Rosewood Hotels Essay

888 Words4 Pages
Rosewood Hotels Abstract Rosewood Hotel was founded in 1979 and was notoriously known for converting existing hotels into distinct, luxurious hotel settings. Each location is designed to reflect a unique culture and atmosphere thus creating an exclusive experience at each property. Every hotel is individually branded by its hotel name rather then by its corporate name. This strategy has worked well for many years as shown by the results of a prominent reputation and a specific customer market. Now that the luxury hotel market is becoming quite crowded, the new CEO/President and Vice President of Sales and Marketing, John Scott and Robert Boulogne respectively, are finding it more difficult to compete with corporate branding such as the Ritz Carlton and Four Seasons hotel. Several surveys as well as travel agents have confirmed that although individual Rosewood properties are well-known, Rosewood’s brand itself has little brand awareness and connectivity of Rosewood properties. Management has also relied on the model, the Consumer Lifetime Value tool which helps determine the value of a customer over a lifetime. With that said, John and Robert are considering transforming the customary strategy of individual branding into corporate branding by incorporating Rosewood’s brand into each individual property. Completing this transformation will create several positive and of course, negative factors that will need careful consideration. To unfold the numeric consequences of this decision, John and Robert calculated the Consumer Lifetime Value Tool to help them better understand the value of their decision. This tool gives you the ability to learn the value of your customers over a lifetime by giving you the flexibility to alter the various characteristics inputs for each customer. According to Kotler, CLVT “describes the net present value of the stream of

More about Rosewood Hotels Essay

Open Document