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Rosewood Hotel Group

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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…...

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