In the case of RosewoodHotels and Resort the branding strategy adopted by the new managementin 2004 had huge impacts on the success of its business. The hotelhad been in operation for over 25 years but the brand name was littleknown. A strategic branding plan adopted by a team lead by John Scottin 2004 was an important step towards the success of Rosewood Hotelsand Resort. There is no doubt that in the early 2000s, RosewoodHotels and Resort had grown into a world class hotel. However, majorplayers in the hospitality industry largely rely on their strongbrand name. Initially, the group of hotels had adopted a individualbrand as well as collective branding strategy, which was not workingwell for Rosewood Hotels and Resort. For example, in advertisements,the ads were property specific focusing on the name and location (Dev& Stroock, 2007).
Although individual brandinghas worked in some markets, there are inherent limitations of suchstrategies. The most important limitation is the fact that thebranding strategy does not recognize the strong brand name of thegroup. Although some customers are likely to seek for uniqueexperience from individual entities in particular location, theconnection to a strong brand name is very important.
As a result of individualproperty strategy in marketing, Rosewood Hotels and Resort brand namedid not have a strong recognition. The success of a group of hotelsuch as Rosewood Hotels and Resort is influenced by multipropertyvisits by frequent stay customers. Thus, the decision by the newmanagement in Rosewood Hotels and Resort to have a corporate brandingstrategy was informed by emerging trends in the industry (Dev &Stroock, 2007).
Dev, C. S. & Stroock, L.M. (2007). RosewoodHotels and Resort: Branding to increase customer profitability andlifetime value.Harvard Business School, Brief Cases, 2087.