Review Article MARKETING ROSEWOOD AS an ULTRA

Journal of Critical Reviews

ISSN- 2394-5125 Vol 7, Issue 6, 2020

Review Article

MARKETING ROSEWOOD AS AN ULTRA-LUXURY HOTEL BRAND: USING STRATEGIC MARKETING AND SWOT ANALYSIS

1K. Vidhya, 2Dr. V. Selvam

1Ph. D Full Time Research Scholar, Department of Commerce, SSL, VIT, Vellore 632014, Tamil Nadu. [email protected] 2Professor, Department of Commerce, SSL, VIT, Vellore 632014, Tamil Nadu. [email protected]

Received: 16.02.2020 Revised: 14.03.2020 Accepted: 15.04.2020

Abstract Rosewood is an inestimable sui generis brand, which was fabricated over the decades. It has inspirational onsets and the apical ideal of excellence both in terms of product and service. Ultra-luxury inhabitating style and trend of the corporation creates lambency in 15 countries with 27 hotels. At present, it is held by Rosewood Hotel Group, belongs to Hong Kong based hotel firm, heretofore known as New World Hospitality. Hotel defines Rosewood’s as “A Sense of Place” axiom. The serious issue was that Rosewood Hotels and Resorts had a low campaign, brand mindfulness and acknowledgement among its clients came about a low multi- property strategically pitching rates contrast with its rivals. By what method should the Rosewood Hotel should deals with? The Situation analysis, strategic marketing, long term, short term, quantitative and qualitative analysis and advertisement Campaign were applied to fulfil the above issues in the rosewood hotel industry. Rosewood’s Advertisement Campaign action are implemented to set up the incessant stay program that should adopt the corporate brand methodology and correspondence promoting procedure, brand logos, promoting effective video for the youth and not for the family gatherings, so this constraint ought to be topped off to pull in more visitors and clients. By and large there ought not to be an excessive number of stresses over losing clients and the focused on client ought to be presented with all courtesies to hold for a more drawn out in the forthcoming marketing periods.

Keywords: Hotel branding, strategic marketing, SWOT analysis, Actions.

INTRODUCTION Seng Index. The crux business territory of this business The Rosewood Hotels & Resorts owned by a non- organisation includes assets expansion, administrations governmental corporation likely to be established in Texas, framework, retail establishments and also lodgings. The total USA, 1979, Dallas as its head quarters. The first inaugurated asset of the company costs US$50 billion as on 30 June 2016. Rosewood was labelled as The Mansion on Turtle Creek, which was marked with intensity for the first-rate personal service. In 2011, New World Company bought the administration of The concern is well-known and acclaimed for its amenities. It Rosewood Hotels and Resorts at about US$230 million. As per augments hotels value by establishing unexampled and unique the Chief Executive, Ms Sonia Cheng, of the New World assets. Ultra-luxury inhabitating style and trend of the Hospitality firm, Rosewood is an extremely valuable as well as corporation creates lambency in 15 countries with 27 hotels. one of a kind brand, worked more than decades, with At present, it is held by Rosewood Hotel Group, belongs to persuasive beginnings and the best expectations of greatness Hong Kong based hotel firm, heretofore known as New World in both item and administration. Ms Sonia Cheng further Hospitality. Later it was rebranded in May 2013. Caroline Rose assures that the company will proceeds with this inheritance, Hunt, daughter of H.L. Hunt, an Oil tycoon, established the support what makes Rosewood so unique and keep up interest company. In 2011, the Rosewood Corporation sold out the in the properties. Additionally, the company anticipates and company to New World Hospitality for $229 million along with are planning to bring the Rosewood brand to new markets, five other properties the company was sold out for $570 both in key entryway urban areas and selective hotel areas. million. In May 2013, New World Hospitality transformed its Rosewood is an inestimable sui generis brand, which was trademark to Rosewood Hotel Group. In the same year fabricated over the decades. It has inspirational onsets and the Rosewood Hotels and Resorts were re-propelled in September apical ideal of excellence both in terms of product and with another brand personality. The present traveller is service. Each Rosewood property is lineaments with somebody who is progressively inspired by ‘the adventure’ architectonic minutiae and culinary notions. These integral instead of ‘an outing’. Luxury is progressively characterized by aspects reflect the local/neighbourhood character and as well experiences and not by articles, and joy is found through as culture which defines Rosewood’s “A Sense of Place” axiom. disclosure says Ms Sonia Cheng, Chief Executive of Rosewood Axiom of the Rosewood relates to the way of thinking which Hotel Group. necessitates that every property tries to catch what is In November 2017, Rosewood Hotel Group has selected exceptional about the given area, its history, and culture. To another corporate chief of computerized advertising and this end, the local and neighbourhood groups are relied upon change for Rosewood Hotel Group, to construct the lodging to have several points of adaptability alongside of gathering's advanced culture and investigate rising patterns in innovativeness headed for “A Sense of Place” from carte du the innovation space to improve the computerized visitor jour (menu) configuration and ways to receive visitors and are experience. At present, the Rosewood Hotels crew oversee welcomed. eighteen extravagance properties which spread across the New World Development Company is a preeminent Hong Kong eleven nations, in addition to eighteen new lodgings work in conglomerate, which aggregates in properties, retail, progress. foundation, media transmission, and hotel organizations. New World Company entrenched in 1970. It is a listed public Issue statement for the study organisation in Hong Kong, since 1972. The firm is one of the The serious issue was that Rosewood Hotels and Resorts had a constituent stocks catering business organisation in the Hang low campaign, brand mindfulness and acknowledgement

