What are the pros and cons of moving from individual brands to a corporate brand? Rosewood hotels were considered as trophy properties so distinctive, each could thrive on its own name. Without any “corporate” identification, the Rosewood brand was muted, unmentioned in advertising, and known mainly to hotel professionals. In 2004, to boost company’s growth, both Rosewood’s president/CEO and the vice president of sales and marketing decided to consider a new brand strategy. They wanted to establish Rosewood as a true brand incorporated into the name of each hotel and prominently displayed in all communications for and at the properties. The big question is: how far they could push this branding strategy without undercutting the distinctiveness of each individually branded hotel?
The Pros of the new strategy are:
- A higher Rosewood brand recognition/awareness through a corporate brand. -Rosewood can become one big strong entity that can gain a better positioning power. -Rosewood moves to a bigger, not so limited market.
-Create a better guest connection, standardized through the entire hotel database. -They can easily build a comprehensive guest profile that might help them build a strong “fan-base” and thus higher their cross-property usage rate. -And finally increasing sales revenues.
The Cons of the new strategy are:
-Rosewood hotels become just like their competitors = a hotel chain-like approach. 1990 Rosewood management believed that the individual property brand or collection strategy was a powerful tool to differentiated Rosewood properties from competitors with a corporate brand. The Rosewood branding was soft and meant to be complementary, not intrusive. So basically they are increasing the level of competition. -The overall company culture will have to change accordingly. -Every building will lose a little bit of its own identity to fit into another identity. Every building will lose a bit of being a sense of...