Brand Asset Valuator Model Explained Briefly: A Comprehensive Look at the Brand Asset Valuator Model
In the dynamic world of branding, understanding consumer perception is key to success. Two global giants, Pepsi and Apple, have been under the microscope, with the Brand Asset Valuator (BAV) model providing insights into their brand strength and stature.
Developed by the global branding agency Young & Rubicam (Y&R), the BAV model measures brand value based on consumer perception. It captures multiple dimensions of brand strength and stature through research using qualitative and quantitative techniques. The research involves understanding consumer mindsets about brands across key pillars of brand health.
The BAV model measures brand value through five pillars: Differentiation, Relevance, Esteem, Knowledge, and Energy. These pillars help assess brand associations and attitudes, providing a holistic measure of brand equity that reflects not only recognition but also emotional connection and perceived value in consumers’ minds.
Pepsi, a household name in India, posted three consecutive months of double-digit growth in Q2 2022. This growth is reflected in the BAV model, with Pepsi occupying the leadership quadrant, indicating a strong brand performance. 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.
Apple, the most valuable brand in the world, also occupies the leadership quadrant. The tech giant's logo and the lowercase "i" it places before its product names are instantly recognizable. Apple's brand attributes include progressive, up-to-date, worth more, intelligent, innovative, and consistent brand experiences and products.
Brand stature, which includes esteem and knowledge, is a significant aspect of the BAV model. For Pepsi, brand esteem has increased due to the introduction of healthier drink options and a renewed focus on sustainability. Apple's brand esteem is high, reflecting the public perception of the Apple brand as extremely favorable in terms of product quality and popularity.
Relevance, another pillar, refers to how appropriate or meaningful a brand is to consumers. Pepsi differentiates itself from competitors, such as Coca-Cola, by having a distinct citrus overtone and positioning itself as more youthful and energetic. Apple, on the other hand, is differentiated by its product design and pricing.
Brand vitality, which includes differentiation and relevance, describes the growth potential of a brand. Both Pepsi and Apple, like other world brands, exhibit strong brand vitality.
The BAV power grid, a visual representation of the BAV model, helps clarify the role of each element in a marketing mix. It plots brands on a grid, with the horizontal axis representing esteem and knowledge, and the vertical axis representing the current strength of a brand in terms of relevance and differentiation.
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. Apple's brand relevance became even more robust during the pandemic.
The BAV model interviewed over 100,000 consumers in 32 countries to gauge their perception of more than 13,000 brands. The grid is then divided into four quadrants, called pillar patterns. The leadership quadrant embodies characteristics of all four pillars.
Pepsi performs extensive consumer research to ensure it stays relevant among its target audience. This focus on consumer insights is reflected in its strong performance in the BAV model. Similarly, Apple has consistently delivered innovative products that enrich consumers and society as a whole.
In conclusion, the BAV model provides a valuable tool for understanding consumer perception of brands. By focusing on differentiation, relevance, esteem, and knowledge, companies can gain insights into their brand strength and stature, and identify areas for strategic improvement. Both Pepsi and Apple, as leaders in their respective industries, demonstrate strong brand vitality and stature, reflecting their ability to stand out, remain relevant, and resonate with consumers.
- The BAV model, developed by Young & Rubicam, measures brand value based on consumer perception.
- Pepsi, a renowned brand, is currently experiencing a growth of three consecutive months, as per Q2 2022 records.
- Apple, the world's most valuable brand, also maintains a strong position due to its distinctive brand attributes.
- Brand stature, comprising esteem and knowledge, plays a significant role in the BAV model for both Pepsi and Apple.
- Pepsi's brand esteem has risen due to its focus on healthier drink options and sustainability.
- Apple's brand esteem is high, reflecting its perceived excellence in product quality and popularity.
- Relevance, a critical pillar in the BAV model, indicates Pepsi's distinct positioning compared to competitors like Coca-Cola.
- In the midst of the COVID-19 pandemic, Pepsi and Apple has demonstrated robust brand relevance, contributing to their strong brand vitality.
- The BAV power grid helps companies understand the role of each element in their marketing mix.
- Pepsi consistently conducts consumer research to ensure its relevance among its target audience.
- By focusing on differentiation, relevance, esteem, and knowledge, brands can gain valuable insights into their brand strength and stature, thereby identifying opportunities for strategic improvement, similar to Pepsi and Apple.
