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HARRY POTTER: A MULTI- BILLION DOLLAR BUSINESS BY Abhijeet Atish Ankit Shivraj Ramji

branding of harry potter

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Page 1: branding of harry potter

HARRY POTTER: A MULTI-BILLION DOLLAR BUSINESS

BY Abhijeet Atish Ankit Shivraj Ramji

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Joanne Kathleen Rowling unemployed unknown wrote a story by magical words of a boy with magical powers in seven parts.

Struggling to find a publisher and only made a meager $3640 went on to create a brand

Harry Potter – a series of seven books . a series of six movies seventh in making about 350 million copies sold about $10 billion dollars of business done all in a span of 13 years

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Brand CreationPhilosopher’s Stone a 250 page novel which she

took for publishing and was rejected by many publishers on the grounds that ‘ market was not ready for such books’ .

Finally managed to strike a deal with Bloomsbury (U.K. based publisher) which knowing a little that it was going to publish what would soon become the most sought after children's book ever.

The books first print run a paltry 500 copies and the book was not appreciated by critics at that time.

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Bloomsbury articulated marketing efforts made the sales pick up

‘WORD OF MOUTH’ the marketing strategy acted as the biggest reason for the growing reader base .

Word of mouth is reference of passing information from person to person which includes communication from face to face telephone email and text messaging.

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Word of Mouth

buzz

blog viral

Social media

Cause influencers

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The word of mouth publicity was supported by marketing the book in media by Bloomsbury through group of journalists and by covering it in a popular British television program ‘Blue- Peter’ These all marketing strategies helped the book to make popular and as a result Scholastic(US based publisher) picked publishing rights for $105000 .Scholastic marketed the book for adults by changing the cover design to enhance the appeal.

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Due to increased demand for books Bloomsbury adopted a Denial Marketing strategy where it deliberately withheld the crucial information.Denial Marketing : Where a certain information of the product is kept secret for sometime so as to make the interest grow in order to boost sales.Scholastics Marketing Strategy included Circulating sample copies to critics,childerns The hardcover were released with high quality paper and graphics.

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Due to these efforts ‘Chamber of Secrets’ was published in 130 countries in 25 languages and 5 million copies of books were sold .Due to these marketing strategies the advance orders had reached over hundred thousand.This success made another media giant Warner Brothers jump onto the opportunity make Harry Potter a global brand. Warner Brothers acquired the worldwide film and merchandising rights .

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Nurturing the “Harry Potter” BrandTo achieve sustainable and long-term sales, J. K. Rowling put forth

stipulations and started a firm to control the marketers.

Due to this, Warner Brothers structured the entire marketing plan in a controlled and planned manner.

Warner Brothers made the licensing agreement with: Mattel Inc.: World’s leading manufacturers and marketer of

family products based in the US. can make merchandising items based on the first two books and first

two movies only. Paid $35 million to Warner Brothers and 15% royalties thereafter.

Hasbro (Cap Candy): US based world leader in Children’s and family entertainment products

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Enesco Group Inc.: US based world leader in the gifts and collectibles industry.

can develop gifts and collectibles based on the characters of first three books. Oddzon: US based leading children’s toy maker. Springs Industries: US based manufacturing of bedding.

Warner Brothers turned down other licensees like Burger King, Baskin Robbins, etc as they did not want the brand to be cheapened by associating with products like burgers, candies, etc.

Warner Brothers used the “Controlled” marketing strategy to sensibly roll out the product and not to flood the market.

They determined the strategies and timing on a market by the market basis.

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Product Manufactured by the Licensees: Mattle Inc.

Trading Cards Games Puzzles

Oddzon: Novelties Apparel

Spring Ind.: Beddings

Enesco’s Group: Gifts and collectibles Items.

Cap Candy’s: Flavor Beans (Mentioned in the book)

Book based merchandising was for less number of consumers but movie based merchandising was designed to appeal to the mass market consumers.

They introduced the products in their own studio stores.

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Warner Brothers granted License Agreement with:

Electronic Arts: to capture the online and games market. Coca-Cola: Used Indirect Marketing to create global

literacy campaign and reading program to complement reading interest among children world over.

Sears roebuck & Co. : “Back to School” marketing campaign using poster promotions, trip to London, Magzines, National Newspapers.

Lego: To make and sell Harry Potter’s Construction Toys.

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Less is More

Warner Brothers was following the strategy of “Less is more” by launching less products in the department stores, specialty stores, gift and book stores to capture demand in the holiday season.

In this strategy, products based on the movie were launched six to eight weeks before the release of the movie so that consumers would want “more” by the time of the release of the Harry Potter movie.

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Strategy for future conflict in Marketing

Products were not based on character images but on objects like broomsticks, etc.

It helped to avoid a possible future conflict between Harry Potter’s face appeared in the book and the one who would star in the movie.

It was Warner Brothers protectiveness of the license appreciated by analysts as well as by the manufacturers of merchandise products.

It will help the integrity of the brand remains consistent and the quality is maintained throughout.

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Indirect Marketing In 2001, Warner Brothers signed Coca-Cola as the sole global

beverage and food marketing partner for the Harry Potter Movies at the price of $287 million.

Agreement was limited to create global literacy campaign and reading program to complement the reading interest among children world over.

Coke gave the coupons to its consumers to purchase certain books. Coke gave 1.5 million books to various US libraries and gave 100,000 $4 coupons for kids to buy books.

The program was run in 14 countries.

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High Expectations

• Although Harry Potter movie helped the merchandise sales, many felt that marketer’s expectations was high which raised a question that whether the movie would be able to live-up the high expectations of the people.

• Further addition to the craze for the brand was a direct result of Warner Brothers controlled marketing campaign decision which used the principal “less is more”

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Survey conducted by NDP Group Inc.

• About 40% of the kids and adults who had read at least one book in the series, had bought at least one Harry Potter related product.

• Survey revealed that Harry Potter was the most wanted item in all children’s merchandise.

• Two-thirds of the children and half of adults surveyed were planning to see the movie also.

• Number of people who wanted to watch the movie had increased from 47% in July 2001 to 56% in Sept. 2001 for kids and from 21% in July 2001 to 25% in Sept. 2001 for adults.

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MAKING MONEY FROM MAGIC

• Movies which attained a revenue of $900 million from the first part.

• Made money from their royalties and merchandizes gave more revenue.

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FUTURE HOLD FOR HARRY POTTERThe harry potter book brings back the long forgotten habit of reading among children of the digital age.

Critics pointed out that this exerted a bad influence on the children.

The critics pointed the Warner brothers on making movies which killed the exercise of the imagination.

No: of praises outnumbered the criticism.

The future of the harry potter after release of seven books are movies and merchandizes which takes a long time to vanish.

The future cant be predicted “only time should tell”.

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THANK YOU

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ANY QUERIES???