ANALYSIS OF HARVARD BUSINESS SCHOOL CASE ON ROSEWOOD HOTELS AND RESORTS Done under Prof. SAMEER MATHUR, IIM LUCKNOW

1. Rosewood Hotels
and Resorts:
Branding to increase
Customer Profitability and
life time Value
Harvard Business
School Case

2. • Established in 1979,
Rosewood Hotels and
Resorts is a privately held,
ultra-luxury hotel
management company
based in Dallas, Texas.
• It has 12 hotels
worldwide and 1513
rooms
• Room Tariffs ranging
from $120 to $9000

3. Executive
Officers as of
2003
• Caroline Rose Hunt,
Honorary Chairman
• Philip Maritz,
Chairman of the Board
• John Scott, President
and Chief Executive
Officer
• Robert Boulogne,
Chief Operating Officer
• James McBride,
Managing Director of
The Carlyle, New York

4. SITUATION
ANALYSIS

5. SWOT Analysis.
• Strengths
• Weakness
• Opportunities
• Threats

6. STRENGTHS
• Unique Properties-
”Sense of Place“
• RevPAR is 17.62% ,
higher than the luxury
hotel market average
• Global Flexible data
warehouse system
• Rich history

7. WEAKNESS
• 84% fewer rooms than
market average in luxury
hotel industry
• Internal resistance in
changing corporate
branding strategy
• Low brand recognition
and low recall ability of
guests
• Mixed branding of
signals-inconsistent use
of rosewood logo

8. OPPURTUNITIES
• Growth rates and
profitability
• New acquisitions
• Growing economy
• Corporate branding
strategy
• Cross property usage
• Brand wide performance
development
• Reward scheme for loyal
customers
• Growing trend in seeking
more experiential hotels

9. THREATS
• Increase in labor costs
• External business risks
• Tough competitors
• Increasing rates of
interest
• Customers are
increasingly connecting
with Corporate

11. PROBLEM
Rosewood brand was
muted, not very well
known but it was not
clear what is the best
corporate branding
strategy without
destroying the value of
each individually
branded hotel and
loosing a customer. A
new branding strategy
proposing an increased
customer profitability
and lifetime value is
needed.

12. Goals
• Increase
Connection
between Rosewood
properties
• Increase cross
property usage from
5% to 10%
• Building Strong
Brand Equity
• Create Rosewood
Junkies

13. Strategies

14. Target Market
• Customers:
– Wealthy families
– Business travelers,
– Private Owners
• Collaborators:
– Travel agencies
– Travel agents promoting the
hotels.
– Rosewood employees also act as
collaborators.
• Competition:
Compare Rosewood % property
growth 1996-2003 it is 15% above
the average of corporate branded
properties and 20% below the
average of individually branded
ones. This % of growth less
compared to individually branded
ones

15. Tactics
• Products : Packaging
and hotel attributes
include should both the
name of individual
hotel and corporate
brand.
• Price : No big changes
in pricing policy are
recommended.
• Incentives
• Efficient branding
• Promotion

16. Revenue and Cost Analysis

17. Total NPV of CLTV without Corporate Brand

18. Total NPV of CLTV with Corporate Brand

19. RECOMMENDATION
/IMPLEMENT
• Adopt
Corporate
Branding
• Strengthen
Rosewood’s
Brand Equity

22. SUMMARY
• Board Members
• Situation Analysis
• Problem faced
• Goal
• Strategy
• Tactics
• Implementation

23. • Created by SHAHABAS SHAMSAD, NIT
TRICHY during a marketing internship
under PROF.SAMEER MATHUR,IIM
LUCKNOW
DISCLAIMER