1

Abstract
This paper aims to analyse the book publishing industry particularly Bloomsbury Publishing
Plc. Bloomsbury Publishing Plc is a fiction and non-fiction international British publishing
house. Nigel Newton, previously employed by other publishers, founded this company in
1986. The head office of Bloomsbury is situated in the area of London Borough of Camden
in Bloomsbury. The key points of this paper, include the sales maximization, profit
maximization and wealth maximization of Harry potter book. Further, this paper highlights
the promotional and pricing strategies used by the Bloomsbury publishing for the sales
maximization of Harry potter book. The price discrimination strategy has been briefly
clarified. The paper examines the three form of price discrimination, that is, first degree,
second degree and third degree and its conditions and objectives. Price discrimination might
serve as an instrument for sellers, although in legal ways, to achieve their objectives. Overall,
this paper explains the structure of a publishing industry.

Keywords
Bloomsbury Publishing Plc, Harry potter, Sales maximization, Profit maximization, Price
discrimination

Table of content
ABSTRACT 1
TABLE OF CONTENT 1
CHAPTER I-INTRODUCTION 1
CHAPTER II-MAIN BODY 2-5
CHAPTER III-CONCLUSION 5
REFERENCE 6
 2

CHAPTER-I
Introduction
Bloomsbury Publishing Plc is a fiction and non-fiction international British publishing house.
Nigel Newton, previously employed by other publishers, founded this company in 1986. The
head office of Bloomsbury is situated in the area of London Borough of Camden
in Bloomsbury. Its other publishing company is headquartered in New York City in the US,
New Delhi in India, CBD Sydney in Australia, and other UK publishing firms, including
Oxford company. The success of the company over the last two decades has been mainly due
to J. K. Rowling's Harry Potter series and its academic and professional publishing division
has been developing since 2008. Further, Industry Bookseller Award for Academic,
Educational and Professional Publisher of the Year has been awarded to the Bloomsbury
Academic & Professional Division both in 2013 and in 2014.

CHAPTER-II
Main body
Harry Potter is a fantasy series composed by British author J. K. Rowling. The book portrays
the life of Harry Potter, a teenage magician, and his friends Hermione Granger and Ron
Weasley, who are all the students at Hogwarts School of Witchcraft and Wizardry. The key
story line is about Harry's battle against Lord Voldemort, an evil wizard who plans to become
invincible, to destroy and subjugate both wizards and Muggles and overthrow the wizard
governing body recognized as the Ministry of Magic. Since the publication on 26 June 1997
of the first novel Harry Potter and The Philosopher's Stone, the books have become highly
effective, critical and commercially successful across the world. They also drawn a large
audience of adults and also young readers and are often considered core foundations in young
adults’ modern literature. Two major publishers, Bloomsbury in the UK and Scholastic Press
in the US, launched this series for the first time in English. Since February 2018, more than
500 million books have been sold globally and are now history's bestselling series,
transcribed into 80 languages.
Bloomsbury and Scholastic adopted the traditional advertisement and promotional strategy in
the initial days of the Harry Potter brand. It's an effective and practical way for books to be
published and sent out galleys for early review, for newspapers and magazines to be sent out
free copies of their articles and for book signings to be scheduled, presentations and media
appearances by the author the purpose of this initiative is to raise awareness and stimulate
early sales of the new author's work. Some of the unique and promotional tactics used by
 3

Harry Potter are Airplanes with "Harry Potter and the Goblet of Fire Read it Now" banners
fly over the shores of Long Island, New York City, Jersey Shore; California; Los Angeles,
Chicago, Illinois and Hilton Head to advertise the fourth book in the US. In order to market
the sixth book, Harry potter and the Half Blood Prince have over 2000 vehicles carrying
advertisements in the UK and Republic of Ireland. In the year 2007 Scholastic created the
Knight Bus as a purple triple-decker bus, which was first released in the third book. As to
support the final book, Harry Potter and the Deathly Hollow, the Knight Bus went through
the United States and toured 37 libraries.
Bloomsbury publishers created a digital impact on its own to revive out - of-print titles by
late authors. The print is based on books in which the rights of English have reverted to the
writers or their estate. The brand will include different genres, including fantasy, sci-fiction,
history, art and biography. Bloomsbury revealed earlier this year that the popularity of
eBooks had increased and the shapes of the publishing industry were shifting.
In general, sales maximization is the effort by any corporation to reach the highest possible
level of income. This does not include the sale of large quantities of product but refers to the
rise in cash sales. Sales can rise to the point where marginal costs are equal to marginal sales.
In the context of Harry porter book, the major success behind the sales maximization was the
availability of that book on numerous languages that helped it reach out the global buyers. In
addition, not only children but also adults enjoyed this book.
Besides, the rising E-book sales of Harry potter lead the Bloomsbury company from sales
maximization to profit maximisation. Generally, profit maximization is a company's ability to
generate the greatest profit at low costs and is the primary objective of any enterprise. The
Bloomsbury has been one of the world's leading publishers of children with sales from Harry
potter 's novels, films and merchandising.
As a result, Bloomsbury have not only succeeded to increase profit maximization but also
have reached the point of wealth maximization. Wealth maximization is a process which
enhances the existing net worth of companies or shareholders, with the purpose of
maximizing the best return possible. Compared to profit maximization, it is a superior
objective, considering the broader scope. In general, the wealth maximization approach
requires rational financial investment strategies that address any risk factors that may
undermine the expected benefit or overshadow it.
In addition, Bloomsbury major selling strategy is price discrimination strategy. The price
discrimination occurs when the same commodity is offered to different customers at varying
rates. (Philps, 1985) It is most valuable because splitting consumer markets is more beneficial
 4

