ROSEWOOD HOTELS: CUSTOMER LIFETIME VALUE (CLTV) ANALYSIS The calculation below confirms that when following the corporate branding/strategy could be beneficial for Rosewood hotels. ROSEWOOD HOTELS & RESORTS: CUSTOMER LIFETIME VALUE (CLTV) ANALYSIS Without Rosewood Branding Total number of unique Guests With Rosewood Corporate Branding 115‚000.00 115‚000.00 $750 $750 2 2 32% 32% 1.2 1.3 Average Marketing expense per guest (system-wide) $130 $138.70 Average new guest acquisition (system
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Overview Rosewood Hotels & Resorts 1. What are the pros and cons of moving from individual brands to a corporate brand? Read carefully the case and make a list of the pros and cons of maintaining the Individual Branding strategy or changing to a Corporate Branding strategy. Use the following table to summarize your findings. | |Individual Branding |Corporate Branding | |Pros
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hotel management company called “Rosewood Hotels and Resorts”. Rosewood hotels have 12 distinctive hotels worldwide with a strong brand image that makes each property unique. The dilemma found in this case is whether to keep the current individual branding strategy or create a corporate branding strategy‚ without undercutting the distinctiveness of each hotel. To do so the following points will be covered: Recommendation on individual versus corporate branding strategies. Qualitative analysis
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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
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Rosewood Case 1. Make an overview of the pros and cons of the tow different branding strategies (i.e.‚ individual branding and corporate branding) 1) Individual branding: - Each hotel and resort featured architectural details‚ interiors and culinary concepts that reflected local character and culture and defined Rosewood’s ‘Sense of a Place’ (each of the properties seeks to capture what is unique about the given location). - Some degree of flexibility and creativity
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Case Study of Rosewood Hotels & Resorts Background: Established in 1979‚ Rosewood Hotels & Resorts‚ a privately held company‚ became known for its ability to enhance a property’s value by creating unique‚ one-of-a-kind properties that differentiated from other chain-like luxury competitors. In early 2004‚ to boost the company’s growth‚ Rosewood considered to implement a new branding strategy to establish Rosewood as a true brand with a global reputation for iconic luxury hotels. Problem
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CLTV - CUSTOMER LIFETIME VALUE CLTV is the sum of present value of company’s future cash flows generated from its customer From the Exhibit 8 ROSEWOOD’S BRAND - WIDE CUSTOMER LIFETIME VALUE SPREADSHIT Without With Rosewood Rosewood Corporate Branding (2003) Branding Total Number of Unique Guests Average Daily Spend Number of Days Average Guest Stays Average Gross Margin per Room Average Number of Visits per Year per Guest Average Marketing Expense per Guest (systemwide) Average New Guest Acquisition
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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
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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
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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
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