Energized brand strength and brand stature are plotted against each other on a high-low matrix called the Powergrid. The position of the brand on the Powergrid shows the current status of the brand as well as its future potential. The BAV theory can, with this construct, map out the typical life cycle of brands.

When a new brand is launched, the only pillar that is substantially high is differentiation. Over time, with apt marketing efforts, the brand begins to increasingly become a part of the consumer’s life. So even relevance pillars rise up. Brands that are dynamic also begin setting standards for their category. Hence the brand becomes high on energized brand strength and tends to move towards a leader brand.

If the brand manages to maintain high energized brand strength over a prolonged period of time, its brand stature would also follow suit and then the brand will become a Power Brand. However, as consumers become more familiar with it, differentiation tends to erode and if the brand doesn’t have high energy scores, the brand’s energized brand strength begins to decline and consumers begin to drift away from it. If this early warning sign is not heeded the brand will decline further, till in sometime it lands back in the first quadrant and consumers view it as a brand they know about but don’t particularly care about.