MBA 812 Marketing Management Case Analysis
Rosewood Hotels and Resorts
This paper is expended according to the Rosewood Hotels & Restores Company, which established in 1979. This company promoted the Individual Brand Strategy when it was established. In early 2004, the new present and CEO, John Scott, and the vice president of sales and marketing, Robert Boulogne were considering to apply one new brand strategy named Corporate Brand Strategy in order to boost the company’s growth. In the first part of this paper, it gives the reasons why John Scott and Robert Boulogne wanted to promote the Corporate Brand Strategy. In the second part, it describes the ...view middle of the document...
”(Dev & Stroock, p1) That is to say the new leaders want to increase the guest retention. The well-known 80-20 rule states that 80 percent or more of the company’s profits come from the top 20 percent of its customers. (Kotler & Keller. p57) It is easy to find out this conclusion, increasing the guest retention means increasing the money Rosewood Hotels & Restores made. What the primary goal for a company to boost the company’s growth? It is making more money, collecting more profits. So, the new managers believe that with the corporate brand strategy, the company will make more profits and growth rapidly. In fact, John Scott and Robert Boulogne understand that there is another way to promote the Rosewood Hotels & Restores’ customer multi-property visits. That is to set up a frequent-stay program. Whereas, research on luxury hotel guests revealed that loyalty that was fostered by offering the following benefits: room upgrades, flexible check-in and check-out, personalized services, expedited registration, the freedom to request a specific room, and the capacity of employees to take guests’ problems-even the most unusual-seriously. (Bowen & Shoemaker, pp.12-25) This is why John Scott and Robert Boulogne decide not to invest in a frequent-stay program.
Rosewood Hotels & Restores is a company which has a lot of managers and workers. So, when there is an important decision, it’s not just two persons’ business. However, this is a so significant decision which is about the company’s future growth strategy. So, the discussion of the two strategies-individual brand strategy and corporate brand strategy-is necessary. This paper will talk about the two strategies from two sides-advantages and disadvantages.
Individual Brand Strategy
In this case, the individual brand strategy is the old strategy of Rosewood Hotels & Restores. There are 12 individually branded hotels and resorts, such as The Carlyle which is in New York, NY, The Mansion on Turtle Creek which is in Dallas, TX, Jumby Bay which is in Antigua, WI and Hotel AL Khozama which is in Riyadh, Saudi Arabia. Every hotel or restore has its own brand.
First, in this strategy it is flexible for the properties in different countries to design their standards to adapt to the local conditions. Each hotel and resort featured architectural details, interiors, and culinary concepts that reflected local character and culture and defined Rosewood’s “Sense of Place” philosophy. (Dev & Stroock, p2) Under this condition, this strategy is perfect because the people in different countries with different social culture, so, the sense of place will be different. For example, Hotel Crescent Court is in North America and Dharmawangsa is in Indonesia, two different places need two different hotel management methods.
Second, if one of the properties broke its reputation, it won’t influence other properties because they look like two different companies. Here is the hypothesis, The Mansion on Turtle...