BAV Model to measure brand equity

Brand asset valuator model(BAV) can arguably called the most extensive brand research programs ever
done. Till date over 100,000 consumers across 32 countries have been interviewed. Information on more
than 13,000 brands has been collected providing up to 56 different scales and dimensions of consumer
perception.According to the BrandAsset Valuator model, brand health and future of any brand can be
determined by collecting consumer insights in four key areas listed below

Brand asset valuator model(BAV):Four key pillars of brand equity

1. Differentiation
This is the starting point for all brands.This measures the degree to which the brand is seen as different
from others.Has your brand attracted consumers attention more than your competitors? The starting point
for all brands is differentiation. Measure this by asking questions about how often consumers have come
across your brand, if they recognize your brand, and how different it is from your competitors.
As a brand matures, Brand Asset Valuator model states that Differentiation often declines. It doesnt
always have to happen. Even though brands reach maturity, with good management, a brand can continue
its Differentiation. A low level of Differentiation is a clear warning that a brand is fading.

2. Relevance
measures the breadth of a brands appeal.How appropriate your brand is for your consumers?Would
consumers want to purchase your product or service? Is your product relevant to consumers in regards to
price, convenience, and fulfilling their needs? You can determine your brands relevance by asking
consumers how likely they would be to purchase your product or service, regardless of whether or not they
have purchased your product or service in the past.Relevance alone is not key to a brands success. Rather,
the combination of Relevance & Differentiation determines the success. Brand Asset Valuator model
shows that there is a direct correlation between Relevance and market penetration.

3. Esteem
Esteem is the perceived quality and customer perceptions about growing popularity of a brand. Does the
brand keep its assurances? The customers response to a marketers brand building activity is driven by his
perception of two factors; quality and popularity. In the progression of building a brand, it follows
Differentiation and Relevance. Its the customers response to a marketers brand-building activity. Brand
Asset Valuator tracks the ways in which brands gain Esteem, which helps us consider how to manage
consumer perceptions.Brand Asset Valuator identifies opportunities for leveraging a brands Esteem

4. Knowledge
Knowledge measures the extent of the customers awareness of the brand and understanding of its identity.
The awareness levels about the brand and what it stands for shows the familiarity that consumers share
with the brand. True knowledge of the brand comes through brand-building. When a brand has made
through its Relevant Differentiation and customers come to hold it in high Esteem. Brand Knowledge is
the result and represents the successful finale of building a brand. Knowledge means customer is aware of
the brand and understands what the brand or service stands for. Knowledge is not a result of media Spends.
High media spends against a weak idea will not yield results.

Differentiation and Relevance combine to determine Brand Strength.Brand Strength is an important

indicator of future potential & performance. Relevant Differentiation is the major challenge for brands and
an important indicator of brand health. These two pillars point to the brands future value, rather than just
reflecting its past.

Esteem and Knowledge together create Brand Stature, which is more of a report on past performance.

BAV model Dynamics

According to the BAV model, its important to measure how differentiation, relevance, esteem, and
knowledge relate to one another so you can determine your brand strength and stature. Here are the most
important dynamics to note:

Differentiation is higher than relevance. When your brand is different, consumers are curious as to
why and want to learn more. This can attract customers, get them to explore the brand, and find out
if it is relevant to them.

Relevance is higher than differentiation. When your brand is more relevant to consumers than it is
differentiated from other brands, your brand is no longer interesting or pulling in consumers. You are
now competing on relevance alone, which means that consumers will only purchase your product or
service based on price or convenience.

Esteem is higher than knowledge. When consumers hold your brand in high esteem, they respect
and desire your brand because it is so well regarded. Consumers want to purchase your product or
service to find out why it garners consumer loyalty.

Knowledge is higher than esteem. When consumers claim to already know all about your company,
this can lead to problems, especially if they believe they know negative things about your brand.
Consumers who think they dont need to learn anything else about your brand have already judged
itand this means they may be looking to learn more about your competition and less about you.

BAV MODEL POWER GRID

This model plots brands on a Power Grid reflecting each brands Strength and Stature. The Power Grid
sets the strategic process by categorizing the strength or weakness of a brand. On the vertical axis we have
the brand strength its relevance and differentiation, while on the horizontal axis, the brand stature esteem and knowledge

This grid is divided into 4 quadrants

1)Quadrant 1, brand is in the quadrant as a new brand and has newly entered the market or is an old
stagnant brand with no clear focus. Brand in the quadrant 1 has brand stature and brand strength which get
lower. The quadrant is divided into 2 parts a) brand which is not focused tends to be stagnant b) new brand
which is better to be marked by the differentiation figure, relevance, esteem and the better knowledge. That
can be done for the brand getting into 2nd quadrant
2) Quadrant 2, here the company hasnt yet to be able to realize the maximum potential from the
company brand or the brand plays in market niche. In the quadrant is marked with the brand strength in the
form of differentiation and some brand attribute which is relevant with the consumer needs but the lower
brand stature is low, however, the brand revenue into this quadrant is although low but having the
potential to develop in the next.

3) Quadrant 3, here brand has the high income and also has the potential of high growth in the
future. However, in the quadrant 3 is divided into 2 diagonally parts, those are the leader and there is
decreasing brand leader. The decreasing leader in this brand results in the high sale marked by the high
esteem and knowledge as the result of building the past successful brand but currently is in a p position of
low differentiation and relevance which has the meaning that the company need to do some research-based
innovation to stay relevant.
4) Quadrant 4, The last quadrant spells Danger for the brand, an indicator of eroding potential. These
brands in this quadrant have failed to maintain their Relevance. If unattended, their Stature will also begin
to fall. Unless steps are taken to stimulate the differentiation and relevance, these brands will lose Esteem
and could ultimately fade from consumers consciousness

Determining your brand equity

Once you see how high or low your brand is rated in differentiation, relevance, esteem, and knowledge,
you can use these measurements and relationships to assess your brand strength and brand stature. That
way, you can determine your overall brand asset (what BAV model calls the overall measure of your
brands equity).
Brand Asset Valuator is distinctive in that Y&Rs findings have been substantiated by tracking the realworld financial performance of companies. This performance shows the implications of how companies
manage their brands. Brands managed properly, in accordance with Brand Asset Valuator model, have
systematically demonstrated that they give, on average, higher margins, profit, growth and lower risk.
Y&Rs Brand Asset Valuator data are reported as percentile rank amongst all other brands measured. This
comparative metric allows for the diagnostic assessments necessary to truly benefit from the crosscategory, global perspective.

Basically, brand equity comes down to this: When your brand strength and brand stature are highor
brand strength is higher than brand statureyour brand equity is at its peak ,which means youve got a
powerful brand.