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Marketing Harry Potter




Susan Gunelius
President & CEO               June 14, 2012
KeySplash Creative, Inc.    Universal Studios
www.keysplashcreative.com
                                 Orlando, FL
How Many of you

     Have heard of Harry Potter?




www.keysplashcreative.com   2
How Many of you
       Heard of Harry Potter from…
    • A friend,
    • A colleague,
    • A family member,
    • A stranger,
    • Or by any other source other than an
      ad or marketing effort?

www.keysplashcreative.com           3
tHat tells us…
      Harry Potter grew to be a global
     phenomenon through word-of-mouth
          marketing by consumers.




www.keysplashcreative.com              4
Harry Potter Brand evolution
tHe Boy wHo lived

  It all started with a train ride…




www.keysplashcreative.com              6
add a few dasHes of serendiPity

                                   ry
                                 ra t
                              ite en
                     i d e a l ag            isHer
                                   u.s. PuBl




www.keysplashcreative.com                   7
dasH #1: tHe idea
                                       “The purest
  • 1990: 24-year old Joanne            stroke of
    Rowling imagines Harry Potter   inspiration I’ve
                                    ever had in my
    out of thin air.
                                     life.” - J.K. Rowling
  • 1995: Destitute single-mother completes the
    final draft of the first Harry Potter book.
  • 1996: Rowling visits the library to get
    publisher addresses. She submits Harry Potter
    to one and is rejected. The second accepts.


www.keysplashcreative.com                  8
dasH #2: tHe literary agent
 • Early 1996: Byrony Evans of
   the Christopher Little Agency
   notices Rowling’s submission.
 • Late 1996: After 12 publisher
   rejections, Barry Cunningham
   of Bloomsbury accepts Harry
   Potter and the Philosopher’s
   Stone.
 • 1997:Joanne becomes J.K.
   Rowling. 500 copies published
   for $6,500 advance.
www.keysplashcreative.com          9
dasH #3: tHe u.s. PuBlisHer
 • 1997: Arthur Levine of Scholastic stumbles
   on the first Harry Potter book. Pays
   $105,000 advance for U.S. publishing rights.
 • Late 1997: 70,000 copies of the book sold in
   Great Britain ($7,500 to Rowling).
 • July 1998: Harry Potter and the Chamber of
   Secrets debuts in Great Britain at #1.
 • August 1998: Book 1 released in U.S. as
   Harry Potter and the Sorcerer’s Stone.
 • Late 1998: 190,000 copies sold in U.S.

www.keysplashcreative.com             10
sales keeP going uP
    • July 1999: Scholastic release second book in
      U.S. and third book, Harry Potter and the
      Prisoner of Azkaban, released in Great Britain
      (sold more than 60,000 copies in first three
      days).
    • September 1999: Third book released in U.S.
    • Late 1999: Harry Potter books are worldwide
      bestsellers with nearly 30 million copies in
      print in 27 languages. Rowling receives first
      royalty check over $1 million.

www.keysplashcreative.com                   11
Movie studies CoMe Calling
    • 1998-1999: Movie studios pitch Rowling who
      refuses offers from several studios. Warner
      Brothers agrees to meet her requirements and
      movie and merchandising contract signed for
      $1 million.
    • July 8, 2000: Fourth book, Harry Potter and
      the Goblet of Fire, released around the world
      at midnight.
    • November 2001: First movie opens.

www.keysplashcreative.com                  12
tHere’s no stoPPing Harry
                     Potter
    • November 2002: Second movie debuts.
    • June 2003: At midnight around the
      world, book five, Harry Potter and the
      Order of the Phoenix, launches.
    • Early 2004: Rowling launches website at
      jkrowling.com.
    • June 2004: Third movie debuts.


www.keysplashcreative.com              13
deMand Continues to rise
    • July 2005: At midnight around the
      world, book six, Harry Potter and the
      Half Blood Prince, launches.
    • November 2005: Fourth movie debuts.
    • May 2007: Wizarding World of Harry
      Potter announced.
    • July 2007: Fifth movie debuts.


www.keysplashcreative.com              14
keePing tHe Brand alive
    • November 2008: Sixth movie debuts.
    • 2009: Wizarding World of Harry Potter
      opens.
    • 2010: Seventh movie debuts.
    • 2011: Eighth movie debuts.
    • 2012: Pottermore launches.


www.keysplashcreative.com             15
Harry Potter Books By tHe
              nuMBers – u.s. only
     Book      Date     First Print   Amazon / B&N First 24-hour
                        Run           Pre-orders   Sales
     1         1998     50,000        n/a           Unknown

