Why brands grow

Alun L. Baldinger, Edward Blair, Raj Echambadi

Research output: Contribution to journalArticlepeer-review


What causes brands to grow over time? Our 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.

Original languageEnglish (US)
Pages (from-to)7-14
Number of pages8
JournalJournal of Advertising Research
Issue number1
StatePublished - 2002
Externally publishedYes

ASJC Scopus subject areas

  • Communication
  • Marketing


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