Rosewood Hotels & Resorts: Marketing to increase earnings and lifetime benefit BACKGROUND

Rosewood Hotels and Resorts is actually a private resort management firm established in 1979 by the Caroline Rose Hunt Trust Estate. It is a popular company in the luxury hotels marketplace which possesses 17 well-known properties in 7 several countries (http://www.rosewoodhotels.com/en/the_company/). The initially hotel was The Mansion on Turtle Creek in Dallas; afterwards the business expanded their " assortment of unique properties” all over the world simply by converting and repositioning existing sites and by building up brand new luxury hotels. The distinctive feature on this collection is the so called " A sense of Place”. In fact in a Rosewood motel every single assistance is conceptualized in order to adjust to the local culture and practices and record the style of every area. Therefore every hotel is definitely characterized by a strong individual graphic and manufacturer while the Rosewood corporate company usually stands on the background and mainly includes a complementary function. ANALYSIS

The problem the brand new president and CEO will be facing is actually to switch to a corporate personalisation strategy or perhaps stick with the present individual property branding strategy. In fact the latter has been a very successful strategy for the company for the past 15 years. Nonetheless the very best managers of Rosewood believe as the luxurious hotels companies are becoming more and more congested and competitive, the individual home branding strategy is actually limiting the potential range of customer the organization can focus on since it will not seem to be powerful on the mass market. Therefore a change inside the company technique is required. In order to figure out which is the best remedy for the company it is necessary to consider pros and cons of each choice through a qualitative and quantitative research.

Pros and Cons

The consumer branding strategy guarantees a solid and personal standing for each resort and a source of difference from the rest of the competitors. The " Feeling of a Place” is a unique idea which shows the peculiarities of each site and units Rosewood Accommodations and Hotel aside from the rest of the chain-like corporations. High personalized services, focus on details, remarkable comfort and extravagance are elements which guarantee a high identified value can be and therefore promote the development of a particular resort devotion. In fact some of the Rosewood's houses have a 40% come back visit. Certainly thanks to this strategy the organization were able to develop a good competitive benefits based on the differentiation of its products, in whose characteristics are perceived as exclusive and useful from its customers. In fact the company managed to get a higher ADR and RevPAR than their competitors including Four Seasons, Ritz-Carlton and Orient Exhibit, even with a substantial inferior range of rooms (Exhibit 5). However the main problem with this strategy is the fact that that it does not highlight any kind of connection between the different properties of the firm, thus causing a very low corporate and business brand understanding among guests, as displayed in the Tactical Marketing Alternatives report. The Rosewood brand is usually unmentioned in promoting and hidden in the resorts themselves. Almost all of the people who had taken part in the survey stated they got to know it by using a professional agent only. Clearly this limitations the capability of Rosewood to effectively way the mass market, therefore restricting the target market to a small market. On the contrary the implementation of any corporate branding strategy is going to draw the interest on the Rosewood Company in general and help to make it reap the benefits of a higher percentage of come back guests and multiproperty cross-selling rate. The name Rosewood will become synonym of high-class, comfort and top quality and all the properties with the company is going to take advantage of that. In fact irrespective of in which portion of the world a buyer will be, when he/she...