     2         1999     250,000       n/a           Unknown

     3         1999     500,000       n/a           Unknown

     4         2000     3.8 million   760,000       1.0 million
     5         2003     8.5 million   1.4 million   5.0 million

     6         2005     10.8 million 1.5 million    6.9 million

     7         2007     12 million    2.2 million   8.3 million

www.keysplashcreative.com                              16
tHe Brand tHat lived
   “I could not possibly have had the
  expectation that we’d be printing 12
   million copies for one book. That’s       “There is no
  beyond anyone’s experience. I would    financial reward in
    have had to be literally insane.”     children’s books.”
                  -   Arthur Levine
                                            -   Barry Cunningham




www.keysplashcreative.com                          17
seleCted Harry Potter
                advertising sPending
    • Source: Nielsen, July 2000 news release
         Book advertising = $3.5 million
         Movie advertising = $142.7 million
         DVD/video advertising = $68.5 million
         Merchandise/cross-promotion advertising =
          $54 million




www.keysplashcreative.com                      18
Harry Potter Brand
lifeCyCle ManageMent
1. ConsuMers Build Brands
    • Emotional involvement
    • Relationship brands
    • Branded Experiences
    • Consumer control, not company control
                            Lead to


          Brand Loyalty, Brand Advocacy,
           and Word-of-Mouth Marketing
www.keysplashcreative.com             20
2. word-of-MoutH Marketing
    • Start with a good product and a brand
      story to tell.
    • Don’t give it all away.
    • Add a viral component.
    • Allow a sense of community.
    • Join the conversation.


www.keysplashcreative.com             21
fans take Control & Make Harry
           Potter tHeir own




www.keysplashcreative.com   22
3. soCial Media
    • Fans sites, fan fiction, fan art, fan blogs,
      etc.
    • Scholastic and Rowling originally sent
      cease and desist letters.
    • Recognize and embrace influencers and
      advocates.



www.keysplashcreative.com                 23
eMBraCe
      influenCers
With a multi-million dollar
   budget to spend as she
   pleased, Cindy Gordon of
   Universal Orlando Resort
   instead told just 7
   people about the
   Wizarding World of Harry
   Potter.

And within just 24 hours
   350 million people
   around the world heard
   the news.

All by telling just 7
  people.
www.keysplashcreative.com     24
4. PerPetual & tease Marketing

    • Heighten the online buzz and word-of-mouth
         “Watch this space” hooks online
         Countdown clocks online and in stores
         Midnight release parties and embargoed book
          deliveries
         Movie details released in bits and pieces
             Casting information
             Set stills
             Storyboards
         Limited appearances by J.K. Rowling
www.keysplashcreative.com                             25
5. integrated Marketing
    • Unify efforts through consistent
      communications and messaging.
    • Surround consumers with branded experiences
      so they can self-select how they want to
      interact with or experience the brand.
           Times Square Jumbotron ads
           Knight Bus in London
           The Apprentice
           Contests
           Artificial supply limitations led to massive pre-orders
           Price discounting, product tie-ins, and promotional
            discounts at store level for differentiation
www.keysplashcreative.com                               26
PeoPle look for new ways to
    exPerienCe and sHare tHe Brand.




www.keysplashcreative.com    27
Pull Marketing as tHe
                   Catalyst.
    • Customer demand
      drives sales, not
      marketing tactics.
    • Harry Potter fans
      demanded more and
      more and more!
    • Social media offers a
      place to listen to
      consumer demands.


www.keysplashcreative.com       28
6. Brand ConsistenCy and
                    restraint
    • All brand touch points must communicate
      consistent brand message, image and promise.
    • J.K. Rowling as brand guardian and brand
      champion
    • Brand restraint means not overextending the
      brand -- No Harry Potter on Happy Meals
    • Less merchandised than many other brands at
      time such as Shrek and Cars
    • Limiting brand extensions left fans wanting
      more and fed into pull marketing/tease and
      perpetual marketing strategies

www.keysplashcreative.com                 29
Potter, Potter everywHere!




www.keysplashcreative.com   30
ConsuMers Made Harry Potter a
          gloBal PHenoMenon.




