Rosewood Case Study

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Whereas switching to a new branding strategy requires a lot of time, this alternative will be faster as it requires less capital, time and labor to employ. The company will not need to go through the entire transformation form individual branding to corporate branding, saving money and recourses. Weaknesses It is difficult for Rosewood to find empirical evidence that the frequent program will work effectively because very few hotels have adopted the point-based stay program, and marketing research had showed that customer loyalty was rather cultivated by providing customers with benefits including room upgrades, flexibility to specify room type, accommodation to preferences, etc. Secondly, it is not easy for customers to redeem their rewards,…show more content…
If Rosewood decides to use its financial budget to cover the costs and expenditures for the frequent-stay program, and in the case where the program ends up unsuccessful, the company will be left with scarce financial capability to stop and switch to the other alternative. This is likely to happen because Rosewood did not have any experience in using the frequent-stay system, and the first time attempt will possibly incur problems. The failure to capture customers and the loss of market share will be too much financial liability for Rosewood to take charge of, and will trap the company in a low-growth situation. The fact that very few competitors use the reward system indicate this strategy may not the best solution to the…show more content…
The opportunity cost of not adopting corporate branding is relatively high, because selecting corporate branding will possibly increase brand awareness and customer loyalty to the greatest extent, and by using a frequent-stay program, Rosewood will potentially forgo these benefits. The most significant strength of Rosewood is their uniqueness of each property. Because Rosewood had already established uniqueness of each hotel, the transformation will not conflict with the “Sense of Place” philosophy. The location specific design and services will contribute to the development of brand sincerity, which will consequently stimulate consumer loyalty. This is equivalent to a circulating loop mechanism in which brand sincerity generate consumer loyalty, and consumer loyalty motivates sincerer brand. Equally important, the company is recommended to do a thorough financial forecasting on corporate branding. As for now, the company has had a rough expectation of customer life values, but further considerations such as estimated cost of implementation, estimated revenue and change in marketing expense need to be included. Furthermore, the company is recommended to simultaneously change its advertising strategy

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