Motel 6 Marketing Plan

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Executive Summary As the biggest chain of company-owned and -operated budget motels in the United States, Motel 6 has a number of advantages that will provide continued success into its future in motel industry. Services is the biggest strength of the motel and is evidenced by the loyal customers. Motel 6’s profits have been fluctuating up and down between 3 to 4 percent of annual revenue per room since 1995, and the company expects that will be gradually increasing by entering the extended-stay market. The study of traditional budget motels were losing customers to extended-stay properties, and the growing acceptance of the extended-stay concept could make it easier for Motel 6 to enter the market. However, Motel 6 has some disadvantages. The first thing is its security, it’s lax and causes Motel 6 lost money and reputation. Second, the motel rooms are old style, and Motel 6 doesn’t do a lot of promotion and advertising, so it’s hard to attract new customers. The Third, Motel 6 does not only face to the slowdown economy environment and the downturn in hotel industry, but also face to a lot of competitors, some of them are exiting the market, and some of them are the same as Motel 6 and trying to enter the extended-stay market. The model of franchising allowed Motel 6 to expand quickly, primarily throughout the Eastern United States, to maximize name recognition and invade new markets, to reenter the market that it formerly ceded, and franchising will not cost the company a lot. Motel 6 also sold some properties and became part of a consortium with finical companies to increase additional capital for further development. It also allowed Motel 6 grow the balance sheet and revenues without adding to real estate inventory and liabilities. For solving the security problem, Motel 6 sold the unsafe motels and set up new security system for the motels.

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