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