Code for: How Do Entrants Build Market Share? The Role of Demand Frictions

We construct a new data set to show that successful entrants in
the consumer food sector build market share by adding new customers. Entrants reach new customers by entering more geographical markets, placing their product in more stores in these markets,
and for a positively selected subset of firms, by advertising direct
to customers. These activities are costly and are associated with
persistent increases in quantities, but there are no differences in
markups between new and mature markets. This confirms a central role for marketing and advertising in overcoming demand-side
frictions that slow firm growth.