...Case Analysis Rosewood business is going well but it lacks a cohesive brand image to optimize the customer profitability and lifetime value. The majority of Rosewood customers do not know that they are staying at a Rosewood hotel or even recognize the Rosewood brand. The new CEO John Scott recognized that the Rosewood brand had log recognition and brand-wide usage among guests and was an untapped asset. To increase the company’s value, Rosewood needs to increase the profitability of the current and future customers. It needs to develop a way to enable consumers to get more knowledge on the fact that they can enjoy “A Sense of Place” Rosewood type of experience in different parts of the world. Rosewood had two options by which it could encourage its customers to use more than one Rosewood hotels: * Introduce a frequent-stay program * Create/adopt a corporate brand Market research has shown that the number of guests enrolled in frequent –stay programs(mostly point based)grew by nearly 12% in 2003 and such programs are believed to double repeat business. Creating Rosewood brand awareness would provide a platform for encouraging Rosewood customers who stay at one of Rosewood property to stay at some of the others. It would not only increase cross property use and attract new customers, but also increase joint marketing activities and ability to build new properties and grow. Nevertheless, corporate branding undercuts the distinctiveness of each individual branded hotel...
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...Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value Nature of Situation Rosewood Hotels and Resorts is a privately held hotel management company. Rosewood is the corporate entity behind many popular luxury hotels such as The Mansion on Turtle Creek and the Carlyle. Rosewood developed the luxury properties based on their concept of “A Sense of Place”. “A Sense of Place” incorporated the unique features-characteristics-culture of the location with the hotel to create a unique hotel at each location. In order to maintain the uniqueness of each individual hotel, Rosewood has kept the corporate company hidden from the boutique hotels. The strategy has allowed Rosewood to become a success and remain separate from some of their chain competitors. The differentiation of each hotel has created iconic hotels with no brand recognition amongst them. The following data demonstrates the importance of having brand loyalty in the luxury hotel business. 2003 report showed majority of customers did not know the Rosewood Brand. In 2004, John Scott, Rosewood President and CEO, and Robert Boulogne, vice president, were working to boost the growth and sales of the company. They looked to a competitor, AmanResorts, who had clientele that would seek out their hotels: Rosewood wanted to create the same clientele awareness. Rosewood was also collecting more data from their guests by using its central reservation system (CRS). The database is currently...
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...Rosewood Hotels & Resorts Case Study Background The Rosewood Hotels & Resorts has been in business for close to 25 years. It operates in the luxury hotel segment, with a focus on one-of-a-kind hotels. Each hotel reflects the local culture and character of its location. Up to this point it has allowed properties to thrive on their own with very little corporate identity. However, management feels there is an opportunity for growth in the market and is considering a new brand strategy; one that would establish the Rosewood brand and incorporate it into the name of each property as well as introduce more Rosewood branded items in the hotels. It needs to present its strategy to the Board of Directors and is questioning how far it can push the branding without hurting the individual identities of the properties. Industry There are two distinct groups in the luxury hotel industry, the “Collections” of individual properties such as Auberge, RockResorts, and Orient-Express, and the Corporate Branded hotels such as the Ritz-Carlton and Four Seasons. Rosewood operates in the “Collections” group. It built its concept around “A Sense of Place®”, which is meant to reflect how each property captures what is unique about its location. This is fairly typical of the “Collections” brand model, where companies focus branding and marketing on individual properties, with the overall corporate brand relatively muted in the background. The Corporate Branded hotels focus heavily...
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...SUMMARY Rosewood Hotels & Resorts (Rosewood) was a group of private iconic luxury hotels without any corporate branding in 2004. To boost the company’s growth, the then CEO and Vice President decided to bring about corporate branding of Rosewood hotels but also wanted to maintain its distinctiveness of each individually branded hotel. CURRENT SCENARIO As of 2003, Rosewood had 12 hotels worldwide with a total capacity of 1513 rooms. The nightly rates ranged from $120 for one of the Saudi Arabian properties to $900 for a Canadian lodge. Rosewood was known for its ability to enhance its property’s value by being unique and differentiated from the regular chain of hotels. But on the competitive front they did compete with corporate branded hotels like Four Seasons, Ritz-Carlton, St. Regis, One & Only and Mandarin Oriental Hotels. And they also competed with collections of individually branded hotels like Auberge, Rock Resorts and Orient Express. Rosewood had continued to brand itself as an individual collection as it wanted to support its core value of “Sense of Place”, where each hotel exhibited its local character, culture and design. The individual hotel names were more prominent than the Rosewood brand itself. In April 2003, John Scott was taking over the CEO position in Rosewood, realized the limitations of individual branding. He realized that while the guests sought the unique Rosewood property experience, they didn’t make connections to other Rosewood properties...
