ROSEWOOD HOTELS AND RESORTS: BRANDING TO INCREASE CUSTOMER PROFITABILITY AND LIFETIME VALUE

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Transcript of ROSEWOOD HOTELS AND RESORTS: BRANDING TO INCREASE CUSTOMER PROFITABILITY AND LIFETIME VALUE

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ROUNAK SARKARNATIONAL INSTITUTE OF TECHNOLOGY,TIRUCHIRAPPALLI

INTRODUCTION :Headquarters : Dallas , Texas

Rating : 5 Star

CEO and Vice President : John Scott

Vice President of Sales and Marketing : Robert Boulogne

Number of hotels : 12

Number of rooms : 1513

Room tariffs : $120 - $9000

HISTORY BEHIND :1979-92 : The Caroline Rose Hunt Trust Estate establishes hotels and resorts. Launches its first hotel-The Mansion on the Turtle Creek, Dallas, Texas. Refurbishes and opens Hotel Bel Air, Los Angeles , California. Opening of Hotel Seiyo Ginza in Tokyo , Japan, and The Lanesborough in London , England. 1992-2002 Management contracts of Hotel Al Khozama and Al Faisaliah Hotel. Reopening of The Bristol in Panama City, Las Ventanas al Paraiso in Los Cabos, Mexico and The Dharmawangsa in Jakarta. Rosewood takes on management, renovation and relaunch of jumby Bay in Antigua.

ROBERT BOULOGNE JOHN SCOTTROSEWOOD AL FAISALIAH HOTEL ROSEWOOD LITTLE DIX BAY

HOTEL BEL AIR

HOTEL CAROLINE

ROSEWOOD PROPERTIES AND SIGNED AGREEMENTSNorth America The Carlyle The Mansion on the Turtle CreekCaribbean Jumby Bay Caneel Bay Latin America Las Ventanas al Paraiso

ROSEWOOD PROPERTIES AND SIGNED AGREEMENTS (contd.)Middle East Hotel Al Khonzama Dharmawangsa

SIGNED AGREEMENTS: Acqualina Tuanovo Bsy La Solana Laguna Kai

ROSEWOODS COMPETITORS:Four Seasons Ritz CarltonFairmontPark HyattMandarin OrientalSt. RegisOne&OnlyRegent PeninsulaRaffles

LACK OF BRAND AWARENESS

Majority of the consumers did not know about the brand.

Analysis of consolidated guest data revealed that,

Only 5% of the Rosewood guests had stayed in more than one Rosewoods properties.

While corporate enjoyed 10% to15% cross property usage.

ROSEWOOD MANAGEMENT GOALSIncreasing connection between Rosewood properties.

Increase cross property usage from 5% to 10%.

Create Rosewood Junkies.

Building strong brand equity.

GUEST PERSPECTIVE

-I DONT KNOW ROSEWOOD.

-I DONT REALLYKNOW THE NAME ROSEWOOD , EVEN AFTER STAYING AT THAT PROPERTY.

AGENTS PERSPECTIVE-I BOOK A HOTEL , NOT ROSEWOOD.

-ROSEWOOD IS A COLLECTION OF BRANDS , -NOT A BRAND.

-CLIENTS DONT COME TO ME ASKING FOR ROSEWOOD PROPERTIES.

ROSEWOOD EMPLOYEE PERSPECTIVE-ITS A SECRET CLUB, KNOWN BY SOME GUESTS WHO GO AND THE INDUSTRY.

-VERY LOW AWARENESS , LESS THAN 5%.

STRATEGIES TO ENCOURAGE GUESTS TO USE MORE THAN ONE ROSEWOOD HOTELFREQUENT STAY PROGRAMEarn points for stay at various properties worldwide.

(OR)

CORPORATE BRANDING APPROACH

DRAWBACKS OF FREQUENT STAY PROGRAM:Successful only for large multi segment operators with broad geographical distribution.

Loyalty through these type of program was forested by offerings such as flexible check in and check out time , personalized services freedom to request a specific room , capacity to solve most of the unusual problems etc.

BENEFITS OF CORPORATE BRANDINGCorporate branding encourages consumer to use more than one property.

Helps in developing brand equity.

Based on the analysis of the consolidated guest data, individual brand had 5% to 10% cross selling rates while corporate branded hotel had 10% to 15% cross selling rates.

Higher customer loyalty.

DRAWBACKS OF CORPORATE BRANDING:Most of the hotel managers were more inclined promote just their own individual hotel brand, particularly if they have strong brand.

Some hotel managers may also feel threatened in their autonomy to manage the properties because with more brand standards come all kinds of other things like spa branding or other branding programs.

SUGGESTIONS ON CORPORATE BRANDING :Aim to build long-term relationships with your customers.

Dont try to mimic the look of chains or big brands.

Always consider your branding when communicating with customers.

Make social activity count.

ROSEWOODS BRAND-WIDE CUSTOMER LIFETIME VALUE

According to the scenario , corporate branding is more profitable than frequent stay program.