Case Study Presentation By

Ushma MehtaShirali PatelRohit Shiva

Ankita ShreeramAmrita Shinde

ROSEWOOD’S CORPORATE BRANDING STRATEGY

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 property’s value by

creating uniqueness, one of a kind property that differentiates it from regular chain like competitors

Nightly rate ranged from $120 for one of the Saudi Arabian properties to $9000 for a Canadian lodge

Competition

Corporate branded properties: Ritz-Carlton Four Seasons St. Regis One&Only Mandarin Oriental

Individually branded properties: Auberge, RockResorts Orient Express

Should Rosewood move from a house of brands to a branded house?

Advantages of individual branding

The company became known for its ability to enhance a property’s value by creating unique, one of a kind properties with a small ultra-luxury residential style that differentiated it from other chain-like luxury competitors.

“Sense of Place” philosophy- each hotel has a local character and culture of the given location.   Architecture and history in implemented in each individual hotel which is very different approach than chain-like competitors.   This was a power tool that Rosewood had!

Negatives of individual branding

Guests were seeking a unique Rosewood property experience and are not making the connection between Rosewood properties and were increasingly indentifying with other strong hotel brands.

Competition in the luxury hotel segment was intense and it was becoming difficult to position Rosewood’s collections of properties in an increasing crowded field of luxury operations.

Current brand positioning substantially limited Rosewood’s market.

Guests had a very low brand awareness of Rosewoods Hotels and Resorts.

Weighing the pros and cons of corporate branding…

Advantages of corporate branding

Better customer life time value Collective experience and status symbol Consistent service – in all aspects Encourage guests to use more than one property Better brand recognition and awareness High customer loyalty As per the survey, Individual brand or collection hotels

had 5% to 10% cross selling rates while corporate branded hotels enjoyed 10% to 15% cross property usage rates

Increase in number of guests Globalizes the brand Global data warehouse Brand-wide performance standards

Issues in Corporate Brand Promotion

Internal resistance : Few Hotel Managers were inclined to promote their own Hotel, others feared losing their autonomy

Possibility of alienating old guests Less connected to the individual aspect of the hotels High amount of marketing expense Service standards and flexibility decreases Two fold collection growth strategy will not be

followed Requires investment of USD 1 million/year

BRAND

AWARENES

S

BRAND LOYALTY

BRAND ASSOCIATION BRAN

D QUAL

ITYBRAND EQUITY

We recommend…

• DESIGNER LOGO.

• H/L PROFILE AMENITIES

• UNIQUENESS.• “SENSE OF PLACE”

• TRAVEL PACKAGES

• JOINT EVENTS

• ADVERTISMENT• TARGET TV & MAGZINES.

• E-MARKETING

BRAND AWARENESS

BRAND LOYALTY

BRAND ASSOCIATIO

N

BRAND QUALITY

Build a Rosewood brand

Build a brand now, before other chains picks up too fast

Trade is in favor. They know the brand and educate clients too

Brand has been diluted in few years. Past guests knows the brand well

Difficult to compete with other Luxury Hotel Groups as vast majority of market was focused on corporate branded vision

Brands like Four Seasons have better recognition To fight competition in future Easy global expansion

Suggestions

Don’t dilute individual brand persona Subtly add Rosewood to it Get internal teams confidence Show them a bigger picture Incentivize trade and ask them to push a

brand PR can do wonders Build a Rosewood membership plan Tie up with travel agencies/tour operators etc

Retention40%Non-

reten-tion60%

Basis for recommendationUntapped potential: Building brand equity

Re-ten-tion95%

Multi-property5%