Y&R's BAV Story
Y&R's BAV Story
Y&R's BAV Story
~1~
BrandAsset
VALUATOR?
Brand Development Findings
Brands - independent of their product category - develop in a
very specific progression of consumer perceptions.
When building a brand, Differentiation comes first; then
Relevance; then Esteem and ultimately, Knowledge. But the
real action takes place in the relationships between these
measures. Managing the relationships between the measures is
the key to brand health. The relationships illustrate a brand's
intrinsic value, its ability to generate margin, and its ability to
insulate against competitive substitution.
DIFFERENTIATION measures the strength of the brands meaning.
Consumer choice, brand essence and potential margin are all
driven by Differentiation. RELEVANCE measures the personal
appropriateness of a brand to consumers and is strongly tied to
household penetration. Relevance alone is not the key to brand
success. Rather, Relevance together with Differentiation form
BRAND STRENGTH, an important indicator of future performance
and potential. Relevant Differentiation is the major challenge for
all brands and a leading indicator of brand health. The
combination of ESTEEM and KNOWLEDGE form BRAND STATURE, a
more traditional measure that BrandAsset
Valuator has
determined to be a lagging indicator of brand health. As part of
the diagnostic process for managing brands, Y&R plots brands
on a "POWER GRID" reflecting each brand's Strength and Stature.
HOW ARE BRANDS BUILT?
BrandAsset
Valuator
shows that there is a distinct correlation between Relevance and
market penetration. Relevance drives franchise size.
BRAND STRENGTH
The relationship
between a brand's
Relevance and
Differentiation
represents brand
strength, which is
a strong indicator
of future performance. Relevant Differentiation - i.e. remaining
both relevant and differentiated - is the central challenge of
every brand. It is critical for all brands and applicable all over
the world.
the basis of ESTEEM
BrandAsset
Valuator serves as an
exceptional diagnostic tool for building and managing brands.
BrandAsset
XOTI C RESTI GE
Very strong Meaning.
Relevant to few, perhaps
due to limited distribution,
price, or high specialization.
Very highly regarded by all,
but un
by few.
Examples include:
( 6) BADGE
The brand has a powerful
meaning, is held in high
regard, and is well
understood by total
population
However it is relevant only to
a few, often due to price
Examples include:
(a) Special Media and entertainment (b) Luxary items that
are well understood by the total population.
( 7) EMBARRASSMENT
The brand is not highly
esteemed, but it is
Differentiated, Relevant, and
well understood by all
consumers.
Examples include:
(a) Brands that promise
Cleanliness (b) Exciting,
frivolous foods such as
snacks (c) sensationalistic Brands (d) Poor Quality brands
( 8) COMMODI TY
Brands that are more
Relevant than Differentiated,
and more Known than
Esteemed
Mass market brands that
are substitutable
Examples include: (a) Low-
end Convenience foods (b)
Mass market retailers (c) Unspecified Fast-Food restaurants
This material is Young&Rubicam Inc. ~11~
( 9) SPECI ALTY
The brand and its unique
meaning are well Known by
the total population, but few
actually use it
A brand that is established,
but niche
Examples include:
(a) highly specialized foods
(b) specialized vehicles
(c) some alcohol brands
( 10) BRAND OF THE PAST
A brand is Known, but not
Differentiated, Relevant or
Esteemed
Better remembered than
cared about
Examples include: Old, old
Brands
( 11) FUNCTI ONAL
A brand that lacks meaning,
Esteem and full
understanding by the
customer, but is still
Relevant because of its
functionality
Examples include:
(a) cleaning products
(b) cooking fats
This material is Young&Rubicam Inc. ~12~
( 12) FOR THOSE-IN-THE-KNOW
Not everyone fully
understands the meaning of
this brand, but all find it
Relevant and Esteemed
Examples include:
(a) pharmaceuticals
(b) corporations
(c) auto-care related brands
TYPICAL PILLAR PATTERNS
These brands demonstrated
the differences among brands
in different areas of the
PowerGrid in 1993.
MACLEANS was an unfocused
brand, having eroded to the
point of fading from
consumers' usness.
BOSTON CHICKEN was in the
Unrealized Potential area, with
a strong pillar pattern for a
young brand. It had the ability
to be a strong niche player, or
to further develop into a mainstream brand. DISNEY was in the
Leadership area a megabrand strong across all measures. TWA,
lacking in Relevant Differentiation, was in the Eroding Potential
area. It was demonstrating a strong warning signal that it was
losing reason for choice.
conscio
This material is Young&Rubicam Inc. ~13~
SAMPLE BRANDS
Among the sample brands surveyed in 1993, STARBUCKS and
FOXY were in the new brands area. BOSTON CHICKEN, SNAPPLE
and BARNES & NOBLE were brands with unrealized potential.
NETSCAPE and LUCENT were in the same area four years later in
1997. DISNEY was in the leadership area in 1993. KMART was in
the leadership area as well, but was already experiencing some
erosion of Strength. WESTERN UNION, GREYHOUND and TWA were
all eroding brands, while MACLEANS and MONEYGRAM had
eroded into unfocused brands. Between 1993 and 1997,
STARBUCKS grew from a new brand into a brand with strong
potential. BARNES & NOBLE and BOSTON CHICKEN began to
transform their unrealized potential into the early stages of
brand leadership. KMART, in the meantime, eroded from its
leadership position, by losing much of their Brand Strength.
This material is Young&Rubicam Inc. ~14~
FINANCIAL IMPLICATIONS OF BRAND MANAGEMENT
BrandAsset
Valuator
theory, have systematically demonstrated that they yield, on
average, higher margins, profit, growth and lower risk. Y&R's
clients benefit from Y&R's proprietary knowledge of how to
manage brands for financial advantage.
This material is Young&Rubicam Inc. ~15~
This material is Young&Rubicam Inc. ~16~
BRAND LANDSCAPE AND PERCENTILE RANK METRIC
BrandAsset
Valuator
data are reported as percentile ranks among all other brands
measured. This comparative metric allows for the diagnostic
assessments necessary to truly benefit from the cross-category
global perspective.
BRAND GLOBALIZATION
BrandAsset
Valuator by target
segment. The size and representative nature of the sample allow
for the diagnosis of a brand's health among core, opportunity
and/or problem segments. In fact, BrandAsset
can be used to
illustrate target issues or even identify some that may not be
easily observed in more traditional research. Additional insight
about a brand's competitive situation is often gained by
exploring this cross-consumer, cross-category, cross-cultural
data source.
For example, it is not always useful to look at brands in a
category through the eyes of the entire population when it is
likely that many of these consumers are somewhat irrelevant to
the marketers of these brands. A manufacturer of women's hair
care products may not be interested in the males in the BAV
study, but even this may not be a close enough look. While
appearing more complicated, the picture of hair care brands
changes in important and meaningful ways when the brands
are assessed by females in several age groups and actually
becomes clearer. Understanding client and competitor brand
health among the younger females in the study can suggest
opportunities and liabilities for each brand. And
This material is Young&Rubicam Inc. ~18~
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