Rosewood Hotels
CONTENTS I. EXECUTIVE SUMMARY 1 II. SITUATION ANALYSIS 2 a) Economic Environment & Industry Trends 2 b) Organizational & Political Environment 3 c) SWOT analysis for Rosewood 5 III. PROBLEMS FOUND IN SITUATION ANALYSIS 6 IV. STRATEGIC ALTERNATIVES 9 a) Corporate Branding 9 b) Individual Branding 11 c) Selective Corporate Branding 12 PROPOSED BRANDING STRATEGY - SELECTIVE CORPORATE BRANDING STRATEGY 13 SUMMARY 15 APPENDICES 16
I. EXECUTIVE SUMMARY
Rosewood Hotels & Resorts (Rosewood), known for managing distinctive luxury hotels is considering a new brand strategy. Rosewood’s concept for each property has always been “Sense of Place”, emphasizing the individual character of each property. In an effort to increase multi-property guest across its 12 hotels worldwide, a new corporate branding strategy is being considered. The new strategy should also not undercut the distinctiveness of each individually branded hotel.
In the analysis, Rosewood’s ADR and RevPAR were superior to the corporate-branded groups namely Four Seasons Hotels and Ritz-Carlton (Marriott International). Rosewood also fared better than Orient-Express Hotels, another individual-branded hotel group. The results make the argument for corporate branding difficult to justify as the current individual-branded strategy places Rosewood ahead of their current competition. The Customer Lifetime Value (CLV) was calculated to assess if the targeted incremental spending by multi-property guests was sufficient to justify corporate branding strategy - with its increased marketing, operational cost and efforts. Analysis showed that the corporate branding strategy yielded higher customer lifetime value of $1,047.32 compared to $862.50 for individually-branded strategy.
Considering the probable loss of customer profitability from the iconic hotels after corporate branding and its brand reputation, it is recommended that Rosewood adopt corporate
I. EXECUTIVE SUMMARY
Rosewood Hotels & Resorts (Rosewood), known for managing distinctive luxury hotels is considering a new brand strategy. Rosewood’s concept for each property has always been “Sense of Place”, emphasizing the individual character of each property. In an effort to increase multi-property guest across its 12 hotels worldwide, a new corporate branding strategy is being considered. The new strategy should also not undercut the distinctiveness of each individually branded hotel.
In the analysis, Rosewood’s ADR and RevPAR were superior to the corporate-branded groups namely Four Seasons Hotels and Ritz-Carlton (Marriott International). Rosewood also fared better than Orient-Express Hotels, another individual-branded hotel group. The results make the argument for corporate branding difficult to justify as the current individual-branded strategy places Rosewood ahead of their current competition. The Customer Lifetime Value (CLV) was calculated to assess if the targeted incremental spending by multi-property guests was sufficient to justify corporate branding strategy - with its increased marketing, operational cost and efforts. Analysis showed that the corporate branding strategy yielded higher customer lifetime value of $1,047.32 compared to $862.50 for individually-branded strategy.
Considering the probable loss of customer profitability from the iconic hotels after corporate branding and its brand reputation, it is recommended that Rosewood adopt corporate