Thursday, May 22, 2014

Rosewood Case

Rosewood hotels grew and built their brand on being a “collection” of unique properties. Their guests chose Rosewood properties (over the competition) because they were “unique, one-of-a-kind properties with a small ultra-luxury residential style that differentiated it from other chain-like luxury competitors.” Most guests didn’t know or associate the Rosewood name with each individual property. They have placed great influence on each property being unique and having a sense of place with local managers determining the standards of luxury. Since this is a foundation for the individual property brands, I would suggest being very careful with rebranding.

Hospital/health care conglomerates in Indiana have the same marketing challenge. IU Health branded all of their locations with the IU name for consistency, but also because IU medicine is a familiar trusted name (in Indiana anyways). IU Health had to be careful when renaming certain hospitals that already had a positive reputation. This example worked for IU because of name recognition; however, for Rosewood, rebranding would have the opposite effect on brand recognition/value.

St. Francis Health has done similar rebranding/renaming efforts, but more subtle and long term than IU Health. The health care system gradually renamed hospitals with respect to their original names so patients (customers) would not be confused or turned off by the new names. The names have gradually been changed again (For example - Franciscan St. Elizabeth Health – Crawfordsville) to build the Franciscan Alliance, formerly Sisters of St. Francis Health Services, Inc. 

I would recommend this “soft corporate branding” approach to Rosewood if they are determined to rebrand and add the Rosewood name to each of the properties – do it in phases, and be sure not to offend loyal, lifetime customers or lose individual name recognition. Begin by adding the Rosewood name along with the individual location name and as time passes, conduct brand recognition studies before completely changing all branding to only Rosewood. 

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