Rosewood Hotels Case Study

CASE JOURNAL-ROSEWOOD HOTEL& RESORTS

Rosewood’s management is on the right track to increasing brand awareness among its customers by pursuing the corporate branding strategy. Implementation of the corporate branding strategy not only increases the number of repeat visitors to the hotels, but also increases the gross profits made by the company by $2,599,000. Corporate branding has a positive impact on the customer lifetime value as well. Rosewood Hotels & Resorts is a privately owned hotel management company that is known for its unique properties like The Carlyle and the Mansion on Turtle Creek that differentiates the company from other luxury hotel competitors.

Each hotel and resort featured details and aspects that reflected local character and culture of the location embodying Rosewood’s “Sense of Place” philosophy, meaning each of its properties is uniquely defined by the location. This differentiated Rosewood’s properties from the competitors.

Corporate Branding Strategy:
Rosewood Hotels & Resorts had very low brand awareness among its guests. To encourage guests to use more than one Rosewood hotel, two possible approaches were considered.
The first possibility to boost Rosewood's customer multi property visits was to set up a frequent-stay program. But this was rejected by the management as it was found that such programs had only proved successful for large multiple-segment operators with broad geographic distribution, where guests could easily redeem their rewards.
The other possibility of fostering guests’ connection with Rosewood properties was to adopt a corporate branding approach, which the company believed would encourage multi property guest stays while promoting the Rosewood brand.
Advantages of Corporate Branding:
• Increasing brand awareness among

But in spite of these positive attributes, the management must ensure that they preserve the uniqueness and individuality of the Rosewood properties while developing consistent brand-wide performance standards. Prominently imposing the Rosewood brand might alienate some of the guests at well-established properties such as The Carlyle or The Mansion on Turtle Creek. Therefore the management might want to consider applying a softer branding strategy in such cases, where the name of the individual property is given the first priority. This way the loyal customers are kept satisfied while the brand is also promoted among the newer