Rosewood Hotels & Resorts: Branding to increase Customer Profitability and Lifetime value

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5/5/12

Group presentation by - Ritik Vermani Mayank Sharma Kuldeep Jain Prakhar Kumar

Background

Established in 1979. was a property management company guided by founder Caroline Rosehunt. total, has 17 hotels and resorts worldwide

It

In

with presence in six countries comprising of US, Canada, Mexico, Carribean and Middle 5/5/12

Brief view of their Hotels & Resorts:

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Global Presence

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Overview

Rosewood 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 thrive on 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 kind property that differentiates it from regular chain like competitors 5/5/12

Competitio n Corporate branded properties:

Ritz-Carlton Four St.

Seasons & Only Oriental

Regis

One

Mandarin

Individually branded properties:

Auberge
5/5/12 Rock

Resorts

Significance of CRM initiatives in Hotel industry:

Understanding

the customer value and lifecycle to prioritize marketing and service resources. customer information to target promotional offers and cross-selling. customer information in design and development of products and services. recognize customers as individuals. personalized or mass-customized

Using Using To

Offering
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service

Rosewoods CRM initiatives

Manually

collection of data from its twelve different entities(hotels) which is now been converted into an automated Central Reservation System(CRS) system. reservation.

Online

Unique

user IDs are generated and special discounts are offered.

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Differentiating factors from other Hotels

Differentiates

their business by not sticking to the usual Chain-like luxury hotels system. However, enhances each propertys value individually. to the local conditions, culture and ethnicity. a differentiated approach in design, service and programming. (location, architecture, history and culture) loyalty programs -Features like

Adaptable Have

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Rosewoods Marketing/ Branding Strategy

Property Soft

Individual branding of unique properties specific advertisements branding of Rosewood name on low profile amenities on local culture and character of the location service and product standards across the hotel connection

Accent

Flexible

Service/product (ultra-luxury) consistent 5/5/12 quality, not in style in

Customer Base
Small Wealthy Not

(115000) Niche Market

($750 avg daily spend) Avg. revenue per guest per visit = $1500 very loyal retention rate 17% across all hotels end of the range for multiproperty guests (5 %) base mostly unaware of Rosewood brand loyal to individual hotel brands brand recognition mainly through

Low

Customer

5/5/12 Rosewood

Individual Branding
Pros
Allows Rosewood hotels to differentiate from luxury

corporate branded competition

Empowers hotel general managers Successful strategy for some of its hotels such as

Las Ventanas, Lanesborough

Cons
Deters multiproperty cross selling: guests cannot

connect the dots b/w Rosewood properties

Narrow brand positioning targets only a subset of

guests in the luxury segment

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Corporate Branding

Pros
Would encourage cross-property usage of guests Operational economies of scale through bulk purchase of Rosewood

branded amenities
Marketing economies of scale through joint marketing campaigns of all

the hotels

Cons
Requires product/service consistency across the whole portfolio Consistent brand-wide standards might undercut uniqueness and

individuality of hotels
Might alienate some existing customers who have an emotional bond

with the individual hotel brand

Implementation requires cultural changes from employees 5/5/12 Requires significant marketing investment which could be used otherwise

Our

recommendation

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Some images of hotels:

Rosewood Mayakoba

Rosewood Corniche

Rosewood Crescent

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Las Ventanas,

Al