The document provides a strategic report for Sauterelle Creative Solutions and their client, Best Western. It includes an analysis of Best Western as a company, their competitive environment, potential growth strategies, and recommendations. The report aims to help Best Western revamp their brand image and drive up brand equity in order to better position themselves as leaders in the hotel and hospitality industry.

1. Sauterelle Creative Solutions
Strategic Report
Terica Walton
Best Western
Carly Dintaman Tara Tan Hannah Guerin
Terica Walton / Carly Dintamen / Tara Tan / Hannah Guerin
PUDM 4030 Strategic Management
CRN 3653 Jinsook Erin Cho

2. Saute Creative Solu
Saute Creative Solu
Saute
Table of Contents
Terica WaltonCompany
About Our Carly Dintaman 03
Creative Solu
Our Walton
Saute
TericaClient: Best Western Carly Dintaman 04
Creative Solu
Saute Creative Solu
External / Internal Assessment Dintaman 05
Terica Walton Carly
Saute
Potential Growth StrategiesCarly Dintaman 10
Terica Walton
Creative Solu
Saute
Industry Analysis
Terica Walton Carly Dintaman 12
Creative Solu
Saute
Resource Based View
Terica Walton
BCG Matrix
Terica Walton
Creative Solu
Carly Dintaman 15
Carly Dintaman 16
Creative Solu
Strategy Proposal
Terica Walton Carly Dintaman 17
Strategy Implementation
Terica Walton Carly Dintaman 20
Conclusion
Terica Walton Carly Dintaman 21
Terica Walton Resources
References / Carly Dintaman 22

3. 3
About Our Company
Vision
To become the renowned experts in revitalizing the image of the hotel industry.
Mission
To offer professional, high end design services for the hotel industry at a fair cost.
By establishing partner relationships with our clients and working closely with
them, we realize, adapt to, and successfully visualize their individual needs and
wants in order to better connect them with their customer. With our team’s
versatile skills—including graphic, web, and interior design—our goal is to re-
brand and refresh a hotel’s image through simplicity and cutting edge design while
also respecting employees, customers, and the environment.
Corporate Values
We uphold the highest standards of corporate responsibility to the environment
and everyone affected by our work by collaborating with our clients and making
every part of the process transparent. We believe that sophisticated design
should be accessible to everyone, and we vow to produce excellent work at a
fair price with integrity.
Our Competitive Advantage
Ability to utilize and specialize in a wide spectrum of professional design skills in
order to offer an affordable, high-end look.
Services Provided
Graphic Design (logos, advertising, stationery)
Web design
Interior Design
Customer Service Consulting
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4. 4
Our Client
Mission
“The mission of Best Western International is to enhance brand equity and
increase member value.” 1
Client Industry
Hotel, Hospitality & Tourism
Best Western is a well-known company with a great deal of history. However, as
our client, Best Western seeks to revamp their total brand image to better
reflect the market today. In particular, they want to drive up brand equity
and drive the company back to being the forefront leaders of the hotel and
hospitality service industry.
1. http://www.bestwestern.com
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5. 5
External / Internal Analysis
Internal External
Strengths Opportunities
S1. Franchise O1. Sustainable Technology
S2. Internet Pressence O2. Internet Infastructure
S3. Global Network O3. Developing Countries
Best Western
Weaknesses Threats
W1. Advertising / Promotion T1. Recession
W2. Price T2. Hospitality Industry
W3. Sustainability T3. Third-Party Websites
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6. 6
Internal Analysis
Strengths
1. Franchise
Traditional business studies have proven that somewhere between 25 to 30
percent of new business fail in the first year, and up to 70 percent fail within their
first five years. However, the failure rate for franchised businesses is less than 5
percent with a 99 percent membership renewal rate. 2
This attracts franchisees to become Best Western members and thus, encourages
the quick and effective growth of the brand globally, through rather inexpensive
means. A 99% renewal rate assures revenue stability from its collective pool of
franchisee fees. This money can be directed to its holistic marketing efforts and
also contribute to the businesses bottom line.
2. Internet Presence
On average, bestwestern.com has been booking $1 million in revenue per day for
the hotel chain since January 2005.” Best Western launched its own travel blog
named YouMustBeTrippin.com. Visitors are able to view and share content on
3
destinations, things to do, travel tips, business travel and more.
