*Problems: How far can management push this branding strategy without undercutting the distinctiveness of each individually branded hotel?
Traditional Emphasis on Individual property brands:
-the company became known for its ability to enhance a property’s value by creating unique, one of a kind properties with a small ultra-luxury residential style that differentiated it from other chain-like luxury competitors. Competitors include 2 groups of luxury hotels: corporate branded (Ritz-Carlton and Four Season) and “collections” of individually branded unique hotels (Orient-Express). -“Sense of Place” philosophy- each hotel has a local character and culture of the given location. Architecture and history in implemented in each individual hotel which is very different approach than chain-like competitors. This was a power tool that Rosewood had! Cons- Rosewood is considering a new brand strategy because:
-“Emphasis on individual property brands was not working from a number of fronts. Guests are seeking a unique Rosewood property experience and are not making the connection between Rosewood properties and are increasingly indentifying with other strong hotel brands.” –Scott and Boulogne -Competition in the luxury hotel segment is intense and it was becoming difficult to position Rosewood’s collections of properties in an increasing crowded field of luxury operations. -Current brand positioning substantially limits our market.
-Guests had a very low brand awareness of Rosewoods Hotels and Resorts.
**2 possible approaches: Frequent stay program or adopt a corporate branding approach.
Corporate branding approach:
-Status symbols: Sophisticated customers who value the distinctive, exclusive collection seem to value the corporate-branded version of luxury. –Philip Martiz, chairman of the board -Frequent stay program: According to Market...