Introduction
The Brand Asset Valuator (BAV) approach assesses a brand’s marketability and strength. In general, the success of a brand is founded on the discovery of four pillars, which evaluate or connect to certain facets of a brand. As a result, by considering the pillars, such as differentiation, relevance, esteem, and knowledge, the company can analyze its strengths and weaknesses and gain a competitive advantage.
The Four Pillars of the BAV Model
Differentiation
The main pillars of the given model are differentiation, relevance, esteem, and knowledge. First, differentiation refers to the uniqueness of a brand when compared to its competitors (Keller & Swaminathan, 2019). It measures how well a brand stands out in a crowded market (Keller & Swaminathan, 2019). Differentiation is essential because it helps the brand attract and retain customers.
Relevance and Esteem
Moreover, relevance is the degree to which a brand satisfies the requirements and desires of its intended market (Keller & Swaminathan, 2019). It helps analyze the brand’s ability to connect with its customers and stay relevant in their minds (Keller & Swaminathan, 2019). Another pillar, esteem, refers to customers’ perceptions of a brand’s quality and popularity. Understanding how well the brand is respected and admired in the market (Keller & Swaminathan, 2019) is necessary. It is critical because it helps the brand build customer loyalty.
Knowledge
Finally, knowledge refers to customers’ awareness of a brand (Keller & Swaminathan, 2019). It measures how well the brand is known and understood in the market (Keller & Swaminathan, 2019). This pillar is critical because it helps the brand attract and retain new customers.
Brands with Low Differentiation and High Relevance
Brands with low differentiation and high relevance are typically everyday products people need or use regularly. Examples of such brands include bottled water, toothpaste, and laundry detergent. These brands may not be unique, but they are highly relevant to the target audience, making them successful in the market (Keller & Swaminathan, 2019). Consequently, low differentiation might not always affect relevance.
Conclusion
Hence, by considering the pillars, which include differentiation, relevance, esteem, and knowledge, the organization can assess its strengths and shortcomings and acquire a competitive advantage. The BAV model is a helpful tool for determining a brand’s market worth and strength. Knowledge of the model’s four pillars can help any business better grasp what factors influence a brand’s success. Although they may not be distinctive, brands with low differentiation and high relevance are successful in the market because of their vital significance to the target demographic.
Reference
Keller, K., & Swaminathan, V. (2019). Strategic brand management: Building, measuring, and managing brand equity. Pearson.