h brand identity and gain market penetration into corporate branded luxury version. To promote multi-property cross-selling
Create
Rosewood junkies seeking Rosewood properties exclusively. Data showed that individual brand hotels had 5%-10% cross property guest usage whereas corporate brand hotels had cross property usage of 10%-15%.
equity
Customers were increasingly identifying well with other strong
hotel brands like four seasons. It was becoming difficult to position Rosewoods properties in an increasingly crowded market.
Pros
Better Customer Life Time Value (~11% increase in case
of Rosewood*) Enhanced brand equity and brand recognition Increased cross properties usage rates (5-10% v/s 10-15% in case of Rosewood) leading to increased revenue Increased repeat customers Increased customer loyalty
Cons
Additional costs for Marketing and Brand promotion (~1
million estimated for Rosewood) Loss of the Brand Mantra, Sense of place, which is at the core of Rosewood hotels Potential loss of current brand equity and Points-ofDifferences of Individual Hotels like Carlyle Threat to the rational and emotional bonding of customers to some of the individual brands. Resistance from Managers as they feared loosing autonomy. Co-operative owners not willing to be a part of bigger organization. Bad reputation of one hotel may affect the whole brand
provided in the case. As mentioned in the case, the initial analysis showed that multi-property guest stays was anticipated to double from 5% to 10% in the previous year. This increased the average number of visits per guest from 1.2 to 1.3
*See slides 8 & 9 for details
With Rosewood Corporate branding 115000 750 2 32% 1.3 138.70 150 24919 11500 139919 21.67% 624.00