What Is The Brand Asset Valuator Model? Brand Asset Valuator Model In A Nutshell

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.

Aspect	Explanation
Definition	The Brand Asset Valuator (BAV) Model is a brand assessment framework designed to measure and analyze brand equity. It assesses consumer perceptions of brands based on four key brand dimensions. It helps organizations understand how their brand is positioned in the market and identify areas for improvement.
Key Concepts	– Brand Differentiation: The degree to which a brand is seen as unique and distinct from competitors. – Brand Relevance: The extent to which a brand meets consumers’ needs and is relevant to their lives. – Brand Esteem: The level of respect and admiration consumers have for a brand. – Brand Knowledge: The depth of consumers’ awareness and understanding of a brand.
Four Brand Dimensions	– Brand Differentiation: Measures how well a brand stands out from competitors. – Brand Relevance: Assesses how well a brand meets consumers’ needs. – Brand Esteem: Gauges the level of consumer respect and admiration for the brand. – Brand Knowledge: Evaluates consumers’ awareness and understanding of the brand.
Characteristics	– Comprehensive Assessment: The BAV Model provides a holistic view of brand equity by considering four critical dimensions. – Consumer-Centric: It focuses on consumers’ perceptions and attitudes toward brands. – Quantitative Analysis: The model involves structured surveys and data analysis to quantify brand equity. – Strategic Insights: Helps organizations identify areas for brand improvement and develop targeted brand strategies.
Implications	– Strategic Decision-Making: Organizations can use BAV insights to make informed decisions about brand positioning, marketing strategies, and communication efforts. – Brand Tracking: Regular BAV assessments allow brands to monitor changes in consumer perceptions over time and adapt their strategies accordingly. – Competitive Analysis: Brands can compare their BAV scores with competitors to identify relative strengths and weaknesses. – Portfolio Management: Useful for managing brand portfolios and making decisions about brand investments.
Advantages	– Holistic Assessment: Offers a comprehensive view of brand health and equity. – Actionable Insights: Provides specific areas for improvement and strategic guidance. – Benchmarking: Enables brands to compare themselves to competitors and industry benchmarks. – Longitudinal Analysis: Allows for tracking changes in brand equity over time.
Limitations	– Data-Intensive: Conducting BAV assessments typically requires large-scale surveys and data analysis, which can be resource-intensive. – Subjective Elements: Some aspects of brand perception are inherently subjective and may vary across different consumer groups. – Time-Consuming: It may take time to collect and analyze the data necessary for BAV assessments. – External Factors: Brand perceptions can also be influenced by external factors such as market trends and economic conditions.
Applications	– Brand Management: BAV is a valuable tool for brand managers to assess, monitor, and improve brand equity. – Marketing Strategy: Helps in developing effective marketing and communication strategies. – Mergers and Acquisitions: Used to evaluate the brand assets of companies during mergers or acquisitions. – Competitive Analysis: Brands use BAV to benchmark themselves against competitors.
Conclusion	The Brand Asset Valuator (BAV) Model is a powerful tool for assessing and managing brand equity. By focusing on four key dimensions, it provides actionable insights that can guide strategic decisions, marketing efforts, and brand improvement initiatives. As the business landscape evolves, BAV will remain a valuable resource for organizations seeking to understand and enhance their brand perceptions in the market.

Table of Contents

Understanding the brand asset valuator model
The four pillars of the BAV model
- Brand vitality
  - Differentiation
  - Relevance
- Brand stature
  - Esteem
  - Knowledge
The brand asset valuator power grid
- New/unfocused
- Niche/unrealized
- Leadership
- Eroded
Apple’s Brand asset valuator model case study
- Differentiation
- Relevance
  - Ruthless pragmatism
  - Distinctively inspired
  - Pervasively innovative
  - Customer obsessed
- Esteem
- Knowledge
Pepsi Brand asset valuator model case study
- Differentiation
- Relevance
- Esteem
- Knowledge
Case Studies
Key takeaways
Key Highlights:
Visual Marketing Glossary

Understanding the brand asset valuator model

The 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 model

The four pillars are arranged under two broad categories: brand vitality and brand stature.

Brand vitality

Brand vitality describes the growth potential of a brand and includes:

Differentiation

Or the ability of a brand to stand out from competitors.

