Miscellaneous / Rosewood Case Study
Rosewood Case Study
Autor: rita 06 September 2011
Words: 714 | Pages: 3
Rosewood Case Analysis
For Rosewood Hotels to successfully move from the "canned and cookie cutter" approach of individual branding to a collective strategy of corporate branding, first the pros and cons have to be weighed and measured. From the research conducted by Rosewood, the most obvious and immediate pro to a corporate branding strategy is the projected increase in multiproperty stay guests from 5% to 10%. This has the potential to not only increase revenues but also brand awareness, recognition and word of mouth referrals.
A full complement of pros and cons to converting to a corporate brand strategy for Rosewood is outlined in the table below:
Increased brandwide usage "Canned and cookie cutter" approach
Increased brand recognition No "sense of place" philosophy
Connection amongst properties Loss of uniqueness
Good positioning for competition Less differentiation
Increased market/share Potential loss of current brand equity
Increased brand awareness Loss of discretion
Promotion of cross-property usage Resistance to change (guests and management)
Increased return visits Increased marketing costs
Brand loyalty – less property specific Competition tougher among corporate branded hotels
Increased revenues Change in the corporate culture is challenging
Building customer lifetime values
Overall customer lifetime value is higher with corporate branding than without, as demonstrated in Exhibit A. Without corporate branding, overall net present value totals $378.49 per guest while with branding that number jumps to $461.09. The average gross profit, based on repeat guests, is $2,702,500.00 without branding and $5,305,000.00 with corporate branding.
Based on the calculations, as well as the overall pros and cons, I believe that Rosewood should definitely move from individual brands to a corporate brand. That being said, the company currently has some powerhouse locations under its overall corpor...