rosewood hotels and resort
TRANSCRIPT
Rosewood Hotels
and Resorts:Branding to increase
Customer Profitability and
life time Value
Harvard Business
School Case
• Established in 1979,
Rosewood Hotels and
Resorts is a privately held,
ultra-luxury hotel
management company
based in Dallas, Texas.
• It has 12 hotels
worldwide and 1513
rooms
• Room Tariffs ranging
from $120 to $9000
Executive
Officers as of
2003• Caroline Rose Hunt,
Honorary Chairman
• Philip Maritz, Chairman of the Board
• John Scott, President and Chief Executive Officer
• Robert Boulogne, Chief Operating Officer
• James McBride, Managing Director of The Carlyle, New York
SITUATION
ANALYSIS
SWOT Analysis.
• Strengths
• Weakness
• Opportunities
• Threats
STRENGTHS
• Unique Properties-
”Sense of Place“
• RevPAR is 17.62% ,
higher than the luxury
hotel market average
• Global Flexible data
warehouse system
• Rich history
WEAKNESS
• 84% fewer rooms than
market average in luxury
hotel industry
• Internal resistance in
changing corporate
branding strategy
• Low brand recognition
and low recall ability of
guests
• Mixed branding of
signals-inconsistent use
of rosewood logo
OPPURTUNITIES
• Growth rates and profitability
• New acquisitions
• Growing economy
• Corporate branding strategy
• Cross property usage
• Brand wide performance development
• Reward scheme for loyal customers
• Growing trend in seeking more experiential hotels
THREATS• Increase in labor costs
• External business risks
• Tough competitors
• Increasing rates of interest
• Customers are increasingly connecting with Corporate
PROBLEMRosewood 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.
Goals
• Increase Connection between Rosewood properties
• Increase cross property usage from 5% to 10%
• Building Strong Brand Equity
• Create Rosewood Junkies
Strategies
Target Market
• Customers:– Wealthy families
– Business travelers,
– Private Owners
• Collaborators: – Travel agencies
– Travel agents promoting the hotels.
– Rosewood employees also act as collaborators.
• Competition: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 % of growth less compared to individually branded ones
Tactics• Products : Packaging
and hotel attributes include should both the name of individual hotel and corporate brand.
• Price : No big changes in pricing policy are recommended.
• Incentives
• Efficient branding
• Promotion
Revenue and Cost Analysis
Total NPV of CLTV without Corporate Brand
Total NPV of CLTV with Corporate Brand
RECOMMENDATION/IMPLEMENT
• Adopt Corporate Branding
• Strengthen Rosewood’s Brand Equity
SUMMARY
• Board Members
• Situation Analysis
• Problem faced
• Goal
• Strategy
• Tactics
• Implementation
• Created by SHAHABAS SHAMSAD, NIT
TRICHY during a marketing internship
under PROF.SAMEER MATHUR,IIM
LUCKNOW
DISCLAIMER