This document discusses strategies for Rosewood Hotels & Resorts to increase customer profitability and lifetime value through branding. It analyzes adopting a corporate branding model to bring individual hotel brands under one umbrella brand. This could increase multi-property guest stays from 5% to 10% and boost brand recognition. Implementing corporate branding could yield a higher net present value over 6 years compared to maintaining individual branding. The document recommends creating brand awareness through marketing communications, events, and experiences. It also suggests building brand loyalty through programs like loyalty cards and yearly events for loyal customers.

1. Branding to Increase Customer Profitability and Lifetime Value

2. Company
Profile

3. ROSEWOOD HOTELS AND RESORTS
A private hotel
management company
with iconic luxury
Hotels.
12 hotels
1513 rooms

5. BRAND Model
• Iconic Luxury Hotels and resort.
• For those who have deep pockets and
prefer lavish lifestyle.
Demographic
Segmentation
• Each property Tailored to deliver
enriching experience of the location,
culture and history.
• Brand Mantra “A Sense of Place”
Brand
Positioning

6. Individualistic Brand Positioning

7. CUSTOMER

8. Report on ROSEWOOD BRAND
EMPLOYEESTRAVEL
AGENTS
Guests
“ Rosewood is a
collection of
brands it is not a
brand”
“ Known by the
individual
properties”
“ A collection of
individualistic
properties;
Rosewood as a
brand is a
dilemma”
“ It’s a secret club”
“I don’t know
Rosewood “
“I had no idea
that Litte Dix and
the mansion were
connected to
rosewood”

9. 5-10%
• Mutiproperty
cross-selling
Rates
40%
• Single
property
Repeat Guests
Customer
Reservation
System
Report on ROSEWOOD BRAND

10. Management
To bring all the
individual brands
under one
umbrella
To increase
multiproperty
guests stay from
5% to 10%
To build Rosewood
Hotels as a brand

11. Individual
Branding
Corporate
Branding
Low brand Recognition
Brand Wide usage by
guest untapped
Marketing expense
Promoting Corporate
Brand
Which Strategy to choose ?

12. Corporate
branding
Analysis

13. Multiproperty Guest Stay was
anticipated to Double from 5% to
10%.
Overall total no. of unique guests
was kept constant at 115,000.
The average visit rate per year
increases to 1.3.
Marketing investment of 1 million
per year.
With Corporate Branding

14. Without Corporate
branding(2003)
With corporate
branding (2003)
Total No. of Unique guests 115,000 115,000
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 (systemwide) $130 $138.70
Average new guest acquisition expense (systemwide) $150 $150
Total number of repeat guests 19,169 24919
Of which: Total number of multiproperty stay guests 5,750 11,500
Average Guest Retention Rate 16.67% 21.67 %
Average Gross Profit per Guest $576 $624
Profit and Revenue

15. 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
Marketing expense
per guest
132.60 135.25 137.96 140.72 143.53 146.40
Net Profit per
Guest
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)
441.58 94.90 20.38 4.38 0.94 0.20
Without Corporate BRANDING

16. Years 0 1 2 3 4 5 6
Gross Profit Per
Guest
661.44 701.13 743.19 787.19 835.05 885.16
Acquisition expense
per new guest
Marketing expense
per guest
142.86 147.14 151.56 156.10 160.79 165.61
Net Profit per
Guest
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)
480.17 102.92 22.05 4.72 1.01 0.22
With Corporate BRANDING

17. Follow corporate branding
Model
Create Brand Equity
Create Brand awareness by
Marketing communication

18. Resonance
Sailence
The depth and breadth of the brand awareness
Performance
Judgements
Imagery
Feelings
How well the company
meets customers functional
needs
Extrinsic properties of the
products and services.
Focus on customers
opinions and
evaluations
Emotional response
with respect to the
brand
Brand Resonance
Model

19. Marketing
Communication

20. Brand Awareness through events and
experiences
Destination
Wedding
Corporate
Meetings
Cultural
Events

21. Brand Loyalty
Loyalty Cards
Special Yearly events for
Loyal customers.
Service Quality
Printed Goodies to Loyal
Members

22. Brand Repositioning
with the corporate
branding model
Creating brand
awareness through
various
communication
channels, events and
experiences
Increasing Brand
Equity through
loyalty programs

23. Created by Rachit Tandon,
RIL, During a marketing
Internship under Prof. Sameer
Mathur, IIM Lucknow.