Hbs - Rosewood Case

Topics: Brand, Brand management, Trademark Pages: 4 (1306 words) Published: March 20, 2011
Rosewood Hotels and Resorts is considering a new brand strategy in an attempt to increase their multi property guest stays, revenues and cross selling rates. However, the company needs to do so without the expense of possibly diminishing the powerful brand image and strategy of their existing properties. Rosewood has built a customer value proposition on a core set of philosophies, as well as, strategic and marketing plans designed to create their unique competitive advantage through differentiation. Adding a corporate branding strategy would diminish previous efforts and be detrimental to Rosewoods’ intended objectives and goals of increasing profitability and customer lifetime value.

Introducing a corporate branding strategy would significantly conflict with Rosewood’s existing strategic plan and current philosophy of “Sense of Place.”(Rosewood) The Sense of Place philosophy is reflective of the company’s mission statement and strategic plan. The Rosewood mission statement, as stated on the company website is, “To be recognized and respected as the consummate operator of ultra-luxury hotels in desirable destinations throughout the world.”(Rosewood) This philosophy has enabled Rosewood to grow for 25 years and has allowed the company to build a highly regarded, global reputation with its line of iconic luxury hotels. The company’s purpose of creating and operating luxury hotels and resorts unlike any other in the world, is designed in such a way to create value for its customers through a commitment to “unique, one-of-a-kind, luxury properties.”(Rosewood) The individual brand collection strategy currently employed is what spurred and created the competitive advantage that distinguishes and differentiates Rosewood from its corporate, cookie-cutter, competition, including Four Seasons and the Ritz-Carlton.

The iconic hotels are “Trophy properties so distinctive, each could thrive on its own name, without any corporate identification.”(Dev,Stroock) The...

Cited: Stein, Alex and Les Stein, The Value Frontier: An Introduction to Marketing Strategy.
Chekitan, S. Dev and Stroock, Laure Mougeot. Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value. Harvard Business School Publishing. 2007. Retrieved from http://www.hbsp.harvard.edu
Rosewood Hotels & Resorts. http://www.rosewoodhotels.com
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Rosewood Case Essay

    ...Rosewood Hotels & Resorts: Branding to increase profitability and lifetime value BACKGROUND Rosewood Hotels and Resorts is a private hotel management company established in 1979 by the Caroline Rose Hunt Trust Estate. It is a well known company in the luxury hotels market which owns 17 iconic properties in 7 different countries (http://www.rosewoodhotels.com/en/the_company/). The first hotel was The Mansion on Turtle Creek in Dallas; afterwards the company expanded its “collection of unique properties” all over the world by converting and repositioning existing sites and by building up brand new luxury hotels. The distinctive feature of this collection is the so called “A sense of Place”. In fact in a Rosewood hotel every single service is conceived in order to adapt to the local culture and habits and capture the individuality of every location. Therefore each hotel is characterized by a strong individual image and brand while the Rosewood corporate brand usually stands on the background and mainly has a complementary function. ANALYSIS The problem the new president and CEO are facing is whether to switch to a corporate branding strategy or stick with the current individual property branding strategy. In fact the latter has been a very successful strategy for the company for the past 15 years. Nonetheless the top managers of Rosewood believe that as the luxury hotels market is becoming more...

    Read More
    1981 Words 5 Pages
  • Patagonia Hbs Case Essay

    ...substitutes are available. Buyers have large bargaining power, as end consumers could easily switch to another brand, while at the same time wholesalers are able to demand low prices from Patagonia for access to valuable shelf space. Most suppliers do not have strong bargaining power, as many of the fabrics are commoditized and there is competition from foreign producers. However, Patagonia uses specialist producers, which gives those suppliers more bargaining power. Finally, internal rivalry is very high, with high demands for quality and innovation among the high end companies and high marketing costs. Relative to other companies in the Outdoor Apparel Industry, Patagonia is performing extremely well. Across most key metrics (Exhibit 1 from case), from Gross Profit Margin to Return on Equity, Patagonia outperforms its peers. Perhaps more impressively, Patagonia was able to achieve a high level of Net Income Growth (20.8%) while only achieving 1.6% 12-Month Revenue Growth. The driving strategy behind Patagonia’s success has always been producing the highest quality product possible and charging a premium of more than 20% over the other specialist outdoor apparel companies. The flip side of this strategy is that cost control and maximization of quantity sold are not key strategic factors for Patagonia. Patagonia was able to establish their competitive advantage of being a premium (i.e. high price) brand in the Outdoor Apparel Industry by succeeding in...

    Read More
    1239 Words 4 Pages
  • Essay about Rosewood

    ...Rosewood Hotels & Resorts, L.L.C, was established in 1979 by the Caroline Rose Hunt Trust Estate. This collection of high end luxury hotels has up to 2004 implemented an individual brand/collection brand strategy built around the “sense of place” concept. This concept tailors their hotels to capture the local architecture, history and culture, differentiating them from corporate branded hotels. Despite Rosewood’s performance of having the highest average per room daily room rate and revenue, and recognition amongst travel agents, brand recognition amongst their guests is low. President and CEO, John Scott, and vice president of sales and marketing, Robert Boulogne, are considering a new corporate brand strategy(CBS) aiming to promote their corporate brand. Rosewood serves a niche market which is a small subset of the whole luxury industry of sophisticated customers, who value the distinct exclusive ‘collection’ hotel of the overall luxury market. The goal of the new strategy is to boost brand recognition, increase multi-property stays per guest, realize growth potential and increase their customer lifetime value. Rosewood’s current focus strategy is on the unique experience in a niche market. By implementing a CBS - they are going to a differentiation strategy that provides unique local experience to the customer and targets the whole luxury industry, which significantly increases their customer pool. Based on Boston Consulting Group’s...

