How Brands Grow -theory application in different market positions : Marketing strategy affects to growth- or efficiency-focused business strategies

Abstract

This study aims to investigate how market leaders and market nichers can implement the How Brands Grow theory in their marketing strategy and how this implementation can help these market positions achieve their business strategy goals. Traditional marketing frameworks such as Segmentation Targeting Positioning (STP), the Marketing Mix, and Porter’s competitive strategies have long emphasised differentiation, targeted segmentation, and strategic positioning as pathways to competitive advantage. In contrast, the How Brands Grow perspective argues that brand growth is primarily driven by market penetration and the systematic building of mental and physical availability. This theoretical tension provides the foundation for exploring how the universal behavioural laws identified by Sharp and the Ehrenberg Bass Institute manifest in structurally different competitive contexts. The research adopts a qualitative literature review methodology, integrating findings from peer-reviewed marketing and strategy scholarship. The analysis synthesises three theoretical domains: classical marketing strategy, business strategy orientations, and empirical marketing science. Through this integration, the study identifies how behavioural regularities such as double jeopardy and the dominance of light buyers interact with firms’ resource bases, competitive structures, and strategic objectives. The findings show that market leaders are structurally best positioned to leverage How Brands Grow principles, as their scale enables broad mental and physical availability and continuous penetration-driven growth. Efficiency plays a supportive role, allowing leaders to sustain profitability while maintaining extensive reach. Market nichers, in contrast, operate under structural constraints that limit the feasibility of mass penetration. Their strategic success depends on focused availability, relational assets, and efficiency-oriented resource allocation. For nichers, the principles of How Brands Grow apply within boundaries: salience and accessibility are maximised inside the chosen niche rather than across the full category. The study concludes that How Brands Grow does not replace traditional strategy frameworks but reframes their application. Managers must adapt empirical marketing laws to the realities of their market position, balancing growth ambitions with efficiency requirements. The research also highlights limitations, noting the concentration of empirical evidence within the Ehrenberg Bass Institute and the need for broader independent testing. Future research should examine challenger and follower brands, digital environments, and primary data applications to deepen understanding of how behavioural laws interact with strategic context.