...Rosewood has been a successful hotel company built on a reputation of luxury and the “uniqueness” of the location of the hotel. Despite their success, there are Trustees on the Board who believe that Rosewood is not harnessing the power of their brand. Consequently, they are considering undergoing a corporate branding initiative to improve brand recognition, in order to promote repeat guests, and to cross-sell usage of properties. In order to determine whether this initiative is worthwhile and to provide information for the Board to make a decision, both John Scott and Robert Boulogne would like to calculate the customer lifetime value (CLTV) as a part of the information to provide for the Board of Directors’ meeting. Furthermore, at an estimated operations investment of $1 million per year, not only does this decision carry large monetary considerations, it would also be a complete change in direction for the company in terms of its marketing strategy. John Scott was elected by the Board to the CEO position to take Rosewood into a new direction. Rosewood was suffering from low brand recognition from their guests and oftentimes, some guests were not aware that they were staying a Rosewood hotel. Although some properties experienced 40% of returning guests, only 5% stayed at another Rosewood property, compared to corporately branded hotels this was slightly low since corporately branded hotels experienced 10-15% return guests across the brand. Scott hoped to emulate...
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...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. Retain higher customer loyalty: As the Rosewood hotel is dynamic and unique in...
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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...
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...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. Currently they do not...
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...2. What would you recommend to Rosewood Hotels & Resorts? Rosewood Hotels and Resorts’ management is considering a new brand strategy. They are hoping this will strengthen customer awareness of Rosewood Hotels and Resorts' other luxury hotel and make the brand more present in advertising. That is, until now they have kept the ‘Rosewood’ name out of all marketing and advertising at all their luxury hotels. In order to make a shift they need to create an implementation plan that is going to be effective but must be very calculated in its way of doing so. Rosewood’s management envisions great potential in this branding, for instance, they will be able to build awareness of their other properties and boost sales in the process. If part of the marketing team, I would make the following recommendations: 1. Increase awareness of Rosewood Hotels and Resorts to their current customers. There are few current customers that know Rosewood Hotel and Resorts exists and manages other properties. We are provided instances in which guests have never heard of the Rosewood Brand unless expressly told by their travel agents. Incorporating a Rosewood Logo would alleviate this and solve this problem. The manner in which is done will need to be in line with the hotel’s ‘luxury’ appeal. 2. Educating current customers of Rosewood’s other ‘luxury’ hotel locations. If these customers are happy with their accommodations at hotels such as Jumby Bay in the Caribbean they will be more likely...
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...Rosewood Hotels and Resorts is a business that has 12 establishments worldwide. Until 2004, the company has run an individual branding strategy; but recent events, such as the adoption of a new President and CEO, have the company considering a corporate branding strategy. Rosewood seems to have hit a roadblock with their current strategy; they are concerned that their guests do not fully understand the Rosewood brand. Rosewood believes if they are able to adopt a corporate brand, that their guests will recognize more of their facilities and become loyal which in turn could increase revenue because their guest’s customer lifetime value will have risen. Rosewood also believes that by implementing a corporate brand, they will have an advantage over their competitors. The main issue with their current branding is that their customers are unknowledgeable about their brand. If they instill a corporate brand, more guests will choose their Hotels over competitors. Rosewood believes that by becoming a company who runs a corporate brand strategy, they will be able to increase their cross-selling rate. According to analysis of guest data, corporate-branding properties had higher cross-selling rates among their properties than those that utilized individual branding. Research shows that having a corporate-branding strategy resulted in a 10% to 15% cross-selling rate; this is because up to 40% of their guests returned for another stay. We compare these numbers to those of the individual-branding’s...
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...Rosewood Hotels and Resorts is a business that has 12 establishments worldwide. Until 2004, the company has run an individual branding strategy; but recent events, such as the adoption of a new President and CEO, have the company considering a corporate branding strategy. Rosewood seems to have hit a roadblock with their current strategy; they are concerned that their guests do not fully understand the Rosewood brand. Rosewood believes if they are able to adopt a corporate brand, that their guests will recognize more of their facilities and become loyal which in turn could increase revenue because their guest’s customer lifetime value will have risen. Rosewood also believes that by implementing a corporate brand, they will have an advantage over their competitors. The main issue with their current branding is that their customers are unknowledgeable about their brand. If they instill a corporate brand, more guests will choose their Hotels over competitors. Rosewood believes that by becoming a company who runs a corporate brand strategy, they will be able to increase their cross-selling rate. According to analysis of guest data, corporate-branding properties had higher cross-selling rates among their properties than those that utilized individual branding. Research shows that having a corporate-branding strategy resulted in a 10% to 15% cross-selling rate; this is because up to 40% of their guests returned for another stay. We compare these numbers to those of the individual-branding’s...
