This document discusses Rosewood Hotels & Resorts, a luxury hotel management company. It was founded in 1979 and currently operates 25 hotels and resorts globally. The document analyzes Rosewood's branding strategy and compares the financial impacts of maintaining individual property brands versus adopting a unified Rosewood corporate brand. Adopting a corporate brand is estimated to increase customer lifetime value and profitability by strengthening the overall Rosewood brand equity and encouraging more multi-property visits. The document recommends Rosewood adopt a corporate branding strategy to strengthen its brand and increase customer loyalty and profits.

1. Ali Yudhi
Dame Reiny
Dewi Aryani
Dewi Sagita
Frisca Listya
Rosewood Hotels & Resorts :
Branding to Increase Customer Profitability and Lifetime Value l the SIXers MM UI
2012

2. 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
Rosewood Facts

3. 1979
• The Caroline
Rose Hunt Trust
Estate
1984
• Hotel Hana
Maui, Hawaii
Rosewood Facts HISTORY

4. Properties Growth
25
25
20
13
15 12
10 10
6 6 8
5
5
0 0 1 2 4 1996
2003
Rosewood Facts

5. ROSEWOOD BRAND
“A Sense of Place”
Rosewood Facts

6. Rosewood Facts

7. Rosewood Facts

8. Rosewood Theory

9. Building Brand Equity
Rosewood Theory

10. Aakers Brand Equity Model
Rosewood Theory

11. 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
Rosewood Theory

12. Branding Strategy
Rosewood Analysis

13. Pro’s and Con’s
Individual Branding
• Better CLTV
• Collective Experience (duplicate
standard)
• Consistent Service
• Encourage guest to use more than
one properties
• Better Brand Recognition
• High customer loyalty (Rosewood
Junkies)
• Inconsistency in brand wide • Increase Marketing Cost for re-branding
performance standard • Resistant from owner, guest, manager
• Guest feel alienate
• Bad Reputation may impact others
Rosewood Analysis

14. Revenue and Cost Analysis Without Rosewood Branding With Rosewood Corporate
(2003) 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 $130.00 $138.70
(system-wide) d
Average new guest acquisition expense $150.00 $150.00
(system-wide)
Total number of repeat guests (e) 19,169 24,919
Of which: Total number of multi-property stay 5,750 11,500
guests
Number of Multiproperty Guest 5% 10%
Average Guest Retention Rate (f) 16.67% 21.67%
Average Gross Profit per Guest $576.00 $624.00
Rosewood Analysis

15. 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
Rosewood Analysis

16. 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
Rosewood Analysis

17. • Adopt Corporate Branding
• Strengthen Rosewood’s Brand
Equity
Rosewood Recommendation

18. Rosewood Analysis

19. Rosewood Analysis

20. Rosewood Analysis

21. Rosewood Video

22. Thank You