Case ID: 2087
Solution ID: 30621
Words: 1674
Price $ 75

Rosewood Hotels and Resorts Branding to Increase Customer Profitability and Lifetime Value Case Solution

Case Solution

This case is based on corporate branding. The subject of this case is Rosewood Hotels which has twelve hotels under it. These twelve hotels are known individually and have developed as a brand apart from the Rosewood brand name. The focus of this case is also on developing a loyal customer base and retaining customers. The guest base is 115,000 combined of all the hotels. The consideration is based on developing Rosewood as a brand and presenting the twelve hotel brands as sub-brands to it. The assessment of the alternatives is based on the economic value to the company that the increased retention will bring because of the branding. This branding will require an investment of $1,000,000 to rebrand Rosewood as a corporate brand. The assessment includes the study of the shift from individual branding of the hotels to a single brand name. 

Excel Calculations

CLTV Calculation With New Brand Strategy

NPV of Expected Cash Flow from Customer

Total NPV of CLTV

Increase in CLTV per customer 

Number of Customers

Gross Profit Margin

 

Increase in Revenue

Questions Covered

1. Analysis Overview

2. Case Analysis

3. Cost Benefit Analysis

4. Financial Analysis

5. SWOT Analysis

6. Conclusion