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among its clients came about a low multi-property CONCLUSION strategically pitching rates contrast with its rivals. Would it be From the SWOT examination, Rosewood was relying upon the a good idea for it to adopt a new administration program and accumulation technique and it came about of losing rehash change its promoting system? By what method should the blasts. In any case, the gathering of unique properties Rosewood Hotel and Resorts deal with the new marking recognizes Rosewood from its rivals. Hence, the Rosewood methodology without undermining the peculiarity of each Hotels and Resorts is looking for a technique to uncover its independently branded hotel? corporate image, to anticipate losing potential benefit and increment its strategically pitching rate without undermining Situation analysis an excessive amount of the extraordinary characters of every SWOT individual marked hotel. 1. Strength Rosewood Hotels & Resorts has universal acclaim with Strategic Marketing exemplary comfort which has 12 hotels all over the world. Key promoting is tied in with deciding the long haul technique Rosewood differentiates itself from its quiet rivals. Unlike the that incorporates objectives, exercises and creating and other high-priced hotels, Rosewood hotels comprise the actualizing in advertising. This key is coordinated with the suppleness towards apprehend diverse home culture, which outside condition, for example, political, efficient, social, makes every of its part exclusive. Rosewood hotel follows the mechanical, lawful and ecological scene. After the outside, it is CRS (Central Reservation System). It grants Rosewood coordinated with inner sources with their quality and lodgings to an enhanced pathway for its customers’ fondness shortcomings. Showcasing blend benefits as Intangible, by way of the acquaintance of consumers liking and choices at Inventory, Inseparability and irregularity. This procedure is the forefront. Rosewood hotel can enhanced set up for actualized in the rosewood for showcasing the cordiality items. customers’ visit and make available of added personalized Key advancing is connected to choosing the whole deal system care, touch and service. that joins targets, practices and making and completing in The widely held of the products underneath the Rosewood advertising. This key is composed of the outside condition, for encompass a RevPAR index which is greater than 1, shows that instance, political, efficient, social, mechanical, legal and the Rosewood hotel generates additional profit than its ecological scene. After the outside, it is facilitated with inward contenders in common. For example, Las Ventanas Al Paraiso, sources with their quality and inadequacies. Exhibiting mix a Mexican based hotel, has a 3.62 indexi in the RevPAR. benefits as intangible, inventory, inseparability and 2. Weakness abnormality. This method is realized in the Rosewood for The majority of Rosewood clients had low consciousness of the displaying the warmth things. Rosewood brand because of two reasons. The first was that the Rosewood brand was quieted and unmentioned in Analysis of marketing publicizing (advertising). Also, Rosewood was accentuation on Branding Strategy (Qualitative Analysis) its individual image system that the client can’t found the ➢ Alternative 1: Individual brand strategy association among Rosewood properties. At the point when o Pro’s visitors were looking for a Rosewood property experience and On the off chance that the Rosewood lodging proceeds item, the visitors were identifying other solid lodging