• Assignment 1: Case Study – Rosewood Hotels Due Week 2 and worth 90 points
Preparation: o Review the Rosewood Hotels & Resorts case study. o Visit the online Customer Lifetime Value Calculator and go through each tab in the tool and spend time studying how some of the variables and assumptions affect the results in the Sample Problem. Write a 2-3 page paper in which you: o Discuss the pros and cons of the Rosewood Hotels moving from individual brands to a corporate brand. (Feel free to discuss the general concept of CLTV, but consider a wide variety of elements in your response like differentiation, operational issues, brand management, etc) o Based on your exercise with the Customer …show more content…
This has the potential to not only increase revenues but also brand awareness, recognition and word of mouth referrals. other advantages of Rosewood Hotels moving individual brands to corporate brand are increased brand wide usage, increased brand recognition, connection among properties, good positioning for competition, increased market/share, increase brand awareness, promotion of cross property usage, increased return visit, brand loyalty, increased revenue and building customer life values
However, there are disadvantages of moving from individual brands to a corporate brand for Rosewood Hotels. This moment canned the “cookie cutter approach” of doing business. Other disadvantages of having a corporate brand is “no sense of place” philosophy, loss of uniqueness, less differentiation, potential loss of brand equity, loss of discretion, guess and management resistance to change, increased marketing cost, competition tougher among corporate branded hotels, and change in the corporate culture is challenging.
To ensure they were making the best decision to move corporate branding for Rosewood Hotels, Scott and Boulogne used the guest revenue and expense data to show the potential benefits, greater customer life value (CLTV) would outweigh the marketing a n operations cost connected with corporate branding. To accomplish this, Boulogne calculated and forecasted the CLVT for six years with and .