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Brand Asset Valuator

Posted in Brand, Brand Experience, Business Strategy, and Customer Experience

Brand Asset Valuator (BAV) is a metric applied for the measurement of brand value of an entity. BAV was developed by Young and Rubicam. BAV measures a brand under the two broad categories: Brand Vitality and Brand Stature.

Brand Vitality refers to the growth potential of the brand. Brand Vitality is sub-divided into Differentiation and Relevance.

  • Differentiation is the ability of a brand to stand apart from its competitors. Not just different but how it is better.
  • Relevance refers to how closely consumers can relate to the brand’s offering and is a significant driver for a brand’s penetration.

Brand Stature refers to the brand’s power. Brand Stature is sub-divided into Esteem and Knowledge.

  • Esteem refers to consumers’ perception about the brand. Whether a brand is popular and it delivers on its stated promises.
  • Knowledge refers to the degree of awareness about a brand in the minds of consumers. This is very important in building a brand and making the consumers understand of what the brand actually stands for and its implicit message to the consumers.

Brand Differentiation commands pricing power and higher margins and esteem translates into forgiveness and loyalty.

Brands viewed with having greater differentiation then relevant are viewed as having momentum – new brands on the move or luxury brands with prestige.

Brands with higher relevant than differentiation tend to have huge profits but lower margins because they have to compete more on price.

Brands with more esteem than knowledge are better liked then known and brands with greater knowledge than esteem are heading in the wrong direction.

Brands tend to evolve is a cycle. They begin by building differentiation and relevance to become interesting niche brands then, if successful, build esteem and knowledge to become a leadership brand. But if the brands differentiator and relevance fade then they slip into mass market and commodity – brand erosion or worse.

Where is your brand? What steps do you need to take to be a brand leader or maintain your brand leadership?

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