Rosewood Marketing Case Write Up

Marketing 741        SECTION 11am

Executive Summary

I recommend that Rosewood Hotels should adopt a corporate brand strategy, while still incorporating its individual brand strengths for each hotel and location.  Placing the Rosewood name in secondary forms throughout its facilities and amenities, instead of pasting it in front of all property names, will reap the benefits of corporate branding while maintaining the sense of uniqueness of each location.

Understanding a Rosewood Customer

Rosewood Hotel’s current customer segment includes individuals who do not know they are customers of the brand.  Many customers state that the Rosewood brand does not mean anything to them- that it does not drive their decisions to stay at a Rosewood location. Travel agents further emphasize that customers are unaware of the Rosewood name and that they would not define it as a brand (Exhibit 7).  

Customers who stay at Rosewood Hotels are wealthy, older individuals with refined tastes and a desire for unique, luxurious, non-conforming experiences at hotels that allow them to see the culture, food, and scenery of a specific location. This consumer base includes those with successful careers who likely stay more for leisure than for business. These customers choose Rosewood properties through a high involvement process: looking for a hotel that will provide an experience through special details incorporated in each property. They do not stay for more than 1-2X a year at any of these hotels; therefore, they place emphasis on the quality of the time they do spend. Patrons are looking for an “experience” and not just a luxury hotel (Table 1), where they believe their stay is a non-reproducible entity by other hotel chains. They are not restricted by budget and thus provide opportunity for upselling once on location (Table 1).

The value of Rosewood hotels to their customers varies drastically according to location and options presented at each hotel.  Customers looking for the hotel to provide a majority of a vacation’s appeal and function (entertainment, dining, relaxation, environment) seek to book one of their hotels with the entire purpose of traveling centering around where they choose to stay.  This is represented in those choosing a Canadian lodge for $9,000 per night (case pg. 2) versus the purpose of a customer booking the Saudi Arabian Rosewood property for $120 per night (case pg. 2), likely for different functionality.  The “Sense of Place” philosophy embodies the idea of selling the exceptional experience that one cannot get in luxury chain hotels (Table 1).