Differentiation is a powerful driver of curiosity, pricing power, and brand advocacy.

While differentiation is a good starting point, it tends to decline as the brand reaches maturity.

Relevance

How appropriate or meaningful is the brand to consumers? Does it meet expectations around price or convenience?

The brand asset valuator model notes that there is a direct correlation between relevance, differentiation, and market penetration.

Brand stature

Brand 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:

Esteem

Or the consumer perceptions of a brand.

To what extent do consumers hold the brand in high regard? Esteem is driven by two factors.

The first is the public perception of brand quality and popularity.

The second factor considers how the proportions of quality and popularity differ from country to country.

Knowledge

The final pillar is where all brands want to be.

Here, consumers are aware of the brand and understand its identity.

High levels of awareness cause consumers to become intimate with a brand.

The brand asset valuator power grid

The 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:

New/unfocused

Describing a new brand that has recently entered the market, but occasionally an old, stagnant, unfocused, or unknown brand.

Both must seek to build awareness and traction by establishing uniqueness, meaning, and personality.

Niche/unrealized

This pillar pattern includes successfully emerging or momentum brands leading with differentiation.

They experience healthy and consistent growth which eventually builds relevance, esteem, and knowledge.

Leadership

At this point, brand leadership has been achieved with the organization enjoying increased revenue.

Brand leaders display high levels of all four pillars.

However, the BAV model acknowledges that most leading brands will decline if they fail to innovate and maintain a competitive advantage.

Eroded

Tese brands have high knowledge but low esteem, relevance, and differentiation.

That is, consumers are aware of the brand but choose to shop elsewhere.

In theory, the brand then becomes old and stagnant which returns it to the first pillar pattern.

Apple’s Brand asset valuator model case study

Let’s conclude the research 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.

Differentiation

Apple 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.

Relevance

In 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:

Ruthless pragmatism

Apple is a brand that continually tries to make consumers’ lives easier with consistent brand experiences and products.

Distinctively inspired

The company is trustworthy, inspiring, and modern, with a purpose to create product products that enrich the lives of its users.

Pervasively innovative

Apple is always innovating to maintain its competitive advantage and meet unmet consumer needs.

Customer obsessed

Lastly, Apple knows what matters most to its customers and finds ways to deliver.

Apple’s brand relevance became even most robust as technology use became a necessity during the pandemic.

Esteem

The 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.

Knowledge

Apple 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:

Progressive.
Up to date.
Worth more.
Intelligent, and
Innovative.

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.

Pepsi Brand asset valuator model case study

In the second brand asset valuator case study, we will take a look at Pepsi.

Like Apple and other world brands, Pepsi embodies aspects of each of the four pillars and thus occupies the model’s leadership quadrant.

Differentiation

Pepsi and Coca-Cola have been locked in a battle known as the Cola Wars for decades, so how does Pepsi differentiate its core products?

At the most simplistic level, Pepsi’s cola drinks have a distinct citrus overtone while Coca-Cola has more of a vanilla-raisin flavor.

In many blind tests, however, consumers are unable to tell the difference between the two.

This fact makes brand differentiation particularly important for Pepsi which is positioned as more youthful and energetic than its main competitor.

This characteristic aligns with the company’s high sugar, high caffeine drinks that appeal to younger generations of consumers who love sports, music, and having fun.

Relevance

Pepsi was founded in 1965 and, despite multiple brand transformations over the years, has managed to stay relevant among its target audience.

In India where it posted three consecutive months of double-digit growth in Q2 2022, Pepsi performs extensive consumer research to ensure it is always abreast of pop culture trends.

This enables the company to tell stories that resonate with consumers on popular topics such as cricket, music, and Bollywood.

Moving forward, Pepsi’s brand relevance will enable it to reflect the confidence, swag, energy, and self-belief of Indian Gen Z and millennials.

Esteem

Pepsi is one of the most valuable soft drink brands in the world with an estimated value in this segment alone of around $14 billion.

To some extent, brand esteem has increased because of the introduction of healthier drink options and a renewed focus on sustainability.

But more interestingly, the company uses product packaging to differentiate its portfolio of 22 brands with a value of over $1 billion.

