Premium Essay

Rosewood Hotel Group

In: Business and Management

Submitted By shannonpolk
Words 1740
Pages 7
Rosewood Hotels & Resorts 1 Running Head: ROSEWOOD HOTELS & RESORTS

Rosewood Hotels & Resorts

Rosewood Hotels & Resorts 2 Rosewood Hotels & Resorts is a collection of unique, one-of-a-kind luxury properties that are individually branded with the purpose of capturing what is unique about a given location. This strategy has been successful but now management believes that branding the hotels as a collective will increase customer visits between properties. Question #1- Why is Rosewood considering a new branding strategy? In your answer consider the characteristics of the company, its competitive environment, customer base and its current marketing/branding strategy. Rosewood Hotels is considering a new branding strategy to increase its revenue. They recognize that the even subtle increases in customer lifetime value (CLV) can mean significant increases in the bottom line. They also realize that an investment in retaining a customer to increase the CLV is more cost effective than attracting new customers due to the long term benefits. Management believes that moving from marketing the properties individually to corporate branding will increase customer repeat visits between hotels and that will consequently increase revenue by increasing CLV. This individual “brand positioning substantially limits our market,” as chairman of the board Maritz states, “I think we are underestimating the power of corporate brands, such as the Four Seasons, as status symbols. At this time, we are after only a subset of the luxury market-the sophisticated customers who value the distinctive, exclusive „collection hotel‟ when in fact the vast majority of the luxury market seem to value the corporate-branded version of luxury” (Dev & Stroock, 2007, p. 3). Currently Rosewood customers don‟t realize that they own other luxury hotels, consequently the corporation is unable to capitalize on...

Similar Documents

Premium Essay

Rosewood Case

...Rosewood Hotels & Resorts Case Study Background The Rosewood Hotels & Resorts has been in business for close to 25 years. It operates in the luxury hotel segment, with a focus on one-of-a-kind hotels. Each hotel reflects the local culture and character of its location. Up to this point it has allowed properties to thrive on their own with very little corporate identity. However, management feels there is an opportunity for growth in the market and is considering a new brand strategy; one that would establish the Rosewood brand and incorporate it into the name of each property as well as introduce more Rosewood branded items in the hotels. It needs to present its strategy to the Board of Directors and is questioning how far it can push the branding without hurting the individual identities of the properties. Industry There are two distinct groups in the luxury hotel industry, the “Collections” of individual properties such as Auberge, RockResorts, and Orient-Express, and the Corporate Branded hotels such as the Ritz-Carlton and Four Seasons. Rosewood operates in the “Collections” group. It built its concept around “A Sense of Place®”, which is meant to reflect how each property captures what is unique about its location. This is fairly typical of the “Collections” brand model, where companies focus branding and marketing on individual properties, with the overall corporate brand relatively muted in the background....

Words: 3959 - Pages: 16

Premium Essay

Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value.

...Nevertheless, corporate branding undercuts the distinctiveness of each individual branded hotel and potentially decreases the property value. Current Competition, Brand Identity and Competitive advantage Rosewood competes with two groups of luxury hotels: the corporate branded Ritz-Carlton, Four Seasons, St. Regis etc and the “collections” of individually branded unique hotels, such as Auberge, Rockports and the Orient Express. This led to an identity crisis of sorts where in spite...

Words: 1944 - Pages: 8

Premium Essay

Rosewood Hotels

...SUMMARY Rosewood Hotels & Resorts (Rosewood) was a group of private iconic luxury hotels without any corporate branding in 2004. To boost the company’s growth, the then CEO and Vice President decided to bring about corporate branding of Rosewood hotels but also wanted to maintain its distinctiveness of each individually branded hotel. CURRENT SCENARIO As of 2003, Rosewood had 12 hotels worldwide with a total capacity of 1513 rooms. The nightly rates ranged from $120 for one of the Saudi Arabian properties to $900 for a Canadian lodge. Rosewood was known for its ability to enhance its property’s value by being unique and differentiated from the regular chain of hotels. But on the competitive front they did compete with corporate branded hotels like Four Seasons, Ritz-Carlton, St. Regis, One & Only and Mandarin Oriental Hotels. And they also competed with collections of individually branded hotels like Auberge, Rock Resorts and Orient Express. Rosewood had continued to brand itself as an individual collection as it wanted to support its core value of “Sense of Place”, where each hotel exhibited its local character, culture and design. The individual hotel names were more prominent than the Rosewood brand itself. In April 2003, John Scott was taking over the CEO position in Rosewood, realized the limitations of individual branding....

