Building A Business The ‘Harry Potter’ Way

With seven books, eight movies, a spin-off series, three theme parks, and a theatrical play, Harry Potter is arguably one of the most widely known and popular brand names of all time. In fact, the record-breaking series of books and films have made J.K. Rowling the first author billionaire. But if we were to step back twenty years ago, only book nerds had ever heard of the Wizarding World.

In the late 1990s, the Harry Potter series began to come out in print with the publication of Harry Potter and the Philosopher’s Stone in 1997. Moreover, as technology steadily advanced throughout the 20th Century, more and more kids began to swap books for televisions and video games. As a result, the children’s publishing industry began to decline. Even worse, in 2000 — when the first Harry Potter film began production in the United Kingdom — fantasy films were repeatedly doing poorly at the box office. So, when Harry Potter was pitched to Disney, the company turned down the opportunity to produce the film series.

So, how did Harry Potter succeed? How did a children’s fantasy book series about an 11-year-old living under the stairs become a global franchise with an estimated value of $25 billion?

Here are ten business strategies that Harry Potter utilized order to make the jump from book franchise to a global brand:

1. Planning

Thinking long-term help you to not only overcome short-term setbacks but dramatically increases the overall success of your brand. By taking the “less is more” approach, you can maximize your profits over a long span of time rather than just make a quick buck in a short period. Focusing on the short-term causes you to compromise your values to obtain what you want, which eliminates the overall lure of your brand.

For example, after Warner Brothers acquired the rights to Harry Potter, the franchise took a more “slow but steady” marketing approach to make sure that the children and parents who loved the stories did not feel that Warner Brothers destroyed them. In other words, instead of outpouring tons of pre-movie Harry Potter merchandise to cash in on the already-popular series, the franchise made absolutely sure that they did not over commercialize so that parents and children would continue to embrace the series.

2. Merchandise

Make sure your brand is appealing for people of all ages. This helps to broaden your target audience; therefore, attracting more customers. To target anyone and everyone, you must give your customers the option to incorporate your brand into every aspect of their lives.

For example, Warner Brothers was able to further develop the Harry Potter brand by targeting all age groups through the release of Harry Potter clothes, home decor, and video games, while also establishing three theme park locations and a studio tour. As a result, Potter fans can step into the Wizard World at any time.

3. Emotional Involvement

Clever marketing and savvy business practices can only sell a product for so long. What makes a business become a phenomenon is the emotional involvement of its consumers. Therefore, you must create a cohesive brand, despite how many components it has, to invite customers to join the overall experience your brand has to offer.

For example, because each Harry Potter book picked up almost exactly where the previous book left off, and each book followed one main story arc with the same core set of characters, the brand was able to create feelings of stability, sustainability, and security with its fans.

4. Online Buzz

Word-of-mouth marketing is one of the most effective ways to boost products and services. This is because the internet is a place where customers can socialize, network and experience your brand in their own ways. Allowing consumers to take control of the conversation on social media and make the brand their own simply creates more attention to your brand; therefore, it attracts more customers.

For example, instead of trying to shut down countless Harry Potter fan sites, such as MuggleNet and The Leaky Cauldron, which were started by fans as a way to share their opinions, thoughts, and predictions of the series, Warner Brothers, left them alone and simply kept a tab on them. Listening to what the communities said, they then used that information to fulfill the needs of those communities.

5. Customer Interest

By leaving consumers wanting more, each marketing tactic implemented to promote your brand should build excitement around your business. This will boost sales to the highest level possible.

For example, by Warner Brother leaking bits and pieces of information, holding promotional events and contests, and creating a veil of secrecy around the next product to launch, consumers never got bored with the franchise.

6. Brand Consistency

Once customers become loyal to a brand, it’s crucial that nothing is done to betray consumers’ loyalties to it. Hence, you must meet consumer expectations, or they’ll turn away from your brand in search of one that does consistently meet their expectations.

For example, when faced with opportunities to extend the Harry Potter brand, J.K. Rowling often turned down brand extension proposals, such as refusing to allow Harry Potter to appear on a McDonald’s Happy Meal, in order to maintain consistency and integrity of the Harry Potter brand.

7. Customer Engagement

Engaging with your customers in between pre-release parties, casual events, launching new products, etc. strengthens their emotional connection to your brand. You need to strike the correct balance of giving your customers what they want, while still holding some information back to keep them wanting more.

For example, by J.K. Rowling replying, tweeting, and retweeting secret fun facts about the Wizard World, she has maintained a strong relationship with her fans. Her heavy involvement with fans has helped her to retain the customers she already has while gaining new ones.

8. Risks

Although taking risks can be scary and often end in failure, it can also lead to great success. After all, you can’t achieve your dreams by playing it safe. Not only can risk-taking lead to unforeseen opportunities, but it can help you to overcome the fear of failure, make your brand stand out, and teach you crucial lessons that you can later use to strengthen your brand.

For example, although people said that kids only would read books with up to 40,000 words, Harry Potter and the Sorcerer’s Stone had 90,000 words in total. Children’s book publishers also said that kids wouldn’t buy hardcovers, yet Warner Brothers made the Harry Potter books into hardcovers. And guess what? Kids still bought the books.

9. In-Person Interactions

With modern society so busy and disconnected, people crave for deeper connections. And, in-person conversations in fun, casual settings do exactly that. Plus, hosting an event or throwing a party will set you apart in promoting your business.

For example, starting with the release of Harry Potter and the Goblet of Fire, release parties were hosted by bookstores for customers to dress up and await the midnight release of the newest book. At these parties, there was candy, posters, face painting, quizzes, readings from old books, and conversations about what may be contained in the next book. Resultantly, these in-person interactions with the brand promoted massive buzz; therefore, more sales.

10. Storytelling

Always tell a great story. Your brand isn’t just a business, but rather a story that never ends. Brand storytelling should capture your customers’ attention, which can be accomplished through your website, the way you package products and the way you interact with customers.

For example, J.K. Rowling quite literally created a complex and magical world of wizardry, with its own society, customs, characters, and language; moreover, is portrayed in every and anything related to Harry Potter.

The story of Harry Potter is just as magical as the story of Harry Potter from a branding perspective. While your small business might not reach the multi-billion-dollar brand value that Harry Potter has reached, you can position yourself for long-term, sustainable business growth by applying these strategies to your marketing plan.

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Written by Jenna Wirth