Pepsi understands the connection between attractive product packaging and perceived consumer value, and, for this reason, periodically refreshes each brand to ensure it is on-trend.

The immense popularity of Pepsi around the world is also supported by a vast advertising budget where products are promoted by celebrities and at high-profile events.

In a 2021 study conducted by Real Research Media, over 82% of respondents were aware of the Pepsi brand with over 72% consuming the beverage.

Knowledge

In a separate evaluation of brand intimacy in the beverage industry during COVID-19, research firm MBLM found that Pepsi occupied the number 2 spot behind Coca-Cola.

To measure brand intimacy, MBLM analyzed what it called the “can’t live without” measure to determine how essential the brand was in consumers’ lives.

Pepsi scored well because it provided continued comfort and gratification throughout the pandemic and, as many consumers returned to bars and restaurants, they enjoyed experiencing the Pepsi brand in more traditional contexts.

Case Studies

Apple:
- Differentiation: Apple differentiates itself through innovative product design and user-friendly interfaces. Its products, such as the iPhone and MacBook, stand out in the market for their unique features and aesthetics.
- Relevance: Apple maintains relevance by consistently meeting consumer expectations for high-quality, cutting-edge technology. Its products are seen as essential in the lives of many consumers.
- Esteem: Apple enjoys a high level of consumer esteem due to its reputation for quality and popularity. Owning Apple products often carries a sense of prestige and status.
- Knowledge: Apple has built a strong brand knowledge base over the years. Its logo and product names (e.g., iPhone, iPad) are instantly recognizable, and consumers are intimately familiar with its brand attributes of innovation and user-friendliness.
Google:
- Differentiation: Google differentiates itself by offering the most relevant and efficient search engine. Its algorithm sets it apart from competitors in providing accurate search results.
- Relevance: Google remains relevant by continuously adapting to changing user needs and technological advancements. It maintains its position as the primary source of online information.
- Esteem: Google is highly esteemed for its reliability and trustworthiness. Users believe in the accuracy of its search results, enhancing its brand value.
- Knowledge: Google is one of the most recognized brands globally. Its name has become synonymous with internet searches, and users are intimately familiar with its interface and services.
Microsoft:
- Differentiation: Microsoft differentiates itself by offering a suite of productivity software like Microsoft Office. It emphasizes compatibility and features for business and personal use.
- Relevance: Microsoft remains relevant by continuously updating and improving its software to meet the changing needs of users. Its products are considered essential for many tasks.
- Esteem: Microsoft has high brand esteem due to its long history and reputation for reliability. It is seen as a trusted provider of software solutions.
- Knowledge: Microsoft is globally recognized, and its brand knowledge is strong. Its Windows operating system is well-known, and users are familiar with its software products.
Amazon:
- Differentiation: Amazon differentiates itself by offering a vast selection of products, fast shipping through Amazon Prime, and a user-friendly e-commerce platform.
- Relevance: Amazon remains relevant by focusing on customer-centricity and convenience. Its services, such as one-click ordering and Prime membership, cater to consumers’ needs.
- Esteem: Amazon is esteemed for its reliability and commitment to customer satisfaction. It has built a reputation as a dependable online retailer.
- Knowledge: Amazon is one of the most recognized e-commerce brands globally. Its logo and services are familiar to consumers, and its brand knowledge is extensive.
Tesla:
- Differentiation: Tesla differentiates itself through its electric vehicle (EV) technology and commitment to sustainable transportation. Its EVs are known for their innovation and cutting-edge features.
- Relevance: Tesla remains relevant by addressing the growing demand for eco-friendly transportation solutions. Its products align with consumers’ increasing environmental concerns.
- Esteem: Tesla enjoys a high level of esteem for its role in revolutionizing the automotive industry. It’s seen as a leader in EV technology and has a devoted following.
- Knowledge: Tesla is globally recognized, and its brand knowledge is strong. Its Model S, Model 3, and other products are well-known, and consumers are familiar with its vision for the future of transportation.
Facebook (Meta Platforms):
- Differentiation: Facebook (now Meta Platforms) differentiates itself by providing a social media platform that connects billions of users worldwide. Its acquisition of VR technology positions it as a leader in the metaverse.
- Relevance: Meta Platforms remains relevant by evolving its platforms to match changing online behaviors and interests. Its social media networks continue to be integral to many users’ lives.
- Esteem: Despite controversies, Meta Platforms is esteemed for its influence in the social media space and its commitment to innovation, including the development of the metaverse.
- Knowledge: Meta Platforms is one of the most recognizable tech companies globally. Facebook, Instagram, and WhatsApp are household names, and users are highly familiar with its platforms.
Netflix:
- Differentiation: Netflix differentiates itself through its extensive library of original content and user-friendly streaming platform. It’s known for pioneering the streaming revolution.
- Relevance: Netflix remains relevant by consistently delivering a wide range of content choices and adapting to viewers’ preferences. It’s a go-to platform for entertainment.
- Esteem: Netflix is esteemed for its quality original programming and disruption of traditional television. It’s viewed as a leading entertainment provider.
- Knowledge: Netflix is a well-recognized streaming service globally. Its red logo and the concept of “binge-watching” are widely known, and consumers are intimately familiar with its content.
Samsung:
- Differentiation: Samsung differentiates itself through a diverse range of consumer electronics, including smartphones, TVs, and home appliances. It emphasizes innovation and cutting-edge technology.
- Relevance: Samsung remains relevant by continuously innovating and providing a broad array of consumer products. It’s considered a reliable choice for electronics.
- Esteem: Samsung has high esteem due to its reputation for producing quality electronics and its global presence. It’s seen as a top choice for various tech devices.
- Knowledge: Samsung is a globally recognized tech brand. Its logo, Galaxy smartphones, and various product lines are well-known, and consumers have extensive knowledge of its offerings.

