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,
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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
Innovation division builds up an official site which empowers clients to book a room from anyplace on the planet. Also, for extra administration, its site empowers to make a demand for the airplane terminal get and more by chance to visit with one of the administrator on the site. In the globally focused environment of today, InterContinental meeting has turned out to be one of the world's driving lodging networks. One of the key achievement variables was the expansion in the use of innovation. These days, innovation adopts an imperative part in picking up consumer loyalty and tends to the requirements of the majority of their customers (King,
-the potential of Loyalty Programs to coerce consumers rational behaviour is put into question. Rational Choice theory provides a compelling argument which claims that numerous reward facilities genuinely strive to satisfy the consumer’s needs in full. Experiments support the statement listing the variety of benefits enjoyed by the program’s members, who prove to be rational in choosing one or more reward schemes looking after their satisfaction first. Loyalty programs appear to hold a firm position in the market, maintaining the balance between their designer’s goals and benefits provided to the consumers.
Settled in 1845 Rosewood Florida was mainly used for lumber where it got its town name from a red color cut of cedar wood. Rosewood had both African American and caucasian settlers. In 1890 the pencil mill closed down because of Rosewood losing its population of trees. Most of the caucasian settlers moved to Sumner where they farmed citrus and cotton. In 1900 almost all of Rosewoods population was African Americans. And almost all of Sumner’s population was caucasian. The two towns were ok they basically just kind of stayed out of each other's way.
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
It will also increase the lifetime value of our customers, which takes into account their projected lifetime as a customer. The main goal of the loyalty program will be to increase sales and improve our marketing techniques. The program will encourage customers to make frequent purchases for which they will gain rewards and redeem for a specified dollar value. We will lose some profit when the customers redeem their points however they will only be able to redeem the points in increments of $10 and will be required to pay the tax difference. All in all we will not lose enough to affect our profit on a large scale because our sales will be increased as a result of our loyal customer base. In conclusion we would request that the loyalty program be implemented into Tech Garden locations everywhere to maximize
The hospitality industry in the United States is large, complex and intensely competitive. Within this industry is a segment comprised of hotels and motels, which will be the relevant sector for this marketing plan. To note, the hotel and motel industry in the United States had an estimated value of $137.5 billion as of the end of 2012 (MarketLine, 2012). The industry is forecasted to experience a compound annual growth rate (CAGR) of 5.5% from 2011 to 2016, to attain a value of $179.5 billion (MarketLine, 2012). In this industry, the most lucrative segment is leisure which has a market share of 71.1% (MarketLine, 2012). Sunshine Inn (fictional) is a small independent hotel that operates within the leisure segment of the hotel and motel industry in the United States. It is an adventure-themed hotel situated along the California-Nevada border in order to capture the tourist market for Lake Tahoe. Sunshine Inn has 30 bedrooms and 15 suites and offers specialty home-cooked type meals to guests for breakfast, lunch and dinner. It must be emphasized that the hotel and motel industry is one of the most fiercely competitive in the United States, and in fact, in the world (Johanson & Cho, 2009; Kosarkoska, 2010). Therefore, in order to compete with large hotel chains with five-star hotel rankings, Sunshine Inn will have to depend on strategic approaches, such as effectively targeting and positioning itself in the appropriate market, as well as developing a marketing plan that will promote the unique value propositions that only small, personalized hotels can provide: excellent customer service, customized adventure packages as well as a total customer experience that revolves around enjoyment, fun and discovery. As this marketing plan wi...
Through exceptional data asset leveraging in the service sector and aggressive acquisitions of their competition Harrah's Entertainment, Inc has made itself the world's largest provider of branded casino entertainment. Harrah’s CEO Gary Loveman is a former operations professor who has used information technology to create what people consider the most effective marketing organization in the service industry. Harrah’s operates fifty-three casinos, employing more that eighty five thousand workers on five continents. The secret to Harrah’s success is data. Through Harrah’s total reward card program the firm is able to collect information on almost every interaction made at their properties. Even though the program is optional, members enjoy additional benefits that non-members do not receive. This provides an incentive for casino patrons to join and receive the same white glove treatment as Gold, Diamond, and Platinum rewards members reducing the chances they may choose another destination for their gaming and entertainment needs. It also provides the firm with enough information to create a high quality and personalized experience that keeps customers coming back (Gallaugher, 2010).
Also, the rewards program is based off a point system and when one has earned a certain amount of points they send them a gift card to spend however they wish. Though, what the consumers don’t know is that by applying for their free rewards program, they are collecting data and constructing analysis to make them into loyal consumers.
The hotel industry performs within a saturated market, driven by customer loyalty and competitive pricing to stand-out. This competitive nature makes it extremely important to capitalise on strengths while improving on
...r investigate what sort of rewards or fringes would their employee’s desire compared to the old method of monetary incentives for the beneficial for the company”.
-High marketing and operating expense. Would this new approach justify how much money Rosewood would be putting forth?
The main objective was to foster customer retention and loyalty increasing cross-property usage. The number of multi-property guest stays should be increased to 10% from the 5% rate experienced during the last year.
As the marketing consultant for a hospitality management company, it is often my responsibility to define target markets for various restaurants and hotels. In fact, I have been tasked with creating a fictional hospitality operation, to utilize as an illustration to define a marketing strategy and target market. In addition, I must identify and analyze the product life cycle of an organization that has been in business for a minimum of twenty-five years.
In the following of this essay, the importance of branding and brand loyalty would be discussed in theory firstly, and further analysis would be made on them separately, supporting by examples of Virgin Atlantic airway. Finally, a conclusion will be given out.
The ability of the management in positioning and establishing the product is a success in any company that operates for marketing and profit acquisition. Furthermore, the ability of the company and its management to complete and maintain a competitive edge among its competitor throughout the product differentiation is another basis to say that is successful. Also, innovation and the constant development on the product lines and the growing number of customers also define the corporate standing of a company. Effective branding strategy and strong brand name are an important part of the profitable business. But, all the strategies and all marketing theories can be worth nothing without the compliance of the desires of consumers.