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City Top Cities Chicago Las Vegas AtlantaOrlando San Diego San Francisco New York Washington Not enough hotels Small, outdated convention facility Big Dig Construction/ Traffic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 BCEC Authorized 9/11 – Travel Plummets Washington Convention Center Opens BCEC Opens Other expansions: Chicago San Francisco

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 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 rate Millions of Sq. Ft. of Exhibit Space

Strategic marketing Segmentation Differentiation Customer service Packaging and improving the city (e.g. adding hotel rooms)

11 Segmentation 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 FY % 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 Satisfaction

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” ,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 , 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