Key takeaways

The brand asset valuator model measures brand value as a logical progression based on consumer perceptions. The model is underpinned by extensive consumer research data.
The brand asset valuator model is based on four pillars: differentiation, relevance, esteem, and knowledge. New brands start in the differentiation phase and progress to the knowledge phase.
The brand asset valuator model power grid plots the relative strength or weakness of a brand. This allows the business to determine its overall brand equity and strategize accordingly.

Key Highlights:

The Brand Asset Valuator (BAV) model measures brand value and is based on extensive consumer research data.
BAV’s key finding is that brand value develops progressively in the mind of the consumer over time.
The model consists of four pillars: Differentiation, Relevance, Esteem, and Knowledge.
Differentiation: Brands must stand out from competitors to drive curiosity, pricing power, and brand advocacy. It often declines as a brand matures.
Relevance: A brand’s appropriateness and meaning to consumers affect its market penetration and differentiation.
Esteem: Esteem reflects consumer perceptions of a brand’s quality, popularity, and status, influencing pricing and perceived value.
Knowledge: Brands aim for high awareness and understanding, as it makes consumers more intimate with the brand.
The BAV power grid helps plot a brand’s strength or weakness in these pillars, leading to strategic insights.
It divides brands into four quadrants: New/Unfocused, Niche/Unrealized, Leadership, and Eroded.
Apple Case Study: Apple’s brand demonstrates leadership in all BAV pillars. Its differentiation is driven by product design and premium pricing. Apple’s brand is relevant, innovative, and customer-focused. High esteem and knowledge are attributed to consistent branding.
Pepsi Case Study: Pepsi competes with Coca-Cola by differentiating with a distinct flavor and youthful image. It remains relevant through consumer research and trend awareness. Esteem and knowledge are bolstered by packaging, advertising, and worldwide popularity.
The BAV model helps businesses evaluate and strategize their brand equity effectively, aiming to progress toward the leadership quadrant.

