Rosewood Hotels and Resorts Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Rosewood Hotels and Resorts Case Solution

BACKGROUND

Rosewood is a 5-star luxury hotel, with its headquarters situated in Dallas; Texas. The hotel has a strong financial background and operates with unique brand strategy. It assigns its different projects as standalone projects which incorporate different and separate brand image, brand equity, positioning and culture into it.The standalone brand strategy enables Rosewood to indulge the atmosphere and culture of the hotel according to its vicinity. It helps the organization link, integrate and synchronize itself with the local culture and social values of the region that contributes to creating an association with the people around it.

However, with passing time and changing market behavior, CEO John Scott and VP Boulogne, identified loopholes in Rosewood brand strategy. The company does not associate its name with the hotels located in different regions. It does not endorse strongly the other SBUS of rosewood, which has led to low brand awareness and hence leading to low brand equity. In such situation, the company decides to pursue a new marketing strategy in which a strong brand awareness will be initiated through unified corporate strategy.

The company aims to pursue this market strategy either by adopting the corporate strategy or by establishing acustomer membership program. Both these initiatives have some advantages and disadvantages, yet it has to be decided which strategy is to be followed in order to regain and sustain the brand image of the hotel in the market.

In addition to the following, the hotel does Incorporated images like its direct competitors Ritz Carlton, Four seasons and Fairmont. All these hotels have achieved their goal of expanding its horizon by using strong brand awareness.Also, since these players have strong brand awareness, the rate of are peat-customer is also high(100000) while in the case of Rosewood, It is only 5%.Hence, there is a significant untapped opportunity for the company to build and evolve its brand image by using strong advertisement and brand awareness strategy.

Managerial Issues

Rosewood follows distinctive, differentiated brand portfolio approach, which inculcates the separate brand design, culture, and environment. The strategy in start helped the company to attract the visitors and local customers to enjoy the distinctive culture of the hotels which engraves the local and historical values into it.Under such scenario and brand strategy, only a few number of employees knew the real name of rosewood and could build a positive association with it.

However, the other competitors pursued strong brand building and brand association strategy, which helped them to attract repeated visits, create a value proposition and brand identity in the market. Under such scenario, the main managerial issues the company faced were:

Lack of Market and Customer Behavior Understanding

The company failed to understand the market forces and consumer behavior. Itneglected to understand the core basics of building a unified brand and its essence on the overall brand image. Rosewood was established as an exquisitely styled hotel, yet it failed to connect all of its hotels through one name, “rosewood.” The approach hindered the company’s profitability because of no brand awareness and association.The unique brand name creates a unique value proposition in the market, through which the customer connects with the organization.Rosewood failed to foresee the impact of strong brand awareness on its brand portfolio.

It also faced a complication in handling the customer data, which if arranged and utilized earlier, could have depicted the trend of consumer behavior towards availing services of Rosewood. Indoing so, the company overlooked the value of creating a specific positioning in the consumer-mind as well in the market, to make itself identifiable.Due to the generic nature of Rosewood hotels, the company itself diluted its brand name.

No Strong Endorsement

The company endorsed its parent brand name through the accessories and equipment used in the hotels, and almost in such a small size that many of the time customers overlooked the name Rosewood.Even in advertisement campaigns, the name of Rosewood remained the secondary focus of the company.The strategy lacked to draw an enormous mass of customers to wards the parent brand, through which they could have developed the brand association and brand loyalty with the customer.Also,such campaigns missed to position itself in the mind of the customer through which they could identify and choose rosewood over other hotels.

Since the company did not affiliate itself with its other brands, the less popularity and brand awareness drove the customer away from the company, reducing the number of repeat sales.

Internal issues

The company, after identifying the key problems that cause low profitability, devised the solution of doing corporate branding. The change in organizational strategy made many managers to resist it because of the loss of autonomy and equity of the brand that each hotel carries as a standalone brand.Also, the management faced resistance from the managers to accept the change and devise a new business plan that will require working from scratch.

Strategic Decision

In order to deal with the low sales and low brand awareness, the company can follow the following policies to enhance the brand image and also encourage recurring-visit...............................

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