are creatives at heart. And so I think that's what kind of 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.

[Sara Hofstadter]

And then you add in the global multinational element. And I imagine with culture and kids, it all can kind of shift. So how are you also taking in those local signals to make the whole organization hum linear?

[Josh Hackbarth]

Traditional television works very well in many, many countries still, particularly in Europe. And so that is a big part of our plan there. It's not really a part of our plan here. I don't think we're unique in that, to be honest. And also influencers are very different. Right. So you can't really do a global influencer campaign. It's very, very hyper specific, hyper local. And so, you know, we work with my global team to really kind of understand like what the tactics are and see if there's any learning. Some things are very, very specific to a local market.

[Rachel Tippograph]

As you think about the breadth of constituents, the breadth of media channels, the breadth of all this, there's also breadth of audiences. I mean, the toy industry has looked at parents and kids, but. But there's either a third or a hybrid. I Don't know what you would call this constituent, but can you share a little bit more about that and how it's emerged?

[Josh Hackbarth]

Yeah, totally. So to your point, traditionally it's been parents and kids and usually kids are the. We're kind of driving the pester power, the nag factor, whatever you want to do, but really getting them excited about the toy. And then parents were educating them. So when they are getting nagged or getting pestered, they are familiar with it and they can go. And that's kind of always been traditional. What has emerged is parents as consumers and more specifically that middle ground between kids and parents. We refer to them as Kidd alts, as many other places do. That's really adults, let's call it 18 to mid-30s ish, typically without kids. But you know, some also do it with kids. They are collectors. So like the collectibles business really works strongly with them. We have a lot of products that are geared to them specifically. Like we have a giant Property called Miniverse, MJ's Miniverse, which is essentially creating little versions of food and things like that. It's equal parts crafts, equal parts kind of like social bonding and equal parts showing off your collectibles. But then also some of our more historic toy lines like Bratz, we see a big nostalgia play. So there's this big nostalgia and emotional connection. And so we try to delight those fans by bringing out really high end collectibles and higher price points and limited editions and things like that. So, you know, 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. Right. And that kidal age is particularly. Well, we just launched a Harry Potter partnership last year on Miniverse and the fandom that's brought into our brand was really incredible to watch. And then finally, like, frankly, like Kidd alts are the most fun and easiest to engage because it's all social. Right. It's all like the memes. It's like jumping on quickly. It's ugc, it's all the influencers. It's a very fun audience to talk to.

[Sara Hofstadter]

Sarah, you and your husband have a little adult collection?

[Rachel Tippograph]

We do, we do. It's not manufactured by NGA, but yes, I have a collection of more than 1200 Pez dispensers.

[Josh Hackbarth]

Oh wow. Wow. It's incredible.

[Rachel Tippograph]

I have seen it. He's like, she's really creepy. I don't know if I want to be on this podcast. Started it more than 30 years ago. And, yeah, it's. It's a little out of control. We had to buy a bigger house. It was that bad.

[Josh Hackbarth]

Awesome.

[Sara Hofstadter]

It's next to the wine cellar, so it's semi.

[Rachel Tippograph]

Yeah, we go high, low.

[Josh Hackbarth]

Yeah, yeah, yeah. Well, 1200 actually doesn't sound that extreme compared to some of the superfans I've run into in my career, so.

[Sara Hofstadter]

Well, Josh, we gotta ask you our famous last question, which is, what's the bravest thing you've ever done?

[Josh Hackbarth]

Such a hard and great question, by the way. I've listened to a few of the episodes in the past, and it seems like it's a similar response from everyone. It's like a tough question. I very much had a hard time thinking about something that was super specific, you know, like, I've done kind of traditional brave things like skydive and that kind of stuff. But for me, I've long been motivated by something that I read when I was a kid, which was. I actually can't even attribute it to anyone, but it was something that, on my epitaph, I want written. Scared of anything. Did it anyway. Right. Which I just loved because I grew up in a very small town in Wisconsin. Was very easy for me to just stay there. And so the bravest thing I've done is I've done it about six times now is I've completely uprooted my life and dove into a new thing. So in college, I moved to France for a year. Didn't speak any French, moved to New York with kind of no plan. Did big industry shifts from technology to retail and then retail to entertainment. And even this one that I'm doing now, like, you know, I was very comfortable in the entertainment world, and picking up and dropping into a completely new industry is. Is something that can be very, very scary and is much easier to not do. It's kind of what I teach my kids. Like, you can be scared of it, but do it anyway.

[Sara Hofstadter]

How do you push through the fear?

[Josh Hackbarth]

Just kind of close your eyes and go. If you're doing any kind of athletic sport or something, like, nobody really wants to run that far, but you just kind of grit your teeth and get through it and you come out on the other end. Every decision I've made on that note has turned out well.

[Sara Hofstadter]

Josh, thank you for sharing. And everyone follow the MGA portfolio because they're making big moves. Thanks for joining us.

[Josh Hackbarth]

Awesome. Thank you so much.

[Sara Hofstadter]

If you like what you heard, please tell a friend, write a review. And if you want to keep going down memory lane when it comes to toys. You can go check out an episode we did way back when with Lego. We also did an episode way back when with Hasbro and we also did an episode way back when with Pam Kaufman of Viacom, now Paramount. So hopefully you love this recent take on the toy industry. Thanks for listening.

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[Jackie Cooper]

Hi, I'm Jackie Cooper, Global Chief Brand Officer at Edelman and the host of Touch of Truth, a new podcast launching on the Adweek Podcast Network. My dad gave me this incredibly smart piece of advice. Meet everyone once. As a result, I've met some of the most fascinating and inspiring people on the planet. Now on Touch of Truth, we're coming centre stage and sharing the mic to experience stories of truth, insights and visions for the future that will challenge your way of thinking. Touch of Truth is available wherever you listen to podcasts. New episodes come out every Tuesday. I do hope to see you there.