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  • Rosewood Case Solution

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    Yash Jain
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    This document contains financial data for two scenarios: a company without branding from 2003-2009, and the same company with branding from 2003-2009. Key metrics such as revenue, gross margin, marketing expenses, customer retention rates, and net present value are shown for each year in both scenarios. The addition of branding increased revenues, margins, and retention rates, leading to significantly higher overall profitability and net present value for the company over the time period analyzed.

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    This document contains financial data for two scenarios: a company without branding from 2003-2009, and the same company with branding from 2003-2009. Key metrics such as revenue, gross margin, marketing expenses, customer retention rates, and net present value are shown for each year in both scenarios. The addition of branding increased revenues, margins, and retention rates, leading to significantly higher overall profitability and net present value for the company over the time period analyzed.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    45 views4 pages

    Rosewood Case Solution

    Uploaded by

    Yash Jain
    This document contains financial data for two scenarios: a company without branding from 2003-2009, and the same company with branding from 2003-2009. Key metrics such as revenue, gross margin, marketing expenses, customer retention rates, and net present value are shown for each year in both scenarios. The addition of branding increased revenues, margins, and retention rates, leading to significantly higher overall profitability and net present value for the company over the time period analyzed.

    Copyright:

    © All Rights Reserved
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    of 4

    CLTV without Branding

    Years 2003 2004 2005 2006 2007


    Revenue/customer 1908.00 2022.48 2143.83 2272.46
    Gross Margin 610.56 647.19 686.03 727.19
    Avg Marketing Expense/ customer 133.90 137.92 142.05 146.32
    Average New guest acquisition 150.00
    Net Profit/ Guest -150.00 476.66 509.28 543.97 580.87
    Retention Factor 16.67% 16.67% 16.67% 16.67% 16.67%
    Survival Rate 100.00% 100.00% 16.67% 2.78% 0.46%
    Net cash Flow expected -150.00 476.66 84.90 15.12 2.69
    Discounting Factor 8% 8% 8% 8% 8%
    NPV -150 441.3518519 72.78498733 11.9998397 1.97784002

    1800
    130
    2008 2009 0 1 2 3 4 5 6
    2408.81 2553.33
    770.82 817.07
    150.71 155.23

    620.11 661.84
    16.67% 16.67%
    0.08% 0.01%
    0.48 0.09
    8% 8%
    0.32590721 0.05368941 378.4941
    CLTV with Branding
    Years 2003 2004 2005 2006 2007 2008
    Revenue/customer 2067.00 2191.02 2322.48 2461.83 2609.54
    Gross Margin 661.44 701.13 743.19 787.79 835.05
    Avg Marketing Expense/ customer 141.25 145.49 149.86 154.35 158.98
    Average New guest acquisition 150.00
    Net Profit/ Guest -150.00 520.19 555.63 593.34 633.43 676.07
    Retention Factor 0.18 0.18 0.18 0.18 0.18 0.18
    Survival Rate 1.00 1.00 0.18 0.03 0.01 0.00
    Net cash Flow expected -150.00 520.19 98.90 18.80 3.57 0.68
    Discounting Factor 0.08 0.08 0.08 0.08 0.08 0.08
    NPV -150.00 481.65 84.79 14.92 2.63 0.46

    1950 Total Guest 139919


    137.14 Multiproperty 11500
    Total repeat guest 24919
    Retention Rate 0.178096
    2009 0 1 2 3 4 5 6
    2766.11
    885.16
    163.75

    721.40
    0.18
    0.00
    0.13
    0.08
    0.08 434.54
    56.05

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