What makes KINTEX be a successful exhibition center? - IAEE

IV.
Conclusions
3 Values for success
Through this case study, we studied how KINTEX has been made success story even in three years after its opening. I
used Dr. Kumar’s marketing theory-3Vs model- to define the reason of success of new exhibition center. Regarding valued
customer, the first V, KINTEX has been focused on limited but biggest 7 show organizers and shareholders. Big 7 show
organizers have changed their venue to KINTEX when it opened in 2005, and since then they’ve been expanding their
exhibition spaces 2 to 3 times bigger than before. Shareholders, of course, are satisfied with KINTEX service because it gives
specific services based on trade infrastructure.
It also delivered value propositions, the second V, to valued customers. Co-location of similar exhibitions and CMS
(Customer Management System) strategy are its most important value propositions. Actually KINTEX has weakness even it
is the biggest exhibition center. It is relatively distant from Seoul so organizers requested lower price. Even though the price
was low, KINTEX needed another marketing strategy to attract potential customers. Co-location strategy was very successful
because it is the most reliable and valuable incentives for customers. KINTEX can combine two or three similar exhibitions
or conventions using 5 exhibition halls, and this appealed to show organizers because it can draw much more attendeesbuyers
and investors- in one place and one day. It was definitely valuable proposition.
Regarding value network or how to deliver, the third V, KINTEX was very fortunate as it can use flexible pricing policies
based on season and size, even on valuable customers as well.
Convergence in Hospitality Industry
As exhibition industry grows with valuable customers, it should be related to hospitality industry including exhibitions,
conventions, events, hotel and tourism. These businesses should be integrated in KINTEX business model for the 2 nd phase of
construction. Valuable customers will require much more exhibition services which are different with other venues. KINTEX
should go for hospitality industry, which means that integrated show businesses will be the key competitive advantages and
it can lead KINTEX for the market-driving company, not for the market-driven company. However, if CEO has no will or
intention to go for it, it is impossible and no one gets the advantage. Therefore, marketing strategy should be a CEO’s top
agenda, and CMO should take a role for leading the strategy.
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