Ansoff Matrix:

Existing Product Existing Market New Market Market Penetration (Best Western Premier) Market Extension

New Product Diversification

New

Product

Development

After successful interview the BW Premier Senior Sales Manager, Mr. Saiful and analyse the information that have been given, it has been concluded that BW Premier is categorized under Market Penetration. The reason is that BW Premiere is selling their current product which is the rooms and meeting facilities to their current markets, which is corporate governance and business customer. Mr. Saiful stresses that this market segment provides the BW Premier a long-term business which is the baseline business of the hotel. For example, to those made a contract business with BW Premier will held their meetings and seminars in every three months. With 80% of the main hotel occupancy taken by corporate and government guests, the 20% which are leisure need to look at.

Gap Analysis

Gap Analysis
70 60 Revenue RM (Million) 50 40 30 20 10 0 Year1 Year 2 Year 3 Corporate Objective Diversification Long-term Forcast

Currently the Best Western Premiere Dua Sentral long-term forecast has reached RM 20 million which has a big gap differences from the corporate objectives that is RM 60 million. In order to close the gap difference, Best Western Premier changed from Market Penetration to Diversification involves a company to create a new product and sell it to the new target market. The reason diversification is the key to close the gap is because that it will help to generate more profit and increase the brand awareness in the Malaysias market. Mr. Saiful mentioned that in this September, Best Western Premier will open a new outlet at Melaka which is famous for tourist attraction. This may also help attract new target market which is the tourist. Furthermore, on the year 2014 to 2016, Best Western International Inc. will create a new brand which is called the Best Western Heaven in Ipoh. This new brand is categorized as for leisure customers.