YouMustBeTrippin.com shows that they have operational strengths in being
innovative with new marketing strategies by leveraging and responding to
technological and social trends.
3. Global Network
Based on distribution and number of locations, Best Western International is
the largest hotel company operating under a single brand name with 4,000
independently owned and operated hotels [in 80 countries]. 4
This brand reputation is a great advantage for Best Western operating in the
travel industry because it becomes a trusted brand that travelers can easily
become familiar with and come to rely on when booking in unfamiliar travel
locations. Therefore, consumers have a sense of comfort and assurance of a
certain standard and the hotels in the portfolio have a competitive edge over
competitors with unfamiliar names.
2.. Brymer, Robert A. Hospitality and Tourism, 11th Edition. Kendall Hunt, 2003. 103.
3. Best Western. Corporate Fact Sheet http://www.bestwestern.com/newsroom/factsheet_countrydetail.asp
4. Best Western. Corporate Fact Sheet. http://www.bestwestern.com/newsroom/factsheet_countrydetail.asp
Chinmaneevong, Chadamas. “Best Western to add 13 Thai Hotels,” Bangkok Post, October 10, 2009. http://www.bangkokpost.com/business/
n economics/25389/best-western-to-add-13-thai-hotels.

7. 7
Internal Analysis
Weaknesses
1. Advertising/Promotion
In 2008, Best Western increased its advertising and promotion expenses by
$11.6 million, or 24% in order to increase profits in tough economy. However,
their profits at the end of the year were a deficit of $1.7 million and Return on
Investment was -2%.5
Best Western’s current advertising and promotion may be ineffective and require
re-evaluating. Their logo, for example, has not been updated in over 16 years.
2. Price
In Lancaster, Pennsylvania, Best Western’s price for a room with a king bed and
high speed Internet access is $119.99. In the same town, Hilton Garden Inn’s
6
price for a room with a king bed and high speed Internet access is $109.00.
Best Western’s prices are incongruent with its image. Lower-priced sub-brands of
expensive, higher-class hotels are competing directly with Best Western. Because
these brands have a more esteemed reputation, Best Western must either
upgrade its image or lower its prices.
3. Sustainability
In their ranking of the hospitality industry, entitled Tomorrow’s Value Rating,
London-based sustainability consultant Two Tomorrows ranked Best Western as
7
the worst in sustainability management, with a score of 6 out of 100.
With an increased focus today on sustainability, Best Western’s failure in
sustainable efforts is a huge weakness that affects the brand’s value.
5.. 2008 Best Western Annual Report http://www.bestwestern.com/aboutus/Annual_Reports/2008.pdf.
6.nhttp://book.bestwestern.com/bestwestern/selectRoom.dohttp://hiltongardeninn1.hilton.com/en_US/gi/index.do?brand_id=HI&brand_
directory=/en/hi/&xch=500552876,X1QH0XMOPTTFWCSGBIV2VCQ
7. Ahal, Matal. Best Corporate Citizens: Hotels. CNN.com. http://money.cnn.com/2009/10/02/news/companies/good_citizen_hotels.fortune/
index.htm.

8. 8
External Analysis
Opportunities
1. Sustainable Technology
To help new hotels achieve a 30% energy savings over minimum code
requirements, the American Society of Heating, Refrigerating and Air-Conditioning
Engineers, Inc. (ASHRAE) recently released its “Advanced Energy Design Guide
for Highway Lodging.” 8
Sustainable technology in the hotel industry is a way to differentiate from other
similar establishments, while maintaining low costs.
2. Internet Infastructure
Experts agree that, today, more than 70% of all travelers use the Internet to
research and/or book hotels online. 9
The Internet can be seen as a cheaper and more efficient method of advertising
for hotels. Also increases in technologically savvy customers enable hotels to
hire less people and place the work (i.e. booking) on their customers while still
maintaining a sense of convenience.
3. Developing Countries
In 2000 the developing countries accounted for around one-quarter of the
world’s 700 million or so mobile phones. By the beginning of 2009 their share
10
had grown to three-quarters of a total, which by then had risen to over 4 billion.
Opportunity to advertise in new markets both cheap and fast via mobile
technology and online cellular capabilities. Increases the ability to reach new
consumers and expand brand knowledge.
