INTRODUCTION TO BAV
BAV Consulting
2013
Page 2
The foundation of the BAV model is the four Pillars of Brand Equity;
each of the four Pillars contributes in a different way to building
brands and sales and we have empirically proven that brands build
from left to right
ENERGIZED
DIFFERENTIATION
The brand’s point
of difference.
Relates to margins.
ESTEEM
How well
regarded the
brand is.
Relates to
loyalty.
KNOWLEDGE
An intimate
understanding
of the brand.
Relates to consumer
experience.
RELEVANCE
How appropriate the
brand is to you.
Relates to market
penetration.
Leading Indicator
Future Growth Value
Current Indicator
Current Operating Value
Brand STRENGTH Brand STATURE
Percentile
rank
Energized Differentiation is about a brand’s
reason for being. But it’s not just about being
different – it’s about being different with
momentum, giving consumers something about
which to get excited. Energized Differentiation
contributes to pricing power and increases the
intangible value of a brand.
Relevance is a measure of how appropriate
consumers feel a brand is to them. Brands with
higher Relevance have higher consideration
and trial, as consumers are inviting the brand
into their lives.
Esteem is a measure of respect, admiration and
reverence for a brand. Consumers are proud to
be associated with brands that they hold in high
regard – and that translates to loyalty.
Once a brand has built Energized
Differentiation, Relevance and Esteem, the
Knowledge pillar develops. Consumers want to
get intimately familiar with brands that are
differentiated, relevant and highly regarded by
them. And when people know your brand, they
will buy your product.
Page 3
Source: BrandAsset® Valuator USA All Adults 2012
The relationships between Pillars tells the story about a brand’s
development
DE > R DE < R
E > K E < K
Uniqueness has faded, price or
convenience has become dominant reason
to buy: commodity
Brand has captured attention and now
has power to build Relevance
Brand is better known than liked:
looking for better options
Brand is better liked than known:
desire to find out more
DIF RELEnergized
Differentiation
Relevance DIF RELEnergized
Differentiation
Relevance
ExamplesExamples
ExamplesExamples
DIF RELEsteem Knowledge DIF RELEsteem Knowledge
Page 4
And the four Pillars combine into Brand Strength and Brand Stature
Brand Strength
Energized
Differentiation
Relevance
Knowledge
Esteem
Brand Stature
Brand Asset
The first two Pillars, Energized
Differentiation and Relevance, are
leading indicators of a brand’s direction
and momentum. Together they form a
single measure – Brand Strength –
which is a predictor of brand value.
Conversely, Esteem and Knowledge
are current indicators that combine to
form Brand Stature, an understanding
of the present state of the brand.
Page 5
0
50
100
0 50 100
BrandSTRENGTH
EnergizedDifferentiation&Relevance
Brand STATURE
Esteem & Knowledge
Source: BrandAsset® Valuator USA All Adults 2012
The life of a brand can be plotted on the PowerGrid as Brand Strength typically
increases first, followed by Brand Stature; many brands will lose their Strength
and become eroded
D_E R E K
LeadershipNiche
Commodity or
Eroded
New, Unfocused or
Unknown
Ubiquitous
D_E R E K
D_E R E K
D_E R E K
D_E R E K
The PowerGrid positions brands along the
dimensions of Brand Strength and Brand
Stature. Our research has proven that the value
of a brand is maximized when two conditions are
met: Brand Strength and Brand Stature are
both and their peaks, and Brand Strength is
greater than Brand Stature.
Brands start building in the bottom left quadrant
as they first establish themselves through their
Energized Differentiation and reason for
being. Brands continue to develop following a
clockwise pattern, growing up first through the
Niche quadrant and then moving into Leadership
positions. If brands lose their Energized
Differentiation, they can fall below the 45°
angle in the upper right-hand quadrant to
become a Mass Market or Ubiquitous brand. If
this decline continues, brands can move into the
Commodity quadrant, where the key reason for
purchase is typically price.
The PowerGrid therefore shows a brand’s
current stage of development, which is a
function of all brand building efforts that have
occurred to date.
Page 6
Underlying the macro elements of Brand Equity are 48 emotional imagery
attributes that collectively dimensionalize brand personality and form the
basis for strategic recommendations to build brands
Arrogant
Authentic
Best Brand
Carefree
Cares for Customers
Charming
Daring
Different
Distinctive
Down To Earth
Dynamic
Energetic
Friendly
Fun
Gaining in Popularity
Glamorous
Good Value
Healthy
Helpful
High Performance
High Quality
Independent
Innovative
Intelligent
Kind
Leader
Obliging
Original
Prestigious
Progressive
Reliable
Restrained
Rugged
Sensuous
Simple
Social
Socially Responsible
Straightforward
Stylish
Traditional
Trendy
Trustworthy
Unapproachable
Unique
Up To Date
Upper Class
Visionary
Worth More
The foundation of the BAV model is a set of
image, performance and personality
variables that have been co-developed with
leading marketing academics to quantify
brand identity and brand health. This
battery of attributes provides the initial pool
of potential drivers.
