BAV 101

BAV Consulting is a global strategic consultancy with expertise in corporate, brand and marketing strategies and customer insights.

1. Introduction to BAV BAV Consulting 2013

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 ENERGIZED DIFFERENTIATION The brand’s point of difference. Relates to margins. ESTEEM How well regarded the brand is. Relates to loyalty. KNOWLEDGE An intimate understanding of the brand. Relates to consumer experience. RELEVANCE How appropriate the brand is to you. Relates to market penetration. Leading Indicator Future Growth Value Current Indicator Current Operating Value Brand STRENGTH Brand STATURE Percentile rank 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 .

3. Source: BrandAsset ® Valuator USA All Adults 2012 The relationships between Pillars tells the story about a brand’s development D E > R D E < 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 REL Energized Differentiation Relevance DIF REL Energized Differentiation Relevance Examples Examples Examples Examples DIF REL Esteem Knowledge DIF REL Esteem Knowledge

4. And the four Pillars combine into Brand Strength and Brand Stature Brand Strength Energized Differentiation Relevance Knowledge Esteem 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.

5. 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 Leadership Niche Commodity or Eroded New, Unfocused or Unknown Ubiquitous 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 .

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 Arrogant Authentic Best Brand Carefree Cares for Customers Charming Daring Different Distinctive Down To Earth Dynamic Energetic Friendly Fun Gaining in Popularity Glamorous Good Value Healthy Helpful High Performance High Quality Independent Innovative Intelligent Kind Leader Obliging Original Prestigious Progressive Reliable Restrained Rugged Sensuous Simple Social Socially Responsible Straightforward Stylish Traditional Trendy Trustworthy Unapproachable Unique Up To Date Upper Class Visionary Worth 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.