Case Study for Agency
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Motel 6

Business Situation/Key Issue

Motel 6 is the largest chain of owner-operated motels with a current
inventory of over 86,000 rooms coast-to-coast.

In 1980,occupancy rates for Motel 6 began to decline at an average of
nearly two percentage points per year.Even though the industry as a
whole experienced declines, Motel 6 was losing its dominance because of
overbuilding in an already saturated category.

In March 1986, Motel 6 hired us in an effort to curb
the negative occupancy trend.

Key Strategic Insights

During the Spherical® branding process,we learned that there were three
distinct prospect groups: empty nesters, commercial travelers and
families on vacation. We also learned that nonusers within those
prospect groups considered Motel 6 void of “basic essentials,”such as
in-room telephones,a reservation system and free television.

But what was the common thread that would allow the Motel 6 brand to
connect with all three segments?

As we continued through Spherical® branding,we discovered that,on the
surface, most users were a little embarrassed to admit they stayed at
Motel 6. They didn’t want people to think that they were cheap or too
poor to afford better. But in digging more deeply, we uncovered the
rationality of it all. Staying at Motel 6 saves money,and saving money
means spending it on things other than sleeping. Even more important
was a personal value derived from staying,that of being admired by
peers for their frugal decision to choose Motel 6.

Put simply,staying at Motel 6 was the “smart choice.”