8.. Hotel Industry Adopts Solar to Save Energy http://www.environmentalleader.com/2009/06/23/hotel-industry-adopts-solar-to-save-energy/
9. Hotel Revenue Management Meets the Recession4Hoteliers.com (Neil Salnero) Jan 9, 2009
10. ECONOMIST.com (Unknown Author) June 23, 2009 http://www.economist.com/specialreports/displayStory.cfm?story_id=14483896

9. 9
External Analysis
Threats
1. Recession
The U.S. Travel Association expects travel spending in the United States to
decline by nearly 9 percent this year, to $705 billion, which includes domestic
business, and leisure travel as well as spending by international visitors. Spending
is expected to increase by 6 percent in 2010, but that does not make up for
the large dip in 2009. People are redeeming more points in 2009 than they did
in 2008 for free hotel stays. Industry wide, redemptions are running about 9%
higher, according to New York University’s lodging school. 11
Best Western should remind their consumers to redeem their membership
points to keep their rooms booked and have their customers remain loyal
through the recession.
2. Other Sections of Hospitality
With the recent recession people are looking for more accommodations and
activities to enjoy on their vacation, instead of hotels they are looking at cruise
ships and all-inclusive resorts. –“It is no secret that lines have been discounting
heavily That has helped maintain occupancy levels of nearly 104 percent this year
— parents and children sharing a cabin push the number above 100 — which is
in line with the historical average.” 12
Consumers are looking to save every dime on family vacations, Best Western
could cash in on this by providing multiple room discounts.
3. Third-Party Websites
Some people are cutting hotel accommodations all together. They are
using websites like couchsurfing.com to link up with host at are lending
out a free couch to crash on which eliminates hotels in the traveling
experience. Stateside, SixSuitcaseTravel.com helps 6-pack families find hotel
rooms, travel and activities. The site features more than 2,500 hotels and suites in
more than 1,100 cities, including small towns and rural areas. 13
Consumers aren’t making hasty, over-night decisions anymore. They are exercising
sophistication and savvy when it comes to travel planning, Best Western could
exercise this by implementing a robust website that provides a wide variety of
information and ease for its customers in order to compete with such sites.
11..http://www.iconoculture.com/SMART/Content/View.aspx?docname=co_2009COLeisureTravel_107698
12. http://www.nytimes.com/2009/10/13/business/13travel.html?scp=1&sq=Hotel%20Industry&st=csehttp://www.iconoculture.com/SMA
13. http://travel.nytimes.com/2009/08/19/realestate/commercial/19hotel.html?scp=11&sq=hotel%20industry&st=tcse

10. 10
Potential Growth Strategies
Best Western
Strengths Weaknesses
S-O W-O
Opportunities
Corporate citizenship through Align the company with sustainable
sustainable energy use. products/services and promote this
as a new platform.
S -T W -T
Diversifying product portfolio. Advertising iniatives for
Threats
sustainable efforts.
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11. 11
Potential Growth Strategies
Best Western
Strengths Weaknesses
S-O W-O
Opportunities
Corporate citizenship through Align the company with sustainable
sustainable energy use. products/services and promote this
as a new platform.
S -T W -T S-O
Diversifying product portfolio. Advertising iniatives for Employ the franchise network to internally promote the use of sustainable
Threats
sustainable efforts.
technology throughout Best Western’s global franchises, citing benefits of
significant cost reductions in energy savings. Meanwhile, fully utilize the existing
Internet framework, as a global marketing communications means, to advertise
this campaign and effort. Thus, consequently boosting Best Western’s corporate
citizenship reputation and brand image. (S1, S2, O1, O1)
W-O
Align the company with sustainable products/services and promote this as a
new platform in order to create differentiation amongst competitors. New
sustainable practices and products can potentially decrease variable operational
prices, while creating a sense of value equality that was lacking in the
current high room rates. Sustainable practices could also be implemented in
the advertising techniques but heavily pushing online and paperless methods.
