Rosewood Hotels and CLV

CLV is a very interesting concept, determining the value of your company based on the number of customers it has. I do not believe the company I work for explicitly knows the value of its customers because they are not using sophisticated marketing strategies. They are only using promotions. They mostly try to get new customers in the seats of the theater when an event is being hosted.

The company could possibly use CLV if it had more returning customers. They have customers who come to most of the show but they will need more to be truly valuable. Once this is established, I believe that the CLV rate can be well used as a bargaining chip to get investors. They can say we have a certain amount of customers attending our shows and you can advertise to these people if you invest in our business.

The practical issue of implementing CLV is whether you have a lot of customers and if those customers are periodically or using your services often.

The major issue in the Rosewood case is that customers can have an enjoyable experience at one location but if they are going to another location it may not be the same experience. All of the Rosewood locations do not offer similar services or facilities. That makes it harder to create a stable customer base when you can get mixed reviews on the properties. If one location is more popular than others, customers may frequent that location and leave the other locations to lose out in business.

The advice I would have for Rosewood management is to advertise all of their locations equally, and point out the unique qualities each location has. I would advertise locally to the neighborhoods that are close to the specific location. Once each location is getting fair marketing and advertisement then business will most likely pick up.

Although all of the Rosewood brands are fairly recognizable, me being from New York, I am mostly familiar with the Marriot. That is a very popular hotel chain. I think I would like to visit there because that is what I am most familiar with and I have had good service from this hotel in the past.

Professor Kevin Lane Keller on brand value and marketing

Video on Brand Value and Marketing.

Brand Value

Brands become valuable by their popularity, and the reputation they maintain once the public knows them. They become valuable once they are reputable and are able to use its name to make a profit by selling products and services. A brand like Apple, Microsoft, The Gap, have all built a reputation for carrying products that the public wants to purchase, thus making their brand valuable. When they announce new products the market pays attention.

Brands create good products and services to make it valuable. Once the brand is established as a reputable institution, it can create value by releasing its products and services.

Some of my favorite brands are Club Monaco, TopMan, Apple, French Connection, and Ralph Lauren. They always create products that I like. It has gotten to the point where I don’t even look at other brands unless I get a suggestion. The clothing brands I named always fit me the way I want the clothes to fit and they are always stylish. I always find something that I want there. Apple is just a good brand because all of their products are cool and easy to use.

Brands probably should be on a balance sheet because the popularity of your brand does have some affect on how your company will perform. If you are a popular brand, odds are you will be doing better than non-recognizable brands. This is something that should be incorporated in a balance sheet because you can put some monetary value on this.

How Brands Grow - Knowledge Works lecture 2010 at UniSA

Interesting video on how Brands grow.

Culinarian Cookware Pricing and Promotion

I think the Culinarian Cookware brand has well established itself as a leader in the cookware market. I think that the previous promotion was effective in achieving its goals because the customers who received discounts were very satisfied and this for the name of Culinarian Cookware to a wider audience.

The aspect of the promotion that worked the best is that it caused existing customers to buy new product and also introduced Culinarian Cookware to new customers. This is good and bad because yes, it increased sales and brand recognition but on the other hand, the new customers might have just bought it because of the lowering in price. It is hard to say whether customers will still but their products at regular price.

It is always good to give discounts because it will start a boost in sales where customers are given the incentive to buy your product at a reduced price. On the other hand, the price may far outweigh the desirability of your product and the customer will not make any further purchases.

On the other hand, introducing your customers to your product in this way can show them how good your product is and get them familiar with the functionality of your product and make them want to make return purchases. This can be the case with Culinarian. Customers got the opportunity to use the product and may return for future purchases.

I do not think Culinarian should run a promotion prospectively because they want to make sure the brand is continued to be know for its high quality. Constantly reducing the prices will cheapen the brand, as Donald Janus has feared. I think if the price stays as it is and they promote the quality of the products they will have a proper increase in sale. It is more important to maintain the integrity of the brand and keep it in the high-end retail market.