http://eBookBits.comvisit for more:Your Source For KnowledgeHARRY POTTERThis page intentionally left blankThe Story of a Global Business PhenomenonSusan GuneliusHARRY POTTER© Susan Gunelius 2008All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission.No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP.Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages.The author has asserted her right to be identifi ed as the author of this work in accordance with the Copyright, Designs and Patents Act 1988.First published 2008 byPALGRAVE MACMILLANHoundmills, Basingstoke, Hampshire RG21 6XS and175 Fifth Avenue, New York, N. Y. 10010Companies and representatives throughout the worldPALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan® is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries.ISBN-13: 978–0–230–20323–5 ISBN-10: 0–230–20323–X This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin.A catalogue record for this book is available from the British Library.A catalog record for this book is available from the Library of Congress. 10 9 8 7 6 5 4 3 2 1 17 16 15 14 13 12 11 10 09 08Printed and bound in ChinaTo Brynn, Daniel and Ryan for reminding me how much fun it is to be a child, and to Scott for staying young with meThis page intentionally left blankviiCONTENTSPreface xiAcknowledgements xiiiIntroduction The Making of a Global Literary Phenomenon xvChapter 1 The Book that Lived 1Unremarkable Beginnings 2Harry Potter is Born 3The Cinderella Story 4Taking a Chance on Harry Potter 5Serendipity Strikes a Third Time 6Harry Potter Comes to America 8An Introduction to Branding 9Chapter 2 The Value of a Good Product: Setting the Stagefor Marketing and Promotion 11Start with a Product People Need 11Harry Potter as a Marketable Product and Brand 12The Competitive Environment 13Building the Harry Potter Brand 17Creating Customer Loyalty 19Chapter 3 The Buzz Begins 23It Started with a Good Product and a Cinderella Story 25Creating Awareness and Driving Sales 26Emotional Involvement Gives the Buzz Momentum 27Harry Potter: A Cult Brand 28The Buzz Builds 29The Online Buzz 31The Word-of-mouth Marketing Success of Harry Potter 32Chapter 4 Harry Potter as a Powerful Product and Brand: An Education in Marketing and Promotion 36Part 1: Creating the Brand 36J.K. Rowling as Brand Guardian 36Relationship Marketing 37CONTENTSviiiThe Value of the Harry Potter Brand 38Harry Potter as a Societal Brand 39Part 2: Promoting the Brand 39Pull Marketing 39Word-of-mouth Marketing Drives Strategies and Tactics 41Perpetual/Tease Marketing of Harry Potter 42The Integrated Marketing Strategy of Harry Potter 44What Can We Learn from the Marketing of the Harry Potter Brand? 46Chapter 5 Harry Potter’s Infl uence on Print Publishing 50Risk Equals Reward 50Release Dates and Midnight Parties 52Breaking Records and Shaking Up the Bestseller List 53Distribution and Logistics Challenges 54Genre Changes, Brand Extensions and Packaging Strategies within the Literary Marketplace 56Chapter 6 Harry Potter’s Infl uence on Movies and Television 62Bringing Harry Potter to the Big Screen 62A New Harry Potter Buzz Begins with the Help of Perpetual and Tease Marketing 63Maintaining Secrecy and Combating Piracy 70Harry Potter on the Small Screen 71Chapter 7 Harry Potter’s Infl uence on Retail 74Record-breaking Sales of the Harry Potter Series Drive Traffi c and Revenue for Booksellers 74Online Retailers: Price Discounting, Marketing Tie-ins and Distribution Strategies 75Brick-and-mortar Booksellers: Price Discounting, Marketing Tie-ins and Promotional Events 78New Legal Issues for Booksellers 81Changes to the Brick-and-mortar Bookstore Footprint 81Chapter 8 Harry Potter’s Infl uence on Merchandising 86The History and Power of Merchandising 86Protecting the Harry Potter Brand from Overmerchandising 87Merchandising Harry Potter 88Audio Books, DVDs, Soundtracks and Video Games in the Merchandising and Brand Extension Mix 91Unique Harry Potter Merchandising Efforts 93Leave Them Wanting More 94Chapter 9 Harry Potter’s Infl uence Online 97The Internet Drives Word-of-mouth Marketing 97Fan Sites 98CONTENTSixLeveraging the Internet to Promote and Sell the Harry Potter Brand 100Harry Potter Websites 102Harry Potter Continues to Live Online 103The Impact of Harry Potter on Viral and Social Media Marketing 104Chapter 10 Harry Potter Becomes a Theme Park 107The Idea for a Theme Park 107Building a Harry Potter Theme Park 108Retaining the Integrity of the Harry Potter Brand 108The Wizarding World of Harry Potter Buzz Begins 109Universal and Warner Bros Know How to Promote Movie and Character Themed Attractions 110The Competitive Marketplace 111Will The Wizarding World of Harry Potter Live Up to Fans’ Expectations? 113Chapter 11 Harry Potter’s Global Business and Personal Impact 117The Harry Potter Brand Has Far-reaching Effects for the Business World 117The Personal Impact of Harry Potter through Its Global Appeal 119The Social Impact of Harry Potter Grows Online 120Superfans, Conventions and More Social Infl uences 120The Future 123Chapter 12 Predecessors to Harry Potter’s Success: Who Else has Gotten it Right or Wrong? 126Literary Case Studies 126Graphic Novel and Comic Book Case Studies 139Chapter 13 What is Next for Harry Potter and the World Affected by the Boy Who Lived? 144The Return of Harry Potter 144Harry Potter as the Pioneer Brand and the Likelihood of Similar Successes 146Late Entrant Strategies 147Potential Market Followers and Market Challengers 149Matching the Success of Harry Potter 155Chasing,