INTRODUCTION TO BAV

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

ENERGIZEDDIFFERENTIATIONThe brand’s point

of difference. Relates to margins.

ESTEEMHow well

regarded the brand is.Relates to

loyalty.

KNOWLEDGEAn intimate

understanding of the brand.

Relates to consumer experience.

RELEVANCEHow appropriate the

brand is to you. Relates to market

penetration.

Leading IndicatorFuture Growth Value

Current IndicatorCurrent Operating Value

Brand STRENGTH Brand STATURE

Perc

en

tile

ra

nk

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. April 18, 2023

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

April 18, 2023

Page 4

And the four Pillars combine into Brand Strength and Brand Stature

Brand Strength

En

erg

ized

D

iffere

nti

ati

on

Rele

van

ce

Kn

ow

led

ge

Este

em

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.

April 18, 2023

Page 5

0

50

100

0 50 100

Bra

nd S

TR

EN

GTH

En

erg

ized

Diff

ere

nti

ati

on

& R

ele

van

ce

Brand STATUREEsteem & 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. April 18, 2023

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

ArrogantAuthentic

Best BrandCarefree

Cares for Customers

CharmingDaring

Different

Distinctive

Down To Earth

Dynamic

Energetic

Friendly

Fun

Gaining in Popularity

Glamorous

Good Value

Healthy

Helpful

High Performance

High QualityIndependent

InnovativeIntelligent

KindLeader

ObligingOriginal

Prestigious

Progressive

Reliable

Restrained

Rugged

Sensuous

Simple

Social

Socially Responsible

Straightforward

Stylish

Traditional

Trendy

TrustworthyUnapproachable

Unique

Up To DateUpper Class

VisionaryWorth 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.

April 18, 2023