new product development: marketing boston as a national and international convention destination...
TRANSCRIPT
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Small, outdated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