Rosewood Hotels & Resorts

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Running Head: CASE STUDY Rosewood Hotels & Resorts Sonja D. White Marketing In The Global Environment Overview Rosewoods Hotels and Resorts have been operating for 25 years and possesses’ 12 hotel properties all over the world. The group of hotels has a well-built ability and power to raise value of properties by building unique, one of kind properties with a small ultra-luxury residential style. Emergence of new hotels has increased intense competition in the hotel industry and it has become difficult to position Rosewood’s collection of properties in an increasingly flooded field of luxury operators (Hatch & Schutz, 2008). Thus, the management team has been strongly considering Rosewood Hotels and the Resorts…show more content…
Limited market and limited number of customers: As management and culture are similar throughout the chain, Rosewood hotels and resorts will be limited in terms of customers and market in a specific area. Effect of an Assumption Customers enable the organization to treat each customer in a different way on the basis of the contribution they make towards the firm (Kleinaltenkamp & Wengler, 2007). The analysis of customer lifetime value aids the organization to rank and order customers on the basis of their contribution to organization’s revenues. It also helps the organization to determine as to how much it can invest in retaining customers to gain positive returns on the investment. Organizations that use corporate branding have a much higher customer lifetime as compared to organizations that do not use it. Following are the assumptions that were created during the calculation of Customer Lifetime Value (CLV) in the Rosewood Hotels and Resorts. • The marketing and operations asset in Rosewood hotels is about one million dollar per year. • The customer retention rate of Rosewood Hotels is invariable with both corporate branding and without corporate branding throughout the year. 16.67% customers are retained when there is no corporate branding while 21.67%

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