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

Case Solution

When students hold the British-language PDF from the Brief Case in the course pack, they'll may also buy a sound version. Rosewood Hotels & Resorts, just a little luxury private hotel management firm running an amount of 12 individually high quality hotels and resorts in multiple nations, wondered the best way to promote customer retention and loyalty and capture the most value in the 115,000 site visitors. Rosewood had always allowed each hotel to manage because it is own individual brand, while using Rosewood title presented just like a moderate sub-brand, if whatsoever. Now Rosewood's new leadership was thinking about when the firm should substantially increase the prominence in the corporate identity, making Rosewood a business brand. The main challenge that Rosewood's professionals face is always to assess when the potential economic benefits of elevated guest retention can over-shadow the $1,000,000 marketing investment needed to apply the business branding strategy. The central focus can be a quantitative assignment that asks students to calculate how customer lifetime value might have a big change from individual branding to corporate branding.

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