Rosewoodcase
Executive Summary
Rosewood has been mulling over strategies to increase its brand recognition. Since its inception Rosewood has kept its brand image second fiddle to brand of individual properties. I recommend that Rosewood should adopt corporate brand strategy based on customer life time value, customer perception and customer needs.
Rosewood’s current customer segment
Bases Segment – A typical Rosewood customer seeks for unique, one of a kind and niche experience from their stay at the hotels and resorts which portray architecture, history and culture of the location. They seek for small ultra-luxury residential style that is different from chain-like luxury hotels.
Descriptor Segment- The Rosewood customers are people on vacation travel. As vacation travelers seek unique experiences when they come to a luxurious hotels and resort.
Functional Value- Provide Functional value to Vacation travelers type customers
Psychological Value- Allows customers to have unique sense of a place related to the location’s culture, history and architecture. Customers have emotional bond with the individual properties
Economic Value- The prices charged for different properties were different, such as $120 nightly rate for the Saudi Arabian properties and $9,000 for a Canadian property. So customer received the right economic value out of the properties according to the experience they provided
Under the corporate brand strategy, Rosewood will be able to attract “business travelers” as well. These travelers generally associate with a brand and seek less of the unique sense of a place experience. While it will continue to attract “vacation travelers” as well, Rosewood might lose out customers who cannot associate with bigger organization.
Market Assessment (Competition)
Rosewood’s competitive advantage in the marketplace is the ability to give its customers unique sense of experience and make customers bond with their property. Whereas it fails to capture customers of the Corporate branded chains such as business travelers type customers who do not know about the Rosewood brand name because of its lack of recognition.
Impact on the Bottom Line (Company)
Incorporating Corporate branding strategy will partially remove autonomy of the management of the individual properties, hence the management across all the Rosewood properties will have to adhere to the central Corporate office. This restructuring will call for additional infrastructure and management line to establish proper control and sync between all the Rosewood properties, which in turn will lead to additional costs.