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

1. INTRODUCTION TO
BAV

2. 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.
June 20, 2013

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
June 20, 2013

4. 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.
June 20, 2013

5. 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.
June 20, 2013

6. 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.
June 20, 2013