At the completion of this assignment you will achieve the following module objectives:
1. Measure the profit impact of marketing strategies.
2. Determine the impact of customer retention rates through the Customer Life Time Value.
Read your team member’s case situation analysis and compare the spreadsheets posted in the corresponding group discussion forum. Engage in discussions with your team members to answer the new case questions and finalize the financial spreadsheet. You should submit the answers to the following questions and the spreadsheet in the corresponding group link included in the assignment drop box. The group submission will be graded according to the group case rubric.
Rosewood Hotels & Resorts
1. What would you recommend to Rosewood Hotels & Resorts?
In your answer include the following:
Provide 3 arguments that would support your decision.
Describe how you would implement your recommendation.
Our recommendation to Rosewood would be to implement the Corporate Branding Strategy for its portfolio.
The Corporate Branding Strategy increases the number of stays per guest, which in turn, increases the top line revenues generated with the number of nights per stay remaining constant under both scenarios. With a gross profit margin of 32%; this translates to over 400k in Gross profit (before marketing costs).
Their retention rate would also increase 5 percentage points by providing a loyalty program their guests can associate with. This increase reduces the overall marketing dollars needed to attract “new” guests and use those resources towards the corporate program. The corporate branding increases the number of visits from 1.2 to 1.3 per year per guest. This raises the number of repeat guests from 19,169 to 24,919. As an individual property brand, the Rosewood brand had low recognition and brand-wide usage among guests and was an untapped asset. As a corporate brand Rosewood could “piggy...