Part 4: Recommendation for Rosewood to improve CLV The fundamental Idea behind Customer Lifetime Value is to maximize profits per customer. While Rosewood does have loyal customers‚ these customers are limited to the one unique destination Rosewood hotel as they do not identify with Rosewood brand. Whereas the Rosewood strategy for individualistic properties based on the local area‚ local history and local staff has been successful in bringing in customers‚ it has failed in retaining customers.
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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
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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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RoseWood Hotels & Resorts RoseWood Hotels & Resorts: Branding to increase customer profitability and lifetime value. Rosewood Hotels& Resorts(Rosewood) ‚ a private hotel management company started in 1979‚ that built a global reputation with iconic luxury hotels such as The Mansion and The Carlyle‚ became well known for its ability to enhance a property’s value by creating unique‚ one-of-a-kind properties with a small ultra-luxury residential style. But amidst this‚ the brand ROSEWOOD
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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
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“Rosewood Hotels and Resorts: Branding to increase Customer Profitability and lifetime value: * Concise executive summary: * Company overview: -Rosewood Hotels and Resorts part of the Hospitality consortium: Leading Hotels of the world → recognition among hotelier + brand promise -Rosewood H&R owns and manages 12 properties worldwide (1513 rooms) -Target market: guests looking for a unique and distinctive luxurious experience -Positioning: unique luxury hotels with a strong sense
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Facts of the Case Rosewood Hotels and Resorts is a private luxury hotel management company established in 1979‚ headquartered in Dallas‚ Texas. The first hotel managed by the company was The Mansion on Turtle Creek‚ opened in 1980. As of 2003 the Rosewood had 12 hotels worldwide‚ with a total capacity of 1‚513 rooms‚ with a nightly rate varying between $120 -$9‚000. Rosewood competed with luxury corporate branded hotels such as Ritz-Carlton and Four Seasons but unlike them‚ Rosewood operated unique
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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 Definition:
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Rosewood Hotels & Resorts 1 Running Head: ROSEWOOD HOTELS & RESORTS Rosewood Hotels & Resorts Rosewood Hotels & Resorts 2 Rosewood Hotels & Resorts is a collection of unique‚ one-of-a-kind luxury properties that are individually branded with the purpose of capturing what is unique about a given location. This strategy has been successful but now management believes that branding the hotels as a collective will increase customer visits between properties. Question #1- Why is Rosewood considering
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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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