Rosewood

Only available on StudyMode
  • Download(s) : 93
  • Published : March 11, 2009
Open Document
Text Preview
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 Rosewood’s ‘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 don’t immediately see being part of a corporate brand as something positive, they prefer a stronger individual brand

2. The guest retention rate

Guest retention rate = number of repeat guests / total number of guests

1) Individual branding:

- Number of repeat guests: 19.169

- Number of unique guests: 115.000

- Number of multi property guests: 0.05*115.000 = 5.750

- Guest retention rate: (19.169)/(115.000) = 16,67%

2) Corporate branding:

- Number of unique guests: 115.000

- Number of multi property guests: 115.000*0.10 = 11.500

- Number of repeat guests: 11.500 – 5750 +19.169 = 24.919 (this is because the multi property guest stays have doubled)

- Guest retention rate: (24.919)/(115.000) = 21.67%

3. Customer lifetime value

a) Customer revenue drivers

1) Individual branding

i. Number of nights they stay = 2

ii. Multi property guest stays = 5%

iii. Number of times they return = 1,2

iv. Customer revenues = 750 (grows with 6%/year)

v. Acquiring costs = 150 (only once)

vi. Marketing costs = 130 (grows with 3% /year)

2) Corporate branding

i. Number of nights they stay = 2

ii. Multi property guest stays = 10%

iii. Number of times they return = 1,3

iv. Customer revenues = 750 (grows with 6%/year)

v. Acquiring costs = 150 (only once)

vi. Marketing costs = 130 (grows with 3% / year)

vii. Additional marketing costs = 8,69 (grows with 3%/year)

b) Customer Lifetime Value

|Data |Individual branding |Corporate branding |Explanation | |Unique guests |115000 |115000...
tracking img