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...Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value Nature of Situation Rosewood Hotels and Resorts is a privately held hotel management company. Rosewood is the corporate entity behind many popular luxury hotels such as The Mansion on Turtle Creek and the Carlyle. Rosewood developed the luxury properties based on their concept of “A Sense of Place”. “A Sense of Place” incorporated the unique features-characteristics-culture of the location with the hotel to create a unique hotel at each location. In order to maintain the uniqueness of each individual hotel, Rosewood has kept the corporate company hidden from the boutique hotels. The strategy has allowed Rosewood to become a success and remain separate from some of their chain competitors. The differentiation of each hotel has created iconic hotels with no brand recognition amongst them. The following data demonstrates the importance of having brand loyalty in the luxury hotel business. 2003 report showed majority of customers did not know the Rosewood Brand. In 2004, John Scott, Rosewood President and CEO, and Robert Boulogne, vice president, were working to boost the growth and sales of the company. They looked to a competitor, AmanResorts, who had clientele that would seek out their hotels: Rosewood wanted to create the same clientele awareness. Rosewood was also collecting more data from their guests by using its central reservation system (CRS). The database is currently...
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...Summary of the Key Facts of the Case Rosewood Hotels and Resorts is a private luxury hotel management company established in 1979, headquartered in Dallas, Texas. The first hotel managed by the company was The Mansion on Turtle Creek, opened in 1980. As of 2003 the Rosewood had 12 hotels worldwide, with a total capacity of 1,513 rooms, with a nightly rate varying between $120 -$9,000. Rosewood competed with luxury corporate branded hotels such as Ritz-Carlton and Four Seasons but unlike them, Rosewood operated unique properties, each with its own name or brand. Each one of such hotels reflected local character and culture defining Rosewood’s “Sense of Place” philosophy. This meant that each one of the properties captured what was unique about the given location; architectural details, culinary concepts, interiors, etc. The Rosewood branding was soft and meant to be complementary; the Rosewood logo appeared discreetly on low-profile amenities such as clothes hangers and stationary. Hotel greetings did not mention the Rosewood name. 2. Define the branding options and discuss the nonfinancial pros/cons of each. Address the pros and cons and how you will deal with them. Rosewood brand had low recognition and brand-wide usage among guests. While guests were seeking a unique Rosewood property experience and product, they were not making the connection between Rosewood properties and were increasingly identifying with other strong hotel brands. Guest data revealed that although...
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...Lifetime Value l the SIXers MM UI 2012 ROSEWOOD HOTELS & RESORTS (ROSEWOOD) is a private hotel management company . • operated a “collection” of individually branded unique hotels & resorts • Has global reputation with iconic luxury hotels eÉáxãÉÉw Facts 1979 • The Caroline Rose Hunt Trust Estate 1984 • Hotel Hana Maui, Hawaii eÉáxãÉÉw Facts HISTORY Properties Growth 25 20 15 10 5 0 25 13 6 12 10 6 0 8 5 1 2 4 1996 2003 eÉáxãÉÉw Facts ROSEWOOD BRAND “A Sense of Place” eÉáxãÉÉw Facts eÉáxãÉÉw Facts eÉáxãÉÉw Facts eÉáxãÉÉw Theory Building Brand Equity eÉáxãÉÉw Theory Aakers Brand Equity Model eÉáxãÉÉw Theory Calculating Customer Lifetime Value Customer lifetime value (CLV) describes the net present value of the stream of future profits expected over the customer’s lifetime purchases eÉáxãÉÉw Theory Branding Strategy eÉáxãÉÉw Analysis Pro’s and Con’s Individual Branding • Better CLTV • Collective Experience (duplicate standard) • Consistent Service • Encourage guest to use more than one properties • Better Brand Recognition • High customer loyalty (Rosewood Junkies) • Inconsistency in brand wide performance standard • • • • Increase Marketing Cost for re-branding Resistant from owner, guest, manager Guest feel alienate Bad Reputation may impact others eÉáxãÉÉw Analysis Revenue and Cost Analysis Without Rosewood Branding With Rosewood Corporate (2003) Branding Total number...
