A brand’s strength depends on the loyalty of the public, the quality of its products, and its reputation. A strong brand is not only built on visual identity, but from the value it generates for consumers.
As Juan F. Arjona Harry, President and CEO of Strategee, explains, “having a strong brand that generates demand is the central objective of any marketer.”
However, one of the most widely used models for assessing the strength of a brand is the Brand Asset Valuator (BAV), developed by Young & Rubicam (Y&R) and managed by Landor.
This methodology defines a company’s future growth potential based on two fundamental metrics:
- Differentiator: Measuring how unique, innovative and different the brand is when compared to competitors
- Relevance: Measuring how useful, appropriate, and meaningful a brand is to consumers’ daily lives
No company remains in the same position. Brands evolve, grow, and, if they fail to innovate, they can lose relevance. According to the BAV matrix, the main stages of this cycle are as follows:
1. Potential Brands: High differentiation but low relevance. These are new brands with room to grow
2. Leading Brands: High differentiation, relevance and stature. These brands have the highest profits and influence
3. Mature Brands: Maintain influence, but their differentiation begins to fall. These brands are at risk of stagnation.
4. Declining brands: Little differentiation and relevance. These brands compete only on price and begin to lose value.
Brands go through different stages, but its positioning is not definitive. A company can strengthen its brand if it knows its consumers. Likewise, a brand can adapt its strategy to achieve results. For this reason, brands must constantly measure differentiation and relevance, as these indicators allow brands to identify areas of improvement and to anticipate market changes.
Finally, in a space where competition is growing, the strength of a brand ceases to be a desirable attribute for a strategic asset. Companies that are really interested in how they are perceived, contribute long-lasting relationships, build trust and increase their chances of growth over time.
Sources:
Landor. Brand Asset Valuator (BAV). https://landor.com/
Strategee Group. Fortaleza de una Marca. Juan F. Arjona Harry.