Rosewood Hotels and Resorts HBS Case Study
1. Why is Rosewood considering a new brand strategy? (12 points)
The reason Rosewood is rebranding is so that they can get the same competitive advantage that their competitors are getting from repeat business. According to Exhibits 4 and 5 of the case study, their competitors are currently enjoying higher occupancy and growth rates—even competitors like OrientExpress, who were operating within a similar business model.
Rosewood’s brand awareness was low, known mainly to those within the hospitality industry—as shown in Exhibit 7, the majority of guests who were asked about Rosewood had no idea what it was, and the employees themselves even admitted that their brand was something of a secret, known only to the travel agents who have been saddled with the responsibility of the only marketing the brand gets: word-of-mouth. The majority of the travel agents who book Rosewood hotels for their guests say that those who are in-the-know will go back.
The executives of the company thought that they could make that brand a little less secretive and use its reputation to gain increased revenue through repeat business, which Rosewood needs in order to stay ahead of—or at least equal to—its competition.
2. What are the pros and cons of moving from individual to corporate branding?
The hotel industry isn’t about one stay—it’s about how you can get customers to stay loyal to you and not the competitors. It has to do with exposure and preference.
The benefits:
The company cannot create brand preference until their brand is more prominent. Customers that remember good experiences at their typical Rosewood hotel will be more encouraged to ask about other Rosewood hotels if they are made more aware of their existence. A good reputation is a powerful marketing tool in the hotel industry, and if the company let its customers know that it has other properties in other locations that are managed and operated by the same company, customers might be more encouraged to ask for
The reason Rosewood is rebranding is so that they can get the same competitive advantage that their competitors are getting from repeat business. According to Exhibits 4 and 5 of the case study, their competitors are currently enjoying higher occupancy and growth rates—even competitors like OrientExpress, who were operating within a similar business model.
Rosewood’s brand awareness was low, known mainly to those within the hospitality industry—as shown in Exhibit 7, the majority of guests who were asked about Rosewood had no idea what it was, and the employees themselves even admitted that their brand was something of a secret, known only to the travel agents who have been saddled with the responsibility of the only marketing the brand gets: word-of-mouth. The majority of the travel agents who book Rosewood hotels for their guests say that those who are in-the-know will go back.
The executives of the company thought that they could make that brand a little less secretive and use its reputation to gain increased revenue through repeat business, which Rosewood needs in order to stay ahead of—or at least equal to—its competition.
2. What are the pros and cons of moving from individual to corporate branding?
The hotel industry isn’t about one stay—it’s about how you can get customers to stay loyal to you and not the competitors. It has to do with exposure and preference.
The benefits:
The company cannot create brand preference until their brand is more prominent. Customers that remember good experiences at their typical Rosewood hotel will be more encouraged to ask about other Rosewood hotels if they are made more aware of their existence. A good reputation is a powerful marketing tool in the hotel industry, and if the company let its customers know that it has other properties in other locations that are managed and operated by the same company, customers might be more encouraged to ask for