Words: 1251 - Pages: 6

Premium Essay

Harrington

...Company Profile and Background Headquartered in Dallas, Texas, Rosewood Hotels & Resorts, L.L.C, was a privately held company, established in 1979 by the Caroline Rose Hunt Trust Estate (see Exhibit 2 for biographies of key figures). The first hotel Rosewood managed was The Mansion on Turtle Creek, opened in 1980. This hotel was an old mansion in Dallas rescued from demolition by Mrs. Hunt, the daughter of Texas oil tycoon H.L. Hunt. Rosewood worked with Hunt to transform the property into a worldclass hotel and restaurant. After successful conversions of existing...

Words: 5996 - Pages: 24

Premium Essay

Rosewood Hotels & Resorts

...Case Study 2: Rosewood Hotels & Resorts Problem Definition Rosewood Hotels & Resorts, a private hotel management company, wants to build a global reputation with its iconic luxury hotels such as The Mansion on Turtle Creek in Dallas, Texas and The Carlyle in New York. These properties, among others, currently thrive on their own name and the marketing of it. They currently do not have any “corporate” association nor have they ever. Each of these properties is so distinct that there is very little that ties them together. In early 2004, John Scott, Rosewood’s president and CEO, and Robert Boulogne, vice president of sales and marketing, were considering ways to associate all of Rosewood’s properties together under one brand. They think that tying them together under one corporate umbrella would make it easier to encourage guests to stay at one of their other hotels. They believe that if guests knew that all of the Rosewood properties were owned by Rosewood and part of the Rosewood group that they would likely return to another Rosewood property and would help build brand loyalty. Putting all of these distinct properties, each with unique histories under one brand has become more difficult that originally thought. If these changes were to take place they will need to be done carefully so that each of the unique hotels didn’t lose value on its own brand. They must also be able to convince the current co-op owners that it’s a good idea....

Words: 2904 - Pages: 12

Premium Essay

Rosewood - Case

...Company Profile and Background Headquartered in Dallas, Texas, Rosewood Hotels & Resorts, L.L.C, was a privately held company, established in 1979 by the Caroline Rose Hunt Trust Estate (see Exhibit 2 for biographies of key figures). The first hotel Rosewood managed was The Mansion on Turtle Creek, opened in 1980. This hotel was an old mansion in Dallas rescued from demolition by Mrs. Hunt, the daughter of Texas oil tycoon H.L. Hunt. Rosewood worked with Hunt to transform the property into a worldclass hotel and restaurant. After successful...

Words: 5840 - Pages: 24

Premium Essay

Rosewood Hotels & Resorts

...Running Head: CASE STUDY Rosewood Hotels & Resorts Sonja D. White Marketing In The Global Environment Overview Rosewoods Hotels and Resorts have been operating for 25 years and possesses’ 12 hotel properties all over the world. The group of hotels has a well-built ability and power to raise value of properties by building unique, one of kind properties with a small ultra-luxury residential style. Emergence of new hotels has increased intense competition in the hotel industry and it has become difficult to position Rosewood’s collection of properties in an increasingly flooded field of luxury operators (Hatch & Schutz, 2008). Thus, the management team has been strongly considering Rosewood Hotels and the Resorts as the corporate brand, similar to other competitive brands. Following the Customer Lifetime Value (CLTV) analysis, Rosewood will implement a new brand strategy and work to bring remarkable improvement in the total profit and revenue. Pros of Rosewood Hotels Moving to a Corporate Brand Higher customer life time value: The movement of Rosewood Hotels from individual brand to corporate brand will lead to higher customer life time value, which in turn, will results in higher profit and revenue. Better brand recognition: Corporate branding enhances the recognition of the brand name (Kotler & Pfoertsch, 2010). This attracts increased number of customers towards the hotel....

