BAV - Brand Asset Value tool
BAV stands for Brand Asset Valuator and refers to a brand equity model used to assess and measure the strength and value of a brand.
Providing insights into how consumers perceive and relate to a brand, it helps companies understand their brand's positioning in the market.
What is the Brand Asset Valuator?
The Brand Asset Valuator framework is widely adopted throughout the brand marketing industry, as it is useful in decision making stages regarding brand management, marketing strategies and brand positioning.
The BAV model evaluates brands based on four key dimensions:
- Differentiation: This dimension measures the distinctiveness and uniqueness of a brand compared to its competitors. It assesses whether a brand stands out and offers something different or better than other brands in the market.
- Relevance: Relevance evaluates the brand's alignment with the needs and aspirations of its target audience. It examines whether the brand is seen as meaningful, important, and appropriate to consumers' lifestyles, values, and preferences.
- Esteem (trust): It assesses the perceived quality and admiration of a brand. It looks at factors such as the brand's reputation, reliability, and perceived value for money. Esteem reflects how well the brand is regarded and respected by consumers.
Knowledge: Knowledge represents the awareness and familiarity consumers have with a brand. It measures how well consumers know and understand the brand, its products, and its values. Knowledge encompasses both brand awareness and brand associations.
BAV: Brand Asset Valuator
It refers to a brand equity model used to assess and measure the strength and value of a brand, to help companies understand their brand's positioning in the market.
How the BAV works
The BAV model requires brands to collect and analyse data through consumer surveys and research. Usually, consumers are given questionnaires designed to capture their perceptions and attitudes towards a brand. The questionnaires typically include a series of statements or attributes related to the four key dimensions seen above and they are administered to a representative sample of the target market or consumer group. Consumers are asked to rate the brand on each attribute using a rating scale (e.g., Likert scale) or other appropriate response formats.
Once the answers are collected, they are processed and analysed using statistical techniques. The responses are aggregated and summarised to derive meaningful insights about the brand's performance on each dimension.
Then, the scores for each dimension are compared to those of competitors or benchmark brands in the same industry or category to understand the brand's relative strengths and weaknesses. At this point, managers and marketers can identify areas for improvement, determine positioning strategies, and make informed decisions to enhance the brand's equity.
The BAV is not a rigid model and may show differences in application depending on the proposing institution or company.
The importance of trust
As we have seen, the BAV framework can show the levels of esteem, respect, and ultimately trust a brand has among consumers and competitors.
Trust is a key component in determining the overall value of a brand. In fact, when consumers trust a brand, they are more likely to admire it, find it meaningful, and their loyalty is high. And, as we know, loyalty is a key driver of sales.
Establishing trust is important in today's marketplace, but not easy. Consumers are increasingly aware of the risks associated with buying counterfeit products, particularly when shopping online or purchasing used items. Trust is key to ensuring that consumers feel confident in purchasing a fashion product, knowing that it will meet their expectations in terms of quality, design, functionality, and ethical manufacturing practices.
Brands that are transparent, authentic, and committed to their promises will be most successful in building trust. Conversely, failure to establish trust can damage a brand's reputation and profits.
But how do you create trust? In addition to providing transparency and traceability, a brand needs to show its uniqueness through storytelling that emphasises the elements that make it different and relevant.
To accomplish this, in addition to traditional marketing, brands today can also rely on connected products. These are products equipped with technologies that allow customers to access content and interact in a direct and personalised way with the brand. While they provide users with a superior customer experience, they also offer companies the opportunity to collect useful data to further improve their strategies.