Harry Potter: A Multi-Billion Dollar Business

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Case Details:

Case Code : MKTG079
Case Length : 15 Pages
Period : 2003
Pub Date : 2003
Teaching Note : Not Available
Organization : Amazon.com
Industry : Books and Publishing
Countries : UK

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Nurturing the 'Harry Potter' Brand

After Warner Brothers acquired the worldwide film and merchandising rights to Harry Potter, it was approached by a host of interested licensees. However, due to the stipulations put forth by J.K. Rowling, Warner Brothers had to be very careful in choosing the licensees.

In fact, the entire marketing plan for Harry Potter was well thought out and structured in a controlled and phased manner. In early-2000, Warner Brothers signed a licensing agreement with Mattel, Inc., the world's leading manufacturer and marketer of family products based in the US, as the master toy licensee.

According to the agreement, Mattel could bring out merchandising items based on the first two books in the series and the two movies based on them. Signing a licensing agreement with Mattel was beneficial to Warner Brothers as the latter was present in 36 countries and sold its products in more than 150 nations...

Making Money from Magic

On November 16, 2001, the movie 'Harry Potter and the Sorcerer's Stone' was released in the US. A major crowd puller from the very beginning, the movie soon became the highest grossing film of 2001. In US alone, the box office revenue of movie generated more than $318 million. Globally, the movie generated box office revenues of $900 million...

What Does the Future Hold for Harry Potter?

Amidst all the hype and popularity Harry Potter received, the book and Warner Brothers received a lot of bouquets as well as brickbats.

Many praised Harry Potter books for bringing back the long-forgotten habit of reading among children of the digital age (those busy with videogames, television, movies and the Internet).

However, many critics pointed out that children were attracted to the books because it made use of adventurous elements like magic, witchcraft and wizardry...

Exhibits

Exhibit I: A Brief Note on the Harry Potter Story
Exhibit II: Various Harry Potter Merchandising Products*