Words: 702 - Pages: 3

Premium Essay

Rosewood Hotels

...Instructions Read your team member’s case situation analysis and compare the spreadsheets posted in the corresponding group discussion forum. Engage in discussions with your team members to answer the new case questions and finalize the financial spreadsheet. You should submit the answers to the following questions and the spreadsheet in the corresponding group link included in the assignment drop box. The group submission will be graded according to the group case rubric. Rosewood Hotels & Resorts 1. What would you recommend to Rosewood Hotels & Resorts? In your answer include the following: • Provide 3 arguments that would support your decision. • Describe how you would implement your recommendation. Our recommendation to Rosewood would be to implement the Corporate Branding Strategy for its portfolio. • The Corporate Branding Strategy increases the number of stays per guest, which in turn, increases the top line revenues generated with the number of nights per stay remaining constant under both scenarios. With a gross profit margin of 32%; this translates to over 400k in Gross profit (before marketing costs). • Their retention rate would also increase 5 percentage points by providing a loyalty program their guests can associate with. This increase reduces the overall marketing dollars needed to attract “new” guests and use those resources towards the corporate program....

Words: 895 - Pages: 4

Free Essay

Casino Management

...The report shows the construction pipeline by stages in which the hotels are in development. It also discusses the three-year forecast of the hotel openings. It also discusses the supply trend in a 5 year time frame. Details Construction Pipeline Project and Guest Room Counts for Each of the Three Stages of Construction, Forecasts New Supply Additions for the Next Three Years, Displays Current Census Counts and Provides New Supply Additions for the Previous Two Years (Lodging Econometrics, 2013). 1. b. The one trend that I think is an up and coming major player with hotel competition is the introduction of Airbnb. The innovative way of travel that the company provides is going to give traditional hotel vacations a run for its money. People do not care as much as they used to about hotel brand when they plan their travel. What they care about is a hotel's location, value, and review (Singh, 2013). 2. a. Similarities among the three websites are that all offer a multiple property sites globally. Two of the three offer luxury property sites only while the other site has property sites that meet the needs of the average family traveler. 2. b. The target market for two of the three is more of the upscale luxury traveler and not the family traveler; more so the investor of luxury rather than the common vacationer. 2. c. One of the sites is strictly a lodging trust company that offers a variety of hotel and resort properties....

Words: 795 - Pages: 4

Premium Essay

Mareketing

...MARKETING COURSE Articles Books & Chapters Cases Course Modules Online Courses Simulations 2012 MATERIALS Harvard Business Publishing serves the finest learning institutions worldwide with a comprehensive catalog of case studies, journal articles, books, and eLearning programs, including online courses and simulations. In addition to material from Harvard Business School and Harvard Business Review, we also offer course material from these renowned institutions and publications: ƒ Babson College ƒ Business Enterprise Trust ƒ Business Expert Press ƒ Business Horizons Magazine ƒ California Management Review ƒ Darden School of Business ƒ Design Management Institute ƒ HEC Montréal Centre for Case Studies ƒ Ivey School of Business ƒ International Institute for Management Development (IMD) ƒ IESE Business School ƒ INSEAD ƒ John F. Kennedy School of Government ƒ Kellogg School of Management ƒ Perseus Books ƒ Princeton University Press ƒ Rotman Magazine ƒ Stanford Graduate School of Business ƒ Sloan Management Review ƒ Social Enterprise Knowledge Network ƒ Thunderbird School of Global Management ƒ Tsinghua University ƒ University of Hong Kong Customer service is available 8 am to 6 pm ET, Monday through Friday. Phone: 1-800-545-7685 (1-617-783-7600 outside the U.S. and Canada) Tech support is available 8 am to 8 pm ET, Monday through Thursday, 8 am to 7 pm ET Friday. Phone: 1-800-810-8858 (1-617-783-7700 outside the......