Self-Powered Wireless key card Switch
Microfiber Towels (W1, W2, W3, O1, O2)
Organic Sheets / Bedding
Organic Toiletries (toothpaste, shampoo, etc.) S-T
Take advantage of the current recession by expanding their business portfolio;
the company should look into opening things such as an all-inclusive resort or
spa. Because Best Western has a strong presence in the global community they
would be able to get more capital lenders for this ventures. (S1, S3, T1, T2)
W-T
Start a new advertising campaign that revamps Best Western’s image in
the public mind. Focus especially on exemplifying the hotel’s newer, upscale
branches that are comparable—if not better— to sub-brands of higher-priced
hotels such as Hilton Garden Inn. Also increase Best Western’s sustainability
efforts and weave this into the new campaign. (W1, W2, W3, T2, T3)
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12. 12
Industry Analysis
Porter’s 5 Factors
Subsitute Products
Resort / Cruise / Spa
Rivalry
Supplier Power Consumer Power
Multi-Competitors
Buyer Decrease
Limited Speciality Suppliers Diversification
Franchiscees
New Comepititors
Sub-brands
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13. 13
Industry Analysis
Rivalry
There is a large amount of comparable hotels in the industry and Best
Western seems to be placed at the bottom in terms of revenue.
However, there isn’t a large amount of diversification amongst
competitors. The advantage that Best Western has over its competitors
is its worldwide distribution, and that each hotel has its own unique
local appeal.
New Competitors
As high-end hotels loose revenues to the slowing economy, the strategy
of sub-branding themselves has become popular, and with the backing of
a quality brand-name and more resources creates these emerging chains
creates strong competition for the existing industry.
aloft (W Hotels/Starwood)
Cambria Suites (Choice)
Hotel Indigo (InterContinental)
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14. 14
Industry Analysis
Substitute Products
Today there are more outlets for leisure people aren’t just satisfied with
hotel accommodations, they are looking for more, an all-inclusive resort,
spa, or cruse ship. To add to this with the current recession more
people are looking to cut spending money on hospitality all together,
instead many people are either staying at friends/relatives homes or
having a “staycation.”
Supplier Power
Since Best Western’s strategy involves using more sustainable technology
the company is not in a position of power with their suppliers, this is due
to the limited amount of suppliers for the specific products the company is
looking to acquire. For example Best Western is looking to purchase a new
wireless Key Card Reader that automates hotel room energy conservation by
disabling HVAC, lighting and electrical loads in unoccupied rooms, but since
this technology is recent there are only two companies that provide it, which
are EnOcean and ILLUMRA which gives them all the power in the consumer
supplier relationship.
Consumer Power
Due to the current economic fall, buyers are few which makes them
highly powerful and this heavily includes the franchisees. In terms of
quantity purchases, the hotel industry depends on peek seasons
(short-time periods) in order to gain the majority of its revenues.
However, the business-travel consumer associated with economy
lodging may be the exception to this rule because in general business
is conducted year-round.
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15. 15
VRIO Analysis
Resource Based View (VRIO)
Costly to Exploited by Competitive Economic
Resources & Capabilities Valuable? Rare? Imitate? Organization? Implications Implications
Successful franchised business Competitive
structure YES NO NO YES Parity
Normal
STRENGTHS
INTERNAL
Expansive integrated marketing
Competitive
communications - Strong Internet YES NO NO YES/NO Parity
Normal
framework set up
Brand Recognition: Worldwide Sustained
presence and largest hotel chain
YES YES YES YES Competitive Above Normal
Advantage
S1: Successful franchised business structure
V – Allows for a cost-effective way to quick and effective global expansion
growth.
R – Many hotel brands are able to set up franchised business structures.
I – Inexpensive forBest Western imitate this structure, however, brand reputation
another to
and recognition matter.
O – Best Western has a 99% franchise renewal rate.
S2: Expansive integrated marketing communications –
Strong Internet framework set up
V – Allows an increase in revenue stemming from the e-commerce market.
R – World Wide Web endeavors are very accessible and easy to implement.
I – World Wide Web endeavors are very cheap to implement.
O – Best Western exploit their e-commerce abilities, however, have not taken full
advantage of their e-marketing potential.
S3: Brand Recognition: Worldwide presence and largest
hotel chain
V – From brand recognition, customers would be drawn to their services, and
thus, increase their revenues.
R – There are other hotel brands have this resource, however, few that compete
within Best Western’s specific target market.
I – It would be expensive for a new brand to imitate this because they would
have a build a strong reputation and trust network.
O – Best Western maintains good relationships with their global network of
members by well-balancing their franchisor control and franchisee independence
to lead each franchise.