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...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. The corporate branding increases the number of visits from 1.2 to 1.3 per year per guest. This raises the number of repeat guests from 19,169 to 24,919. As an individual property brand, the Rosewood brand had...
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...Analysis Rosewood business is going well but it lacks a cohesive brand image to optimize the customer profitability and lifetime value. The majority of Rosewood customers do not know that they are staying at a Rosewood hotel or even recognize the Rosewood brand. The new CEO John Scott recognized that the Rosewood brand had log recognition and brand-wide usage among guests and was an untapped asset. To increase the company’s value, Rosewood needs to increase the profitability of the current and future customers. It needs to develop a way to enable consumers to get more knowledge on the fact that they can enjoy “A Sense of Place” Rosewood type of experience in different parts of the world. Rosewood had two options by which it could encourage its customers to use more than one Rosewood hotels: * Introduce a frequent-stay program * Create/adopt a corporate brand Market research has shown that the number of guests enrolled in frequent –stay programs(mostly point based)grew by nearly 12% in 2003 and such programs are believed to double repeat business. Creating Rosewood brand awareness would provide a platform for encouraging Rosewood customers who stay at one of Rosewood property to stay at some of the others. It would not only increase cross property use and attract new customers, but also increase joint marketing activities and ability to build new properties and grow. Nevertheless, corporate branding undercuts the distinctiveness of each individual branded hotel and potentially...
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...ROSEWOOD REPORT 1. REVIEW KEY FACTS. Rosewood Hotels and Resorts (Rosewood) is a private hotel management company. Brand Rosewood is only known among hotel professionals. Rosewood differs from its completion by giving uniqueness to its hotels. Rosewood hotels carry their own brand. Rosewood hotels are unique, each hotel is one of its kinds, and they are creative and flexible. Each hotel’s interior, exterior and menu reflect the local culture and define the local philosophy. Rosewood growth strategy: 1. Re-launch and re-position an existing luxury hotel which has a strong brand name by providing professional management 2. Help developers build luxury hotel and create brand equity in the property. Brand Rosewood is never marketed, and is not popular in market. Many customers don’t know the name rosewood some knew through the travel agent. Individual property was stressed not the brand name. Rosewood always marketed the hotel by the property name. Rosewood’s management has been considering new branding strategy. Instead of branding hotels locally, rosewood is considering to go with corporate branding with all its hotels. From the data analysis 40% of the customers enjoyed return visit but only 5% stayed in more than one of Rosewood’s properties. By branding Rosewood ought to improve cross property usage and build a strong brand name among customers. 2. DEFINE THE BRANDING OPTIONS AND DISCUSS THE NONFINANCIAL PROS/CONS OF EACH. ADDRESS THE PROS AND CONS AND...
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...MBA 812 Marketing Management Case Analysis Rosewood Hotels and Resorts Summary This paper is expended according to the Rosewood Hotels & Restores Company, which established in 1979. This company promoted the Individual Brand Strategy when it was established. In early 2004, the new present and CEO, John Scott, and the vice president of sales and marketing, Robert Boulogne were considering to apply one new brand strategy named Corporate Brand Strategy in order to boost the company’s growth. In the first part of this paper, it gives the reasons why John Scott and Robert Boulogne wanted to promote the Corporate Brand Strategy. In the second part, it describes the advantages and disadvantages of the two brand strategies. And, the last part which is the most important part, there is a spreadsheet with lots of data, and from these data, John Scott and Robert Boulogne confirmed that the Corporate Brand Strategy is more effective for the Rosewood Hotels & Restores Company’s growth. Body of the Paper In this case, the protagonist is Rosewood Hotels & Restores, which is a hotel management company. In this company, there are 12 individual branded hotels and restores in different countries. In other words, Rosewood Hotels &Restores’ development strategy is individual/collection brand strategy. In early 2004, the top managers of Rosewood Hotels & Restores want to promote the company’s growth. Generally speaking, there are several popular growth strategies...
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...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. It is partnered with several different properties...
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