please check the attachments and previous work.
Rosewood Extension Create a CLV model based on new hotel and hospitality industry trends using the starting assumptions and frameworks established in the Rosewood case. Marketing managers often do not have the luxury of textbook CLV questions where all known variables needed are provided to solve a CLV problem; instead, they must rely on a combination of prior experience and a bit of creative "playing around." You will need to "play around" with hypothetical marketing options to increase CLV. Deliverable · A short memo not to exceed 3 pages (memo format, single-spaced, 12-point font, memo format) with no limits on exhibits (tables, diagrams, etc.). · Grading: Grading will be out of 50 points (grading outline provided below). · You can work with up to ONE other student for the final exam. Only one submission needs to be posted. Make sure both contributors' names are on the document. Instructions 1. Articulate a growth strategy for Rosewood for the next six years. Research demographic, social, and cultural trends in travel and lifestyle. In addition, research the hotel, hospitality, and resort industries and attempt to locate new trends (or new target market segments like Allegiant Airlines) that have a quantifiable impact on CLV. 2. Identify and define a target segment to implement this strategy - create a segment profile. What is the value proposition? What is the positioning? 3. Build CLV models to support strategy. 1. State trends and assumptions in your CLV calculations (I.e., XYZ research indicated that Customer Loyalty programs had increased customer retention rates by 10%). These numbers need to be provided by some credible source. You must cite the source of the trends in your memo. 2. Compare the new CLV (as well as profit and total revenue) to both Corporate Branded CLV and Individual Branded CLV in Case 1. Put all tables for assumptions and CLV calculations in an Exhibits section at the end of the memo. Also, please make sure you include an Excel (XLSX) with your final memo submission showing all work. 4. Summarize your recommendations (strategy and marketing ideas). In addition, outline marketing mix consideration and launch ideas. Don't forget BLUF! Submission Details · Please post your memo as a PDF or DOCX file using this link. · Please attach an Excel (XLSX) copy of your CLV model along with the memo. Rosewood Extension Create a CLV model based on new hotel and hospitality industry trends using the starting assumptions and frameworks established in the Rosewood case. Marketing managers often do not have the luxury of textbook CLV questions where all known variables needed are provided to solve a CLV problem; instead, they must rely on a combination of prior experience and a bit of creative "playing around." You will need to "play around" with hypothetical marketing options to increase CLV. Deliverable · A short memo not to exceed 3 pages (memo format, single-spaced, 12-point font, memo format) with no limits on exhibits (tables, diagrams, etc.). · Grading: Grading will be out of 50 points (grading outline provided below). · You can work with up to ONE other student for the final exam. Only one submission needs to be posted. Make sure both contributors' names are on the document. Instructions 1. Articulate a growth strategy for Rosewood for the next six years. Research demographic, social, and cultural trends in travel and lifestyle. In addition, research the hotel, hospitality, and resort industries and attempt to locate new trends (or new target market segments like Allegiant Airlines) that have a quantifiable impact on CLV. 2. Identify and define a target segment to implement this strategy - create a segment profile. What is the value proposition? What is the positioning? 3. Build CLV models to support strategy. 1. State trends and assumptions in your CLV calculations (I.e., XYZ research indicated that Customer Loyalty programs had increased customer retention rates by 10%). These numbers need to be provided by some credible source. You must cite the source of the trends in your memo. 2. Compare the new CLV (as well as profit and total revenue) to both Corporate Branded CLV and Individual Branded CLV in Case 1. Put all tables for assumptions and CLV calculations in an Exhibits section at the end of the memo. Also, please make sure you include an Excel (XLSX) with your final memo submission showing all work. 4. Summarize your recommendations (strategy and marketing ideas). In addition, outline marketing mix consideration and launch ideas. Don't forget BLUF! Submission Details · Please post your memo as a PDF or DOCX file using this link. · Please attach an Excel (XLSX) copy of your CLV model along with the memo. No Change to Strategy Year2003200420052006200720082009Sum Number of Nights per Stay222222 Number of Stays per Guest1.21.21.21.21.21.2 Revenue per Night$ 750.00$ 795.00$ 842.70$ 893.26$ 946.86$ 1,003.67 Revenue per Customer$ 1,800.00$ 1,908.00$ 2,022.48$ 2,143.82$ 2,272.46$ 2,408.81 Gross Profit per Customer$ 576.00$ 610.56$ 647.19$ 686.02$ 727.19$ 770.82 Less: Cost of Customer Acquisition$ -150.00 Less: Annual Marketing Cost$ -130.00$ -133.90$ -137.92$ -142.05$ -146.32$ -150.71 Cash Flow from Customer$ -150.00$ 446.00$ 476.66$ 509.28$ 543.97$ 580.87$ 620.11 Probability of Being Retained110.16670.02780.00460.00080.0001 Expected Cash Flow$ 446.00$ 79.46$ 14.16$ 2.50$ 0.46$ 0.06$ 542.65 Discount Factor11.081.16641.2597121.360488961.46932807681.5868743229 NPV of Expected Cash Flow from Customer$ 412.96$ 68.12$ 11.24$ 1.84$ 0.32$ 0.04$ 494.52 Change in Strategy Year2003200420052006200720082009Sum Number of Nights per Stay222222 Number of Stays per Guest1.31.31.31.31.31.3 Revenue per Night$ 750.00$ 795.00$ 842.70$ 893.26$ 946.86$ 1,003.67 Revenue per Customer$ 1,950.00$ 2,067.00$ 2,191.02$ 2,322.48$ 2,461.84$ 2,609.54 Gross Profit per Customer$ 624.00$ 661.44$ 701.13$ 743.19$ 787.79$ 835.05 Less: Cost of Customer Acquisition$ -150.00 Less: Annual Marketing Cost$ -130.00$ -133.90$ -137.92$ -142.05$ -146.32$ -150.71 Less: Additional Marketing Cost$ -8.70$ -8.70$ -8.70$ -8.70$ -8.70$ -8.70 Cash Flow from Customer$ -150.00$ 485.30$ 518.84$ 554.51$ 592.44$ 632.77$ 675.65 Probability of Being Retained110.21670.0470.01020.00220.0005 Expected Cash Flow$ 485.30$ 112.43$ 26.06$ 6.04$ 1.39$ 0.34$ 631.57 Discount Factor1.001.081.171.261.361.471.59 NPV of Expected Cash Flow from Customer$ 449.35$ 96.39$ 20.69$ 4.44$ 0.95$ 0.21$ 572.04