What isRosewood?

Rosewood Hotels and Resorts is a private HotelManagement Company.

Who are the players?

CAROLINE ROSE HUNT : Honorary Chairman

JOHN SCOTT : President and Chief Executive Officer

ROBERT BOULOGNE : Chief Operating Officer

What is the present situation?

Situation Analysis

1. Rosewood Hotels follow individual branding.

2. To boost Company’s growth, John Scott was considering a new brand strategy.

3. Guest revenue and expense data was used to develop spreadsheet model that projected Rosewood’s CLTV.

Objectives of the Case

To use quantitative and qualitative method to develop an apt branding strategy to “increase customer profitability and lifetime value”.

Rosewood’s Operating Profile

Rosewood’s Competition

Rosewood’s Competition

Operational Stats of Rosewood’s Competitors

ISSUES

MENTIONED

IN THE CASE

Evaluate the present individual brand collection strategy of Rosewood Hotels?

What are the drawbacks of individual branding or how is corporate branding important for Rosewood?

What will be the new brand strategy to build customer lifetime value?

Present Individual Brand Collection Strategy

One of a kind luxury properties.

Built on the concept of “Sense of Place”.

Soft and complementary branding.

Rosewood’s logo remained secondary to hotel logo.

Flexible and creative approach.

Drawbacks of individual branding Guests were not making connection between

Rosewood properties.

Market seems to value corporate branding.

Rosewood’s potential remained untapped.

Selected Quotes from Strategic Marketing Solutions Report

This means that a majority customers did not know the Rosewood brand.

Approach to improve guest recognition capabilities

Switched to automated data gathering via its central CRS.

Insights from guest data

40% guests enjoyed return visits.

Only 5% of Rosewood’s guests stayed in more than one of the Rosewood’s property. This is very less when

compared to 15-20%

cross selling for other

hotels.

Two approaches to encourage guests to use more than one Rosewood Hotel

1) Frequent

Stay

Programs

Why not Frequent Stay Programs?

Very few Hotels adapted it.

Most unusual problems were also taken seriously employees under this Scheme.

2) Corporate

Branding

Strategy

Why Corporate Branding Strategy is better?

It would encourage multi-property guest stay

It has been the reason behind success of many brands.

Boulogne favored the immediate implementation of corporate branding.

However, there was much resistance from some managers and guests.

There was also need of product, service and performance consistency across portfolio.

Study

Scott and Boulogne used guest revenue and expense data to predict the feasibility of the strategy. Assumptions were made to know profit per guest.

A spreadsheet model that projected Rosewood’s CLTV was developed.

Boulogne conducted a study

For Hypothesis, we assume that marketing and operating expenses for one year for both the cases is 1000000 each.

From the previous calculations, we get