Reconciling and Clarifying CLV Formulas Peter S. Fader www.petefader.com Bruce G. S. Hardie www.brucehardie.com † March 2012 1 Introduction A standard part of many contemporary Marketing courses is a case or exercise in which students are expected to compute customer lifetime value (CLV). Typically they are given an average retention rate r‚ an average net cashflow of $m per period (having accounted for “account maintenance” costs)‚ and an assumed discount rate d. Given these inputs‚ they are
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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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Rosewood Hotels Case Analysis A private hotel management company‚ Rosewood Hotels Resorts with iconic luxury hotels such as The Mansion on Turtle Creek in Dallas and The Carlyle in New York was a muted brand‚ not into advertising and known mainly to hotel professionals. John Scott‚ the company’s new president and CEO‚ & Robert Boulogne‚ vice-president of sales and marketing were considering a new brand strategy in order to establish ‘Rosewood’ as a true brand and to encourage guests who stayed
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Rosewood Hotels & Resorts: Branding to increase profitability and lifetime value BACKGROUND Rosewood Hotels and Resorts is a private hotel management company established in 1979 by the Caroline Rose Hunt Trust Estate. It is a well known company in the luxury hotels market which owns 17 iconic properties in 7 different countries (http://www.rosewoodhotels.com/en/the_company/). The first hotel was The Mansion on Turtle Creek in Dallas; afterwards the company expanded its “collection of unique
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Hotels and resorts in Indonesia ranges from an essential box with bedding to the finest five-star extravagance resorts. Expenses differ impressively over the region‚ however by and large Indonesia is one of the better deals in Southeast Asia. Here are a few accommodations that are cheap yet you do not need to worry about its quality. These places have the basic amenities and will leave you with much savings and a satisfactory stay. Ned’s Hide-Away The Ned’s family are genuine charmers. There
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Web-based Hotel and Resort Reservation System with Virtual Tour A Thesis Submitted to the College of Computer Studies AMA Computer College Santiago Campus Santiago City In Partial Fulfillment of the Academic Requirements for the Degree Bachelor of Science in Information Technology Krista Angelica Miguel Maricris Natalia Suguitan John Angelo Tania October 2012 CHAPTER I PROBLEM AND ITS BACKGROUND This chapter explains the statement of the problem‚ hypothesis‚ significance of the study‚ scope and
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the boutique resort‚ residences and spa industry and provide naturally-luxurious‚ ecological‚ culture-sensitive experiences. Manage 25 resorts and hotels‚ 68 spas‚ 65 retail galleries‚ and two golf courses in 55locations in 23countries Rewarded: • • • • • • “Best Resort Hotel in Asia-Pacific” 2002 “Seychelles’ Best Resort” & “Seychelles’ Best Spa” 2003 “Best Hotel for Room” 2006 “Best Hotel (Luxury)” 2007 “PATA Gold Award – Ecotourism Project Category” 2008 “Favorite Overseas Hotel Spa – Winner”
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Revenue Estimates Revenue Item 100% Monthly 75% Monthly 50% Monthly Notes Rooms $2‚956‚500 $2‚217‚375 $1‚478‚250 8‚100 daily Leases $180‚000 $135‚000 $90‚000 TOTAL REVENUE $3‚136‚500 $2‚352‚375 $1‚568‚250 Expences TOTAL VARIABLE COSTS $454‚000 $340‚500 $227‚000 TOTAL FIXED COSTS $1‚403‚000 $1‚403‚001 $1‚403‚002 TOTAL EXPENSE BEFORE IT $1‚857‚000 $1‚743‚501 $1‚630‚002 EBIT $1‚279‚500 $608‚874 -$61‚752 Depreciation $320‚000 $320‚001 $320‚002 EBITDA
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refers to the “MEXL/Customer Lifetime Value” submenu. Overview Customer Lifetime Value (CLV) represents a metric of a customer’s value to the organization over the entire span of that customer’s relationship with a firm. Short-term sales influence CLV‚ but so do overall customer satisfaction‚ the churn rate in the segment‚ and the costs to acquire a new customer and retain an existing customer. The CLV approach helps firms answer such questions as: How much is my customer base "worth"
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A brand synonymous with private villas‚ tropical garden spas‚ and retail galleries promoting traditional craft‚ Banyan Tree Hotels and Resorts received its first guest in 1994 in Phuket‚ Thailand. Since then‚ it had grown into a leading manager and developer of niche and premium resorts‚ hotels and spas in Asia Pacific. Despite having minimal advertising‚ Banyan Tree achieved global exposure and a high level of brand awareness through the company’s public relations and global marketing programs.
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