A Private Hotel Management Company

Rosewood Hotels & Resort

It was established in 1979 by the Caroline Rose Hunt Trust estate.

It is headquartered in Dallas, Texas.

The first hotel it managed was The Mansion on Turtle Creek(This hotel was an old mansion in Dallas rescued from demolitionby Mrs. Hunt).

INTRODUCTION:

John Scott,

President and chief executive Officer.

Robert Boulogne,

Chief Operating Officer.

Rosewood has 12 hotels worldwide,

with a total capacity of 1,513 rooms.The nightly rate ranged from

a low of $120 for Saudi Arabian properties to $9,000 for Canadian Lodge.

A Sense Of Place•Each hotel and resort featured architectural details, interiors, and culinary concepts that reflected local character and culture and defined this philosophy.

•It sought to build a global reputation with iconic luxury hotels.

STRENGTH

• Quality of service.• Standing firm on

“A Sense of Place”.

WEAKNESS

• No proper efforts to make peopleaware of the brand.

OPPORTUNITY

• Opting for Corporate branding and continuingthe good quality willinfluence good number ofcustomers.

THREATS

• Intense Competition.• Hotel managers not supporting

corporate branding strategy.

SWOT ANALYSIS:

It has to compete with 2 groups of luxury Hotels

Corporate Branded:•Ritz-Carlton•Four Seasons•St. Regis•One&Only

Individually Branded:

•Auberge•RockResorts•Orient-Express•Dorchester

The customers using service of the brand were least aware of the brand.

CUSTOMER SHOULD BE ABLE TO RECOGNIZE THE BRAND.

Due to individual brand strategy, Rosewood was unable to reach customers.

Customers did not know that the hotels they had a stay in were actually properties Of Rosewood.

Customer Perception of the brand:

It means nothing to me. I had a stay in 2 of its properties but I had no idea until much later that they were connected to rosewood.

I don’t know Rosewood.

I really don’t know the name Rosewood even after staying at the property.

I tried one or two hotels, then my travel agent started telling me If a hotel was Rosewood or not.

Travel Agent Perception of the brand:I book the hotel, not rosewood.

It means quality, luxury, service & value to customers. But the brand is not nearly important as the properties.

The brand is not as strong as it was in past.

It is known just by individual properties.

50% customer know the brand Rosewood only because I educate them about it.

Rosewood’s employees on it’s branding:

•A collection of individualistic properties, It as a brand is a dilemma- don’t see greatopportunity, few business opportunities.

•It’s a secret club, known by some who go and the industry.

•Very low awareness, less than 5%. Those who know are “Past” Rosewood guests.

Rosewood has a low Cross-selling rates.

Only 5% of Rosewood guests had stayed In more than one of Rosewood’s Properties.

Approaches to increase Cross-Selling rates:

To boost Rosewood’s customer multi-property visits was to set up frequent-stay programs.

To create guest connection with Rosewood properties was to adopt corporate branding approach.

Rosewood operated a “Collection” of unique properties, each with it’sown name or brand rather than following luxury.

Rosewood strongly believed in “Individual Branding”

Problems in Individual branding strategy:It’s logo appeared on low-profile amenities whereas high profile amenitiescontained logo of the hotel.

Hotel phone greetings did not mention the Rosewood name.

Guests were not able to make the connection between Rosewood propertiesand were increasingly identifying with other strong hotel brands.

It was becoming difficult to position Rosewood’s collection of properties in anincreasingly crowded field of luxury operators.

In order to bring to notice of customers what Rosewood brand is,

Corporate branding

method was considered.

ADVANTAGES OF CORPORATE BRANDING

Rosewood shall be visible along with luxury hotel names while the person in on stay, thus Guests will become well acquainted with services provided by the brands.

This shall increase Cross-selling.

Not knowing the services by the brand name, leads to hindrance in it’s promotion by word of mouth, even if the services are awesome.

Problems faced in Corporate Branding:

Hotel managers are more inclined to promote just their own individual hotel brands , particularly if they have strong brands.

Some hotel managers may also feel threatened in their autonomy to manage the properties because brand standards leads to many other branded programs.

Customer Lifetime Value

Increase in average number of visits per year per guest from 1.2 to 1.3

Average guest retention rate will increase.

If quality services are provided to customers it leads to positive brand equity.

SUMMARY•Introduction•Rosewood : A Sense Of Place.•SWOT Analysis.•Competitors.•Least Brand Awareness.•Brand Perception.•Cross-selling Rates.•Individual Branding and it’s problem•Corporate Branding: advantages and problems.•Customer Lifetime Value.

CREATED BY MAMTA SAROJ, NIT SURAT, DURING A MARKETING INTERNSHIP UNDER PROF. SAMEER MATHUR, IIM LUCKNOW.