AN INTRODUCTION TO BAV® & BRAND TENSITY™

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BRANDASSET™ VALUATOR (BAV®)

A MODEL OF BRAND DEVELOPMENT AND MOMENTUM

BrandAsset™ Valuator (BAV®) is the world’s largest database and model on brands. The model is

developmental and identifies clear patterns and trends that reflect brand growth, decay and recovery.

BAV® measures a range of brand health and imagery dimensions that influence consideration, trial,

loyalty, pricing power, and ultimately, future financial performance.

World’s Largest Database of Brands

Over 800,000 consumers

— 50,000+ brands

— 280+ studies

— 50+ countries

— 20 years worth of data

— US panel of 16,000+ respondents

72 different brand metrics, including

— Brand health

— Brand imagery / personality

— Usage

— Consideration

— Loyalty

Canada

Mexico

United States

Venezuela

Colombia

Brazil

Chile

Argentina

South Africa

Europe Russia

China

India

Malaysia

Indonesia

Australia

Philippines

Taiwan

Japan

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OUR BRANDSCAPE ALLOWS US TO EXPLORE BRANDS ACROSS HUNDREDS

OF CATEGORIES, WHICH FALL UNDER THE FOLLOWING SECTORS:

• Apparel & Accessories

• Appliances/Tools

• Auto

• Beverages - Alcoholic

• Beverages - Non Alcoholic

• Computers/Electronics

• Corporations

• Finance & Insurance

• Food

• Geography

• Health and Beauty

• Home & Garden

• Household Products

• Internet

• Media

• Nonprofit

• Oil, Gas & Utilities

• People

• Pharmaceutical

• Print Media

• QSR

• Retail

• Sports

• Telecommunications

• Tobacco

• Toys

• Travel & Entertainment

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BAV PILLARS OF BRAND EQUITY AND MOMENTUM

DIFFERENTIATION

A brand’s unique meaning,

energy and dynamism

ESTEEM

How you regard

the brand

KNOWLEDGE

An intimate understanding

of the brand

RELEVANCE

How appropriate

the brand is

BRAND STRENGTH BRAND STATURE

Relates to

margins, loyalty &

cultural currency

Relates to perception

of

quality & respect

Relates to

market

penetration

Leading Tomorrow

Future Growth Value

Lagging Today

Current Operating Value

Relates to

consumer

experience

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REL REL DIF REL DIF DIF

Brand has captured attention and

now has power to build relevance:

intrigue

Uniqueness has faded, price or

convenience is dominant reason to buy:

commodity

Strong on both:

momentum, cultural icon

Differentiation > Relevance Differentiation < Relevance Strong on Both

PILLAR PATTERNS TELL A STORY

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PILLAR PATTERNS TELL A STORY

KNO EST KNO EST KNO EST

Brand is more liked than known:

desire to find out more

Brand is more known than liked:

looking for better options

Strong on both:

established leaders with credibility

Esteem > Knowledge Esteem < Knowledge Strong on Both

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THE STAGES OF CONSUMER ATTRACTION DEPICT

BRAND MOMENTUM AND CREDIBILITY

Fatigue Indifference

Curiosity Commitment

BRAND STATURE (Esteem & Knowledge)

BR

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BRAND STATURE (Esteem & Knowledge)

BR

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Fatigue Indifference

Curiosity Commitment

THE STAGES OF CONSUMER ATTRACTION DEPICT

BRAND MOMENTUM AND CREDIBILITY

0

20

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60

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DIF REL EST KNO

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DIF REL EST KNO

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DIF REL EST KNO

Perc

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DIF REL EST KNO

Perc

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Score

| BRAND STATURE (Esteem & Knowledge)

BR

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Diffe

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WE CAN SEE VARYING LEVELS OF BRAND MOMENTUM

DEPENDING ON WHERE A BRAND SITS ON THE POWER GRID

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BAV® CONSTRUCTS RELATE TO CONSUMER ATTITUDES AND

BEHAVIORS, DRIVING BUSINESS SUCCESS

PRICING POWER

Brand Strength explains 29% of the

variance in pricing power

MARKET SHARE

Brand Strength explains 31% of the

variance in volume

USAGE & PREFERENCE

Brand Strength is highly predictive of

usage and preference (r = .57).

