Rosewood Hotels and Resorts.

ROSEWOOD HOTELS & RESORTS

A HARVARD BUSINESS SCHOOL CASE STUDY

INTRODUCTION

Rosewood Hotels & Resorts is an international luxury hotel and resort company operating 19 properties in 11 countries, owned by Hong Kong-based New World Development. It was founded in 1979 by Caroline Rose Hunt. It’s headquarter is based in Dallas and the company offers rooms starting from $120 and going up to $9000. Currently, the company is being run under the leadership of John Scott with Robert Edward Boulogne as the vice president for marketing and sales.

SITUATION ANALYSIS

❖Rosewood was known for it’s ability to enhance a property’s value.

❖The properties captured the uniqueness of the location.

❖Rosewood focused on creating individual brands rather than a corporate brand.

❖T h e R o s e wo o d l o g o r e m a i n e d secondary to the hotel logo.

DEMERITS OF INDIVIDUAL BRANDING CONCEPT

❖ Individual Branding results in a very low cross property usage rate.

❖ It limits the target market.

❖ It also limits the outreach of the brand.

❖ Inefficient in coping up with the intense competition in the luxury hotel segment.

ROSEWOOD’S GOALS

‣ Increase the customer lifetime value.

‣ Increase the profit per guest increase brand awareness.

‣ Increase brand equity.

‣ Create ‘Rosewood Junkies’ .

‣ Increase cross property usage by 5%.

ROSEWOOD’S GOALS

STRATEGIES TO INCREASE CUSTOMER

LIFETIME VALUE

CORPORATE BRANDING APPROACH

❖Benefits for stays at various properties worldwide.

❖Successful only for large multinational operators with broad geographical distribution.

❖Loyalty through such a program was forested by offerings such as – flexible check in and check out time , personalised services freedom to request a specific room, etc.

FREQUENT STAY PROGRAM

❖Benefits for stays at various properties worldwide.

❖Successful only for large multinational operators with broad geographical distribution.

❖Loyalty through such a program was forested by offerings such as – flexible check in and check out time , personalised services freedom to request a specific room, etc.

ADVANTAGES OF CORPORATE

BRANDING PROGRAM

Corporate branded properties show a greater average number of property expansion than the

ones individually branded.

Corporate branded properties result in a better Customer lifetime value

Corporate branded properties generate brand awareness and loyalty.

FURTHER RECOMMENDATIONS

❖ Standardise Service quality across all locations.

❖ Have a frequent stays program.

❖ Project a strong digital image.

❖ Partnership with Travel Agents and Companies.

❖ Have Strong Social and Environmental initiatives.

SUMMARY

This Presentation is Created by Shantanu Garg from SRM Kattankulathur during a Marketing Internship under Prof. Sameer Mathur from IIM Lucknow.

DISCLAIMER