What makes KINTEX be a successful exhibition center? - IAEE

I. Introduction
Korea is one of biggest trading countries ranked 11 th in global market. But the exhibition and convention businesses are
still behind the global players. As an exhibition is a market place for trades and businesses, it is very important to develop
Korean exhibition industry. KINTEX (Korea International Exhibition Center) was originally established for the development
of exhibition industry in Korea by national and local governments. It is the largest exhibition center having 54,000m 2 of
exhibition spaces in Korea, and also it is one of the most cutting-edge exhibition centers in Asia. Furthermore, it will be
doubled in exhibition spaces up to 100,000m 2 by 2011. Since its opening at April 2005, it has been dramatically accomplished
a successful story in the exhibition business. The change occurred by it has not only affected to the exhibition business but
also to the local governments who in charge of destination marketing in terms of hospitality industry.
Therefore, it is very important to analyze how KINTEX made a successful story because there were no case studies for
analyzing exhibition centers in terms of marketing management. So this project would be the first business case study which
is focused on an exhibition industry in Korea. This study will be analyzed based on the Professor Kumar’s 3Vs marketing
management model. Below questions are core topics which used for analyzing this case study.
Research Questions
1. Marketing Strategies and executions in terms of Dr. Kumar’s 3Vs
(1) Today’s marketers face a dire situation. CEOs name marketing challenges such as retaining customers
and avoiding price wars as top priorities, yet they increasingly doubt whether marketers can handle those
challenges. Also marketing is now considered a cost sink. Nirmalya Kumar, a professor of London Business
School, outlines four organization- wide transformation initiatives that will win marketing a prominent
seat at the executive table. Kumar shows how a focus on the “three Vs”-the valued customer, the value
proposition, and the value network-can help marketers lead the shift;
- From tactical market segments to strategic segments that enable deep differentiation
- From selling commodity products to providing customers solutions
- From incremental innovation spawned by market research to market-driving innovation spawned by
radical new ones
- From tactical SBU-level marketing to strategic corporate marketing
Kumar’s 3Vs approach is very clear to define the components of success in marketing management because it shows definite
target and proposition in terms of customer’s value, not provider’s focus.
(2) 3Vs
1) Valued Customer: Who is the target customer?
- Who is the valued customer? In contrast to other exhibition centers, KINTEX’s valued customers are
limited to big 7 show organizers who use it as their show places such as Seoul Motor Show, Food
Show, Housing Fair, etc. Also national and local governments are very valuable customers because
they provide many business opportunities to KINTEX for hosting public and governments-related
exhibitions and conventions.
2) Value Proposition: What to offer?
- Value proposition, or what to offer to the valued customers shows the distinctive differences between
the two segments. KINTEX could just provide exhibition spaces for attracting many trade shows,
convention and other various events. However, it provides valuable offerings such as exhibition
packages; co-location of similar purposed trade shows. So this brings many positive effects to trade
shows and show organizers as well. Buyers or visitors can look around their interested products,