The document discusses the branding strategy of Rosewood Hotels & Resorts. It summarizes that Rosewood has 12 hotels worldwide with a nightly rate between $120-$9000. Previously, Rosewood focused on individual property branding over a strong corporate brand. However, this led to low brand recognition and instability. The document analyzes that implementing a frequent stay program and stronger corporate branding could increase the customer lifetime value and net present value for Rosewood by $84.25 based on a financial model. It suggests proceeding with corporate branding while still emphasizing individual properties' uniqueness.
5. IDEOLOGY
“A SENSE OF PLACE”
The properties sought to capture
the uniqueness of the location
“INDIVIDUAL PROPERTY BRANDING”
Differentiated the properties from
competitors
6. INDIVIDUAL PROPERTY BRANDING
The Rosewood
branding was…. “Soft”
“Complementary”
“Nonintrusive”
“The Lanesborough”
………not “The Rosewood”
Focus was laid on the individual
rather than the corporate brand
9. GUEST’S PERSPECTIVE
So Caneel
Bay it is !!
Oh!!! It’s
Rosewood
That hotel in which we
stayed was one of
Rosewood’s property!!!
Huh!!
What’s
Rosewood ??
10. You said we went to
The Carlyle but it
was Rosewood !!!
11. TRAVEL AGENT’S PERSPECTIVE
I book the hotel not
rosewood
Brand is not
important as its
properties
They do not
come asking for
Rosewood
properties
I have to
educate them
of the brand
21. WHAT WERE THE
CHALLENGES ?
Guests might get alienated at
well established properties
Perfect product/service performance
consistency across its portfolio
Preserve the uniqueness and
individuality of its properties
Lack of support from
hotel managers
28. Without Rosewood Corporate
Branding
With Rosewood Corporate Branding
Year - 2003
Total number of unique guests 115000 115000
Average daily spend $750 $750
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 1.3
Average marketing expense per guest $130 $138.7
Average new guest acquisition expense $150 $150
Total number of repeat guests 19169 24919
Of which: Total number of
multi-property stay guests 5750 11500
Average Guest Retention Rate 16.67% 21.67%
Average Gross Profit per Guest $576 $624
AVERAGE GROSS PROFIT PER GUEST
29. NPV VALUE WITHOUT CORPORATE BRANDING
Year 2003 2004 2005 2006 2007 2008 2009
Gross profit per guest ($) 576 610.56 647.19 686.03 727.19 770.82 817.07
Acquisition expense per new guest ($) 130 133.90 137.92 142.05 146.32 150.71 155.23
Marketing expense per guest ($) 150
Net Profit per Guest ($) 296 476.66 509.28 543.97 580.87 620.11 661.84
Retention Factor 1 1 0.17 0.03 0 0 0
Discount Factor 1 1.08 1.17 1.26 1.36 1.47 1.59
NPV ($) -150 441.35 74.23 12.95 0.00 0.00 0.00
Total NPV ($) 378.53
NPV – NET PRESENT VALUE
30. NPV VALUE WITH CORPORATE BRANDING
Years 2003 2004 2005 2006 2007 2008 2009
Gross profit per guest ($) 624 661.44 701.13 743.19 787.79 835.05 885.16
Acquisition expense per new guest ($) 138.7 142.86 147.15 151.56 156.11 160.79 165.62
Marketing expense per guest ($) 150
Net Profit per Guest ($) 335.3 518.58 553.98 591.63 631.68 674.26 719.54
Retention Factor 1 1 0.22 0.05 0.01 0 0
Discount Factor 1 1.08 1.17 1.26 1.36 1.47 1.59
NPV ($) -150 480.17 104.49 23.48 4.64 0.00 0.00
Total NPV ($) 462.78
31. RESULT
NPV of CLTV comes out to be greater
by $84.25 when corporate branding is
done.
$462.78 - $378.53 = $84.25
32. SUGGESTIONS
1.Go for Corporate Branding.
2.Show the hotel managers , the bigger picture.
3.Precede the corporate brand name to the
individual brand name , thus keeping the
uniqueness of the brand.