www.keysplashcreative.com   31
Maintaining tHe Harry Potter
           Brand
extending tHe Brand in tHe
                    future
    • Pottermore
         Content creation and curation
         Crowdsourcing
         Community development




www.keysplashcreative.com                 33
Content Creation & Curation
  • Little new content required for Pottermore to
    create virtual world.
  • Doors open to create new content online and
    offline by J.K. Rowling, experts, celebrities, and
    so on.
       Examples: Financial sites, Web MD, Baby Center, AARP
  • Content feeds integrated marketing.
  • Curate and syndicate content from multiple
    sources like media sites do.
       The Daily Beast built its business from curation.
        Bloomberg uses Acquire Media for syndication.


www.keysplashcreative.com                            34
CrowdsourCing
    • Not all content needs to be created by
      the brand or company.
         Benchmark American Express OPEN Forum,
          The Huffington Post.
    • Crowdsource for Pinterest, Facebook,
      and more content




www.keysplashcreative.com                35
CoMMunity develoPMent
    • Communities used to exist on fan sites
      and at fan events.
    • Pottermore puts some control back in the
      hands of the brand by bringing
      community to branded destination.
    • Focus on growing relationships and
      emotional involvement through the
      Pottermore online community and
      beyond.

www.keysplashcreative.com              36
PotterMore’s first 14 days
    • Pottermore launched with content for the first
      book only and limited interactivity with a
      tease of more to come.
    • First two weeks after Pottermore launched:
           22 million visits
           7 million unique visitors
           1 billion page impressions
           Average visitor viewed 47 pages
           Average visitor spent 25 minutes on the site
           5 million people registered
           250,000 registered members had been sorted into
            Hogwarts houses.
www.keysplashcreative.com                           37
wHat’s next for Harry Potter?
    • Only J.K. Rowling knows what she’s willing to
      allow for the Harry Potter brand.
    • Consumers still want more from the brand.
    • Confirmed brand extensions for the future
      include:
         Wizarding World of Harry Potter expansion in
          Florida coming soon!
             Wizarding World of Harry Potter brought 68% increase in
              attendance to Universal Orlando during first two years.
         Wizarding World of Harry Potter going to other
          Universal locations like Japan and Los Angeles.
www.keysplashcreative.com                                   38
tHe Brand tHat lived

   As long as brand extensions
   continue to meet consumer
   expectations based on the
         brand promise
   (and J.K. Rowling will make sure
              they do)
     Harry Potter will be the brand
         that lived for many years to
www.keysplashcreative.com        39
now go get a

Frozen Butter Beer or        Pumpkin Juice




 www.keysplashcreative.com          40
find Me online
Twitter:
www.Twitter.com/susangunelius
                                          Books by
                                        Susan Gunelius
Facebook:
www.Facebook.com/susangunelius
www.Facebook.com/keysplashcreative

LinkedIn:                                              A
www.Linkedin.com/in/susangunelius

Email:
susan@keysplashcreative.com                 Also Available Now:
                                     The Complete Idiot’s Guide to LinkedIn
                                              Coming in 2012:
                                       Blogging All-in-One for Dummies,
                                                Second Edition

