Roosewood Hotel Case Analysis

LUISS Business School

Branding to Increase Customer Profitability and Lifetime Value

Marketing Team:

Alberton Belladonna, Alessandro Giusti, Andrea Higuread, Dalal Akrim

1. Why is Rosewood considering a new brand strategy?

This change is being considered mainly as for now; each one of the Hotels  owned by the company, has built Its own reputation and Customers don’t identify a corporate Brand but just an specific hotel with specific characteristics, without acknowledging a relation between that particular hotel and the other properties of the company. 

They want that Rosewood as a Brand incorporated into the name of each one of the other hotels, in a way that all the Brand communications are inclusive for the properties-hotels that the company own. The main target is to create the knowledge in the Customers of one united Brand for all the hotels. They think they are "underestimating the power of corporate brands (...)" and believe that the market values the Brand as a version of luxury, and for the moment the lack of this corporate Brand is limiting their market. 

2. What are the pros and cons of moving from individual brands to a corporate brand?

Pros:

1) To increase customers ’awareness of how the same standards and value proposition of one hotel are the same for all the hotels owned by the company.

2) Increase the possibility that customer loyal to the one hotel’s value proposition would choose another hotel from the same brand.

3) Increase the occupancy rate. Increasing the occupancy rate will increase also the RevPAR (Exhibit 5)

4) An increase in the RevPAR could give the possibility for the company to increase its services and value proposition for its customers without the need to increase room’s rate.

5) Reducing operating and administrative costs and having economy of scale effects.

6)

Cons:

1) The need to invest a large amount of money in marketing.

2) The possibility that loyal customer to...