brands, with the individual brand procedure, there would be no which for the most part were the contenders of the Rosewood expansion in promoting costs, which implied less risky. hotel. This reality straightforwardly came about the loss of Rosewood inn could likewise look after its "Sense of clients that Rosewood had a lower multi-property cross- Place" reasoning and give blasts different involvement property utilization rate contrast with its rivals. Simply 5% of with various properties. Rosewood lodgings would hold the visitors got remained Rosewood's properties which are its unique faithful clients with its novel qualities and more than one. great assistance. On the off chance that one of the 3. Opportunity properties accidentally had terrible notoriety; it would Rosewood firms had an incredible latent to enlarge its cross- not affect different properties. property usage because of the way that the visitors were o Con’s generally fulfilled had with top-notch administration and Since there was no interest in advertising the corporate extraordinary experience Rosewood hotels had given. brand, Rosewood would not increase a more significant Adopting the continuous stay program could be an open door level of brand mindfulness. For this situation, individuals for Rosewood to build the recurrent business. In the event that still had no clue about the association among the a visit in one of the Rosewood inns could reclaim for a rebate individual brand, with the goal that they would not or different administrations in another Rosewood inn, clients consider Rosewood and there would be no expansion in would cherish it and will in general pick Rosewood inns over cross-property utilization. different brands. Corporate marking approach would be another strategy to let ➢ Alternative 2: Corporate brand strategy customers the association among every individual lodging of o Pro’s Rosewood. When the Rosewood brand had made an incentive With the corporate brand technique, Rosewood hotels in individuals' brain, the Rosewood name would urge them to would have a more grounded association among every attempt various properties. individual hotel and have a more extensive brand 4. Threat acknowledgement. A closer relationship among each hotel There were numerous universal, acclaimed lodging brands in could assist every property by providing a reliable, the lavish inn industry, which makes the market exceptionally customized administration dependent on the worldwide competitive. There is likewise a hazard related to actualizing information stockroom for every individual client. A the new marking system. The new marking technique would magnificent reputation among blasts related to a more neutralize Rosewood's unique individual branding procedure; elevated level of brand acknowledgement would prompt brand measures could kill the uniqueness of every individual positive brand mindfulness; more buyers would esteem hotel. Then again, a portion of the administrators and visitors Rosewood as an extravagance brand that gives top-notch are protection from Rosewood marking since they are more administration. This would urge visitors to choose identified with the individual brand as opposed to Rosewood. Rosewood inn over other brands when arranging an Therefore, the disappointment of the new marking technique excursion. If the event that the visitors were fulfilled and would be extremely exorbitant. satisfied through their stay or live through, they would, in general, utilize one more Rosewood assets for their subsequent outing. Furthermore, if a guest had a good experience in the Rosewood lodging and was encompassed

