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Across categories and countries, increasing penetration is the primary way to build big brands. This is a key insight from the research of the Ehrenberg-Bass Institute for Marketing Science, summarized by Professor Byron Sharp, director of the Institute, in his book How Brands Grow, based on decades of observations of buying behavior. But while household penetration is one of the most important factors in helping brands grow, consumers purchase from a repertoire of brands and often make their decisions in the store. This makes in-store execution critical for consumer products companies, says Bain Partner Giovanni Arnese. While companies have dramatically increased their investment in in-store execution, big gaps often remain between brand strategy and what actually happens in the store. Perfect sales execution can help companies close those gaps by delivering a vision of success for the brand, translating that vision into clear nonnegotiables and creating a system of metrics and incentives to ensure consistent in-store execution.
Read the related Bain Brief: Winning with brands