Rosewood Hotels Marketing Plan

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MARKETING PLAN OBJECTIVE 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. MARKETING SITUATION Problem situation: Rosewood brand was muted, not very well known but it was not clear what is the best corporate branding strategy without destroying the value of each individually branded hotel and loosing a customer. A new branding strategy proposing an increased customer profitability and lifetime value is needed. Company. Rosewood is a 25 years old luxury private hotel management company having 12 hotels in different countries. The company is known by unique, “one-of-a-kind properties” with very luxury style. The total rooms capacity worldwide is 1513 rooms. The company has only 5% of cross-selling rates, which is one of the lowest in the industry compare with corporate branded hotels (10%-15%) and individually branded hotels (5%-10%). Competitors. Rosewood is competing with corporate branded properties and individually branded properties. Main competitors are: • Corporate branded properties: Ritz-Carlton, Four Seasons, St. Regis, One&Only and Mandarin Oriental • Individually branded properties: Auberge, RockResorts and Orient Express Compare Rosewood % property growth 1996-2003 it is ... ... middle of paper ... ...,67% 21,67% 21,67% 21,67% 21,67% Discount factor 8% 8% 8% 8% 8% 8% 8% Net present value 2.302,64€ Financials: calculating Customer Lifetime Value WITHOUT Rosewood Corporate Branding Years 2003 2004 2005 2006 2007 2008 2009 Gross profit per guest (6% growth per year) 576 579,5 582,9 586,4 589,9 593,5 597,0 Acquisition expense per new guest 150 150 150 150 150 150 150 Marketing expense per guest (3% increase per year) 130 130,4 130,8 131,2 131,6 132,0 132,4 Net profit per guest 296 299,1 302,2 305,3 308,4 311,5 314,7 Retention factor 16,67% 16,67% 16,67% 16,67% 16,67% 16,67% 16,67% Discount factor 0,08 0,08 0,08 0,08 0,08 0,08 0,08 Net present value 1.584,52€

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