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Tracy: here is #1, this is a first time through. I tend to be choppy and want to come back again. Please feel free to provide your thoughts in the meantime and let me know if Im not saying "why" or missing a point. Tracy

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For almost 25 years, Rosewood Hotels and Resorts has operated as a privately held hotel management company operating each of its 12 iconic luxury hotels independently of each other without corporate identity. Rosewood, facing stagnant growth, was evaluating the possibility of a new corporate brand strategy in order to increase cross property usage. The Rosewood name would be incorporated into each of its 12 hotels worldwide. However, the current individual brand strategy has several strengths. Current branding allows for increased property value at each hotel because it promotes a unique, one of a kind, experience that is highly differentiated from other corporate companies. A corporate strategy could unintentionally devalue the uniqueness of each hotel if the corporate brand overpowers current individuality. Also, Incorporating as Rosewood properties may alienate some existing investor relationships such as those who reside at the Carlyle in New York, whove already shown reluctance to the new branding strategy. Not to mention, current guests who may prefer Rosewood properties because they lack a corporate structure. The individual brand strategy has allowed Rosewood to maintain market share and customer value. However, there is increasing competition in the Luxury market which draws more attention to branded Corporate chains. The individual brand strategy does not encourage cross property usage because most guests cannot make a distinction between Rosewood properties. Individual brand hotels typically have 5-10% cross selling rates while corporate branded hotels have 10-15% cross property usage rate. If Rosewood is to remain competitive they will have to grow. The individual strategy limits Rosewood only a subset of the luxury market, those sophisticated customers who value the distinctive, exclusive collection hotel. The vast majority seem to value corporate branding which limits Rosewoods growth potential. Finally, while the cost of operating and marketing expenses would be greater under corporate branding the ability to track customer data and preferences under a global flexible data warehouse would be more beneficial that that of having data stored specifically at each Rosewood property. 1. Strengths: 1. Easier to maintain Distinction (pg 1) 2. Unique property brand equity 3. Sense of place (pg 2) 4. Existing investor relationships 5. Maintain the current company culture 6. Incorporating as Rosewood properties may alienate some existing guests at well established properties (pg 5) To keep our brand promise we would need to ensure perfect product/service performance consistency ". (pg 5) 7. Preserve the uniqueness and individuality of Rosewood Properties (pg 5) Weaknesses: 1. Guests are not making a connection between Rosewood Properties. 2. Increasing competition in the Luxury market drawing attention to Branded Chains 3. Limited to only a subset of the luxury market the sophisticated customers who value the distinctive, exclusive collection hotel (pg 3). The vast majority seem to value corporate branding (limits Rosewood to small set of luxury market). 4. Does not promote cross property usage. 5. Lower strength of marketing system (Rosewood combined could have one global flexible data warehouse). 6. Individual brand hotels typically have 5-10% cross selling rates while corporate branded hotels have 10-15% cross property usage rate. 7. Cost of operating and marketing expenses. 2. Corporate branding is only going to maximize customer lifetime value if: They are able to gain lower management support from individual properties.

- Trips to other properties to encourage cross-promotion - Incentives to properties when their customers try a new Rosewood property Maximize retention of current established guests - To keep our brand promise we would need to ensure perfect product/service performance consistency !. (pg 5) - Preserve unique character of each property while promoting Rosewood brand - Continue to involve local artists/architects from around each property Effective quality metric or quality insurance programs - General brand standards Current customer attitudes remain same. - Environment of luxury hotels remains consistent in its preference toward branding Promotion to Hospitality Professionals Make effective use of National Customer Database 3- What component of brand value should rosewood aspire? Rosewood reputation and experiential value are going to be what enhance customer value and create guests connection with Rosewood properties. For nearly 25 years Rosewood had built a global reputation for its ability to enhance a propertys value by creating a unique experience, with a small ultra luxury style that differentiated it from other chain-like luxury competitors. But guests are not making the connection between individual properties and others Rosewood Hotels & Resorts properties. Although, Rosewood branding had been soft and the majority of guests dont make the connection among Rosewood 12 hotels worldwide; Rosewoods reputation is their greatest intangible asset. Guests enjoy Rosewoods commitment to unique, one of a kind, luxury properties. Managing these guest experiences would encourage multiproperty guest stays. We believe a strong brand such as the one Rosewood had created in the last 25 years, represents a relationship between guests and Rosewood that will extend beyond individual properties by having a meaningful emotional connection with all Rosewood Hotels & Resorts properties.

4- Propose an "author" and a "story" to achieve it? Rosewood the company is going to be the "author" since the goal is to extend the stay for current customers and not target new customers. The marketing department has decided on a different route for new customers that includes popular culture at a later time. Rosewood is going to promote the company name branding to compel current customers to try their other properties resulting in longer average stays. To accomlish this Rosewood is going to increase visability of the Rosewood brand and its reputation. In this way we can increase existing customers awareness of other properties. To start all properties will rename the hotels to the current name by Rosewood so The Carlyle will now be the Carlyle by Rosewood. Inside every hotel room will be a high resolution photobook containing pictures of all of the other properties. Our target market is going to be upper income, males in the 40-60 age demographic. Typically this target group is not motivated by discounts and savings cupons, but rather is motivated by the experience. Customers will have the opportunity to sign up to recieve information about up coming events for example promoting a local art festival in Dallas or ballet in New York with room and ticket package highlighting the experience of both the event and the exerience of the hotel. Additionally we will imlament a central reservation system that will allow the hotel to accomidate reservations for other properties capitalizing on the power of suggestion by the front desk staff. For every reservation at a unique Rosewood hotel, customers over the age of 21 will be rewarded with a bottle of French Champagne and a handwritten note from the manager thanking them for choosing a new expereince from Rosewood. Additinally, all written materials including letterhead, stationary, room keys will all be renamed to fit the new name. Rosewood needs to be the reason people stay at each of our unique properties. All guests need to be informed that their favorite hotel also owns other properties without being abrassive about it. It needs to be subtle enough to not offend or be tacky while also alerting our guests about fantastic opportuities for pampering all around the globe.