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The brand asset valuator (BAV) model measures the brand value of an organization. Developed by advertising agency Young & Rubicam, the key finding of the program was that brand value emerges only once sufficient time has passed. Put differently, brand perception develops progressively in the mind of the consumer. Understanding the brand asset valuator modelThe brand asset valuator model is the result of a research program conducted by advertising agency Young & Rubicam. The agency interviewed over 100,000 consumers in 32 countries to gauge their perception of more than 13,000 brands. The key finding of the program was that brand value emerges only once sufficient time has passed. Put differently, brand perception develops progressively in the mind of the consumer. This progression is explained via four pillars: differentiation, relevance, esteem, and knowledge. In the next section, we’ll take a look at each pillar in more detail. The four pillars of the BAV modelThe four pillars are arranged under two broad categories: brand vitality and brand stature. Brand vitalityBrand vitality describes the growth potential of a brand and includes:
Brand statureBrand stature describes the consumer response to a brand. As such, it reflects current brand performance and is a strong determinant of brand strategy. Brand stature includes:
The brand asset valuator power gridThe BAV power grid can be used to capture the relationship between each of the four pillars. Power grids show the relative strengths and weaknesses of a brand, which clarifies strategic direction. They also help clarify the role of each element in a marketing mix. On the vertical axis of the grid, the current strength of a brand in terms of relevance and differentiation is plotted. On the horizontal axis, esteem and knowledge are plotted. Both axes are measured from low to high, with a new brand starting its journey from the bottom left-hand corner and progressing through each pillar. The grid is then divided into four quadrants, called pillar patterns:
Brand asset valuator model case studyLet’s conclude this article by taking a look at a brand asset valuator model case study involving tech company Apple. The Apple brand is the most valuable in the world, so it is perhaps obvious that the company occupies the leadership quadrant explained above which embodies characteristics of all four pillars. To better understand Apple’s dominance as a brand, we’ll delve into each of the four pillars in more detail below. DifferentiationApple can capture attention in the cultural landscape like no other. In a now-infamous 1997 speech announcing Apple’s rebirth, CEO Steve Jobs introduced the mantra “Think Different” to his colleagues and employees. Brand differentiation for Apple is mostly due to product design, which has been a hallmark of the company since it was founded. When the iMac, iPod, iPad, and iPhone were released, there was nothing else on the market that could match these products for their intuitive and streamlined functionality. Pricing is also used to differentiate the Apple brand. While most manufacturers of consumer electronics sell lower-priced goods at higher volumes for slimmer profit margins, most of Apple’s products occupy the premium end of the market with a price proportionate to quality. Since the company has a loyal and devoted customer base, it can charge higher prices and command more attractive profit margins as a result. RelevanceIn 2021, it was announced that Apple was the most relevant brand to consumers for the sixth year running after a survey involving 13,000 consumers and 228 brands. According to consultancy company Prophet, Apple earned near-perfect scores in the following characteristics of brand relevance:
Apple’s brand relevance became even most robust as technology use became a necessity during the pandemic. EsteemThe public perception of the Apple brand is extremely favorable in terms of product quality and popularity. This increases perceived value which, as we discussed earlier, means customers are willing to pay a higher price for Apple products. Product quality has obvious connotations for perceived value, but the status afforded to consumers who own Apple products also increases brand esteem in a no less significant way. The brand asset valuator model also measures brand esteem according to the extent to which quality and popularity differ by country or culture. Considering Apple is the world’s most valuable brand with the App Store available in 175 countries and regions, these traits likely differ less when compared to other brands. Having said that, the Apple brand is most popular in wealthy markets where consumers have more disposable income. In less developed countries, Android and a slew of smaller competitors tend to be more popular. KnowledgeApple has carefully and methodically built its brand for over 40 years and has consistently delivered innovative products that have enriched consumers and society as a whole. The company has a core identity that consumers understand and are intimate with. This has been facilitated by consistent brand attributes that have remained more or less the same throughout the company’s history. These attributes include:
Apple’s logo and the lowercase “i” it places before its product names are also instantly recognizable. This increases the sense of intimacy between consumers and what is a profoundly humanistic company that supports worthy causes, communities, and people. Key takeaways:
Connected Business ConceptsBrand EssenceBrand AwarenessBrand BuildingBrand EquityBrand PositioningBrand PromiseMain Free Guides: |