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with a constructive depiction of the brand, is a simpler worried over losing their self-governance to deal with the way to earn client loyalty. properties and a portion of the visitors was more o Con’s enthusiastic bond with Rosewood's individual image than First actually side, corporate marking approach requires with Rosewood itself. The dispatch of the new procedure a high cost in promoting and advertising. Furthermore, could make visitors feel estrange. On the off chance that there is a portion of the administrators and visitors the new system comes up short, Rosewood would lose a opposed the corporate brand methodology. Managers great deal of cash and part of their unique client.

Quantitative Analysis Table 1 With Rosewood Without Rosewood Column1/Detail/data Corporate trademark (2003) trademark

Sum/number of exclusive visitors 115,000 115,000

Usual every day pay out $750 $750

Average staying days of a visitor 2.00 2.00

Common gross margin for each room 32% 32%

Average numeral of visits/year/guest 1.20 1.30

Average advertising cost per guest(system wide) $130.10 $138.70

Average of new visitor acquirement price (system wide) $150 $150

Sum/number of recurring visitors/guests 19,168 24,918

Number of multi-purpose staying guests 5,750 11,500

Nominal visitor maintenance charge 16.67% 21.67%

Nominal gross revenue/guest $576 $624

The above table interprets that the total number of unique Phuket, active from 2017, and Rosewood Bangkok, 2019. The guests with corporate branding rosewood is 1, 15,000. The Rosewood brand started in Texas in 1979 and was purchased average advertising expenditure for a guest (system-wide) is and worked by the Cheng family since 2011. Rosewood $138.70. There are 24,919, i.e., the number of clients was oversees 27 properties with 3,860 rooms in 15 destinations repeated to the Rosewood corporate trademark. The comprehensively, with 21 new more lodgings being worked average/standard gross revenue for each guest is $624 with on. It gets a kick out of the chance to be the vital top decision the corporate trademark within Rosewood. for visitors who will in general search for progressively casual friendliness and a more way of life approach, looking for Evaluation of Advertisement Campaign by Rosewood lodging as a spot to accumulate as opposed to only a spot to Advertisement is tied in with focusing on a present situation remain around evening time. with their issues and perceptions. The advertisement strategy is about to help and tone and habits. In this ad procedure, the Rosewood Hotel Group has been utilizing a solid marketing video resembles proficient and easygoing and inventiveness procedure as a versatile plan of action and it has a solid advertising. To pull in more the ad video can incorporate a worldwide system and promoting correspondence. In portion of the renowned superstar to be infectious and addition, the principle targets gatherings of Rosewood are in alluring, might be the length of the notice can be a tad more the extravagance are. For example, free recreation explorers and it might be in a narrating type since that is the simple and and gatherings, impetuses, shows and displays that movement very drawing in way. The catch codes and mottos can be on weekdays. By the day’s end, individuals will even now utilized to draw in and which covers all times of clients and travel. Regardless they have to travel. visitors. Rosewood Hotel Group’s drive into the hotel industry The Rosewood Hotel grouping has discharged a video in Rosewood's capacity to represent extravagance, just as stay YouTube for promoting and to widen the closeness of its pertinent as the ideas of extravagance change lie in the way trademark in Asia. An inn impression has new properties in that every property is, in its particular manner, an the pipeline in the following five years. The promotion battle independent substance, said the chief executive of Rosewood. should be focused more on the visitor's administrations and Further, the executive stated that their DNA is feeling of a spot, marking of the logos. The area has solid business potential as it which implies that each possessions of their firm are unique, is a favoured goal among worldwide sightseers. Over the most and has its incredibly personal quality, which is regarding the recent two years, it has been concentrating on Asia since it area. Furthermore, each Rosewood assets is well-planned isn't notable here, not at all like in the US, says Sonia Cheng, quickly. It is intended to return and to regard, to commend the CEO, Rosewood. Asia and Southeast Asia are significant neighbourhood culture. Thus, when a client goes from a single markets for Rosewood as they are the primary hotspots for asset to one more, there is no cut-out occurrence. both inbound and outbound visitors, while whole deal Furthermore, it places the things handy for the explorers are voyagers additionally investigate these areas. searching for. From the colossal stockpile out there, the packed space out there. Rosewood is working on to open many branches in ASEAN in the upcoming years. Rosewood Yangon in Myanmar expected The executive of the Rosewood hotel further shares that they to be opened on 2019, Rosewood Hoi An in Vietnam will come should proceed to develop and take it further, in light of the around 2021, Rosewood Siem Reap in Cambodia in the year fact that the purchaser conduct is changing, and are probing 2022 and Rosewood Hermana Mayor in the Philippines by for a range of segments in lodgings now. Also, what they’re 2023. The brand has two hotels in Thailand: Rosewood looking for is chiefly what the whole travel trade industry is

