Brands grow primarily by increasing market penetration, which means acquiring more new customers rather than focusing solely on customer loyalty or retention. According to Byron Sharp and the Ehrenberg-Bass Institute's research presented in How Brands Grow , the key to brand growth lies in building "market-based assets" that enhance both mental and physical availability of the brand

Key Principles of How Brands Grow

• Focus on New Customer Acquisition: Growth comes from recruiting more buyers, especially light and occasional users, rather than trying to increase purchase frequency or relying on a small base of loyal customers. Loyalty is often overstated; consumers tend to be "promiscuous loyals," switching between brands based on availability

• Maximize Physical Availability: Ensure the brand is easy to buy by being widely distributed and available wherever customers shop. This includes innovative distribution strategies that put the brand in front of as many potential buyers as possible

• Build Mental Availability: Create distinctive and memorable brand assets such as logos, colors, and sensory cues that make the brand easy to recognize and recall. This mental availability makes it more likely customers will think of the brand when making a purchase decision

• Consistency and Distinctiveness: Maintain consistency in branding to build strong memory structures while ensuring the brand stands out distinctly from competitors. Avoid unnecessary changes but keep the brand fresh and interesting

• Avoid Overemphasis on Segmentation and Differentiation: Traditional marketing focuses on segmentation, positioning, and brand personality, but evidence shows these have little impact on growth. Instead, brands should aim for broad reach and distinctiveness that appeals to all category buyers

• Innovation Focused on Availability: Product innovation should be paired with efforts to maximize distribution and visibility. Innovation alone without availability does not drive growth effectively

Summary

Brands grow by continuously reaching all category buyers through widespread physical and mental availability, recruiting new customers, and making the brand easy to buy and remember. Loyalty programs and attempts to deepen commitment have limited impact on growth compared to expanding market penetration and building distinctive brand assets

. This evidence-based approach challenges many traditional marketing beliefs and emphasizes simplicity and scientific rigor in brand growth strategies.