Brands with healthy pillar alignments

see 6-9% growth over the next year,

while those with unbalanced equity

see only 1-3% growth

LOYALTY

Strong brands have deeper consumer

advocacy e.g. they feel like they

belong to a club, the brand is their

favorite, and they wouldn’t trade it for

another brand

SOCIAL CURRENCY

Brands with well developed equity

drive consumers to seek them out and

recommend them to friends

INTANGIBLE VALUE

BAV metrics correlate to future growth

value and current operating value;

“brand” accounts for over 1/3 of the

total global shareholder value

| Source: USA All Adults Half Years, 2001-2013

*Dollar value based on half year returns of the BEX, NASDAQ and S&P 500 on a hypothetical $10,000 initial investment

*BEX Index returns weighted by change in Brand Strength for each period

COMPELLING BRANDS IMPACT MARKET VALUE A portfolio of the 50 strongest gaining brands, as measured by our brand metrics, consistently

outperform NASDAQ and S&P 500

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

$24,000

$26,000

$28,000

$30,000BEX Top 50 Weighted Index NASDAQ S&P 500 190%

74%

40%

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BAV® TOOLBOX

NEW LUXURY CONSUMER

INSIGHTS/

SEGMENTATION

BRAND HEALTH BRAND

IMAGERY

PARTNERSHIP

IDENTIFICATION/SELLING

LOYALTY

ELASTICITY CATEGORY

INSIGHTS

ARCHETYPES SUB-BRAND &

PROPRIETARY

RELATIONSHIPS

BRAND TENSITY™

LiquidBAV®

CUSTOM

RESEARCH &

TRACKING

| BRAND STATURE (Esteem & Knowledge)

BR

AN

D S

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GT

H (

Diffe

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Re

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)

Base: BAV USA 2013; All Adults

Brand

Category

Average

STUDYING BRANDS THAT SET THEMSELVES APART AND DRIVE

GREATER PASSION FROM CONSUMERS, WE FOUND INTERESTING

COMMONALITIES

Brands with Tensity Break Away from Peers

and Build Deeper Customer Advocacy

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• Obvious

• Cliché

• Stereotypes

• BORING

WITHOUT TENSION, BRANDS OFTEN BECOME…

BAV® PHILOSOPHY IS GROUNDED IN TENSION… DIFFERENTIATION AND RELEVANCE ARE POLAR

YET THE MOST COMPELLING BRANDS BRIDGE THIS CONFLICT

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WE ARE CAPTIVATED BY THIS TENSION

IN OUR CULTURE

SEDUCTIVELY

INNOCENT

REGULAR

ROYAL

BADASS

SENSITIVE

WISDOM

RECKLESS

DARK HERO

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LOOKING AT BAV® IMAGE DATA AROUND THE WORLD,

WE CAN BEGIN TO IDENTIFY WHERE THE PERCEPTUAL TENSIONS EXIST IN OUR CULTURE

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TENSITY PROVIDES THE FOUNDATION FOR SOME OF THE MOST

ICONIC BRANDS IN OUR CULTURE

EVERYMAN

EMPOWERMENT

PERFORMANCE

PASSION

APPROACHABLE

DESIGN

Affordable solutions for better living

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EXPRESSION OF TENSITY MUST TAKE INTO CONSIDERATION

THE DYNAMICS OF THE CONSUMER, THE CATEGORY, AND THE PRODUCT

• Brand Tensity™ provides a compelling brand foundation

• We must then integrate with consumer, category, and product insights to build a brand positioning

for our clients

Product Insights Brand Tensity™ Consumer and Category

Insights + +

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TO FIND OUT MORE ABOUT BAV® OR TO

UNDERSTAND YOUR BRAND’S TENSITY,

PLEASE CONTACT:

BAV@yr.com