Rosewood Hotels

1703 Words Oct 6th, 2008 7 Pages
The main objective was to foster customer retention and loyalty increasing cross-property usage. The number of multi-property guest stays should be increased to 10% from the 5% rate experienced during the last year.
Problem situation: Rosewood brand was muted, not very well known but it was not clear what is the best corporate branding strategy without destroying the value of each individually branded hotel and loosing a customer. A new branding strategy proposing an increased customer profitability and lifetime value is needed.
Company. Rosewood is a 25 years old luxury private hotel management company having 12 hotels in different countries. The company is known by unique,
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Assuming three main segments within the target group (please sea “5C’s analysis/Customers”) all current customers should be approached, as we do not have data of who is the main customer driving cross-selling today. Potential market:
115000 (guests per year) that counts as 62% of occupancy; assuming that cross-selling will give maximum occupancy market potential would be: (115000 * 100%)/62% = 185483 customers per year
The maximum potential increase due to the new branding strategy: 185483 – 115000 = 70483 customers.
More realistic increase (assuming 10% increase in cross-property usage): (185483 * 72%) - 115000 = 18547 customers.
Branding strategy. The shift from House of Brands towards Branded House within Brand Relationship Spectrum would be recommended because of the following reasons:
• It would help to meat the challenges in the market (customer loyalty initiatives taken by competitors) and most probably increase cross-property usage - overall Rosewood profitability. Focus on maximizing a customer 's lifetime value for the firm vs. short-term lower costs.
• It would maximize clarity, and leverage for a customer, as he/she knows exactly what is being offered – the same quality standard as corporate brand and individual brands of Rosewood hotels stand for comparable quality.
• In a long-term it would increase

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