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 1992 2002
•Lanesborough, •Caneel Bay, St. John, • Jumby Bay,
London, England U.S.V.I. Antigua.
•Little Dix Bay, Virgin
1979 Gorda, B.V.I
• The Caroline
2001
Rose Hunt Trust 1989
Estate •Resort, Sunny Isles
•Selling the Hotel Bel- Beach, Florida
Air and Hotel Hana
Maui for record prices 1995
•Hotel Al Khozama
1980 2000
•Al Faisaliah Hotel
•1st hotel— •The Carlyle, New York
The Mansion 1985 •King Pacific Lodge,
on Turtle Creek, •Hotel Crescent Court, British Columbia,
Dallas, Texas Dallas Canada
•The Crescent Club & The 1997
Spa at The Crescent
•The Bristol in Panama City, 1999
•Las Ventanas al Paraiso ,
•Badrutt’s Palace
Los Cabos, Mexico,
1982 •St. Moritz, Switzerland
•The Dharmawangsa, Jakarta
•Hotel Bel-Air, 1984 •Al Faisaliah Hotel
Los Angeles, • Hotel Hana •Hotel Seiyo Ginza
California Maui, Hawaii

Rosewood Facts HISTORY

 Properties Growth
25
25
20
13
15 12
10 10
6 6 8
5
5
0 0 1 2 4 1996
2003

Rosewood Facts
 Luxury Unique Soft
Properties • One of a kind • Complementary
• Local Character • Flexible & • Not intrusive
• Local Culture Creative

Rosewood Facts
 BRAND AUDIT

CSR
Questioner (Customer Service
Reservation)

Only 5% had stayed in

Customer Travel Agents Employee more than Rosewood
Properties

“did not really know the

“The brand is not nearly “Don’t see great
name Rosewood even 40 % of guest enjoyed
as important as the opportunity, few
they had staying at the return visit
property”. business opportunity”.
property”.

“They know Rosewood

“Rosewood is a “very low awareness,
after the travel agents
collection of brand. It is less than 5% those who
started telling them if a
not a brand”. know are ‘past’ guest”.
hotel was Rosewood”.

Rosewood Facts
 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 way customers think, feel and
the added value act with respect to the brand,
endowed on • Price, market share & profitability
products & services
the brand commands for the firm.
that reflected in:

Rosewood Theory
 Building Brand Equity

The product and service

The initial choices for the Other associations
and all accompanying
brand elements or indirectly transferred to
marketing activities and
identities making up the the brand by linking it to
supporting marketing
brand some other entity
program

Rosewood Theory
 Aakers Brand Equity Model

Rosewood 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

Rosewood Theory
 Branding Strategy

Corporate Individual
Brand Name Brand Name

Rosewood Analysis
 Pro’s and Con’s
Individual Branding
• Unique & represent local
culture
Pro • No need additional cost (cost
efficiency)
• Flexible Internal Management
• Already has loyal customer
Contra • Inconsistency in brand
wide performance standard
Rosewood Analysis
Corporate Branding
• 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) 115,000.00 115,000.00
Average daily spend (b) $750.00 $750.00
Number of days average guest stays 2 2
Average gross margin per room 32% 32%
Average number of visits per year per guest 1.2 1.2

Average marketing expense per guest (system- $130.00 $138.70

wide) d
Average new guest acquisition expense $150.00 $150.00
(system-wide)
Total number of repeat guests (e) 19,169 24,919

Of which: Total number of multi-property stay 5,750 11,500

guests
Number of Multiproperty Guest 5% 10%
Average Guest Retention Rate (f) 16.67% 21.67%
Average Gross Profit per Guest $576.00 $624.00

Rosewood Analysis
 Total NPV of CLTV without Corporate Brand
Years 0 1 2 3 4 5 6

Gross profit per guest 609.50 646.07 684.83 725.92 769.48 815.65
Acquisition expense per
new guest 115.00
Marketing expense per
guest 132.60 135.25 137.96 140.72 143.53 146.40

Net Profit per Guest (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

Net Present Value (NPV) (115.00) 441.58 94.90 20.38 4.38 0.94 0.20

448.62

Rosewood Analysis
 Total NPV of CLTV with Corporate Brand

Years 0 1 2 3 4 5 6
Gross profit per guest 661.44 701.13 743.19 787.79 835.05 885.16
Acquisition expense per
new guest 115
Marketing expense per
guest 142.86 147.14 151.56 156.10 160.79 165.61
Net Profit per Guest (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
Net Present Value (NPV) (115.00) 480.17 102.92 22.05 4.72 1.01 0.22
Total NPV 496.09

Rosewood Analysis
 Recommendation

• Adopt Corporate Branding

• Strengthen Rosewood’s Brand
Equity

Rosewood Recommendation
 Brand Awareness
External drive way: Internal Drive way:
Subjective :
• Promotion & Ads • Service
• Become a in Media (online Standardization
& offline) • High Quality
Top of Mind • Launch Event • Rosewood
Brand Promotion Careers
Management

Rosewood Analysis
 Brand Loyalty
Subjective :
• Retain The loyal customer
Drive way :
• Travel Package
• Thematic Events
• Develop Community to pursue
Rosewood Junkies
• Membership (platinum &
titanium)
• Annual Gathering Private &
Exclusive Service

Rosewood Analysis
 Brand Association
Subjective : Drive Way :
• Uniqueness “one of a kind” • Premium Pricing
• Luxurious • High Quality Services
• Luxurious Architecture &
Design

Brand Quality
A Sense of Place

Rosewood Analysis
Rosewood Video
Thank You