Why is Rosewood considering a new brand strategy? What is the key issue that prompted them to rethink their brand strategy?
Rosewood is considering a new brand strategy, because the individual branding strategy is not responding their objectives any more. Rosewood’s new president and CEO, John Scott is considering a new strategy to boost the company’s growth. The management team thinks that it is the right time to establish Rosewood as a corporate brand. A known corporate brand name will encourage hotel guests to stay at some of other Rosewood hotels. Rosewood wants to compete with the corporate and individual branded luxury hotels. As indivudual branded company, is is hard to compete with the corporate brands that benefit from cross-property usage. Their current strategy limits their market and objectives. They see the power of corporate branding, and
Discuss the pros and cons of individual branding and corporate branding strategy. Be comprehensive on your analysis.
Individual branding has many posivitive aspects. In this approach the company operates different properties, hotels in this case, with different brand names. In this collection strategy, each property has its own unique name, image and identity. This allows a company to position its properties or brands differently. In Rosewood case, we see that the company created its own unique philosophy, “ Sense of Place”. Each hotel that Rosewood owns reflects the local culture. Each hotel has its unique characteristics such as architectural details and interiors. Individual branding strategy was a way to be different from corporate brands. This strategy create brand equity for each property. Each hotel itself becomes a big brand, and thus the hotel logo becomes even profitable. The logo provides a profotable souvenir business by selling high-profile amenities such asa towels and bathrobes. In addition, in a highy competitive business environment it is much easier to launch an individual brands, if...
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