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Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value.

In: Business and Management

Submitted By rrsingh
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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 and potentially decreases the property value.

Current Competition, Brand Identity and Competitive advantage
Rosewood competes with two groups of luxury hotels: the corporate branded Ritz-Carlton, Four Seasons, St. Regis etc and the “collections” of individually branded unique hotels, such as Auberge, Rockports and the Orient Express.
This led to an identity crisis of sorts where in spite…...

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