Rosewood Hotels

Topics: Brand management, Marketing, Brand Pages: 5 (1710 words) Published: October 13, 2008
The main objective was to foster customer retention and loyalty increasing cross-property usage. The number of multi-property guest stays should be increased to 10% from the 5% rate experienced during the last year. MARKETING SITUATION

Problem situation: Rosewood brand was muted, not very well known but it was not clear what is the best corporate branding strategy without destroying the value of each individually branded hotel and loosing a customer. A new branding strategy proposing an increased customer profitability and lifetime value is needed. Company. Rosewood is a 25 years old luxury private hotel management company having 12 hotels in different countries. The company is known by unique, “one-of-a-kind properties” with very luxury style. The total rooms capacity worldwide is 1513 rooms. The company has only 5% of cross-selling rates, which is one of the lowest in the industry compare with corporate branded hotels (10%-15%) and individually branded hotels (5%-10%). Competitors. Rosewood is competing with corporate branded properties and individually branded properties. Main competitors are: •Corporate branded properties: Ritz-Carlton, Four Seasons, St. Regis, One&Only and Mandarin Oriental •Individually branded properties: Auberge, RockResorts and Orient Express Compare Rosewood % property growth 1996-2003 it is 15% above the average of corporate branded properties and 20% below the average of individually branded ones. This number is pretty high taking into consideration that within the sector of individually branded hotels Rosewood is the second biggest in a number of hotels. Customers. We do not have lots of information about the customers in the case but probably we could group the clients into a several groups in order to understand their profile better: •Wealthy families. These costumers most probably stay at the hotel 1-2 times a year for a holiday or family festival. It is high-income families that might be traveling to different resorts and countries and could be a potential repetitive customer in another Rosewood hotels worldwide too. •Business travelers. It might me leaders or honor guests of some companies that travel a lot and value the uniqueness of a specific Rosewood hotel and prefer to have personalized services (for example as it was mentioned in the case specific type of pillow). •Private owners (“co-op”) that most probably also include members of wealthy families and business travelers mentioned before. This group of customers is reluctant for more visible hotel brands and do not see the benefits of being a part of bigger organization. Collaborators. The main collaborators I would say are travel agencies and travel agents promoting the hotels. These are the guys recommending (or not) to a customer a hotel and are VERY important in communicating the competitive advantage and value added to a customer. Other hotels that are part of Rosewood family are highly important collaborators in promoting other hotels in different areas. Rosewood employees also could be seen as collaborators as costumer loyalty depend on the quality of their service. Context. Within the industry the number of guests enrolled in frequent-stay programs grew by nearly 13%. This is a non-explored opportunity for Rosewood and some other hotel companies. A brand-wide customer lifetime value was becoming an important issue and within this context management of Rosewood felt a need for a change in the branding strategy as competitors were taking long time customer loyalty improving initiatives threatening Rosewood to loose some opportunities (customers) in a long term. SWOT analysis. Please see the matrix with analysis of internal and external factors in the Exhibit 1. MARKETING STRATEGY. Probably there is a number of different ways achieving the marketing objective but the decision that is the best branding strategy should be made and consistent marketing strategy should be implemented....
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