Rosewood Hotel & Resort

MKT520

January 7th, 2013

Rosewood Hotels & Resorts – Case Study

Questions:

1. Why is Rosewood considering a new brand strategy?

Rosewood Hotels & Resorts is a private hotel management company that has been in business for roughly 25 years. The company’s properties are so distinctive that they can stand alone without any corporate branding. As of 2004, new president and CEO, John Scott and vice president of sales and marketing, Robert Boulogne, considered a new branding strategy. With the luxury hotel market booming, both John and Robert found it more difficult to compete with corporate brands; Ritz Carlton and Four Seasons. Many guests are not aware that Rosewood has many iconic properties to choose from because their corporate brand isn’t incorporated into the property names. Therefore, they believe in adding their corporate name, Rosewood, to each property more and more of their quests will reach out and stay at other locations.

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

Individual Branding | Corporate Branding |

PRO | * Unique & represent local culture * Cost efficiency * Flexible internal management * Loyal customers |

| * Better CLTV * Collective experience * Consistency * Encourage other properties to guests * Better brand recognition * High customer loyalty |

CON | * Brand inconsistency |

| * Re-branding cost increase * Resistant from guest, owner & manager * Alienate * Bad reputation may impact other locations |

3. Will the move to corporate branding maximize customer lifetime value?

In order for Rosewood to successfully move from the “canned and cookie cutter” brand to strategically luxury corporate brand the pro’s and con’s for each should be weighed out. Companies who use corporate branding have a much higher CLTV than companies without. For example, The Mansion on Turtle Creek in Dallas could be named “The Mansion on Turtle...