The BAV works on a construct that brand health is the outcome of five core aspects of the brand, we call Pillars. These are -

Differentiation - Differentiation is a measure of how distinct the consumers perceive a particular brand to be. It is this difference that enables the brands to charge a premium.

Energy - Energy is the brand’s momentum and direction. It is a catalyst for differentiation and relevance. And hence, it also enables the brands to charge a premium.

Relevance - Relevance is simply a measure of how well suited the brand’s offering is to the consumer’s life. For example, if more and more consumers were to use ATMs, then banks can aid their relevance by increasing the penetration of their ATM network.

Esteem - Esteem is a function of positive brand experience and brand communication and essentially the regard that the consumer has for the brand.

Knowledge - Some brands makes you feel like you know the brand as you would a close friend. This is called knowledge. This in effect is a culmination of the other three pillars.

This model can be used to predict brand equity changes, which might otherwise take a long time duration to surface, a risk no brand manager can afford to take today.

Figure 1: The Five Pillars

The five pillars can be clubbed into two-directional indicators of Brand Health. These are -

Energized Brand Strength (Energy, Differentiation and Relevance)
This is a combination of Energy, Differentiation and Relevance. As these pillars are indicators of where the brand is likely to shape out in the future, Energized Brand Strength is a leading Indicator.

Brand Stature (Esteem and Knowledge)
This is a combination of Esteem and Knowledge. It gives a sense of the brand’s present and past. Brand stature tends to, over time, mimic brand strength and is thus a lagging indicator.

The BAV thus successfully splits brand equity into a predictive and a diagnostic component, (the realm of traditional MR).

Figure 2: The BAV Construct