www.keysplashcreative.com                             41

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Marketing Harry Potter

  • 1. Marketing Harry Potter Susan Gunelius President & CEO June 14, 2012 KeySplash Creative, Inc. Universal Studios www.keysplashcreative.com Orlando, FL
  • 2. How Many of you Have heard of Harry Potter? www.keysplashcreative.com 2
  • 3. How Many of you Heard of Harry Potter from… • A friend, • A colleague, • A family member, • A stranger, • Or by any other source other than an ad or marketing effort? www.keysplashcreative.com 3
  • 4. tHat tells us… Harry Potter grew to be a global phenomenon through word-of-mouth marketing by consumers. www.keysplashcreative.com 4
  • 5. Harry Potter Brand evolution
  • 6. tHe Boy wHo lived It all started with a train ride… www.keysplashcreative.com 6
  • 7. add a few dasHes of serendiPity ry ra t ite en i d e a l ag isHer u.s. PuBl www.keysplashcreative.com 7
  • 8. dasH #1: tHe idea “The purest • 1990: 24-year old Joanne stroke of Rowling imagines Harry Potter inspiration I’ve ever had in my out of thin air. life.” - J.K. Rowling • 1995: Destitute single-mother completes the final draft of the first Harry Potter book. • 1996: Rowling visits the library to get publisher addresses. She submits Harry Potter to one and is rejected. The second accepts. www.keysplashcreative.com 8
  • 9. dasH #2: tHe literary agent • Early 1996: Byrony Evans of the Christopher Little Agency notices Rowling’s submission. • Late 1996: After 12 publisher rejections, Barry Cunningham of Bloomsbury accepts Harry Potter and the Philosopher’s Stone. • 1997:Joanne becomes J.K. Rowling. 500 copies published for $6,500 advance. www.keysplashcreative.com 9
  • 10. dasH #3: tHe u.s. PuBlisHer • 1997: Arthur Levine of Scholastic stumbles on the first Harry Potter book. Pays $105,000 advance for U.S. publishing rights. • Late 1997: 70,000 copies of the book sold in Great Britain ($7,500 to Rowling). • July 1998: Harry Potter and the Chamber of Secrets debuts in Great Britain at #1. • August 1998: Book 1 released in U.S. as Harry Potter and the Sorcerer’s Stone. • Late 1998: 190,000 copies sold in U.S. www.keysplashcreative.com 10
  • 11. sales keeP going uP • July 1999: Scholastic release second book in U.S. and third book, Harry Potter and the Prisoner of Azkaban, released in Great Britain (sold more than 60,000 copies in first three days). • September 1999: Third book released in U.S. • Late 1999: Harry Potter books are worldwide bestsellers with nearly 30 million copies in print in 27 languages. Rowling receives first royalty check over $1 million. www.keysplashcreative.com 11
  • 12. Movie studies CoMe Calling • 1998-1999: Movie studios pitch Rowling who refuses offers from several studios. Warner Brothers agrees to meet her requirements and movie and merchandising contract signed for $1 million. • July 8, 2000: Fourth book, Harry Potter and the Goblet of Fire, released around the world at midnight. • November 2001: First movie opens. www.keysplashcreative.com 12
  • 13. tHere’s no stoPPing Harry Potter • November 2002: Second movie debuts. • June 2003: At midnight around the world, book five, Harry Potter and the Order of the Phoenix, launches. • Early 2004: Rowling launches website at jkrowling.com. • June 2004: Third movie debuts. www.keysplashcreative.com 13
  • 14. deMand Continues to rise • July 2005: At midnight around the world, book six, Harry Potter and the Half Blood Prince, launches. • November 2005: Fourth movie debuts. • May 2007: Wizarding World of Harry Potter announced. • July 2007: Fifth movie debuts. www.keysplashcreative.com 14
  • 15. keePing tHe Brand alive • November 2008: Sixth movie debuts. • 2009: Wizarding World of Harry Potter opens. • 2010: Seventh movie debuts. • 2011: Eighth movie debuts. • 2012: Pottermore launches. www.keysplashcreative.com 15
  • 16. Harry Potter Books By tHe nuMBers – u.s. only Book Date First Print Amazon / B&N First 24-hour Run Pre-orders Sales 1 1998 50,000 n/a Unknown 2 1999 250,000 n/a Unknown 3 1999 500,000 n/a Unknown 4 2000 3.8 million 760,000 1.0 million 5 2003 8.5 million 1.4 million 5.0 million 6 2005 10.8 million 1.5 million 6.9 million 7 2007 12 million 2.2 million 8.3 million www.keysplashcreative.com 16
  • 17. tHe Brand tHat lived “I could not possibly have had the expectation that we’d be printing 12 million copies for one book. That’s “There is no beyond anyone’s experience. I would financial reward in have had to be literally insane.” children’s books.” - Arthur Levine - Barry Cunningham www.keysplashcreative.com 17
  • 18. seleCted Harry Potter advertising sPending • Source: Nielsen, July 2000 news release  Book advertising = $3.5 million  Movie advertising = $142.7 million  DVD/video advertising = $68.5 million  Merchandise/cross-promotion advertising = $54 million www.keysplashcreative.com 18
  • 20. 1. ConsuMers Build Brands • Emotional involvement • Relationship brands • Branded Experiences • Consumer control, not company control Lead to Brand Loyalty, Brand Advocacy, and Word-of-Mouth Marketing www.keysplashcreative.com 20
  • 21. 2. word-of-MoutH Marketing • Start with a good product and a brand story to tell. • Don’t give it all away. • Add a viral component. • Allow a sense of community. • Join the conversation. www.keysplashcreative.com 21
