Tuesday, 7 January 2014

How Brands Grow

This is the Dirichlet model of brand choice and purchase rates for Coca-Cola in the UK. Put simply this is how many people are buying coke how many times a year. It shows us that the vast majority of Coca-Cola’s customers very rarely buy Coca-Cola. This is also true for Pepsi. And Coca-Cola in the US. In fact this pattern ‘generalises around the world, over time, across product categories, and for all the different market research providers.’ 

Clearly this totally contradicts loads of ‘marketing wisdom’ to do with loyalty and brand love. The Dirchlet is 25 years old and has survived 25 years of testing. It is one of marketing science’s greatest achievements as it provides the basis for many of the scientific laws that can be applied to brands. If you’d like to find out how this reveals predictable patterns in buying behaviour and sales growth, in jargon free writing supported by empirical scientific evidence, then I strongly recommend you read How Brands Grow by Byron Sharp. 

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