These imagery attributes, along with
measures of appropriateness, regard and
familiarity, combine to form the 4 pillars of
Brand Equity.

BAV 101

  • 1.
    INTRODUCTION TO BAV BAVConsulting 2013
  • 2.
    Page 2 The foundationof the BAV model is the four Pillars of Brand Equity; each of the four Pillars contributes in a different way to building brands and sales and we have empirically proven that brands build from left to right ENERGIZED DIFFERENTIATION The brand’s point of difference. Relates to margins. ESTEEM How well regarded the brand is. Relates to loyalty. KNOWLEDGE An intimate understanding of the brand. Relates to consumer experience. RELEVANCE How appropriate the brand is to you. Relates to market penetration. Leading Indicator Future Growth Value Current Indicator Current Operating Value Brand STRENGTH Brand STATURE Percentile rank Energized Differentiation is about a brand’s reason for being. But it’s not just about being different – it’s about being different with momentum, giving consumers something about which to get excited. Energized Differentiation contributes to pricing power and increases the intangible value of a brand. Relevance is a measure of how appropriate consumers feel a brand is to them. Brands with higher Relevance have higher consideration and trial, as consumers are inviting the brand into their lives. Esteem is a measure of respect, admiration and reverence for a brand. Consumers are proud to be associated with brands that they hold in high regard – and that translates to loyalty. Once a brand has built Energized Differentiation, Relevance and Esteem, the Knowledge pillar develops. Consumers want to get intimately familiar with brands that are differentiated, relevant and highly regarded by them. And when people know your brand, they will buy your product.
  • 3.
    Page 3 Source: BrandAsset®Valuator USA All Adults 2012 The relationships between Pillars tells the story about a brand’s development DE > R DE < R E > K E < K Uniqueness has faded, price or convenience has become dominant reason to buy: commodity Brand has captured attention and now has power to build Relevance Brand is better known than liked: looking for better options Brand is better liked than known: desire to find out more DIF RELEnergized Differentiation Relevance DIF RELEnergized Differentiation Relevance ExamplesExamples ExamplesExamples DIF RELEsteem Knowledge DIF RELEsteem Knowledge
  • 4.
    Page 4 And thefour Pillars combine into Brand Strength and Brand Stature Brand Strength Energized Differentiation Relevance Knowledge Esteem Brand Stature Brand Asset The first two Pillars, Energized Differentiation and Relevance, are leading indicators of a brand’s direction and momentum. Together they form a single measure – Brand Strength – which is a predictor of brand value. Conversely, Esteem and Knowledge are current indicators that combine to form Brand Stature, an understanding of the present state of the brand.
  • 5.
    Page 5 0 50 100 0 50100 BrandSTRENGTH EnergizedDifferentiation&Relevance Brand STATURE Esteem & Knowledge Source: BrandAsset® Valuator USA All Adults 2012 The life of a brand can be plotted on the PowerGrid as Brand Strength typically increases first, followed by Brand Stature; many brands will lose their Strength and become eroded D_E R E K LeadershipNiche Commodity or Eroded New, Unfocused or Unknown Ubiquitous D_E R E K D_E R E K D_E R E K D_E R E K The PowerGrid positions brands along the dimensions of Brand Strength and Brand Stature. Our research has proven that the value of a brand is maximized when two conditions are met: Brand Strength and Brand Stature are both and their peaks, and Brand Strength is greater than Brand Stature. Brands start building in the bottom left quadrant as they first establish themselves through their Energized Differentiation and reason for being. Brands continue to develop following a clockwise pattern, growing up first through the Niche quadrant and then moving into Leadership positions. If brands lose their Energized Differentiation, they can fall below the 45° angle in the upper right-hand quadrant to become a Mass Market or Ubiquitous brand. If this decline continues, brands can move into the Commodity quadrant, where the key reason for purchase is typically price. The PowerGrid therefore shows a brand’s current stage of development, which is a function of all brand building efforts that have occurred to date.
  • 6.
    Page 6 Underlying themacro elements of Brand Equity are 48 emotional imagery attributes that collectively dimensionalize brand personality and form the basis for strategic recommendations to build brands Arrogant Authentic Best Brand Carefree Cares for Customers Charming Daring Different Distinctive Down To Earth Dynamic Energetic Friendly Fun Gaining in Popularity Glamorous Good Value Healthy Helpful High Performance High Quality Independent Innovative Intelligent Kind Leader Obliging Original Prestigious Progressive Reliable Restrained Rugged Sensuous Simple Social Socially Responsible Straightforward Stylish Traditional Trendy Trustworthy Unapproachable Unique Up To Date Upper Class Visionary Worth More The foundation of the BAV model is a set of image, performance and personality variables that have been co-developed with leading marketing academics to quantify brand identity and brand health. This battery of attributes provides the initial pool of potential drivers. These imagery attributes, along with measures of appropriateness, regard and familiarity, combine to form the 4 pillars of Brand Equity.