Você está na página 1de 5

Rosewood Hotels And Resorts Case

ROSEWOOD HOTELS AND RESORTS CASE Strategic issues and problems: The following report will describe and analyze the case of a private hotel management company called Rosewood Hotels and Resorts. Rosewood hotels have 12 distinctive hotels worldwide with a strong brand image that makes each property unique. The dilemma found in this case is whether to keep the current individual branding strategy or create a corporate branding strategy, without undercutting the distinctiveness of each hotel. To do so the following points will be covered: Recommendation on individual versus corporate branding strategies. Qualitative analysis considering pros and cons of each branding strategy Quantitative analysis estimating the impact of Rosewoods corporate branding strategy on customer lifetime value (CLTV) Recommendations: As we will observe in the qualitative analysis there are many disadvantages if the new strategy is implemented. However from an economic point of view we will see that implementing a new branding strategy is better for the company as the NPV per guest is higher (see quantitative analysis). Taking into account the Customer Lifetime Value Model Rosewood should implement a corporate branding strategy. However to minimize the disadvantages it would be essential to keep the name of some emblematic hotels such as Carlyle in order for the clients to remain loyal. These hotels can add the name Rosewood, to keep its clients aware that they belong to this chain. 1

Qualitative analysis: The pros and cons of creating a new branding image are the followings ones: Advantages: Increase cross-selling rates (guests who stay at one of Rosewood properties to stay at some of the others) from 5-10% to 10-15%. Enter into a bigger market (luxury market), nowadays its target is a subset of the luxury market (only exclusive collection hotels). Increase the brand-awareness of Rosewood. High customer loyalty Every hotel will become more standardized and...

Rosewood Hotels and Resorts (Rosewood) began operations with a collection growth strategy that was established to accomplish the following: (1) Convert existinghotels with strong brand equity which needed to be repositioned and re-launched with professional management. (2) Help developerscreate the next generation of luxury hotels and resortsand in doing so create brand equity in the property itself. This strategy led to a collection of distinctly branded properties that reflected the character and charm of the location in which they were built. Customers developed strong emotional connections to individual properties where they expected a certain experience that was unique to that property. This branding strategy was based on A Sense of Place concept, and it was used to differentiate the Rosewood collection within the competitive luxury hotel market. There were missed opportunities within the marketplace that resulted from this strategy. Rosewoods leadership comprised of John Scott, the new CEO and President, and Robert Boulogne, Vice President of Sales and Marketing noticed that the Rosewood brand had low recognition and brand-wide usage among its guests. Their customers were not making the connection between individual Rosewood properties while, at the same time, increasingly identifying with other luxury hotel brands. While Rosewoods individual properties had strong brand recognition, the overall Rosewood brand did not. This customer-property dynamic made it more difficult for Rosewood to compete with luxury hotel chains, such as the Ritz-Carlton and the Four Seasons. Moreover, research suggested that most customers within the luxury hotel market valued the corporate-branded hotel. As such, Rosewoods original brand strategy was out of touch with the current marketplace. Goals In order to capitalize on current trends in the luxury hotel market, Rosewoods leadership...

Rosewood Case Solution


I-INTRODUCTION / STATEMENT OF THE PROBLEM a-) Introduction: Luxury hotel segment is getting more competitive. Rosewood Hotels & Resorts have been competing in this segment more than 25 years with its distinctive individual hotel brands. On the contrary, guests want to see one unique brand, same quality and service at every hotel that they stay under one corporate brand name. One corporate brand strategy help companies increase their retention rate, make multi-cross selling and have loyal repeat buyers. Guests also tend to tie the brand of hotels that they stay before with a corporate brand that they are familiar with. Above mentioned issue signals that current trend in g and competition side is a threat for Rosewood`s future growth and profitability. Market Segment Share may be lost. Also this can be turned to an opportunity if Rosewood can shape its future strategy towards operating under Corporate Branding. Huge growth opportunities lay in Retention rate, Total revenue, Customer Lifetime Value, Repeat guest numbers. Individual branding is limiting Rosewood`s growth opportunity. S: Very well-known individual hotel brands. W: Low awareness of Rosewood and low cross property usage compared to industry. O: Guests in luxury market segment value corporate brands. T: The increasing competition between individually branded hotels. Their expansion is %120 on average. b-) Statement of the Problem Which marketing strategy will enable us to grow and turn competition threat to an opportunity with increased revenue, retention rate and customer equity without undercutting the distinctiveness of each individually branded hotel? II-SITUATION ANALYSIS a-) Company & Competition Information: 2001 2002 2003 # of Hotel Year End 13 13 12 # of Rooms Year End 1.859 1.714 1.513 % of decrease in Room #s 100 92 (-8%) 81 (-11%)

CLTV in 2003 w/Ind. Brd. - - $378 RevPAR $197 $204 $217 Total Revenue (RevPAR * # of Rooms) $366.223 $349.656 $328.321...

Rosewood
Rosewood Case 1. Make an overview of the pros and cons of the tow different branding strategies (i.e., individual branding and corporate branding) 1) Individual branding: - Each hotel and resort featured architectural details, interiors and culinary concepts that reflected local character and culture and defined Rosewoods Sense of a Place (each of the properties seeks to capture what is unique about the given location). - Some degree of flexibility and creativity - Powerful tool to differentiate Rosewood Properties from competitors - each property marketed itself under its own brand name in addition to - individual brand can be very powerful - participating in Rosewood-related advertising - low awareness of the corporate brand - brand-wide usage among guests and was an untapped asset - customers are not making the connection between the corporate brand and the individual brand - difficult to position a collection of properties in an increasingly crowded field of luxury operators

- it limits their market - people do not tend to visit other properties of the same corporate brand 2) Corporate branding: - status symbol - global data warehouse - higher cross-property usage - less connected to the individual aspect of the hotels - resistance of local managers to adopt the corporate brand - fear of managers to lose their autonomy - stimulate multi property guest stays and increased effectiveness of frequent-stay programs - increased marketing costs because then they also have to promote the corporate brand - need to ensure a perfect product/service performance consistent across all properties - co-op owners dont immediately see being part of a corporate brand as something positive, they...