Why “How Brands Grow” is the best marketing book I’ve ever read? It clearly shows the predictable pattern in how brands can grow, applying some specific marketing laws proved looking at different data and (e.g. HH Panel data in FMCG) academic researches. Main learnings: 1) Brands are growing mainly thanks to penetration (i.e. reaching more buyers which can buy them at least once in a specific period) more than frequency (i.e. how often they are bought in a specific period) and loyalty (how many times the brand is chosen among others in a specific period). 2) Based on 1) working on a specific population target is not effective as some other marketing principles show. Target the whole potential market is more effective (growing also through light buyers – e.g. those who are buy a brand once or max twice a year). 3) Two key assets to grow: mental availability (i.e. brand salience, how well people think about your brand when are in front of a specific buying situation) and physical availability (i.e. physical distribution in depth and breadth and in the right space and time (e.g. shelf placement as well as the quality of distribution - e.g. weighted distribution among main KPIs to take into account in FMCG). 4) Size matters: biggest brands can achieve a larger market share also because they can afford (and they are willing to spend) larger budgets to support their growth. 5) ATL investments (e.g. TV) have the main goals to defend market share in the long term rather than gain market share in the short term. 6) Product differentiation is hard to be noticed by buyers, what that matters are the distinctive assets of a brand (packaging - e.g. the iconic Nutella jar or the iconic Coca Cola glass bottle or the music of the iconic McDonald’s audio “I am Lovin it”). There are other rules to show, but they would require more time and space to be shared in this Linkedin post. Thanks Byron Sharp for this great reading. Happy to discuss also different points of view. Here the link to read more about the book:
It’s a great foundational read, but it is not the Marketing Bible that so many make it out to be.
A great read. Worthwhile being on the must read list for CEOs, executives and purse string holders, which will help marketing managers trying to influence them with growth strategies.
I just finished reading this book today. Great takeaways!
Head of Media Intelligence
1moThe biggest disappointment of reading the book (multiple times) is trying to have a conversation, strategic discussion or present to a marketing practitioner who hasn’t read the book. The frustration is real…