Prakash Dave 092153

Rosewood
Hotels & Resorts

Paresh Nathani 092136 Prakash Shingala 092145

 A private Hotel Management Company. In business since last 25 years (2004).

Each of its property is developed as unique and each can thrive

individually as a brand. Has 12 properties, Rosewood as a brand is muted in all its communications to customers and consumers.

Company Profile
Established in 1979, Private and HQ in Dallas, Texas. Transform old mansions and villas into hotels and resorts. Also into building new hotels.

Known for its ability to enhance a propertys value by creating unique, with small ultra-luxury residential style.
A differentiating factors from other chain-like luxury competitors.

Has 12 hotels worldwide, 1513 rooms, Rates range between $120-$9000. In 2003, 1,15,000 unique guests had stayed.

Competed with two group of luxury hotels:

Group 1: Corporate brands: Ritz-Carlton, Four Seasons, St. Regis, One & Only and Mandarin Orient. Group2: Collections of individually branded unique hotels: Auberge, Rock Resorts and OrientExpress.

Individual Brand/ Collection Strategy

Till now Rosewoods approach across properties is collection of unique properties, each with its own name and brand.

Each hotel reflected local character and culture and defined Rosewoods Sense of Place Philosophy. Design, service and programming was tailored as per location.

Two Fold Collection-Growth Strategy:

1. Convert existing iconic, luxury hotels with strong brand equity which required to be re-positioned and re-launched with professional arrangement. 2. Helped developers to conceive and create the next generation of luxury hotels and resorts.

Rosewood branding was soft and meant to be complementary and not intrusive.

Limitations of Individual Branding

Rosewood brand has low recognition and brand-wide usage among guests, which is an untapped asset.

Consumer Behavior
Majority of luxury market seem to value the corporate-branded version of luxury.

Effects
Limits the market of Rosewood Hotels and Resorts.

 A 2003 Report: Majority of consumers did not know the brand. Individual propertys return visits up to 40% but intrarosewood visits at 5% only.

For Increasing Cross-Property Usage:

Company switched to central reservation system, creating

one global, flexible data warehouse.

Alternatives:
Freq. Stay Prog: In hospitality industry, guests enrolled in frequent-stay program grew by 12% in 2003. But such programs were successful with multiple-segment operators only.

Rosewood-Corporate Branding: Corporate branding involved fair amount of marketing expense.

Strength
Has grown with industry Avg. (exh-4). Increasing Occupancy since 2001 (exh-5). Increase in Avg. Daily Room rate (ADR).

Weakness
Less consumer awareness about Rosewood as a brand. Ultra-luxury class, visits limited to 1-2 per year.

Opportunity
Customized service across collection with the help of CRS. Market its collection under umbrella-brand,

Threat
Loss of Uniqueness & Individuality of Rosewood properties. Consumers may de-link with property. Resistance from Managers & Pvt. Owners.

in line with the consumers behavior of

luxury hotels.

Dilemma:
Are the marketing expenses associated with building & promoting Rosewood-Corporate Brand justified?

Answer:
Rosewoods Brand-Wide Customer Lifetime Value Spreadsheet Model

Rosewoods Brand-Wide Customer Lifetime Value Spreadsheet Model

Rosewoods Brand-Wide Customer Lifetime Value Spreadsheet Model

Rosewoods Brand-Wide Customer Lifetime Value Spreadsheet Model

Answer: Go forward with ROSEWOOD-CORPORATE BRANDING STRATEGY