Rosewood

Key Problem/ Opportunity • The Rosewood Hotels & Resorts (Rosewood) has very little brand recognition amongst both their actual and potential clientele. Although each of their signature properties is a distinctive luxury hotel, there is no comprehensive brand strategy that would encourage their patrons to stay at another one of the company’s locations. New Information • From 2003 to the present, Rosewood increased its number of hotels from 13 to 20 (53% property growth rate), and has two more scheduled to open in 2012. This occurred despite their departure from Asia Pacific market. In comparison, the Four Seasons had an increase of 52%, the Ritz-Carlton 60%, and 36% at Orient-Express. • The Rosewood expansion created 974 new guest rooms throughout the enterprise, with 440 more planned by the end of 2012. • Half of the current hotel collection has the Rosewood name in the hotel title. Some older hotels were renamed, and most new hotels are now branded with Rosewood in the name. • Rosewood is not a publically traded company, so there is no ready access to the data needed to determine if the corporate branding strategy met its projected success. Recommendations • The customer lifetime value (CLTV) model developed by Rosewood shows a distinct advantage of corporate branding over individually branded products. This advantage was $82.60 per customer, which was projected to yield over $29 million in revenue. With this data, I strongly concur with Scott’s decision to implement a corporate branding strategy. • Furthermore, I would implement Boulogne’s suggested incorporation of the Rosewood brand directly preceding the name of properties. This was done to some extent, but I would apply this to all the hotels. Although there is concern about alienating some guests, the potential gains from increasing brand awareness far outweigh any loss of business from the very few who would not book again due to something as simple as a name change. Most people would simply be curious as to why the hotel was renamed, and that conversation would be an excellent way to educate the customers on the host of Rosewood offerings. Marketing the Rosewood name will help build a relationship between satisfied customers at a single resort to the brand as a whole. • To maintain the concept of ‘persona’ found in each property, I would alter the current tagline “A Sense of Place” slightly to become “A Distinctive Sense of Place”. This better expresses the uniqueness that Rosewood imbues in each of its hotels, and sets an undertone of exclusiveness and sophistication for its potential clientele. • Given the difficulty of both increasing the number of potential clients and the present patron usage rate in this high priced, high-end market, Rosewood is going to have to increase selective demand. The branding strategy will help its current customers “brand-switch” from a competitor back to another Rosewood location on future vacations. Right now the company has some habitual purchase behavior at its individual locations, but I would additionally market the brand name so that it will play into future impulse buys and problem solving behavior by its current and potential clients. • Rosewood must continue to build relationships with customers based on commitment, trust, and a social bond. It has done this successfully at its individual hotels and resorts via impeccable service, beautiful locations, and attention to detail. It is crucial for the branding strategy to distribute the sense of luxury felt at each individualized location to the Rosewood line as a whole.