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16. 16
BCG Matrix
CG Matrix
visions:
Best Western
Best Western Premier
High Relative Market Share Position Low
High
2
1
BCG Matrix
Low
Divisions:
1. Best Western
2. Best Western Premier
High
High
1
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17. 17
Strategic Proposal
Wake up refreshed... Sleep well... Rest Easy...
you (and your earth) are in good hands our foundations are built on responsibility
in the comfort of resilience
Best Western is proud to
announce its certification by Best Western is proud to announce its
Best Western is proud to announce first LEED certified hotel
its partnership with Amenity
Energy Star.
(the first of many)
Services, providing custom
environmentally friendly products,
from bed sheets to body wash Atlanta, GA
Still Best Western, only better Still Best Western, only better Still Best Western, only better
(Advertisement Examples)
Chosen Strategy
The strategy that we propose is that of a communication and advertisement
strategy that will cultivate Best Western hotels as good corporate citizens. To do
so, we propose the adoption of Green sustainable, and eco-friendly procedures
on the hotel frontline. This includes energy use, hotel amenity supplies and
progressing towards LEED-certified buildings.
Long Term Objective
All future Best Western Hotels will be LEED certified.
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18. 18
Strategic Proposal
Best Western Hotels
New Logo
In congruence with a new sustainable image, a logo modification is a necessary
element in the communication and advertising strategy for Best Western.
Sustainbility evokes a sense of simplicity and modernity, so by streamlining the
existing logo down to its most recognizable feature, the crown, the company
will maintain its existing consumer recognition, while still updating its image.
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19. 19
Strategic Proposal
Sustainable Products / Suppliers
Amenity Services provides an exclusive collection of environmentally friendly
hospitality amenities and acts a direct source for eco-friendly products, which
include coffee, toiletries, furniture, and appliances.
Energy Star is a joint program of the U.S. Environmental Protection Agency
and the U.S. Department of Energy helping us all save money and protect the
environment through energy efficient products and practices.
Americans, with the help of ENERGY STAR, saved enough energy in 2008
alone to avoid greenhouse gas emissions equivalent to those from 29 million
cars — all while saving $19 billion on their utility bills.
LEED provides a suite of standards for environmentally sustainable
construction. The hallmark of LEED is that it is an open and transparent
process where the technical criteria proposed by the LEED committees
are publicly reviewed for approval by the more than 10,000 membership
organizations.
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20. 20
Strategic Implementation
Internal
3 Months 6 Months 1 Year 3 Years 5 Years
Update Best Western 20% Implentation at Partnerships with environ-
Franchise mental organizations for
Manual
corporate giving programs
Regional conferences
every 4 months
External
Advertising/ Marketing-
Update Best Western Update Best Western for Amenity Services and LEED Advertisements
Logo and Signage Website Energy Star appliances
(Implementation Timeline)
Implentation Map
We suggest the implementation of two simultaneous communication strategies,
one that runs internally through the company and to all its members, and the
other externally that targets the target market.
The internal communication targeted towards franchise holders/ members would
include advice handbooks on going becoming a more eco-sustainable hotel,
an update of the Best Western franchise hotel criteria, member conferences
to convey the benefits and potential cost-savings, amongst many other small
implementations.
The external communication will serve the entire brand name perception in
the eyes of business and leisure travelers. This will mainly be conducted through
an advertising strategy running a course of 3 advertisements that reflect on
sustainable energy use, our choice of eco-suppliers, and the drive for LEED
certified hotels.
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21. 21
Conclusion
The communication and advertising strategies suggested by our team are geared
toward presenting the Best Western name, their services, and their hotels as a
pioneer in eco-concious practice for affordable hotels. Our strategic suggestions
aim to increase brand equity by creating differentiation from Best Western’s
competitors and establishing new product/supplier relationships. Overall the
strategies given are a reflection of Best Western’s current internal possibilities and
the external opportunities of today’s industry and market.
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22. 22
References/Resources
Amenity Services, http://www.amenityservices.com/products_greenroom.php
Best Western, http://www.bestwetern.com/
CNN, http://www.cnn.com/
Energy Harvesting Journal, http://www.energyharvestingjournal.com/
Energy Star,http://www.energystar.gov/
Hunt Textiles, http:www.hunttextiles.com/products/
Lodging Hospitality, http://www.lhononline.com/
The Company Store, http://www.thecompnaystore.com/
The Economist, http://www.theeconomist.com/
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