Why brands grow… but not necessarily according to plan

Brian Carruthers

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.

By now everyone in the marketing industry is, or should be, aware of the research of the Ehrenberg-Bass Institute, which in essence states that brands grow by expanding their customer base.

“That means you have to know who could buy your brand, who’s in your category, and then work out how to get more of them,” the Institute’s Jenni Romaniuk explained on a Brandingmag podcast.

It’s a simple idea, she acknowledged, but it’s backed up by a wealth of evidence, based on hard data from the real world of brands which disentangles where growth is coming from: the...

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