Rosewood Hotels presently has 12 iconic luxury hotels worldwide with a sum of 1. 513 room capacity. Each belongings thrives on its ain name and the corporate trade name name. Rosewood. has been muted to continue the peculiarity of each separately branded hotel. Rosewood faces competition from corporate branded giants e. g. Ritz-Carlton. Four Seasons etc who follow “canned and cookie cutter” attack of keeping a consistence across all hotels. Rosewood’s direction believed that the single belongings stigmatization scheme would assist them distinguish from these corporate giants. However. in the aftermath of ferocious competition in the luxury hotel industry. CEO of Rosewood. John Scott and VP of gross revenues and selling. Robert Boulogne are sing incorporation of Rosewood as a trade name in name of each hotel and utilize Rosewood as the house of trade name in all of their advertisement runs.

Rosewood trade name suffers from low trade name acknowledgment while Rosewood’s clients are progressively acquiring attracted towards hotels with strong corporate trade names as highlighted by the Strategic Marketing Solutions study in 2003. John and Robert are sing exchanging to corporate stigmatization to increase trade name consciousness amongst Rosewood’s invitees and advance cross belongings use to increase client keeping. In 2003. belongings specific trueness is high amongst Rosewood’s clients with 40 % return visits. nevertheless ; merely 5 % of them had stayed in more than one Rosewood belongings while corporate trade names enjoy transverse belongings use rates of 10-15 % . Pros of Corporate Branding

Following are some of the advantages of utilizing corporate house of trade names: 1. Increase cross belongings use and heighten client trueness. 2. Position corporate trade name as a position symbol for client to counter competition 3. Supply consistent service and experience across all belongingss 4. Increase client keeping and client visits

5. Increased client life-time value and increased grosss ( discussed subsequently ) Cons of Corporate Branding
Following are disadvantages of utilizing a house of trade names:
1. Concept of “A Sense of Place” is lost with losing single stigmatization. 2. Loss of distinction and singularity of each belongings.
3. Guests and direction are immune to alter and cultural alteration would go on bit by bit. 4. Internal soft stigmatization and selling investings will devour a batch of clip and money. 5. This would take to head on competition with corporate branded hotels e. g. Ritz-Carlton. Four Seasons etc. Customer Lifetime Value

As calculated in the Exhibit. the client life-time value in instance of new branding scheme is $ 456. 16 which is $ 79. 70 higher than the client life-time value in instance of single stigmatization scheme i. e. $ 376. 46. Although the selling disbursals per client additions in the new scheme by $ 8. 7 in the first twelvemonth. this is compensated by addition in keeping rate due to duplicating of multi belongings stay invitees and increase in client keeping from 1. 2 to 1. 3 corsets per invitees. Besides. the keeping rate additions from 16. 67 % to 21. 67 % due to increase in transverse belongings use. All this translates into incremental gross of $ 28. 64 million with extra net income of $ 9. 166 million. Decision

Based on the computations in the Exhibit and analysis provided above. Rosewood should decidedly follow the corporate stigmatization scheme. However. the challenge in forepart of the direction would be to keep and leverage the current trade name equity of human dynamo belongingss such as The Carlyle in New York and The Mansion on Turtle Creek in Dallas. My recommendation would be to still utilize the Rosewood trade name along with these belongingss with Rosewood name being less outstanding e. g. alternatively of utilizing ‘The Rosewood Mansion’ as the name of the belongings. ‘The Mansion – Rosewood Hotels Property’ would tie in the belongings with the corporate trade name without dismissing the association and trade name equity built over the old ages. Furthermore. Scott would besides hold to cover with the opposition from the direction of these locations who seem to be change averse. This would necessitate alterations in the corporate civilization and should be implemented in a phased mode without seting sudden undue force per unit area on the administration and its current construction. Another challenge that Rosewood Hotels would confront under this corporate umbrella program. is to keep consistence in service degrees and quality across all belongingss that the clients of The Mansion or The Carlyle expect. Keeping faultless criterions at all belongingss without losing singularity of each belongings would decidedly assist in increasing the cross belongings use that Rosewood Hotels is trusting for.