Brand and Rosewood Hotels

Topics: Brand, Brand management, Trademark Pages: 2 (648 words) Published: February 1, 2011
Rosewood Hotels: Branding to Increase Customer Profitability and Lifetime Value Rosewood Hotels and Resorts have developed a reputation with a portfolio of luxury hotels. The company’s portfolio of properties adheres to Rosewood’s "Sense of Place" philosophy. This allows each hotel to produce a unique, one-of-a-kind property based on each individual property’s location. Rosewood prides itself on avoiding the corporate brand model or “canned and cookie cutter” approach within all its properties. Growth in the luxury hotel market has been on the decline. Unfortunately because of the individual branding of the different Rosewood Hotels, cross selling rates between Rosewood Hotels was lower in comparison to their corporate brand model competitors. Corporate branded hotels have seen a 10-15% cross property usage rate. Rosewood Hotels only has 5-10% cross property usage rate. In order improve upon the cross-property usage rate, Rosewood Hotels is considering changing their branding strategy to more of a unifying theme to bring more customers back to its hotels. However the Rosewood brand name is relatively unknown. By creating a corporate brand name across all of the properties, Rosewood would run the risk of losing the distinctiveness of each individual hotel. Ultimately, Rosewood Hotels has to make a decision to proceed with corporate branding or to continue emphasis on individual property brands. Recommendations:

To offer the best recommendation as to which strategy to proceed with, CLTV calculations were done for both “no changes to brand strategy and “new brand strategy”. The calculations were done on a profit per guest basis for six years. Based on these calculations it can be concluded that the NPV for the CLTV per customer for changing to a corporate, “new brand strategy” is greater in comparison to that of the CLTV per customer of staying with the current traditional brand strategy. Total NPV of CLTV (No Changes to Brand Strategy)$378.49...
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