406 group case write-up

406 group case write-up - Rosewood Case Write-up As an...

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Rosewood Case Write-up As an individual property brand, Rosewood has successfully differentiated itself from its competitors with its current strategy of tailoring each property experience to what is special about each of its location. This competitive advantage enables the company to deliver superior customer value. However, the company faces low cross- selling rates as compared to hotels with corporate brands and low brand awareness, which limits growth profits. The management team at Rosewood is faced with the decision of whether or not to adopt a corporate branding strategy to build customer lifetime value. The Rosewood Hotels are not connected by a single brand concept and early in their histories, their own individual property brands were powerful tools that differentiated the hotels and therefore Rosewood from its competitors. Thus, Rosewood must consider the consumer lifetime value with and without the implementation of the corporate brand in order decide how to move forward as a company. The two alternatives that the company has proposed are to either take on the corporate branding strategy or to set up a frequent stay program. Adopting the corporate brand could challenge each hotel’s “Sense of Self” or individuality that makes each hotel so appealing to its current customers. Also, because the hotels are so unique, each one caters to a specific target market. Creating and marketing a single brand to the public would be difficult for Rosewood, considering the many customer bases that the company caters to. However, by adopting this corporate branding strategy, Rosewood could potentially increase the number of its multiporperty stay guests which at the moment, is low compared to its competitors. Although the number of
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406 group case write-up - Rosewood Case Write-up As an...

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