Rosewood Hotel and Resorts: Branding To Increase Customer Profitability and Lifetime Value Harvard Case Solution & Analysis

Introduction

            Rosewood Hotels and Resorts were a private company. Headquarter of Rosewood Hotels was situated in Dallas, Texas. It was established in 1979 by Caroline Rose Hunt Trust Estate. Rosewood Hotels and Resorts (Rosewood) were working for 25 years, as a private hotel management company. It involved in building a global reputation with luxury hotels such as The Mansion on Turtle Creek in Dallas and The Carlyle in New York. It was working in a way that all the hotels under Rosewood had different properties and it has no “Corporate” identity. The Rosewood brand name was not very popular, very few people had an idea about Rosewood. In the hotels and resort industries the popularity is very important and the brand image. There is also advertising of the brand needed in order to compete the huge competitors in the hotel industry. Whereas, in the case of Rosewood, the brand was not very famous and people had low awareness about it. The advertising efforts were quite low than required. (Perkin Coie, 2014)

Rosewood had 12 hotels worldwide, having capacity of 1,513 rooms. Whereas, the rates for one night stay were quite dependent on the types of the properties. For example; the rate for the Saudi Arabian properties was as low as $120 and the rate for the Canadian lodge was as high as $9000. In 2003, the number of guests that stayed at Rosewood Hotels was 115,000. The first hotel Rosewood managed was The Mansion on Turtle Creek in 1980. Rosewood was famous for transforming the properties into world class hotels and restaurants. The company was known for the ability to change the properties in to luxurious residential style properties which was different from its competitors.

Problem Statement

            The major problem was Rosewood Hotels and Resorts had very low brand awareness among its guests. The brand image of Rosewood was muted, there was low advertising and only professionals knew about Rosewood. There was an issue regarding how the management of Rosewood could increase its brand awareness and also the recognition among its guests.

Case Analysis

Need for a New Brand Strategy

            There was a problem with the strategy of Rosewood. Rosewood was depending on the individual property brands and that was not working for Rosewood. This was due to the reason that the guests were though visiting the individual hotels, which were the property of Rosewood, but they had no identity of the Rosewood in fact they have not even identified the brand image. They were though using the property of Rosewood, but since they were staying in the individual hotels so they were having problem to identify the brand and were not able to locate their other hotels in the country. (O'Connor, 2011)

            They were not able to recognize the connection or relation between Rosewood properties and they were identifying the other famous hotels in the market. The number of competitors was increasing for Rosewood. The luxury hotels were increasing in the industry, and hence, was causing lots of problems for Rosewood. Rosewood was finding difficult to keep up with its competitors due to low awareness among its guests and also they were feeling quite tough to position their hotels and resorts with the other luxury hotels. (Colapinto, 2011)

            The individual brand strategy seemed to be not working for Rosewood and they wanted to use the new brand strategy because they wanted to increase their brand awareness and also increase their growth and profit. Scott, C.E.O of Rosewood and Boulogne, the vice president of Rosewood, were quite determined to use the corporate brand strategy so that their guests who already enjoyed their hotel services should also try their other hotels which they didn’t know about. Also, they wanted Rosewood to increase their services and image in order to compete with the other luxury brands in the hotel industry.

            They knew that people who experienced the services of Rosewood loved it, but they didn’t have awareness of their hotels and to increase their awareness Scott and Boulogne, wanted to use the corporate brand strategy. Though, Rosewood was facing many obstacles in using the corporate brand strategy and the managers of the individual hotels took that as a negative thing as they thought Rosewood could not compete the big luxury hotels with its corporate brand and it would fail....................

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