CUSTOMER LIFETIME VALUE: MARKETING MODELS AND APPLICATIONS Paul D. Berger Nada I. Nasr ABSTRACT Customer lifetime value has been a mainstay concept in direct response marketing for many years‚ and has been increasingly considered in the field of general marketing. However‚ the vast majority of literature on the topic (a) has been dedicated to extolling its use as a decisionmaking criterion; (b) has presented isolated numerical examples of its calculation/determination; and (c) has considered
Premium Marketing
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
Premium Marketing Brand management Brand
Customer Lifetime Value (SMALL BOOK 167-177) * Customer lifetime value (CLV)‚ is the net present value of the cash flows attributed to the relationship with a customer. * The use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction‚ rather than on maximizing short-term sales. * Two approaches to CLV: * Disaggregate (“spreadsheet”)– Complex and cumbersome‚ but allows you to build in any assumptions
Premium Marketing Time Profit
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
Premium Brand management Brand Branding
Case Study – Rosewood Hotels Abstract This paper will discuss the pros and cons of the Rosewood Hotels moving from individual brands to a corporate brand. It will look at the history of Rosewood hotels‚ how they got to where they are‚ their customer base‚ and where they want to go. It will look at the concept of customer lifetime value as it relates to the Rosewood Hotel customer‚ then make a recommendation for or against tying its corporate Rosewood brand to all of its present and future hotels
Premium Brand Branding Advertising
HotelJonathan Eisler Case Analysis Rosewood Hotels and Resorts Rosewood Hotels and Resorts (Rosewood) is an organization that owns and manages a number of boutique and high end properties. However‚ each location is not tied to the Rosewood name in any way and is currently perceived and marketed as not being part of a “chain” but closely tied with its locale. Now‚ senior management is considering a new branding strategy that would link all current and future properties to the Rosewood name for brand
Premium Revenue Brand management Brand
Case Notes- Rosewood Hotels and Resorts Article Summary The marketing and management teams for Rosewood hotels have been faced with a branding issue. The leaders with Rosewood have realized that their brand‚ “Rosewood” has failed to make a true name for itself in the luxury hotel industry. They feel that in order to boost customer awareness they should attach the Rosewood name to each hotel. Rosewood felt that there was a major disconnect between the 12 hotels they have all over the world. Customers
Premium Brand Branding Brand management
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. This can be related
Premium Hotel Customer Customer lifetime value
Prof. Thomaï Serdari MKTG-GB.2127.S.30.S13 “Luxury Branding: Brand Thinking and Experience” Rosewood Hotels What are the pros and cons of moving from individual brands to a corporate brand? Rosewood hotels were built on the premise that they provide iconic luxury hotels each with their unique distinctive characteristic that represents the local culture. This one-of-a kind approach was what differentiated them from other chain-like competitors. By adopting a corporate
Premium Brand management Trademark Branding
“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
Premium Hotel Brand management Brand