Best Western Looks For Product Definition

David Kong wants the world to know Best Western is neither segmenting its brand nor launching new ones. “It’s really a marketing communications strategy,” the chain’s president and CEO emphatically told members last week in describing a proposed “descriptor” initiative that, if adopted, would better differentiate the group’s properties for consumers. “I’m not talking about launching new brands. It’s about communicating to consumers that we offer them choice in our diverse portfolio.”

Speaking on the first day of the chain’s annual convention in Phoenix, Kong and other executives were light on details on how the descriptor plan would work. His best effort was analogy, comparing the proposed descriptors to the industry standard for room types—standard, superior, deluxe—and, more colorfully, to the types of Johnny Walker scotch whiskey—red, black and blue. “These differentiators give consumers a choice for every occasion,” said Kong. “We, too, need to better describe our properties and eliminate customer disappointment and confusion.”

Bonnie McPeake, chairwoman of the Best Western board of directors, was more blunt in her assessment of the urgency for better brand clarity” “For 63 years, we’ve been a diverse group of hotels operating under one name, but this diversity has caused confusion for customers, and in many ways it has caused us as a brand to become mediocre.

“Consumers don’t know what to expect with Best Western. You might get a boutique hotel with 400-thread-count sheets and omelets cooked to order or a property with just the basics,” she said. “Both are good properties. Both are priced fairly, but because they are so different, the customer doesn’t know where to set his expectations.”

The descriptor strategy is a natural outgrowth of Best Western’s efforts to tighten standards and weed-out less-desirable properties. As a result, more than 500 hotels have left the system in the past five years. The chain is also more aggressively marketing to business travelers, many of whom shy away from the brand because they perceive disparities from property to property in facilities, amenities and service. Tighter classification of each property in the brand could give all travelers assurance of what kind of experience to expect.

Chain executives and leaders used last week’s convention to present the business case for the strategy and get member feedback. From there, said Kong, Best Western will hire a consulting firm to help name and define the descriptors. Balloting, which Kong hopes happens in the first half of 2010, will give members a final say on the proposal.


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