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attempting to convey to them is an experience. Rosewood CONCLUSION enables the experience which the customer never encounters Rosewood Hotels and Resorts should set up the incessant stay again; increasingly try getting the city to the inn to the clients. program, should adopt the corporate brand methodology and correspondence promoting procedure which stays every The Chief executive of Rosewood Ms Sonia Cheng shares about individual visitors in inn's as extraordinary attributes. From Rosewood. At a point when individuals draw closer to the past examination, it demonstrated that the corporate Rosewood, they undergoes a thing that they are completely marking technique would catch higher income when the all drenched within the societal familiarity, she clarifies. Besides, out number of one of kind visitors stayed unaltered. The brand voyagers in addition to buyers are acknowledging mindfulness ought to be shown and their logo ought to be progressively on easygoing feel good exposure of the hotels, actualized in all spots to pull in and continue visitors or clients. hence they don’t care or mind for the formality. Further, she Correspondence and necessities of client ought to be posited that Rosewood is encouraged to launch its KHOS way considered for showcasing and correspondence technique. of life brand in the past year. It covers a new community- Regular site ought to be actualized with the goal that client can driven model and epitomizes a greater network-driven model. assemble data of the considerable number of quires all things It unites work and play. It locates crossing point amid the considered. social guild, collaborating, and bestows a mode of way of life hotel. The executive is pleased to inform this where their As previously referenced, there was worries about that business is going. Rosewood could lost its unique faithful visitors. Be that as it may, to keep, Rosewood should keep up its top notch In 2017, the KHOS was reported at the worldwide Luxury administration and reward them by set up the regular stay Travel Mart, at Cannes, yet from that point forward Rosewood program. What's more, Rosewood was certain about their has remained genuinely mum regarding the latest trademark occupant experience and administration gave. Along these while it chips away at what Cheng portrayed as “brooding and lines, in the promoting effort video it draw in just the guiding a portion of its ideas.” The packed dispatch, she adolescent gathering and that foundation sets just for the assured is essential to come later this year by mid-summer. youths and not for the family gatherings, so this constraint Notwithstanding cooperating, Cheng supposed that Rosewood ought to be topped off to pull in more visitors and clients. needs to take a gander at how it can coordinate retail and spa civilities into KHOS, just as potentially present some kind of Findings participation model. Rosewood hotel industry must adopt stay programme, branding methodology and ought to show their logo in all Action and Implementation plan spots to pull in continue visitors or clients. So losing hope in ➢ Short-term unique faithful visitors they should keep up its top notch Inside a present moment, Rosewood Hotels and Resorts administration and reward them by regular stay programme. should set the organization objectives, for example, It is found that adolescent gathering by promoting effort twofold the multi-property strategically pitching rate, videos and that is just sets for the youth and not for the family and put Rosewood logo increasingly noticeable in every gatherings, and it should be topped off to pull in more visitors individual inn, for example, prefix Rosewood on every and clients. individual brand name and room set with Rosewood logo. Rosewood lodging as its one of a kind brand and promoting At that point, to limit the administrators' stresses, procedure in the inn business it is known to all. By and large illuminate representatives that the organization had there ought not to be an excessive number of stresses over receive new technique, yet would at present keep the losing clients and the focused on client ought to be presented peculiarity of every inn. with all courtesies to hold for a more drawn out period. Next, Rosewood ought to bring the regular stay program into the administration framework and start share data REFERENCES through the focal reservation framework (CRS) program 1. IIM, (2016). “Rosewood Hotels and Resorts: A case study”, to give progressively customized administration to each https://www.slideshare.net/NevinPadiyath/rosewood- arrival visit client. hotels-and-resorts-a-case-study-66033839. ➢ Long-term 2. 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