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Brand Asset Valuator Model

Developed by Ad agency Young & Rubicam


(Y&R)
According to the BAV model, there are 4 key
components of brand equity

1) Differentiation: measures the degree to which a brand is


seen as different from others
2)

Relevance: does the brand answer to personal needs

3) Esteem: measures how well the brand is regarded and


respected
4) knowledge: measures how familiar and intimate consumers are
with the brand

Differentiation: It is the ability of the brand to stand


apart from its competitors. As a brand matures, brand
asset Valuator finds that Differentiation often declines.
It does not have to happen. Even after reaching
maturity, with good management, a brand can
maintain its differentiation.

Relevance: measures the personal


appropriateness of a brand to consumers and is
strongly tied to household penetration. Brand
asset valuator shows there is a distinct
correlation between Relevance and market
penetration.

Esteem is the perceived quality and consumer perception


about growing or declining popularity of a brand. BAV
tracks the way in which brands gain Esteem, which help
us consider how to mange consumer perceptions.
Through BAV, the brand manager can identify
opportunities for leveraging a brands Esteem

Knowledge is the extent of the consumers


awareness of the brand and understanding of its
identity. The awareness levels of the brand and
understanding what the brand stands for.

Brand Strength =

Relevance and Differentiation

Brand Strength is an important indicator of the potential


and performance of the brand. It is the central challenge
of every brand

Brand Stature =

Esteem and Knowledge

It indicates the consumers response to a brand

BAV Power Grid


Brand

Unrealized
Potential

Leadership

New,
Unfocussed

Eroded

Strength
(Differentiation
And Relevance)

Brand Stature ( Esteem and Knowledge)

Unfocussed: Weak brands that could not leverage their


strengths
Unrealized potential: Here the brand managers have
not been able to realize the true potential. The strategy
should be to build the stature of the brand
Leadership: The challenge of the brand would be to
continue being a leader

Eroding: This means danger for the brand, an indicator


of eroding potential. These brands have failed to
maintain their relevant differentiation. If not managed
effectively, their stature will also go down, therefore,
steps should be taken to stimulate the differentiation and
relevance, or their brands will lose Esteem and could
eventually fade.

BAV is unique in that Y&Rs findings have been


substantiated by tracking the real world financial
performance of companies. This performance illustrates
the implications of how companies manage their brands.
Brands managed properly, in accordance with BAV model,
have demonstrated that they have higher margins, profit,
growth.