Rosewood Case: Alternatives and Recommendations
Alternative A: Corporate Branding
Rosewood Hotels can implement the corporate branding strategy by attaching the
Rosewood name to each hotel and making the brand more apparent in advertising. There
are several advantages and disadvantages attached with the proposed alternative:
Alternative B: Remain an Individual branded hotel
Another alternative would be to remain an individual branded hotel. This would no
improve or change anything for Rosewood but instead keep their current management
team and customers happy and comfortable. Although they are not making any changes for
the better they are still retaining their current loyal customers by representing their unique
culture. There are several advantages and disadvantages attached with the proposed
alternative:
Rosewood’s Brand-wide Customer lifetime value spreadsheet model:
CLTV with Corporate Branding Strategy
CLTV with Individual Branding Strategy
Decision Matrix/Selection Matrix
Scoring: 5 = high
3 = medium
1 = low
Recommendation:
I would recommend that Rosewood Hotel & Resorts implement the corporate branding
strategy. I believe that this strategy would best fit the Rosewood hotels as it will increase
brand awareness, customer retention, and profit among their guests. The corporate
branding strategy had a customer lifetime value of $461.10 while the individual branding
strategy had a customer lifetime value of $378.51. This was a total NPV increase of $82.62
with the corporate branding strategy. As well, if the new strategy is adopted Rosewoods