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Rosewood Hotels &Resorts:
Branding to increaseCustomer Profitability
and Lifetime valueGroup presentation by - Ritik VermaniMayank Sharma
Kuldeep Jain
Prakhar Kumar
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Established in 1979.
It was a property management companyguided by founder Caroline Rosehunt.
In total, has 17 hotels and resortsworldwide
with presence in six countries comprising of
US, Canada, Mexico, Carribean and Middle
Background
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Brief view of their Hotels &Resorts:
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GlobalPresence
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OverviewRosewood is group of different hotels with each
hotel being a brand on its own 12 properties in different countries
Highly regarded and individualized properties
Each property so distinctive that it could thriveon its won
Sense of Place - Each Hotel exhibits local
character, culture and design Known for the ability to enhance a propertys
value by creating uniqueness, one of a kindproperty that differentiates it from regular chain
like competitors
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Competitio
nCorporate branded properties:Ritz-CarltonFour Seasons
St. RegisOne & Only
Mandarin Oriental
Individually branded properties:
Auberge
Rock Resorts
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gn cance oinitiatives in Hotel
industry:Understanding the customer value and
lifecycle to prioritize marketing and serviceresources.
Using customer information to targetpromotional offers and cross-selling.
Using customer information in design anddevelopment of products and services.
To recognize customers as individuals.
Offering personalized or mass-customizedservice
d C
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Rosewoods CRMinitiatives
Manually collection of data from its twelvedifferent entities(hotels) which is now beenconverted into an automated Central
Reservation System(CRS) system.
Online reservation.
Unique user IDs are generated and specialdiscounts are offered.
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Differentiating factors fromother HotelsDifferentiates their business by not
sticking to the usual Chain-like luxuryhotels system. However, enhances each
propertys value individually.Adaptable to the local conditions, culture
and ethnicity.
Have a differentiated approach indesign, service and programming.(location, architecture, history andculture)
No loyalty programs -Features like
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wMarketing/
Branding Strategy Individual branding of unique properties Property specific advertisements
Soft branding of Rosewood name onlow profile amenities
Accent on local culture and character ofthe location
Flexible service and product standardsacross the hotel connection
Service/product (ultra-luxury) consistentin quality, not in style
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CustomerBase
Small (115000) Niche MarketWealthy ($750 avg daily spend) Avg.
revenue per guest per visit = $1500
Not very loyal retention rate 17% across allhotels
Low end of the range for multipropertyguests (5 %)
Customer base mostly unaware ofRosewood brand loyal to individual hotelbrands
Rosewood brand recognition mainly through
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n v uaBranding
Pros
Allows Rosewood hotels to differentiate from luxurycorporate branded competition
Empowers hotel general managers
Successful strategy for some of its hotels such asLas Ventanas, Lanesborough
Cons
Deters multiproperty cross selling: guests cannotconnect the dots b/w Rosewood properties
Narrow brand positioning targets only a subset ofguests in the luxury segment
C
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CorporateBranding
ProsWould encourage cross-property usage of guests
Operational economies of scale through bulk purchase of Rosewoodbranded amenities
Marketing economies of scale through joint marketing campaigns of allthe hotels
Cons
Requires product/service consistency across the whole portfolio
Consistent brand-wide standards might undercut uniqueness andindividuality of hotels
Might alienate some existing customers who have an emotional bondwith the individual hotel brand
Implementation requires cultural changes from employees
Requires significant marketing investment which could be usedotherwise
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Our recommendation
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Some images of hotels:
RosewoodMayakoba
RosewoodCorniche
RosewoodCrescent
AlLas Ventanas,