For Rosewood Hotels to successfully move from the “canned and cookie cutter” approach of
Individual branding to a collective strategy of corporate branding, first the pros and cons have to be weighed and measured. From the research conducted by Rosewood, the most obvious and immediate pro to a corporate branding strategy is the projected increase in multiproperty stay guests from 5% to 10%.
Overall customer lifetime value is higher with corporate branding than without, as demonstrated in Exhibit A (Customer lifetime value calculation spreadsheet). Without corporate branding, overall net present value totals $378.49 per guest while with branding that number jumps to $434.78.
Based on the calculations, as well as the overall pros and cons, I believe that Rosewood should definitely move from individual brands to a corporate brand. That being said, the company currently has some powerhouse locations under its overall corporate climate, such as the flagship location, The Mansion on Turtle Creek in Dallas and also The Carlyle in New York. So as not to lose any current brand equity in those properties, and also to appease the management of those locations who are probably more resistant to the change to corporate branding than any other locations. Rather than renaming The Carlyle to The Rosewood Carlyle, I would recommend the name become “The Carlyle, a Rosewood Property” .This will associate the properties with the Rosewood name without detracting from the brand equity already built within the current naming framework. The changes to the corporate culture will be difficult enough to traverse without adding undue stresses, and Rosewood definitely does not want to alienate current customers with dramatic and immediate changes. All new properties could be named under the Rosewood umbrella.
