Ali Yudhi Dame Reiny Dewi Aryani Dewi Sagita Frisca Listya
Rosewood Hotels & Resorts : Branding to Increase Customer Profitability and Lifetime Value l the SIXers MM UI 2012
ROSEWOOD HOTELS & RESORTS (ROSEWOOD) is a private hotel management company . • operated a “collection” of individually branded unique hotels & resorts • Has global reputation with iconic luxury hotels
Rosewood Facts
1991 •Lanesborough, London, England 1979 • The Caroline Rose Hunt Trust Estate
1980 •1st hotel— The Mansion on Turtle Creek, Dallas, Texas
1982 •Hotel Bel-Air, Los Angeles, California
1989 •Selling the Hotel BelAir and Hotel Hana Maui for record prices
1985 •Hotel Crescent Court, Dallas •The Crescent Club & The Spa at The Crescent
1984 • Hotel Hana Maui, Hawaii
1992 •Caneel Bay, St. John, U.S.V.I. •Little Dix Bay, Virgin Gorda, B.V.I
2002 • Jumby Bay, Antigua.
2001 •Resort, Sunny Isles Beach, Florida 1995 •Hotel Al Khozama •Al Faisaliah Hotel
1997 •The Bristol in Panama City, •Las Ventanas al Paraiso , Los Cabos, Mexico, •The Dharmawangsa, Jakarta
HISTORY Rosewood Facts
2000 •The Carlyle, New York •King Pacific Lodge, British Columbia, Canada
1999 •Badrutt’s Palace •St. Moritz, Switzerland •Al Faisaliah Hotel •Hotel Seiyo Ginza
Properties Growth 25 20 15 10 5 0
25 13
12 6
10
8
6 0
5 1
2 4
1996 2003
Rosewood Facts
Luxury Properties • Local Character • Local Culture
Unique
Soft
• One of a kind • Flexible & Creative
• Complementary • Not intrusive
Rosewood Facts
BRAND AUDIT CSR
Questioner
(Customer Service
Reservation)
Customer
Travel Agents
Employee
“did not really know the name Rosewood even they had staying at the property”.
“The brand is not nearly as important as the property”.
“Don’t see great opportunity, few business opportunity”.
“They know Rosewood after the travel agents started telling them if a hotel was Rosewood”.
“Rosewood is a collection of brand. It is not a brand”.
“very low awareness, less than 5% those who know are ‘past’ guest”.
Rosewood Facts
Only 5% had stayed in more than Rosewood Properties
40 % of guest enjoyed return visit
Rosewood Management Goals Increasing Connection between Rosewood properties Increasing Cross Properties Ussage from 5% to 10% Create Rosewood Junkies Building Strong Brand Equity
Rosewood Facts
Brand Brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods/services of one seller /group of seller and to diferentiate them from those competitor (Kotler) Brand Equity is the added value endowed on products & services that reflected in:
Rosewood
• the way customers think, feel and act with respect to the brand, • Price, market share & profitability the brand commands for the firm.
Theory
Building Brand Equity
The initial choices for the brand elements or identities making up the brand
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The product and service and all accompanying marketing activities and supporting marketing program
Theory
Other associations indirectly transferred to the brand by linking it to some other entity
Aakers Brand Equity Model
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Theory
Calculating Customer Lifetime Value Customer lifetime value (CLV) describes the net present value of the stream of future profits expected over the customer’s lifetime purchases
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Theory
Branding Strategy
Corporate Brand Name
Rosewood
Analysis
Individual Brand Name
Pro’s and Con’s Corporate Branding
Individual Branding
Pro
• Unique & represent local culture • No need additional cost (cost efficiency) • Flexible Internal Management • Already has loyal customer
Contra • Inconsistency in brand wide performance standard
Rosewood
Analysis
• Better CLTV • Collective Experience (duplicate standard) • Consistent Service • Encourage guest to use more than one properties • Better Brand Recognition • High customer loyalty (Rosewood Junkies) • • • •
Increase Marketing Cost for re-branding Resistant from owner, guest, manager Guest feel alienate Bad Reputation may impact others
Revenue and Cost Analysis Without Rosewood Branding With Rosewood Corporate (2003) Branding
Total number of unique guests (a) Average daily spend (b) Number of days average guest stays Average gross margin per room Average number of visits per year per guest
115,000.00 $750.00 2 32% 1.2
115,000.00 $750.00 2 32% 1.2
Average marketing expense per guest (systemwide) d Average new guest acquisition expense (system-wide) Total number of repeat guests (e)
$130.00
$138.70
$150.00
$150.00
19,169
24,919
Of which: Total number of multi-property stay guests Number of Multiproperty Guest Average Guest Retention Rate (f) Average Gross Profit per Guest
5,750
11,500
5% 16.67% $576.00
10% 21.67% $624.00
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Analysis
Total NPV of CLTV without Corporate Brand Years Gross profit per guest Acquisition expense per new guest Marketing expense per guest Net Profit per Guest
0
1
2
3
4
5
6
609.50 646.07 684.83 725.92 769.48 815.65 115.00 132.60 135.25 137.96 140.72 143.53 146.40 (115.00) 476.90 510.82 546.88 585.21 625.95 669.25
Retention factor
1.00
0.22
0.05
0.01
0.00
0.00
Discount factor
0.93
0.86
0.79
0.74
0.68
0.63
(115.00) 441.58
94.90
20.38
4.38
0.94
0.20
Net Present Value (NPV)
448.62
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Analysis
Total NPV of CLTV with Corporate Brand Years Gross profit per guest Acquisition expense per new guest Marketing expense per guest Net Profit per Guest
0
1
2
3
4
5
6
661.44 701.13 743.19 787.79 835.05 885.16 115 142.86 147.14 151.56 156.10 160.79 165.61 (115.00) 518.58 553.98 591.64 631.68 674.27 719.55
Retention factor
1.00
0.22
0.05
0.01
0.00
0.00
Discount factor
0.93
0.86
0.79
0.74
0.68
0.63
(115.00) 480.17 102.92
22.05
4.72
1.01
0.22
Net Present Value (NPV) Total NPV
Rosewood
496.09
Analysis
Recommendation • Adopt Corporate Branding • Strengthen Rosewood’s Brand Equity
Rosewood
Recommendation
Brand Awareness Subjective : • Become a Top of Mind Brand
Rosewood
External drive way:
• Promotion & Ads in Media (online & offline) • Launch Event Promotion
Analysis
Internal Drive way:
• Service Standardization • High Quality • Rosewood Careers Management
Brand Loyalty Subjective :
Drive way :
• Retain The loyal customer
• Travel Package • Thematic Events • Develop Community to pursue Rosewood Junkies • Membership (platinum & titanium) • Annual Gathering Private & Exclusive Service
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Analysis
Brand Association Subjective :
Drive Way :
• Uniqueness “one of a kind” • Luxurious
• Premium Pricing • High Quality Services • Luxurious Architecture & Design
Brand Quality A Sense of Place
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Analysis
Rosewood
Video
Thank You