  • 22. fans take Control & Make Harry Potter tHeir own www.keysplashcreative.com 22
  • 23. 3. soCial Media • Fans sites, fan fiction, fan art, fan blogs, etc. • Scholastic and Rowling originally sent cease and desist letters. • Recognize and embrace influencers and advocates. www.keysplashcreative.com 23
  • 24. eMBraCe influenCers With a multi-million dollar budget to spend as she pleased, Cindy Gordon of Universal Orlando Resort instead told just 7 people about the Wizarding World of Harry Potter. And within just 24 hours 350 million people around the world heard the news. All by telling just 7 people. www.keysplashcreative.com 24
  • 25. 4. PerPetual & tease Marketing • Heighten the online buzz and word-of-mouth  “Watch this space” hooks online  Countdown clocks online and in stores  Midnight release parties and embargoed book deliveries  Movie details released in bits and pieces  Casting information  Set stills  Storyboards  Limited appearances by J.K. Rowling www.keysplashcreative.com 25
  • 26. 5. integrated Marketing • Unify efforts through consistent communications and messaging. • Surround consumers with branded experiences so they can self-select how they want to interact with or experience the brand.  Times Square Jumbotron ads  Knight Bus in London  The Apprentice  Contests  Artificial supply limitations led to massive pre-orders  Price discounting, product tie-ins, and promotional discounts at store level for differentiation www.keysplashcreative.com 26
  • 27. PeoPle look for new ways to exPerienCe and sHare tHe Brand. www.keysplashcreative.com 27
  • 28. Pull Marketing as tHe Catalyst. • Customer demand drives sales, not marketing tactics. • Harry Potter fans demanded more and more and more! • Social media offers a place to listen to consumer demands. www.keysplashcreative.com 28
  • 29. 6. Brand ConsistenCy and restraint • All brand touch points must communicate consistent brand message, image and promise. • J.K. Rowling as brand guardian and brand champion • Brand restraint means not overextending the brand -- No Harry Potter on Happy Meals • Less merchandised than many other brands at time such as Shrek and Cars • Limiting brand extensions left fans wanting more and fed into pull marketing/tease and perpetual marketing strategies www.keysplashcreative.com 29
  • 31. ConsuMers Made Harry Potter a gloBal PHenoMenon. www.keysplashcreative.com 31
  • 32. Maintaining tHe Harry Potter Brand
  • 33. extending tHe Brand in tHe future • Pottermore  Content creation and curation  Crowdsourcing  Community development www.keysplashcreative.com 33
  • 34. Content Creation & Curation • Little new content required for Pottermore to create virtual world. • Doors open to create new content online and offline by J.K. Rowling, experts, celebrities, and so on.  Examples: Financial sites, Web MD, Baby Center, AARP • Content feeds integrated marketing. • Curate and syndicate content from multiple sources like media sites do.  The Daily Beast built its business from curation. Bloomberg uses Acquire Media for syndication. www.keysplashcreative.com 34
  • 35. CrowdsourCing • Not all content needs to be created by the brand or company.  Benchmark American Express OPEN Forum, The Huffington Post. • Crowdsource for Pinterest, Facebook, and more content www.keysplashcreative.com 35
  • 36. CoMMunity develoPMent • Communities used to exist on fan sites and at fan events. • Pottermore puts some control back in the hands of the brand by bringing community to branded destination. • Focus on growing relationships and emotional involvement through the Pottermore online community and beyond. www.keysplashcreative.com 36
  • 37. PotterMore’s first 14 days • Pottermore launched with content for the first book only and limited interactivity with a tease of more to come. • First two weeks after Pottermore launched:  22 million visits  7 million unique visitors  1 billion page impressions  Average visitor viewed 47 pages  Average visitor spent 25 minutes on the site  5 million people registered  250,000 registered members had been sorted into Hogwarts houses. www.keysplashcreative.com 37
  • 38. wHat’s next for Harry Potter? • Only J.K. Rowling knows what she’s willing to allow for the Harry Potter brand. • Consumers still want more from the brand. • Confirmed brand extensions for the future include:  Wizarding World of Harry Potter expansion in Florida coming soon!  Wizarding World of Harry Potter brought 68% increase in attendance to Universal Orlando during first two years.  Wizarding World of Harry Potter going to other Universal locations like Japan and Los Angeles. www.keysplashcreative.com 38
  • 39. tHe Brand tHat lived As long as brand extensions continue to meet consumer expectations based on the brand promise (and J.K. Rowling will make sure they do) Harry Potter will be the brand that lived for many years to www.keysplashcreative.com 39
  • 40. now go get a Frozen Butter Beer or Pumpkin Juice www.keysplashcreative.com 40
  • 41. find Me online Twitter: www.Twitter.com/susangunelius Books by Susan Gunelius Facebook: www.Facebook.com/susangunelius www.Facebook.com/keysplashcreative LinkedIn: A www.Linkedin.com/in/susangunelius Email: susan@keysplashcreative.com Also Available Now: The Complete Idiot’s Guide to LinkedIn Coming in 2012: Blogging All-in-One for Dummies, Second Edition www.keysplashcreative.com 41