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...Memorandum To: From: Cory Castle Date: September 27, 2015 Re: Rosewood Hotels and Resorts CEO John Scott’s recommendation to Rosewood Hotels & Resorts (Rosewood) board of directors is to adopt the corporate branding strategy to boost company growth through increased cross-selling rates across its line of luxury hotels around the world. The Customer Lifetime Value (CLTV) for the next 6 years as referenced in the “Rosewood Hotels & Resorts: Customer Lifetime Value (CLTV) Analysis”, Rosewood is projected to see an increase in revenue of approximately $29.6 Million with a corporate brand strategy. The result was derived from $82.60 per customer CLTV in increased marketing costs, times the number of projected repeat customers (115,000), which was $9,498,542 in increased profit. This profit divided by 32% gross margin which resulted in $29,682,943 of increased revenue over a 6 year time period. This projected increase in revenue substantiates Scott’s initiatives. Currently, Rosewood is operating under an individual hotel branding concept, building on its one-of-a-kind, luxury hotel concept of “A Sense of Place”. Rosewood has become known for its ability to foster an environment detailed to the individual consumer. The change to the Rosewood corporate brand is projected to help customers associate the suite of luxury hotels under the Rosewood name and encourage them to stay at other hotels worldwide within the conglomerate. Of the 40% of customers who had...
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...exáÉÜàá M Branding to Increase Customer Profitability and Lifetime Value l the SIXers MM UI 2012 ROSEWOOD HOTELS & RESORTS (ROSEWOOD) is a private hotel management company . • operated a “collection” of individually branded unique hotels & resorts • Has global reputation with iconic luxury hotels eÉáxãÉÉw Facts 1979 • The Caroline Rose Hunt Trust Estate 1984 • Hotel Hana Maui, Hawaii eÉáxãÉÉw Facts HISTORY Properties Growth 25 20 15 10 5 0 25 13 6 12 10 6 0 8 5 1 2 4 1996 2003 eÉáxãÉÉw Facts ROSEWOOD BRAND “A Sense of Place” eÉáxãÉÉw Facts eÉáxãÉÉw Facts eÉáxãÉÉw Facts eÉáxãÉÉw Theory Building Brand Equity eÉáxãÉÉw Theory Aakers Brand Equity Model eÉáxãÉÉw Theory Calculating Customer Lifetime Value Customer lifetime value (CLV) describes the net present value of the stream of future profits expected over the customer’s lifetime purchases eÉáxãÉÉw Theory Branding Strategy eÉáxãÉÉw Analysis Pro’s and Con’s Individual Branding • Better CLTV • Collective Experience (duplicate standard) • Consistent Service • Encourage guest to use more than one properties • Better Brand Recognition • High customer loyalty (Rosewood Junkies) • Inconsistency in brand wide performance standard • • • • Increase Marketing Cost for re-branding Resistant from owner, guest, manager Guest feel alienate Bad Reputation may impact others eÉáxãÉÉw Analysis Revenue and Cost Analysis Without Rosewood Branding...
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...ROSEWOOD REPORT 1. REVIEW KEY FACTS. Rosewood Hotels and Resorts (Rosewood) is a private hotel management company. Brand Rosewood is only known among hotel professionals. Rosewood differs from its completion by giving uniqueness to its hotels. Rosewood hotels carry their own brand. Rosewood hotels are unique, each hotel is one of its kinds, and they are creative and flexible. Each hotel’s interior, exterior and menu reflect the local culture and define the local philosophy. Rosewood growth strategy: 1. Re-launch and re-position an existing luxury hotel which has a strong brand name by providing professional management 2. Help developers build luxury hotel and create brand equity in the property. Brand Rosewood is never marketed, and is not popular in market. Many customers don’t know the name rosewood some knew through the travel agent. Individual property was stressed not the brand name. Rosewood always marketed the hotel by the property name. Rosewood’s management has been considering new branding strategy. Instead of branding hotels locally, rosewood is considering to go with corporate branding with all its hotels. From the data analysis 40% of the customers enjoyed return visit but only 5% stayed in more than one of Rosewood’s properties. By branding Rosewood ought to improve cross property usage and build a strong brand name among customers. 2. DEFINE THE BRANDING OPTIONS AND DISCUSS THE NONFINANCIAL PROS/CONS OF EACH. ADDRESS THE PROS AND CONS AND...
