DETERMINING CEO BRAND Brand Management Presentation

EQUITY – A study by Osnat Cottan-Nir

Jeebak Dutta Choudhury

Roll No. 05
MBA (IB) 2019-22 Kolkata
Trimester VI
Course co-ordinator – Dr.Saikat Banerjee
April 2022
  Introduction with examples of 2 famous
CEO Brands, Facts & figures.

 Definition of CEO Brand Equity concept

CONTENTS
 Different frameworks created by
Researchers

 The Funnel Model

 Explanation
 The first level
 The second level
 The third level

 Conclusion

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 His most famous quote is “Screw it let’s do it." His brand, Virgin Airways, uses
one of the most emotionally charged terms in the English language, paired with
aviation to boot. He owns his own island, has explored space and has even
circled the world in a hot air balloon, always sporting a wild crop of hair –
Richard’s personal brand and the brands of all the businesses he’s founded are
centred around taking a traditional model of doing anything, throwing it out the
window and replacing it with something more efficient and outrageously fun.

Jeff Bezos is widely recognized as a transformational leader —

someone who motivates and inspires team members to achieve more
than they thought possible.
“I constantly remind our employees to be afraid, to wake up every
morning terrified. Not of our competition, but of our customers. Our
customers have made our business what it is, they are the ones with
whom we have a relationship, and they are the ones to whom we owe a
great obligation.”

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 Introduction

• A study conducted by the PR firm Burson-Marsteller showed that CEO reputation comprises
45% of a company’s reputation.
• Kitchen and Laurence (2003) noted that as the CEO is the company’s main communicator,
the reputation of the company and its CEO are intertwined.
• Gaines-Ross (2000) also found that firms CEOs of which were rated among the “most
admired” achieved, a 13% annual shareholder return, while companies CEOs of which were
rated less favourably delivered a negative 28% return.
• The study also found that 95% of financial and industry analysts surveyed said they would
purchase stocks based on a CEO’s reputation.
• 81% said that the CEO’s reputation would influence their opinion of a company under media
scrutiny.
• 80% said that CEO’s reputation influences whether they would recommend a company as a
good place to work.
• Other contributions of CEO’s reputation are: supporting the company in a time of crisis,
helping attract and retain the best employees, and reducing stakeholders’ sense of risk.

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The Definition of the Concept “CEO Brand Equity” in this Study

CEO brand equity is a set of assets

(characteristics and actions), human and
managerial, linked to a CEO brand, that
influences the aggregation of all
stakeholders’ perceptions and behaviour
patterns, creating competitive advantages,
leading to added perceived value
(reputation/communication value and
financial value/ superior
profits/performance) to the firm and/or its
stakeholders.
The Oracle of Omaha
Third richest man on the planet, spends 80% of his working time
reading. He is also famous for his writing; in particular for the letters
he writes to Berkshire Hathaway shareholders, sharing his knowledge
of investment in an often-humorous tone. He has every reason to
boast about his successes and lead an extravagant lifestyle, yet he
does the opposite. He’s a humble man who lives a frugal life, eating
at McDonald’s and drinking too much Coca-Cola.
Buffett’s well-balanced personality, his impressive knowledge and
willingness to share it with others are traits typical of the Sage
archetype. 5
 Frameworks created by Researchers

Researchers of CEO brands have created some important and interesting frameworks, such as the

 CEO Branding mix - that affects the financial and nonfinancial aspects of
companies and that companies can measure, control & manage.

 5-C model - based on five strategies CEOs should use to manage their brand
for the benefit of the company and their own personal image.

However, a conceptual model that describes the notion of CEO brand equity, its components, and
dynamics between them, and that can lead to measurement of its strength, was still lacking.

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 The Funnel Model & Its Sources

The suggested conceptual framework, “The Funnel Model,” is based on two types of theoretical sources.

 The first, three central and important models from the CEO branding field: the conceptual model of
CEO brands, the 4P’s of CEO branding mix and the 5-C model.
 The second, two substantial, theoretical models of the concept “brand equity” from the product brands
field: the CBBE (Customer Based Brand Equity) model and Aaker’s brand equity model along with
brand identity categories.
 
The proposed Funnel Model describes the CEO brand’s characteristics and action parameters that
influence stakeholder’s perceptions and behaviour leading to the creation of added perceived value
(reputational and financial) that reflects the actual essence of CEO brand equity. The model also
offers a road map to practical implementation, i.e., measuring CEO brand equity strength, which
enables a company to evaluate the contribution of the CEO brand to the company’s corporate
reputation.

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The Funnel Model of CEO Brand Equity

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The Funnel Model of CEO Brand Equity…extnded

The First Level

The first level includes six parameters that reflect the CEO brand’s
characteristics and actions (set of assets), referring to her/his personal
traits (human and managerial) and the communication activities of the
brand creators. These elements serve as the fundamental components of
CEO brand equity, but their contribution stems from their ability to
produce the second category’s elements and influence them.

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 The Funnel Model of CEO Brand Equity…extnded

The Second Level

The second level’s elements are similar to Keller’s CBBE model that describes brand
equity in terms of its relationship to consumer (and stakeholders). The first, salience and
awareness, is parallel to the Keller pyramid’s first level of brand salience that leads to a
strong, unique, differentiating CEO brand positioning, similar and parallel to Keller’s
second step, the brand’s meaning. The third, internalization of CEO brand values among
stakeholders is parallel to Keller’s third step: consumer responses, leading to the creation
of competitive advantages (Preference/Appreciation, Loyalty, Lowered Risks) that are
identical to Keller’s final step: consumer brand resonance—the brand’s relationship with
consumers.

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 The Funnel Model of CEO Brand Equity…extnded

The Third Level

This is in line with the conventional, product brand equity definition

that refers to it as adding to the value provided by a product to a firm
and/or its stakeholders along with the CEO branding researchers who
also mention added perceived value to different stakeholder groups as a
final condition of CEO brand equity. This parameter ultimately reflects
the extent to which the CEO brand serves the company’s goals,
contributes to its performance, and meets its stakeholders’ expectations.

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Conclusion..

The context of this suggested model is that a CEO brand’s essence and significance lie in its capability
to create value for the company and its stakeholders through high CEO brand equity. In other words,
achieving high CEO brand equity is the goal of the CEO branding process.

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Thank You

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