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13 October 2022
Brand growth is always about penetration
Brand growthBrand management
The reason brands grow, according to the Ehrenberg-Bass Institute, effectively boils down to two options: penetration or loyalty – more new customers or existing customers buying more. Over the long-term it’s always about new customers.
Why it matters
It’s not just an Ehrenberg-Bass theory: evidence from a multinational with multiple brands shows that, even when brand managers thought they were planning to grow by loyalty they grew more by penetration, and only a little bit by loyalty.