New Product Development: Marketing Boston as a National and International Convention Destination AIPC July 2008.

New Product Development:

Marketing Boston as a National and International Convention Destination

AIPC

July 2008

Prior to 2005, Boston was not a top Convention City

Top Cities

ChicagoLas Vegas

Atlanta Orlando

San Diego

San Francisco

New York

Washington

Not enough hotels

Small, outdated

convention facility

Big Dig

Construction/

Traffic

The city had assets to build on

Natural

recreation

History

Sports

Beautiful, walkable city

Old strategy

Answer the phone…

Becoming a world class convention city

• Point:• New convention center authorized in 1997

• Counterpoint:• “We don’t need ‘beached whale’”

• Jeff Jacoby

Rough competitive and industry waters

1997 2004

BCEC

Authorized

9/11 – Travel

Plummets

Washington

Convention Center

OpensBCEC

Opens

Other expansions:

Chicago

San Francisco

The BCEC opened in 2004

The BCEC opened in 2004

Features•516,000 SF Ex Hall

•84 meeting rooms

•Two miles from the airport

•State of the art technology

9

63.4 65.5 67.672.4

77.2 80.5

0

10

20

30

40

50

60

70

80

90

1999 2000 2001 2002 2003 2004

Supply growth: 4.9% 5-Year annual rate

Supply up; demand cyclical

Source: Tradeshow Week study, 2004

Line graph depicts total convention center demand using 1999 as the base year.

Indexed Demand growth: (0.5%)

5-Year annual rateM

illio

ns o

f S

q.

Ft.

of

Exh

ibit

Spa

ce

Strategic marketing

• Segmentation• Differentiation• Customer service• Packaging and improving the city (e.g. adding

hotel rooms)

11

Segmentation

Total industry events

32%

10%

15%

Other43%

• 2,000+ exhibitions/yr

• 8% growth

• 100 universities and colleges

• 1/3 of all higher ed administrators

• 128 high tech corridor

• MIT spinoffs

Salesforce tools for segmentation

Healthcare

Industry Report

Sales and marketing intelligence

Educational

Industry Report

Sales and marketing intelligence

Technology

Industry Report

Sales and marketing intelligence

Differentiation “Value added”

Are – challenge: how to show “invisible” assets• High tech – free wireless internet, interactive kiosks• Green• High customer satisfaction

Are Not• Cheap – ignore events that are very price sensitive

One chance to make a first impression

Situation• First local person travelers

meet• Very short ride (low fare) to

the BCEC• Also short to many hotels

Taxi cab program• Customer feedback

drawing• Taxi day• Scratch tickets (lottery)• New highway exit ramp

Client Satisfaction Rating

Survey findings based on 25 client responses for FY07 and 110 in FY06.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 06 Q1 07

95 %

100 %

"Excellent facility and excellent people. Very efficient, clean, friendly and staff is hard working. They made things easy and were with us every step of the way."

Naomi Andersen, Microsoft

Hotels

Headquarters Hotel

Westin Waterfront

800 Rooms

Free Restaurant Trolley

• Value-added dining option

• Aimed at attendees• Short term losses to

the BCEC• Long term loyalty

Proximity, facility and technology

Having fun with Boston

Repeating the history theme

Professionalizing the sales effort

• The phone works in both directions• Salesforce compensation created real incentives• Attracting industry events• Communicating to the industry press• Washington outpost

Results

• “Convention Center of the Year” 2007• 1,000,000 in attendance by 2007 and 1,000,000

room-nights by 2008• Over $1 Billion in economic impact• Top Ten List of Leading Cities – Tradeshow Week

2005. 2006, 2007, 2008• “the city of Boston is as good as it gets”

• SAP Chief Executive interview

• Expansions are being planned in both facilities

Lessons

• The convention center does not control the entire experience but it can influence it

• While overall trends can be heading down, some segments might be experiencing growth – target these segments

• Make “invisible” assets visible (e.g. technology infrastructure)

• Partnerships are not optional, they are essential• Think of the city as the product