Download - The Rosewood Hotel Harvard Business Case
![Page 1: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/1.jpg)
Branding to Increase Customer Profitability and Lifetime Value
![Page 2: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/2.jpg)
Company Profile
![Page 3: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/3.jpg)
ROSEWOOD HOTELS AND RESORTS
A private hotel
management company
with iconic luxury
Hotels.
12 hotels
1513 rooms
![Page 4: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/4.jpg)
![Page 5: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/5.jpg)
BRAND Model
• Iconic Luxury Hotels and resort.• For those who have deep pockets and
prefer lavish lifestyle.Demographic Segmentation
• Each property Tailored to deliver enriching experience of the location, culture and history.
• Brand Mantra “A Sense of Place”
Brand Positioning
![Page 6: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/6.jpg)
Individualistic Brand Positioning
![Page 7: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/7.jpg)
CUSTOMER
![Page 8: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/8.jpg)
Report on ROSEWOOD BRAND
EMPLOYEESTRAVEL
AGENTS
Guests
“ Rosewood is a collection of
brands it is not a brand”
“ Known by the individual properties”
“ A collection of individualistic
properties; Rosewood as a
brand is a dilemma”
“ It’s a secret club”
“I don’t know
Rosewood “
“I had no idea that Litte Dix and the mansion were
connected to rosewood”
![Page 9: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/9.jpg)
5-10%• Mutiproperty
cross-selling Rates
40%• Single
property Repeat Guests
Customer
Reservation
System
Report on ROSEWOOD BRAND
![Page 10: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/10.jpg)
Management
To bring all the
individual brands
under one
umbrella
To increase
multiproperty
guests stay from
5% to 10%
To build Rosewood
Hotels as a brand
![Page 11: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/11.jpg)
Individual Branding
Corporate Branding
Low brand Recognition
Brand Wide usage by guest untapped
Marketing expense
Promoting Corporate Brand
Which Strategy to choose ?
![Page 12: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/12.jpg)
Corporate branding Analysis
![Page 13: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/13.jpg)
Multiproperty Guest Stay was
anticipated to Double from 5% to 10%.
Overall total no. of unique guests
was kept constant at 115,000.
The average visit rate per year
increases to 1.3.
Marketing investment of 1 million per year.
With Corporate Branding
![Page 14: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/14.jpg)
Without Corporate branding(2003)
With corporate branding (2003)
Total No. of Unique guests 115,000 115,000
Average Daily spend $750 $750
Number of days average guest stays 2 2
Average gross margin per room 32% 32%
Average number of visits per year per guest 1.2 1.3
Average marketing expense per guest (systemwide) $130 $138.70
Average new guest acquisition expense (systemwide) $150 $150
Total number of repeat guests 19,169 24919
Of which: Total number of multiproperty stay guests 5,750 11,500
Average Guest Retention Rate 16.67% 21.67 %
Average Gross Profit per Guest $576 $624
Profit and Revenue
![Page 15: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/15.jpg)
Years 0 1 2 3 4 5 6
Gross Profit Per Guest
609.50 646.07 684.83 725.92 769.48 815.65
Acquisition expense per new guest
Marketing expense per guest
132.60 135.25 137.96 140.72 143.53 146.40
Net Profit per Guest
476.90 510.82 546.88 585.21 625.95 669.25
Retention factor 1.00 0.22 0.05 0.01 0.00 0.00
Discount factor 0.93 0.86 0.79 0.74 0.68 0.63
Net Present Value (NPV)
441.58 94.90 20.38 4.38 0.94 0.20
Without Corporate BRANDING
![Page 16: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/16.jpg)
Years 0 1 2 3 4 5 6
Gross Profit Per Guest
661.44 701.13 743.19 787.19 835.05 885.16
Acquisition expense per new guest
Marketing expense per guest
142.86 147.14 151.56 156.10 160.79 165.61
Net Profit per Guest
518.58 553.98 591.64 631.68 674.27 719.55
Retention factor 1.00 0.22 0.05 0.01 0.00 0.00
Discount factor 0.93 0.86 0.79 0.74 0.68 0.63
Net Present Value (NPV)
480.17 102.92 22.05 4.72 1.01 0.22
With Corporate BRANDING
![Page 17: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/17.jpg)
Follow corporate branding Model
Create Brand Equity
Create Brand awareness by Marketing communication
![Page 18: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/18.jpg)
Resonance
SailenceThe depth and breadth of the brand awareness
Performance
Judgements
Imagery
Feelings
How well the company meets customers functional needs
Extrinsic properties of the products and services.
Focus on customers opinions and evaluations
Emotional response with respect to the brand
Brand Resonance Model
![Page 19: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/19.jpg)
Marketing Communication
![Page 20: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/20.jpg)
Brand Awareness through events and experiences
Destination
Wedding
Corporate
Meetings
Cultural
Events
![Page 21: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/21.jpg)
Brand Loyalty
Loyalty Cards
Special Yearly events for
Loyal customers.
Service Quality
Printed Goodies to Loyal
Members
![Page 22: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/22.jpg)
Brand Repositioning with the corporate branding model
Creating brand awareness through various communication channels, events and experiences
Increasing Brand Equity through loyalty programs
![Page 23: The Rosewood Hotel Harvard Business Case](https://reader033.vdocuments.net/reader033/viewer/2022042423/587c90411a28abfa5e8b506f/html5/thumbnails/23.jpg)
Created by Rachit Tandon,
RIL, During a marketing
Internship under Prof. Sameer
Mathur, IIM Lucknow.