Mednet Case Essay

1024 words - 5 pages

The Individual Brand/Collection Strategy
Unlike the corporate brand model, in which luxury tended to follow (as Scott dubbed it) a
"canned and cookie cutter" approach across properties, Rosewood operated a "collection" of unique
properties, each with its own name or brand (see Exhibit 6, Rosewood Properties and Signed
Agreements). Each hotel and resort featured architectural details, interiors, and culinary concepts
that reflected local character and culture and defined Rosewood's "Sense of Place" philosophy. Scott
What makes Rosewood different is its commitment to unique, one-of-a-kind, luxury
properties. Our brand compass has always been built on our concept of "A Sense ...view middle of the document...

e., The Mansion on Turtle
Creek and Las Ventanas al Paraiso ).
Under the individual brand or collection strategy, the Rosewood hotel marketed itself under its
own brand name in addition to participating in Rosewood-related advertising. "The Rosewood
branding was soft and meant to be complementary, not intrusive," remarked Boulogne. The
Rosewood logo appeared discreetly on low-profile amenities such as clothes hangers or stationery.
Higher-profile amenities, such as bathrobes and towels (which also provided a profitable souvenir
business), bore the logo of the hotel. Hotel phone greetings did not mention the Rosewood name.
1 In December 2002, Las Ventanas AI Paraiso's RevPAR index was 3.62 (the index measures the Revenue per Available Room
of a hotel compared to the ones of its competitors in the same market). The Lanesborough's was 1.5, the Mansion on Turtle
Creek's was 1.96 and Little Dix Bay's was 1.25.
2 For example, a couple or family staying in the same hotel room counted as one unique guest.
Rosewood Hotels & Resorts: Branding to Increase Customer Profitability and Lifetime Value I 2087
Through the 1990s, Rosewood's advertising was property-specific: the property name appeared
first, then the location. In the early 2000s, Rosewood's advertising began to feature a list of all
Rosewood properties, but the Rosewood logo remained secondary to the hotel logo.
The Limitations of Individual Branding
In April2003, John Scott, who was the director of acquisitions and asset management at a private
real estate investment group and a Rosewood board member, was asked by the Board to become
CEO and help chart a new direction for Rosewood. He recognized that the Rosewood brand had low
recognition and brand-wide usage among guests and was an untapped asset.
Scott and Boulogne concluded:
Our emphasis on individual property brands was not working from a number of fronts.
While guests were seeking a unique Rosewood property experience and product, they were
not making the connection between Rosewood properties and were increasingly identifying
with other strong hotel brands. Competition in the luxury hotel segment is intense and it was

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