Brand Asset Valuator (BAV)

Brand Asset Valuator (BAV) - toolshero

This article provides a practical explanation of Brand Asset Valuator (BAV). After reading, you will understand the basics of this powerful branding tool.

What is Brand Asset Valuator (BAV)?

A quality brand name is important for organisations; with a strong brand name, their products and/or services are recognised by (potential) customers, suppliers, and other parties. All these groups will directly link the brand name with a certain level of quality, assurance, and service. It is exactly for this reason that large and reputable top brands perform better than smaller, unknown brands. The Brand Asset Valuator Power Grid of the leading American communication agency Young & Rubicam includes four quadrants, depicting brands and their development. Using this quadrant, one can determine whether a brand is strong or not and what the consequences are for the turnover of the product and/or services. In other words, the Brand Asset Valuator (BAV) measures the strength and growth potential of brands and brand names. The model is based on the ImagePower model of the American design agency Landor Associates. In the 1980s, they used this model to indicate that, when it comes to brands names, a distinction should be made between ‘Esteem Index’ and ‘Share-of-mind Index’, in which ‘esteem’ refers to the consumer’s appreciation for a certain brand and ‘share-of-mind’ to the level of brand recognition.

Main Dimensions

In the Brand Asset Valuator (BAV), the added value of a specific brand is viewed from the consumer’s perspective. It takes a lot of time and energy to build strong brand names. Strong brand names add value to a product and/or service, through which an organisation can distinguish itself from competitors. In measuring the value of a brand, Brand Asset Valuator (BAV) consists of two dimensions:

1. Brand Vitality

Brand Vitality indicates the brand strength; this is the growth potential of the brand and consists of two variables:

Differentiation

To what extent is the brand unique compared to others?

Relevance

Does the brand respond to the personal need of the consumer?

2. Brand Stature

Brand Stature as the name suggests, indicates the brand’s overall prestige; it reflects the current brand strength (stature) and consist of the following two variables:

Esteem

Does the brand ensure the needs and wishes of consumers are satisfied?

Knowledge and Understanding

How familiar are consumers with the brand and do they understand the brand’s overall identity?

The variables Appreciation and Knowledge are directly derived from the aforementioned ImagePower model.

Brand Asset Valuator Variables

The aforementioned variables are explained further below:

1. Differentiation

A successful brand will have to distinguish itself from other brands. This differentiation must be unique as well as different from competitors; it must propagate the vision and mission of the organisation, while at the same time be distinctive. The more powerful a brand name, the higher the price an organisation can sell the product for. This explains how top brands charge relatively higher prices than lesser known brands.

2. Relevance

Within the Brand Asset Valuator (BAV), this is about the relevance the brand name has for the consumer. To what extent does the brand respond to the needs, wishes, and requirements of the consumer? In addition to their basic needs, consumers often want a tailor-made product that meets all their specific requirements. Think of price-quality ratio, service, functionality, user-friendliness, shape, regular customer promotions, and so on. The better organisations are aware of the consumer’s wishes and requirements, the more they can associate these with their brand name and thus attract customers.

3. Esteem

Consumers often connect a certain image with a product or brand. This is also referred to as emblem communication. It ensures a Louis Vuitton bag holds more prestige than a bag from an unknown brand. A brand name’s esteem is linked to the conformity of a group of users. As soon as the brand meets the expectations of a larger group, it will give the consumer additional prestige within this group.

4. Knowledge

Consumers will make a conscious decision to buy a certain brand as soon as they know what it stands for. Organisations place great importance on propagating their mission and vision in the knowledge that this will determine their image through the brand. Knowledge of the brand is part of this.

Brand Asset Valuator quadrants

In applying the Brand Asset Valuator (BAV), a grid consisting of four quadrants is created. By addressing these four quadrants, companies can build and maintain a brand name. Each quadrant indicates a degree of brand awareness. At the basis of the model are Brand Vitality on the Y-axis and Brand Stature on the X-axis. The Y-axis shows to what extent Relevance and Differentiation are either low or high. The X-axis shows the same for Esteem and Knowledge. All combinations result in the following four quadrants:

Brand Asset Valuator Power Grid (BAV) model - toolshero

New Brand

The Brand Vitality and Brand Stature are both low. The new product or service may already be distinctive, but not yet known to consumers. Marketing is required to get the brand in the minds of consumers and to convince them to give the new product a try.

Development Brand

The Brand Vitality is high and the Brand Stature is low. The brand is distinctive enough with regard to competitors, but more awareness needs to be generated. This is done through promotional activities and information transfer.

Brand Asset Valuator and Brand Leadership

The Brand Vitality and Brand Stature are both high, which means the highest goal has been achieved. One can speak of a top brand that is popular among consumers and has significant sales. It is wise for companies to do all they can to maintain this status. A name change isn’t a good idea here, and neither is a rigorous change of the product or service. After all, the customer relies on the brand.

Brand Loss

The Brand Vitality and Brand Stature are both low. This may be due to various factors. Changes in the environment, new developments and trends, and scandals and negative publicity; they can all bring a brand to the edge of the abyss. Competitors have taken over the market and the organisation will have difficulty returning to their previous position.

Brand Asset Valuator and Loyalty

Using the Brand Asset Valuator (BAV), one can give an indication of a brand’s market position. Organisations can create their brand policy by analysing the environment and implementing an appropriate strategy. For example, the brand name can further be expanded upon by means of a marketing campaign, improving the market position even further. The stronger the brand, the more familiar it will be among potential customers and the more appreciation it will evoke. This ensures consumers become loyal to a specific brand, as a result of which they will make repeat purchases. They’ll have a positive impression of the brand and experience with it, and they will likely share these with others. Generally speaking, loyal consumers have gone through all stages and are now more or less fans of ‘their’ brand. However, there is always the danger that consumers will get bored with a brand. In other words, organisations must continuously work on building their brand proposition.

Now it’s your turn

What do you think? Are you familiar with Brand Asset Valuator (BAV)? What are your experiences with Brand Asset Valuator (BAV) within your organisation? Do you have any tips or additions?

Share your experience and knowledge in the comments box below.

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More information

  1. Costa, R., & Evangelista, S. (2008). An AHP approach to assess brand intangible assets. Measuring Business Excellence, 12(2), 68-78.
  2. de Mortanges, C. P., & Van Riel, A. (2003). Brand equity and shareholder value. European management journal, 21(4), 521-527.
  3. Marcus, A. (2004). Branding 101. interactions, 11(5), 14-21.

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Patty Mulder
About the Author

Patty Mulder is an Dutch expert on Management Skills, Personal Effectiveness and Business Communication. She is also a Content writer, Business Coach and Company Trainer and lives in the Netherlands (Europe).
Note: all her articles are written in Dutch and we translated her articles in English!

1 comment

  1. BAV Power Grid does not only help in evaluating / auditing and then mending deficiencies in the brand but can also be helpful when a brand has to be acquired by another entity , especially in a Pluralistic Brand Architecture where it stands alone . The advantages and the disadvantages can be observed accordingly for devising future marketing strategy .

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