“Luxury Branding: Brand Thinking and Experience”
What are the pros and cons of moving from individual brands to a corporate brand?
Rosewood hotels were built on the premise that they provide iconic luxury hotels each with their unique distinctive characteristic that represents the local culture. This one-of-a kind approach was what differentiated them from other chain-like competitors. By adopting a corporate brand they might undercut the distinctiveness and individuality of each property by undermining the current Rosewood philosophy of “A Sense of Place.” Nightly rates varied by property ranging from $120 to $9,000. Additionally, they will have to incur further marketing expenses in their effort to promote Rosewood as one corporate brand. There have also been expressed concerns from the managers of each hotel, from the existing customers and form the co-op owners that are resistant to this change. Some guests could feel alienated which indicates a risk associated to incorporating a corporate brand.
However, the current Rosewood brand has low recognition and not enough cross-property usage among its guests. Thus, by building the Rosewood corporate brand, a platform would be created to encourage guests that only stay at one property to stay at others too. The current brand positioning limits Rosewood’s market which could be vastly expanded under a corporate brand. Currently, only 5% of guests have stayed at more than one Rosewood hotel. The cross-property usage under the corporate brand could be increased to 10-15%. By increasing recognition for the Rosewood brand guests would be encouraged to use more than one property which could result in higher customer loyalty as is the case with other branded resorts such as the AmanResorts. Rosewood could also develop their guests into “Rosewood Junkies.” Additionally, a corporate brand would promote consistent service among...