    Read More
    821 Words 3 Pages
  • Essay on Rosewood Hotels & Resorts Case Study

    ...• Assignment 1: Case Study – Rosewood Hotels Due Week 2 and worth 90 points Preparation: o Review the Rosewood Hotels & Resorts case study. o Visit the online Customer Lifetime Value Calculator  and go through each tab in the tool and spend time studying how some of the variables and assumptions affect the results in the Sample Problem. Write a 2-3 page paper in which you: o Discuss the pros and cons of the Rosewood Hotels moving from individual brands to a corporate brand. (Feel free to discuss the general concept of CLTV, but consider a wide variety of elements in your response like differentiation, operational issues, brand management, etc) o Based on your exercise with the Customer Lifetime Value Calculator, discuss how one assumption affects the results with an explanation that demonstrates an understanding of the concepts being applied. Your assignment must follow these formatting requirements: o Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow JWMI style guide and writing format. Check with your professor for any additional instructions. o Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the...

    Read More
    2161 Words 7 Pages
  • Rosewood Hotels and Resorts HBS Case Study Essay

    ...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...

    Read More
    843 Words 3 Pages
  • Rosewood Case Solution Essay

    ...I-INTRODUCTION / STATEMENT OF THE PROBLEM a-) Introduction: Luxury hotel segment is getting more competitive. Rosewood Hotels & Resorts have been competing in this segment more than 25 years with its distinctive individual hotel brands. On the contrary, guests want to see one unique brand, same quality and service at every hotel that they stay under one corporate brand name. One corporate brand strategy help companies increase their retention rate, make multi-cross selling and have loyal repeat buyers. Guests also tend to tie the brand of hotels that they stay before with a corporate brand that they are familiar with. Above mentioned issue signals that current trend in g and competition side is a threat for Rosewood`s future growth and profitability. Market Segment Share may be lost. Also this can be turned to an opportunity if Rosewood can shape its future strategy towards operating under Corporate Branding. Huge growth opportunities lay in Retention rate, Total revenue, Customer Lifetime Value, Repeat guest numbers. Individual branding is limiting Rosewood`s growth opportunity. S: Very well-known individual hotel brands. W: Low awareness of Rosewood and low cross property usage compared to industry. O: Guests in luxury market segment value corporate brands. T: The increasing competition between individually branded hotels. Their expansion is %120 on average. b-) Statement of...

    Read More
    1612 Words 6 Pages
  • Rosewood Hotel Case Essay

    ...illustrated using cases, examples, websites and exercises. Course Objectives: * To acquaint students with Consumer Behaviour concepts and applications * To enable students to demonstrate the ability to analyze the complexities of buying behaviour and use the same to formulate successful strategies. * To create an understanding of the group influences and consumer behaviour in cultural and contextual environment * To create an understanding on how consumers are selective in their information processing and decision making Course Structure: Session | Topic | Reading Material | 1 | Introduction to Consumer Behaviour, Overview of STP | Schiffman and Kanuk – Chap 1 | 2 | | Case on Kingfisher | 3 | Lifestyle and Psychographics segmentation | Schiffman and Kanuk – Chap 3 | 4 | Reading on Lifestyle segmentation – psychographics glitter and gold | Reading Material on VALS – Discussion on lifestyle and psychographics segmentationExercise – visit the website of SRI VALS and students check their VALS position (http://www.sric-bi.com/VALS/presurvey.shtml) | 5 | Case study on segmentation and positioning | Horlicks | 6 | Consumer Perception – Dynamics of Perception, JND and Price Quality relationship | Schiffman and Kanuk – Chap 6 | 7 | Perception – perceived riskGroup activity – exercise | Exercise and Case study on ALL Out Mosquito repellant | 8 | Attitude Formation | Schiffman and Kanuk –...

    Read More
    592 Words 3 Pages
  • Enterprise Hbs Case Essay

    ...Enterprise pays relatively low base salaries, thereby mitigating the financial impact of attrition. In fact, the high turnover rate can be seen as an advantage. The case mentions that both Avis and Hertz have begun to enter the local (“home-city”) car rental market. Do you think they will be able to replicate Enterprise’s success in this market? Why or why not? (In answering this question, you should think about the feedback from activities to assets. In other words, think about how the Enterprise’s choice of activities may have helped them create assets that they might not otherwise have had.) While Avis and Hertz may be able to gain more share of the local market, it is unlikely they will be able to replicate Enterprise’s success. Enterprise is and has always been the dominate player in ‘local’ and therefore has the benefits of being the first mover (“speed”) and having an established set of assets that allow the company to be successful in this market; such assets include: ideal neighborhood office locations, strong relationships with insurance companies, relevant company slogan (“We’ll pick you up”), emphasis on customer service, people first strategy, etc. While Hertz and Avis have some assets relevant to the local market, they are significantly behind Enterprise. What do we learn from the Enterprise case? Culture can be an extremely valuable component of a company’s competitive advantage, especially when a company’s culture is...

    Read More
    1331 Words 4 Pages

Popular Essays

Become a StudyMode Member

Sign Up - It's Free