Harlequin Enterprises: The MIRA Strategy
Faced with stabilizing growth in the series romance market, Harlequin must launch the MIRA program by focusing exclusively on women’s single title romance novels. By entering the growing single title market, Harlequin takes a capitalistic stance towards the weaknesses exposed in the competitive environment and is able to leverage its existing business model to build upon a well-recognized brand. Acute awareness of the industry forces and Harlequin’s value proposition, as shown in Appendix A, along with tactful execution and adaptation of the core activities will ensure continued strong revenue growth through entry into the single title women’s romance market.
A Capitalistic Stance; Take Advantage
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A realistic goal to capture 5% of this market in 1994 yields a profit of $20,724,252 on sales figures of $48,446,304. Appendix E outlines sales calculations through to the year 1998. The optimal desired market share is 5% from 1994 through 1998. Higher targets would put significant stress on the gap in Harlequin’s resources as the Diamond E analysis in Appendix F shows. Harlequin’s success is highly dependent on distribution. The current distribution contract with Simon & Schuster is not appropriate for single-title distribution. Harlequin will establish relationships with large retailers such as Barnes & Noble by offering attractive margins, along with a well-defined release schedule for each single title novel, as detailed in Appendix G. More importantly, the established direct-to-reader series distribution model must be used to support retail distribution. An ultimate win, this distribution model provides access to current Harlequin readers, offering them a fresh, new romance experience while returning the full cover price of the novel to Harlequin. Approximately 38% of single title novels will be sold through this channel. Harlequin’s rights to publish back-listed novels is key to this strategy. As shown in Appendix G, Harlequin will rely heavily on the release of back-listed copies of novels written by current mid-list to best sellers. Fresh, new talent