Related Frameworks	Description	When to Apply
Brand Equity Pyramid	The Brand Equity Pyramid is a model that illustrates the hierarchy of brand building, starting from basic attributes and features at the base, moving up to functional benefits, emotional benefits, and finally, brand resonance at the top. It helps organizations understand the layers of customer perception and loyalty that contribute to brand value.	When analyzing brand perception and customer loyalty, identifying brand strengths and areas for improvement, or developing brand positioning and marketing strategies to enhance brand equity and customer engagement.
Customer-Based Brand Equity (CBBE) Model	The CBBE Model is a framework developed by Kevin Lane Keller that emphasizes building brand equity by creating strong, favorable brand associations in the minds of consumers. It consists of four key steps: brand salience, brand performance, brand imagery, and brand judgments/feelings/resonance. It helps organizations measure and manage brand equity.	When assessing brand perception, understanding customer preferences and loyalty drivers, or developing brand-building strategies and marketing campaigns to enhance brand resonance and customer engagement.
Keller’s Brand Equity Model	Keller’s Brand Equity Model is similar to the CBBE Model and emphasizes building brand equity through brand knowledge and brand image. It consists of brand awareness and brand image, with each category further divided into brand salience, brand performance, brand imagery, brand judgments, and brand feelings/resonance. It helps organizations understand and manage brand perception.	When analyzing brand awareness and perceived quality, assessing brand associations and brand loyalty, or developing brand-building strategies and marketing initiatives to strengthen brand equity and customer relationships.
Brand Resonance Model	The Brand Resonance Model is a framework developed by Kevin Lane Keller that emphasizes creating strong connections with customers to achieve brand resonance. It consists of four stages: salience, performance, imagery, and resonance. It helps organizations understand the depth and intensity of customer relationships with the brand.	When evaluating brand loyalty and engagement, measuring customer satisfaction and brand loyalty, or developing loyalty-building strategies and customer retention programs to foster brand resonance and advocacy.
Brand Wheel	The Brand Wheel is a model that visualizes the key components of a brand, including brand identity, brand personality, brand promise, brand experience, and brand culture. It helps organizations understand the holistic nature of brand building and develop strategies to enhance brand consistency and authenticity.	When defining brand identity and personality, articulating brand promise and value proposition, or aligning brand experience and culture to create a cohesive and compelling brand narrative that resonates with customers.
Brand Positioning Map	The Brand Positioning Map is a visual representation of the competitive landscape, with brands plotted based on two key attributes or dimensions that are important to consumers. It helps organizations identify their competitive position relative to other brands and develop strategies to differentiate themselves effectively in the market.	When analyzing competitive positioning, identifying market opportunities and white space, or developing brand differentiation and positioning strategies to stand out from competitors and resonate with target customers.
Brand Value Chain	The Brand Value Chain is a model that illustrates how marketing activities contribute to building brand value and generating financial returns. It consists of four components: marketing program investment, customer mindset, market performance, and shareholder value. It helps organizations measure and optimize the impact of marketing efforts on brand equity.	When evaluating marketing ROI, measuring brand performance and financial impact, or optimizing marketing strategies and investment decisions to maximize brand value and shareholder returns.
Brand Extension Framework	The Brand Extension Framework helps organizations assess the feasibility and potential success of extending their brand into new product categories or markets. It involves evaluating factors such as brand fit, consumer perceptions, competitive dynamics, and potential risks and rewards. It helps organizations make informed decisions about brand extensions.	When considering brand expansion or diversification, assessing market opportunities and consumer receptivity, or mitigating brand risks and ensuring brand consistency in new product categories or markets.
Perceptual Mapping	Perceptual Mapping is a tool used to visualize and analyze how brands are perceived by consumers relative to each other based on key attributes or dimensions. It helps organizations understand the competitive landscape, identify market segments, and develop positioning strategies to differentiate their brand effectively.	When analyzing brand perception and competitive positioning, identifying market segments and target audiences, or developing brand positioning and marketing strategies to resonate with specific consumer preferences and needs.
Brand Identity Prism	The Brand Identity Prism is a model developed by Jean-Noël Kapferer that represents the six facets of brand identity: physique, personality, culture, relationship, reflection, and self-image. It helps organizations articulate their brand identity and develop strategies to communicate their unique brand essence effectively.	When defining brand identity and personality traits, articulating brand values and emotional appeal, or aligning brand messaging and communications to create a consistent and compelling brand identity that resonates with target customers.
Brand Experience Framework	The Brand Experience Framework focuses on creating memorable and meaningful interactions between consumers and the brand across touchpoints. It involves designing holistic brand experiences that evoke emotions, build relationships, and differentiate the brand in the minds of consumers. It helps organizations foster brand loyalty and advocacy.	When designing customer experiences and brand interactions, identifying touchpoints and emotional triggers, or optimizing brand touchpoints and customer journeys to create positive brand experiences and build long-term relationships with customers.