PT  - JOURNAL ARTICLE
AU  - Allan L. Baldinger
AU  - Edward Blair
AU  - Raj Echambadi
TI  - Why Brands Grow
AID  - 10.2501/JAR-42-1-6-14
DP  - 2002 Jan 01
TA  - Journal of Advertising Research
PG  - 6--14
VI  - 42
IP  - 1
4099  - http://www.journalofadvertisingresearch.com/content/42/1/6.short
4100  - http://www.journalofadvertisingresearch.com/content/42/1/6.full
SO  - J Advert Res2002 Jan 01; 42
AB  - What causes brands to grow over time? The article addresses this important question. Measures of market share, market penetration, customer loyalty, and price were gathered in two time periods, five years apart, for 353 brands in 21 categories of fast-moving consumer goods. We used these data to study share growth over time. Key findings include: (1) growth must be earned, even for brands that have been successful in the past; (2) increased penetration is the key to share growth, and especially dramatic share growth, for all types of brands; and (3) customer loyalty strongly leverages the effects of penetration. This paper extends upon work by Baldinger and Rubinson (1997) in demonstrating that the way to grow brands is via a combination of penetration and loyalty growth.