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BAV 101


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BAV Consulting is a global strategic consultancy with expertise in corporate, brand and marketing strategies and customer insights.

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BAV 101

  1. 1. INTRODUCTION TO BAVBAV Consulting2013
  2. 2. Page 2The foundation of the BAV model is the four Pillars of Brand Equity;each of the four Pillars contributes in a different way to buildingbrands and sales and we have empirically proven that brands buildfrom left to rightENERGIZEDDIFFERENTIATIONThe brand’s pointof difference.Relates to margins.ESTEEMHow wellregarded thebrand is.Relates toloyalty.KNOWLEDGEAn intimateunderstandingof the brand.Relates to consumerexperience.RELEVANCEHow appropriate thebrand is to you.Relates to marketpenetration.Leading IndicatorFuture Growth ValueCurrent IndicatorCurrent Operating ValueBrand STRENGTH Brand STATUREPercentilerankEnergized Differentiation is about a brand’sreason for being. But it’s not just about beingdifferent – it’s about being different withmomentum, giving consumers something aboutwhich to get excited. Energized Differentiationcontributes to pricing power and increases theintangible value of a brand.Relevance is a measure of how appropriateconsumers feel a brand is to them. Brands withhigher Relevance have higher considerationand trial, as consumers are inviting the brandinto their lives.Esteem is a measure of respect, admiration andreverence for a brand. Consumers are proud tobe associated with brands that they hold in highregard – and that translates to loyalty.Once a brand has built EnergizedDifferentiation, Relevance and Esteem, theKnowledge pillar develops. Consumers want toget intimately familiar with brands that aredifferentiated, relevant and highly regarded bythem. And when people know your brand, theywill buy your product.
  3. 3. Page 3Source: BrandAsset® Valuator USA All Adults 2012The relationships between Pillars tells the story about a brand’sdevelopmentDE > R DE < RE > K E < KUniqueness has faded, price orconvenience has become dominant reasonto buy: commodityBrand has captured attention and nowhas power to build RelevanceBrand is better known than liked:looking for better optionsBrand is better liked than known:desire to find out moreDIF RELEnergizedDifferentiationRelevance DIF RELEnergizedDifferentiationRelevanceExamplesExamplesExamplesExamplesDIF RELEsteem Knowledge DIF RELEsteem Knowledge
  4. 4. Page 4And the four Pillars combine into Brand Strength and Brand StatureBrand StrengthEnergizedDifferentiationRelevanceKnowledgeEsteemBrand StatureBrand AssetThe first two Pillars, EnergizedDifferentiation and Relevance, areleading indicators of a brand’s directionand momentum. Together they form asingle measure – Brand Strength –which is a predictor of brand value.Conversely, Esteem and Knowledgeare current indicators that combine toform Brand Stature, an understandingof the present state of the brand.
  5. 5. Page 50501000 50 100BrandSTRENGTHEnergizedDifferentiation&RelevanceBrand STATUREEsteem & KnowledgeSource: BrandAsset® Valuator USA All Adults 2012The life of a brand can be plotted on the PowerGrid as Brand Strength typicallyincreases first, followed by Brand Stature; many brands will lose their Strengthand become erodedD_E R E KLeadershipNicheCommodity orErodedNew, Unfocused orUnknownUbiquitousD_E R E KD_E R E KD_E R E KD_E R E KThe PowerGrid positions brands along thedimensions of Brand Strength and BrandStature. Our research has proven that the valueof a brand is maximized when two conditions aremet: Brand Strength and Brand Stature areboth and their peaks, and Brand Strength isgreater than Brand Stature.Brands start building in the bottom left quadrantas they first establish themselves through theirEnergized Differentiation and reason forbeing. Brands continue to develop following aclockwise pattern, growing up first through theNiche quadrant and then moving into Leadershippositions. If brands lose their EnergizedDifferentiation, they can fall below the 45°angle in the upper right-hand quadrant tobecome a Mass Market or Ubiquitous brand. Ifthis decline continues, brands can move into theCommodity quadrant, where the key reason forpurchase is typically price.The PowerGrid therefore shows a brand’scurrent stage of development, which is afunction of all brand building efforts that haveoccurred to date.
  6. 6. Page 6Underlying the macro elements of Brand Equity are 48 emotional imageryattributes that collectively dimensionalize brand personality and form thebasis for strategic recommendations to build brandsArrogantAuthenticBest BrandCarefreeCares for CustomersCharmingDaringDifferentDistinctiveDown To EarthDynamicEnergeticFriendlyFunGaining in PopularityGlamorousGood ValueHealthyHelpfulHigh PerformanceHigh QualityIndependentInnovativeIntelligentKindLeaderObligingOriginalPrestigiousProgressiveReliableRestrainedRuggedSensuousSimpleSocialSocially ResponsibleStraightforwardStylishTraditionalTrendyTrustworthyUnapproachableUniqueUp To DateUpper ClassVisionaryWorth MoreThe foundation of the BAV model is a set ofimage, performance and personalityvariables that have been co-developed withleading marketing academics to quantifybrand identity and brand health. Thisbattery of attributes provides the initial poolof potential drivers.These imagery attributes, along withmeasures of appropriateness, regard andfamiliarity, combine to form the 4 pillars ofBrand Equity.