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...MBA 812 Marketing Management Case Analysis Rosewood Hotels and Resorts Summary This paper is expended according to the Rosewood Hotels & Restores Company, which established in 1979. This company promoted the Individual Brand Strategy when it was established. In early 2004, the new present and CEO, John Scott, and the vice president of sales and marketing, Robert Boulogne were considering to apply one new brand strategy named Corporate Brand Strategy in order to boost the company’s growth. In the first part of this paper, it gives the reasons why John Scott and Robert Boulogne wanted to promote the Corporate Brand Strategy. In the second part, it describes the advantages and disadvantages of the two brand strategies. And, the last part which is the most important part, there is a spreadsheet with lots of data, and from these data, John Scott and Robert Boulogne confirmed that the Corporate Brand Strategy is more effective for the Rosewood Hotels & Restores Company’s growth. Body of the Paper In this case, the protagonist is Rosewood Hotels & Restores, which is a hotel management company. In this company, there are 12 individual branded hotels and restores in different countries. In other words, Rosewood Hotels &Restores’ development strategy is individual/collection brand strategy. In early 2004, the top managers of Rosewood Hotels & Restores want to promote the company’s growth. Generally speaking, there are several popular growth strategies...
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...Case Study 2: Rosewood Hotels & Resorts Problem Definition Rosewood Hotels & Resorts, a private hotel management company, wants to build a global reputation with its iconic luxury hotels such as The Mansion on Turtle Creek in Dallas, Texas and The Carlyle in New York. These properties, among others, currently thrive on their own name and the marketing of it. They currently do not have any “corporate” association nor have they ever. Each of these properties is so distinct that there is very little that ties them together. In early 2004, John Scott, Rosewood’s president and CEO, and Robert Boulogne, vice president of sales and marketing, were considering ways to associate all of Rosewood’s properties together under one brand. They think that tying them together under one corporate umbrella would make it easier to encourage guests to stay at one of their other hotels. They believe that if guests knew that all of the Rosewood properties were owned by Rosewood and part of the Rosewood group that they would likely return to another Rosewood property and would help build brand loyalty. Putting all of these distinct properties, each with unique histories under one brand has become more difficult that originally thought. If these changes were to take place they will need to be done carefully so that each of the unique hotels didn’t lose value on its own brand. They must also be able to convince the current co-op owners that it’s a good idea. Currently they do not...
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...questions and the spreadsheet in the corresponding group link included in the assignment drop box. The group submission will be graded according to the group case rubric. Rosewood Hotels & Resorts 1. What would you recommend to Rosewood Hotels & Resorts? In your answer include the following: • Provide 3 arguments that would support your decision. • Describe how you would implement your recommendation. Our recommendation to Rosewood would be to implement the Corporate Branding Strategy for its portfolio. • The Corporate Branding Strategy increases the number of stays per guest, which in turn, increases the top line revenues generated with the number of nights per stay remaining constant under both scenarios. With a gross profit margin of 32%; this translates to over 400k in Gross profit (before marketing costs). • Their retention rate would also increase 5 percentage points by providing a loyalty program their guests can associate with. This increase reduces the overall marketing dollars needed to attract “new” guests and use those resources towards the corporate program. The corporate branding increases the number of visits from 1.2 to 1.3 per year per guest. This raises the number of repeat guests from 19,169 to 24,919. As an individual property brand, the Rosewood brand had...
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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 a new branding strategy? In your answer consider the characteristics of the company, its competitive environment, customer base and its current marketing/branding strategy. Rosewood Hotels is considering a new branding strategy to increase its revenue. They recognize that the even subtle increases in customer lifetime value (CLV) can mean significant increases in the bottom line. They also realize that an investment in retaining a customer to increase the CLV is more cost effective than attracting new customers due to the long term benefits. Management believes that moving from marketing the properties individually to corporate branding will increase customer repeat visits between hotels and that will consequently increase revenue by increasing CLV. This individual “brand positioning substantially limits our market,” as chairman of the board Maritz states, “I think we are underestimating the power of corporate brands, such as the Four Seasons, as status symbols. At this time, we...
