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Bav model to measure brand equity

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

r key pillars of brand equity

pillars of brand equity

Brand asset valuator model(BAV):Fou

Brand asset valuator model(BAV):Four key


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 doesn’t

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.


measures the breadth of a brand’s 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 brand’s 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 brand’s 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.


Esteem is the perceived quality and customer perceptions about growing popularity of a brand. Does the

brand keep its assurances? The customer’s 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. It’s the customer’s response to a marketer’s 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 brand’s Esteem


Knowledge measures the extent of the customer’s 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.

Bav model to measure brand equity

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 brand’s 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, it’s 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 don’t need to learn anything else about your brand have already judged

it—and this means they may be looking to learn more about your competition and less about you.


Bav model to measure brand equity

This model plots brands on a ” Power Grid ” reflecting each brand’s 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 hasn’t 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

brand’s equity).

Brand Asset Valuator is distinctive in that Y&R’s findings have been substantiated by tracking the real-

world 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&R’s 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 cross-

category, global perspective.

Basically, brand equity comes down to this: When your brand strength and brand stature are high—or

brand strength is higher than brand stature—your brand equity is at its peak ,which means you’ve got a

powerful brand……….