Ali Yudhi Dame Reiny Dewi Aryani Dewi Sagita Frisca Listya

Rosewood Hotels & Resorts :

Branding to Increase Customer Profitability and 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

Rosewood Facts

1991 Lanesborough, London, England 1979 The Caroline Rose Hunt Trust Estate

1992 Caneel Bay, St. John, U.S.V.I. Little Dix Bay, Virgin Gorda, B.V.I

2002 Jumby Bay, Antigua.

1989 Selling the Hotel BelAir and Hotel Hana Maui for record prices

2001 Resort, Sunny Isles Beach, Florida 1995 Hotel Al Khozama Al Faisaliah Hotel

1980 1st hotel The Mansion on Turtle Creek, Dallas, Texas

1985 Hotel Crescent Court, Dallas The Crescent Club & The Spa at The Crescent

2000 The Carlyle, New York King Pacific Lodge, British Columbia, Canada

1982 Hotel Bel-Air, Los Angeles, California

1984 Hotel Hana Maui, Hawaii

1997 The Bristol in Panama City, Las Ventanas al Paraiso , Los Cabos, Mexico, The Dharmawangsa, Jakarta

1999 Badrutts Palace St. Moritz, Switzerland Al Faisaliah Hotel Hotel Seiyo Ginza

HISTORY Rosewood Facts

Properties Growth
25 20 15 10 5 0 25 13 6 12 6 0 10

8 5 1 2 4 1996 2003

Rosewood Facts

Luxury Properties
Local Character Local Culture

Unique
One of a kind Flexible & Creative

Soft
Complementary Not intrusive

Rosewood Facts

BRAND AUDIT
Questioner
CSR
(Customer Service

Reservation)

Customer

Travel Agents

Employee

Only 5% had stayed in more than Rosewood Properties

did not really know the name Rosewood even they had staying at the property.

The brand is not nearly as important as the property.

Dont see great opportunity, few business opportunity.

40 % of guest enjoyed return visit

They know Rosewood after the travel agents started telling them if a hotel was Rosewood.

Rosewood is a collection of brand. It is not a brand.

very low awareness, less than 5% those who know are past guest.

Rosewood Facts

Rosewood Management Goals

Increasing Connection between Rosewood properties
Increasing Cross Properties Ussage from 5% to 10% Create Rosewood Junkies Building Strong Brand Equity

Rosewood Facts

Brand
Brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods/services of one seller /group of seller and to diferentiate them from those competitor (Kotler)
Brand Equity is the added value endowed on products & services that reflected in:

the way customers think, feel and act with respect to the brand, Price, market share & profitability the brand commands for the firm.

Rosewood

Theory

Building Brand Equity

The initial choices for the brand elements or identities making up the brand

The product and service and all accompanying marketing activities and supporting marketing program

Other associations indirectly transferred to the brand by linking it to some other entity

Rosewood

Theory

Aakers Brand Equity Model

Rosewood

Theory

Calculating Customer Lifetime Value

Customer lifetime value (CLV) describes the net present value of the stream of future profits expected over the customers lifetime purchases

Rosewood

Theory

Branding Strategy

Corporate Brand Name

Individual
Brand Name

Rosewood

Analysis

Pros and Cons

Individual Branding Unique & represent local culture No need additional cost (cost efficiency) Flexible Internal Management Already has loyal customer Corporate 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)
Increase Marketing Cost for re-branding Resistant from owner, guest, manager Guest feel alienate Bad Reputation may impact others

Pro

Contra Inconsistency in brand wide performance standard

Rosewood

Analysis

Revenue and Cost Analysis

Without Rosewood Branding With Rosewood Corporate (2003) Branding

Total number of unique guests (a) Average daily spend (b) Number of days average guest stays Average gross margin per room Average number of visits per year per guest Average marketing expense per guest (systemwide) d Average new guest acquisition expense (system-wide) Total number of repeat guests (e) Of which: Total number of multi-property stay guests Number of Multiproperty Guest Average Guest Retention Rate (f) Average Gross Profit per Guest

115,000.00 $750.00 2 32% 1.2 $130.00 $150.00 19,169 5,750 5% 16.67% $576.00

115,000.00 $750.00 2 32% 1.2 $138.70 $150.00 24,919 11,500 10% 21.67% $624.00

Rosewood

Analysis

Total NPV of CLTV without Corporate Brand

Years Gross profit per guest Acquisition expense per new guest Marketing expense per guest Net Profit per Guest Retention factor Discount factor Net Present Value (NPV) 0 1 2 3 4 5 6 609.50 646.07 684.83 725.92 769.48 815.65 115.00 132.60 135.25 137.96 140.72 143.53 146.40 (115.00) 476.90 510.82 546.88 585.21 625.95 669.25 1.00 0.93 (115.00) 441.58 0.22 0.86 94.90 0.05 0.79 20.38 0.01 0.74 4.38 0.00 0.68 0.94 0.00 0.63 0.20

448.62

Rosewood

Analysis

Total NPV of CLTV with Corporate Brand

Years
Gross profit per guest Acquisition expense per new guest Marketing expense per guest Net Profit per Guest Retention factor Discount factor Net Present Value (NPV) Total NPV

661.44 701.13 743.19 787.79 835.05 885.16 115 142.86 147.14 151.56 156.10 160.79 165.61 (115.00) 518.58 553.98 591.64 631.68 674.27 719.55 1.00 0.93 0.22 0.86 0.05 0.79 22.05 0.01 0.74 4.72 0.00 0.68 1.01 0.00 0.63 0.22

(115.00) 480.17 102.92

496.09

Rosewood

Analysis

Recommendation
Adopt Corporate Branding Strengthen Rosewoods Brand Equity

Rosewood

Recommendation

Brand Awareness
Subjective :
Become a Top of Mind Brand
External drive way: Internal Drive way:

Promotion & Ads in Media (online & offline) Launch Event Promotion

Service Standardization High Quality Rosewood Careers Management

Rosewood

Analysis

Brand Loyalty
Subjective :
Retain The loyal customer

Drive way :
Travel Package Thematic Events Develop Community to pursue Rosewood Junkies Membership (platinum & titanium) Annual Gathering Private & Exclusive Service

Rosewood

Analysis

Brand Association
Subjective :
Uniqueness one of a kind Luxurious

Drive Way :
Premium Pricing High Quality Services Luxurious Architecture & Design

Brand Quality
A Sense of Place

Rosewood

Analysis

Rosewood

Video

Thank You