Rosewood Marketing Case Study
Autor: Maryam • March 13, 2018 • 1,697 Words (7 Pages) • 724 Views
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Figures and Tables:
Table 1: Providing Customer Value:
Describe the type of value that current Rosewood customers expect to receive, as well as the value that Rosewood expects to provide if they become a corporate brand.
Customer Value Expected under
Individual Branding (IB)
Value Provided under
Corporate Branding (CB)
Psychological
- Distinctive and excusive feel from individuality of experience
- Emotional bond with individual branded property
- Collective experience
- Loyalty with a brand (indicator of taste and status)
- Sense of belonging
Functional
- Adaptability of hotels to local culture
- Customized experience
- Consistent service over all hotels in rosewood portfolio
Economic
- Higher value for higher ADR
- No need to look for alternatives
Table 2: Strategic Assessment
Outline reasons to choose IB vs. CB for each of the 3Cs:
Individual Branding (IB)
Corporate Branding (CB)
Customers
- Exclusive feel from customized local experience
- Loyalty with a luxury brand
- Consistent superior service
Company/Employee
- 40% customer return rate to individual property
- High end of scale at returning customer
- High ADR compared to competition
- Increase cross-property usage from 5% to CB industry average of 10-15%
Competition
- Unique experience at IB hotels
- Create loyalty base
- Increase cross property usage
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Table 3a: CLV of a Newly Acquired Guest under the Individual Brand Strategy (fill in gray boxes)
Year
0
1
2
3
4
5
6
Number of nights per stay (1)
2
2
2
2
2
2
Number of stays per guest (2)
1.2
1.2
1.2
1.2
1.2
1.2
Average gross margin per room (3)
32%
32%
32%
32%
32%
32%
Revenue per night (4)
795
843
893
947
1004
1064
Revenue per Customer per year (5)
1908
2022
2144
2272
2409
2553
Gross Profit per Customer (6)
0
611
647
686
727
771
817
Annual marketing cost per customer (7)
134
138
142
146
151
155
Annual corporate marketing cost per customer (8)
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Cash Flow per Customer (9) = (6)-(7)-(8)
0
477
509
544
581
620
662
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