than holding the markets together. The three primary forms of price discrimination are first
degree, second degree and third degree. Certain forms of price discrimination are used to
determine the price that would be charged to certain customers.
First degree price discrimination is said to occur when the monopolist may sell each unit of
its goods at different prices. It is also regarded as the best price discrimination. In case of
first-degree price discrimination, the seller charges the price that the buyer is willing to pay.
In a book publishing industry, the publishers first publish a hardcover format and then later,
paperback version according to the buying behaviour of their consumer. Different rates are
given based on the version or format. As in the case of Harry porter book, same strategies
were used, different version of books were provided to the customers depending upon their
willingness to pay. Thus, in this way same product where charged different price.
Different groups and categories are charged a distinct price which is the lowest market price
of that category, including price discrimination by second degree consumers. This kind of
price discrimination would exist if every single consumer had a perfectly elastic demand
curve that is well below and above a certain price. Good or service prices vary depending on
the quantity demanded.
A third-degree price discrimination is identified if the seller splits his customers into two or
more submarkets, and a separate price is charged to each category. Prices vary according to
age, sex, location and economic status of the customer. The third degree of price
discrimination in the real world exists.
It's not easy to describe different unfair practices as unfair pricing is challenging to identify.
The classical comparison is Pigou (1938), which differentiates between the probability of
three degrees of discrimination based on the company’s willingness to discriminate between
consumers who are able to pay a premium price and consumers willing to pay less. Pigou
describes discrimination of the first degree as when customers pay for each unit to their full
ability.
Pigou acknowledged that there could be no realistic application to this first kind of price
discrimination. He states that the organization will better split the competition into separate
customer classes that have different criteria. Ideally, the organization needs to divide the
market into categories that are willing to pay; these classes can be graded from the highest to
the lowest willingness to pay.
However, as Pigou says, only the desire for pay will in reality be exchanged imperfectly by a
business. The company must use properties that it can monitor directly, such as the type of
 5

goods transported to a railway that carries freight or the buyer's location. The latter is third
degree price discrimination.
The prices of good books do not increase, and the prices of good books do not lower. It is
easy to explain latter practice. If the publisher was known to fall rates shortly after a book's
arrival on the market, then customers will not buy the commodity immediately but wait for
the price to be decreased. Note that the seller of an infinitely viable service cannot credibly
expense his goods at anything beyond marginal costs, as suggested by Coase (1972). Coase
hypothesis. During the initial era, the seller 's motivation to lower costs cannibalizes his
profits. By developing a brand that they never lower prices, publishers tackle this dilemma.
The reality that the higher turning costs are favoured Hardcovers on buckets illustrate how
necessary it is for them to retain this prestige, rather than discounting the hardcover.
The price rigidity we find here is not books alone. Films and music CDs demonstrate such
families of goods that, whatever the level of demand, are all priced equal One important
aspect is the book printing, film making and music publishing sectors. Per rom working in
one such industry produces a great deal of new goods per year, which are mostly unrelated.
Market is very uncommon and thus impossible to forecast for these items. And frequently
Schwarzenegger films op. This paper allows one to consider the essence of demand in these
sectors. However, much analysis needs to be completed until the dynamic challenge posed by
these organizations is completely understood.

Conclusion
Bloomsbury is a worldwide publisher of books and other media for general audiences,
children, teachers, scholars and practitioners alike. In print, via e-books, digital downloading
and applications, in schools, libraries; colleges, and on-line libraries, as well as in business
teams throughout New York, London, New Delhi, and Sydney all support territories, the
Bloomsbury provides writers access to these multi-faceted markets in multi-format
worldwide.
The Bloomsbury publishing have used different strategies to maximize its sales and profit.
Their customer ranges from children to adults. Further, the most effective strategy is price
discrimination. In general, the price discrimination occurs when the same commodity is
offered to different customers at varying rates. The three types of price discrimination: first,
second and third degree competently clarifies the pricing technique. Thus, Bloomsbury
publishing has so far been the most popular book publishing plc.
 6

References
Anderson, Simon, P. & Regis , R., 2008. Second Degree Price Discrimination, s.l.: University de Cergy-
Pontoise.

Anderson, Simon, P. & Victor , G., n.d. International Pricing and Costly Consumer Arbritage. In: 7th,
ed. Review of International economics. s.l.:s.n., pp. 126-139.

Armstrong, Mark & John, V., 2001. Competitive Price Descrimination. In: RAND: Journal of
Economics, pp. 579-605.

Borenstein, S., 1985. Price discrimination in free entry market. 16 ed. RAND: Journal of Economics.

Brown, S., 2002. The Harry Potter way to higher profit. Marketing for Muggles.

Kotler, P. & Keller, K., 2006. Marketing management. 12th ed. Upper Saddle River: Pearson Prentice
Hall.

Pashigian, B., 1995. Price Theory and Appications, s.l.: McGraw-Hill.

Philps, L., 1985. The Economics of Price Descrimination, s.l.: Cambridge University Press.

Pigou, A., 1920. The Economics of Welfare, London: Macmillan.

Pigou, A. C., 1938. The economics of welfare. 4th ed. London: Macmillon and Co.