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...Rosewood Hotels and Resorts is a business that has 12 establishments worldwide. Until 2004, the company has run an individual branding strategy; but recent events, such as the adoption of a new President and CEO, have the company considering a corporate branding strategy. Rosewood seems to have hit a roadblock with their current strategy; they are concerned that their guests do not fully understand the Rosewood brand. Rosewood believes if they are able to adopt a corporate brand, that their guests will recognize more of their facilities and become loyal which in turn could increase revenue because their guest’s customer lifetime value will have risen. Rosewood also believes that by implementing a corporate brand, they will have an advantage over their competitors. The main issue with their current branding is that their customers are unknowledgeable about their brand. If they instill a corporate brand, more guests will choose their Hotels over competitors. Rosewood believes that by becoming a company who runs a corporate brand strategy, they will be able to increase their cross-selling rate. According to analysis of guest data, corporate-branding properties had higher cross-selling rates among their properties than those that utilized individual branding. Research shows that having a corporate-branding strategy resulted in a 10% to 15% cross-selling rate; this is because up to 40% of their guests returned for another stay. We compare these numbers to those of the individual-branding’s...
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...A competitive advantage is the result of matching core competencies to opportunities. In order to gain competitive advantages, a company should provide their customers products / services of same value with lower price or charging premium prices by providing higher value, which can be done by differentiation (Anon., n.d.). The competitive advantages that Apple have compared to their competitors are the user-friendly interface, first mover advantages, attractive designs, innovative features, and a prestigious brand image. In addition, Apple also has full control over all aspects of their computers including both software and hardware. According to Ferguson (2010) the major competitive advantages of apple is their marketing techniques. Being the first mover in the industry, Apple is able to capture most of the market and build a strong brand image. With the high quality products that they deliver, they have successfully formed people’s perception that a good product should be fairly similar to an Apple product. When such perception has been formed, it will be harder for competitors to penetrate the market. These first mover advantages are the result of their continuous innovations. For instance, they are the first company who produce a computer with stylish design that has no visible bolts. Furthermore, the products that they deliver are always user-friendly and this enables them to capture a larger market that includes non-proficient computer users. As a result of their...
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...EXECUTIVE SUMMARY TRENDS • Both the leading players in ice cream in terms of value sales in 2010 – Gujarat Co-operative Milk Marketing Federation and Hindustan Unilever – have well-developed ice cream fast food chains in the consumer foodservice environment in India. Operating under the brands Amul and Swirl’s, the company’s fast food chains helped to propagate their respective brand names, as consumers associated the brand image with the comfortable seating and high-quality service witnessed at these outlets over the review period. Conversely, retail sales of Gujarat Co-operatives brand Amul and Hindustan Unilever’s brands, such as Wall’s and Cornetto, received publicity via in-store promotions. Leveraging on their presence in consumer foodservice, other ice cream fast food brands, such as Baskin-Robbins and Natural, also operate through a range of retail ice cream products in India. COMPETITIVE LANDSCAPE • Gujarat Co-operative Milk Marketing Federation led ice cream in value terms in India in 2010, accounting for a 36% share of retail sales. It has an extremely diverse range of ice cream products, which span economy to premium offerings. The company’s expansive outlet and cold chain network for all its dairy products greatly helped the operations of its ice cream business. Other players, such as Hindustan Unilever and Mother Dairy Fruit & Vegetable also had appreciable brand equity, as the top three players were responsible for a combined 67% share of value sales of ice...
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...Abstract L’Oreal was the world largest French-based cosmetic company, achieved successfully in global marketing with businesses in East and Western Europe, North America, Latin America, Asia and some other countries. Later, they spotted on China as a potential cosmetics market due to its extremely high population and entered the Chinese market to compete with other cosmetic brands as a late entrant. This report attempts to discuss on L’Oreal’s expansion in China. For example, in order to speed up the growth in the Chinese market, L’Oreal signed agreements to acquire two famous Chinese cosmetic brands, Yue-Sai and Mininurse. Moreover, according to the contracts, both the founders of Mininurse and Yue-Sai were required to never enter the cosmetics market. Were these problems that affect L’Oreal’s management on the two Chinese brands and its future growth in China? They are to be identified and analyzed in detail. Conclusion and recommendations will be given at the end of the report on how to well manage the two Chinese brands and make sustainable growth in the future. For example, keep the original cosmetics product packaging of Yue-Sai instead of re-packaging it due to the risk of losing brand loyalty. Remain the original core identity of the cosmetics when improving the formula of it. Yet, it is suggested to build up better business strategies for L’Oreal’s development in China in the future. Table of contents Introduction……………………………………………………………………………………………………3 Background...
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