This document discusses Rosewood Hotels & Resorts, a luxury hotel management company. It operates a collection of individually branded luxury hotels and resorts around the world. The document analyzes factors affecting Rosewood's brand, including competition, employee and guest perceptions. It finds low brand awareness and recommends adopting a corporate branding approach to increase loyalty and cross-property usage. Financial projections show corporate branding increasing the customer lifetime value compared to operating as individually branded properties. Suggestions are made to strengthen Rosewood's brand equity through internal alignment, public relations, membership programs and travel partnerships.

1. BY
RAM RADESH DAVULURI
NIT,SURAT

2. Some Resorts and Hotels

3. Bachelorette Bermuda Resort

4. Jumba Bay Resort

5. The Carlyle,A Rosewood Hotel,New York,USA

6. Mansion on Turtle Creek,Dallas,USA

7. The Illustrious
Rosewood Hotel

8. ROSEWOOD HOTELS & RESORTS (ROSEWOOD)
is a private hotel management company .
• operated a “collection” of individually branded unique
hotels & resorts
• Has global reputation with iconic luxury hotels

9. HISTORY
1984
•Hotel Hana
Maui, Hawaii

12. FOUR important factors effecting
brands:
•External competition
•Agent’s perception
•Employee’s perception
•Guest’s perception

13. External competition
➢Competing with known chains and individually branded properties to name few :
➢four season with 58 properties .
➢ritz-Carlton -52 properties .
➢Fairmont -48 properties .
➢Orient express .
➢Rocco forte etc.

14. Agents perception
o I book the hotel and not the Rosewood
o Brand is not as important as the hotels & resorts
o The brand is not as strong as it was in its past
o Known only by individual hotels & resorts
o Clients don’t come asking for Rosewood as a Brand
o Clients know Rosewood only because I educate them on it
o We have to drive understanding of Rosewood. Once they understand what Rosewood is, it does
mean something

15. Employees’ perception
•It’s a brand of dilemma – don’t see great opportunity, few business opportunity .
•Secret club – known by some guests who go and the industry .
•Very low awareness. Those who know are past guests .

16. Guest perception
•Brand Rosewood means nothing.
•Guests have used various properties but couldn’t realize that all were a part of same
group
•Even after staying at the property, guests don’t tend to know the name Rosewood
•Rosewood as a brand doesn’t encourages me to try different properties
•I dint know until my travel agent mentioned it

17. Current Issues
After switching to automated data gathering through CRS, consolidated guest data
revealed that -
5% multi property return visit while corporate branded hotels enjoyed 10% -15% cross
property usage rate.
Rosewood was at the low end of the scale and there were an opportunity for increasing
cross-property usage.

18. Probable Solutions
•Through frequent-stay program
•Corporate branding approach
Issue with frequent-stay program
•This type of program had been successful only for large multi segment operators with
broad geographic distribution.
•Loyalty through these type of program was fostered by offerings such as—flexible check
in, check out time, personalized services, freedom to request a specific room, capacity of
employees to solve most unusual problem etc…

19. Advantages of corporate branding
✓ Collective experience
✓ Consistent service – in all aspects
✓ Encourage guests to use more than one property
✓ Better brand recognition
✓ High customer loyalty
✓ As per the survey, Individual brand or collection hotels had 5% to 10% cross selling rates while corporate
branded hotels enjoyed 10% to 15% cross property usage rates

20. Issues in Corporate Brand Promotion
•Internal resistance : Few Hotel Managers were inclined to promote their own Hotel
Rather than promoting the Rosewood
•Some corporate guests didn’t want to be a part of bigger Organization due to their
emotional attachment to a particular hotel.

21. Advantages of corporate branding
Better customer life time value

22. Building Brand Equity

23. Aakers Brand Equity Model

24. Calculating Customer Lifetime Value
Customer lifetime value (CLV) describes the net present value of
the stream of future profits expected over the customer’s lifetime
purchases

25. Branding Strategy

26. Revenue and Cost AnalysisWithout Rosewood Branding (2003) With Rosewood Corporate
Branding
Total number of unique guests (a) 115,000.00 115,000.00
Average daily spend (b) $750.00 $750.00
Number of days average guest stays 2 2
Average gross margin per room 32% 32%
Average number of visits per year per guest 1.2 1.2
Average marketing expense per guest (system-wide) d $130.00 $138.70
Average new guest acquisition expense (system-wide) $150.00 $150.00
Total number of repeat guests (e) 19,169 24,919
Of which: Total number of multi-property stay guests 5,750 11,500
Number of Multiproperty Guest 5% 10%
Average Guest Retention Rate (f) 16.67% 21.67%
Average Gross Profit per Guest $576.00 $624.00

27. Total NPV of CLTV without Corporate Brand
Years 0 1 2 3 4 5 6
Gross profit per guest 609.50 646.07 684.83 725.92 769.48 815.65
Acquisition expense per new guest 115.00
Marketing expense per guest 132.60 135.25 137.96 140.72 143.53 146.40
Net Profit per Guest (115.00) 476.90 510.82 546.88 585.21 625.95 669.25
Retention factor 1.00 0.22 0.05 0.01 0.00 0.00
Discount factor 0.93 0.86 0.79 0.74 0.68 0.63
Net Present Value (NPV) (115.00) 441.58 94.90 20.38 4.38 0.94 0.20
448.62

28. Total NPV of CLTV with Corporate Brand
Years 0 1 2 3 4 5 6
Gross profit per guest 661.44 701.13 743.19 787.79 835.05 885.16
Acquisition expense per new guest 115
Marketing expense per guest 142.86 147.14 151.56 156.10 160.79 165.61
Net Profit per Guest (115.00) 518.58 553.98 591.64 631.68 674.27 719.55
Retention factor 1.00 0.22 0.05 0.01 0.00 0.00
Discount factor 0.93 0.86 0.79 0.74 0.68 0.63
Net Present Value (NPV) (115.00) 480.17 102.92 22.05 4.72 1.01 0.22
Total NPV 496.09

29. • Adopt Corporate Branding
• Strengthen Rosewood’s Brand
Equity

33. Suggestions
• Get internal teams confidence
• Show them a bigger picture
• Incentivize trade and ask them to push a brand
• PR can do wonders
• Build a Rosewood membership plan
• Tie up with travel agencies/tour operators etc

34. Thank You