Words: 5522 - Pages: 23

Premium Essay

Rohan

...Group Project – Option 1 - Identify any organisation which is practicing some form of CRM. Start working with them to understand the objectives, strategy, structure and process of relationship management. Identify the key issues they faced in implementation especially related to financial and marketing evaluation of the program. Interview some relationship customers of this organisation to understand the customer perspective. Option 2 – Choose any topic in CRM and write a paper based on literature review or use a...

Words: 1490 - Pages: 6

Free Essay

Nottoway Case

...Although Cindy and Faye felt that Nottoway was operating ‘‘in the black,’’ they thought they were missing an opportunity ; tour groups visited the plantation homes, but stayed overnight in the nearby cities of Port Allen or Baton Rouge in a Holiday Inn or similar facility. Couldn’t Nottoway expand its facilities to provide enough overnight accommodations for bus tours and other groups ? I marry there. The complete home consisted of a 53,000 square foot, 64-room mansion surrounded by graceful grounds, including formal gardens, a carriage house, and a caretaker’s cottage (20 years older than the mansion itself). Nottoway was a gem of Italianate and Greek Revival style. The mansion reflected the splendor, luxury, and innovation of its time, featuring coal fireplaces, gas lighting, and indoor plumbing with hot and cold running water. As Union troops approached during the Civil War, Randolph, who never officially declared allegiance to the Confederacy, left Nottoway for Texas, taking his...

Words: 5738 - Pages: 23

Premium Essay

Crm Curriculum

...Group Project – Identify any organisation which is practicing some form of CRM. Start working with them to understand the objectives, strategy, structure and process of relationship management. Identify the key issues they faced in implementation especially related to financial and marketing evaluation of the program. Interview some...

Words: 2004 - Pages: 9

Premium Essay

Market Segmentation, Targeting, and Positioning

...A fuller discussion details the three steps of target marketing, beginning with market segmentation: dividing a market into groups that is measurable, accessible, substantial, and actionable. This can be done in different ways by using geographic, demographic, psychographic, behavioral, or other variables. Next, the process of market targeting and the different approaches a company can take are discussed. These include undifferentiated, differentiated, and concentrated marketing. The chapter concludes by covering market positioning strategy and how companies can position their products for the best competitive advantage. CHAPTER OBJECTIVES Students should be able to: 1. Explain market segmentation, and identify several possible bases for segmenting consumer markets, business markets, and international markets. 2. List and distinguish among the requirements for effective segmentation: measurability, accessibility, substantiality, and actionability. 3. Outline the process of evaluating market segments, and suggests some methods for selecting market segments. 4. Illustrate the concept of positioning for competitive advantage by offering specific examples. 5. Discuss choosing and implementing a positioning strategy, and contrast positioning based on product, service, personnel, and image differentiation. Supportive Power Point Slides: 8-1 to 8-4. TEACHING SUGGESTIONS: Teaching suggestions are provided in two formats....

Words: 13719 - Pages: 55

Premium Essay

Ch 8 - 10

...A fuller discussion details the three steps of target marketing, beginning with market segmentation: dividing a market into groups that is measurable, accessible, substantial, and actionable. This can be done in different ways by using geographic, demographic, psychographic, behavioral, or other variables. Next, the process of market targeting and the different approaches a company can take are discussed. These include undifferentiated, differentiated, and concentrated marketing. The chapter concludes by covering market positioning strategy and how companies can position their products for the best competitive advantage. CHAPTER OBJECTIVES Students should be able to: 1. Explain market segmentation, and identify several possible bases for segmenting consumer markets, business markets, and international markets. 2. List and distinguish among the requirements for effective segmentation: measurability, accessibility, substantiality, and actionability. 3. Outline the process of evaluating market segments, and suggests some methods for selecting market segments. 4. Illustrate the concept of positioning for competitive advantage by offering specific examples. 5. Discuss choosing and implementing a positioning strategy, and contrast positioning based on product, service, personnel, and image differentiation. Supportive Power Point Slides: 8-1 to 8-4. TEACHING SUGGESTIONS: Teaching suggestions are provided in two formats....

Words: 13719 - Pages: 55