Byron Sharp’s “How Brands Grow” has emerged as a seminal work, challenging many traditional beliefs and offering data-driven insights into brand growth. This book has become a must-read for marketers seeking to understand the fundamental principles that drive brand success.
So – what are the most important take outs for marketers?
1-The Importance of Mental and Physical Availability
One of the core principles in “How Brands Grow” is the emphasis on mental and physical availability. Sharp argues that brands grow by being easily accessible both in the minds of consumers (mental availability) and in the marketplace (physical availability).
Example: Innocent Drinks excels in both areas. Its playful and distinctive packaging ensures high mental availability, while its wide distribution in supermarkets and convenience stores ensures physical availability
2-Focus on Acquiring New Customers
Contrary to the traditional belief that retaining existing customers is the key to growth, Sharp’s research shows that brand growth primarily comes from acquiring new customers. He emphasises the importance of reaching out to light buyers and non-consumers, as they represent the largest potential for growth.
Example: Monzo, a digital bank, continually expands its user base by offering innovative features and a user-friendly app, attracting new customers who may not have previously considered switching banks
3-The Double Jeopardy Law
Sharp introduces the Double Jeopardy Law, which states that brands with smaller market shares not only have fewer customers but also suffer from lower loyalty among those customers. This means that smaller brands face a double disadvantage: they attract fewer buyers, and those buyers are less loyal.
Example: BrewDog has managed to overcome this by increasing its market share through unique marketing campaigns and expanding its product range, which has led to a larger, more loyal customer bas
4-The Pareto Principle (80/20 Rule)
The Pareto Principle, or the 80/20 rule, is another key concept discussed in the book. Sharp explains that a significant portion of a brand’s sales comes from a small percentage of its customers. However, Sharp also points out that the remaining 80% of customers, who are less frequent buyers, still play a crucial role in driving overall sales and should not be ignored.
Example: Gymshark leverages this principle by catering to its most frequent buyers with exclusive products and promotions, while also ensuring that occasional shoppers have a seamless experience
5-The Law of Buyer Moderation
Over time, customer purchasing behaviour tends to normalize, a phenomenon Sharp refers to as the Law of Buyer Moderation. This means that heavy buyers may reduce their consumption while light buyers may increase theirs, leading to a more balanced purchasing pattern.
Example: HelloFresh sees this in action as it attracts new customers with introductory offers and seasonal promotions, balancing out the purchasing patterns of its regular customers
6-The Natural Monopoly Law
Sharp’s Natural Monopoly Law states that larger brands typically have a higher number of light buyers in their customer base. This means that the largest brands in a market attract more customers who make purchases occasionally or infrequently.
Example: Heinz has cultivated broad appeal across demographics, ensuring that even those who buy condiments like ketchup infrequently are likely to choose Heinz
7-The Role of Distinctive Brand Assets
Distinctive brand assets, such as logos, colors, and slogans, play a crucial role in making a brand easily recognizable and memorable. Sharp emphasizes the importance of creating and consistently using these assets to build strong mental associations in consumers’ minds.
Example: Oatly uses its distinctive packaging and quirky messaging to create strong mental associations, making the brand memorable and easily recalled during purchasing decisions
8-The Importance of Consistent Marketing
Consistency in marketing efforts is vital for building and maintaining brand salience. Sharp argues that brands should focus on long-term marketing strategies that consistently reinforce their distinctive assets and messaging.
Example: The Body Shop consistently uses its ethical and sustainable messaging to reinforce its brand identity, ensuring that its marketing efforts are always aligned with its core values.9. The Impact of Brand Salience
9-Brand salience
This refers to the likelihood of a brand being noticed or thought of in buying situations. Sharp highlights the importance of increasing brand salience through various marketing activities, such as advertising, promotions, and public relations.
Example: Airbnb maintains high brand salience through continuous innovation and by being the go-to platform for unique travel experiences, ensuring it is always top-of-mind for travellers
10-The Role of Mental Shortcuts in Decision-Making
Consumers often rely on mental shortcuts, or heuristics, when making purchasing decisions. Sharp explains that brands can leverage these shortcuts by creating strong and distinctive brand assets that are easily recognizable and memorable.
Example: Ben & Jerry’s uses its distinctive packaging and playful flavour names to create strong mental shortcuts, making it easy for consumers to recognize and choose its products
11-The Importance of Continuous Brand Growth
Finally, Sharp emphasizes the need for continuous brand growth. Brands should always be looking for ways to expand their reach and attract new customers. This requires ongoing investment in marketing activities that increase both mental and physical availability.
Example: Samsung continuously invests in marketing and innovation to expand its product range and reach new customers, ensuring sustained growth and long-term success.
Why has “How Brands Grow” become the definitive marketing text? Probably because it is backed by extensive research and data analysis. Sharp’s principles were adopted by marketing titans like Mars, Unilever and Proctor & Gamble.
The principles challenge many traditional marketing beliefs and provide actionable insights for marketers. By focusing on mental and physical availability, acquiring new customers, and leveraging distinctive brand assets, brands can achieve sustained growth and success in today’s marketplace.
