Anchor Exhibitor Case Study

Background

A large international corporation with 40 distinct business lines ordered all marketing executives to cut their tradeshow budgets by 60 percent as a company-wide cost-saving measure. The rationale was that tradeshows represented an unnecessary marketing expense given the companyís enormous brand recognition and the depth of its existing business relationships.

The Problem

One of the companyís business lines had already committed to a 30í x 60í exhibit at a major national tradeshow. The division marketing executive was given no choice but to take a loss on the space investment. His bigger concern was that this across-the-board corporate decision did not recognize how crucial show participation was to his particular business line.

Unfortunately, the marketing executive could not document the strategic goals accomplished nor measure the return on investment from previous yearsí participation. He was also unable to describe the follow-up activities that had been implemented after the shows, connecting each to the divisionís bottom line.

Unfortunately for the show producer, when they learned that the exhibitor was pulling out, the decision was already a fait accompli. The show producer had no recourse. Without solid documentation, the show producer couldnít pitch top corporate management without reinforcing their opinion that they were being "sold" an expensive event.

The Solution

The division marketing executive called in a consultant to explore other ways to participate at the show and mediate his needs with the show producer. Four options were considered: 1.) Create an off-site private label event, 2.) Host a high-end VIP hospitality event, 3.) Use the contracted space in some manner, 4.) Reposition the companyís presence at the show.

The actual costs and expected ROI on each option were presented to the company with the assistance of the show producer. The fourth option was selected with a novel approach:

The show producer agreed to downsize the contracted exhibit space and reallocate the funds to other sponsorship opportunities. Further investigation revealed that the exhibitorís product niche was lost in the magnitude of the show. A meeting room was negotiated that could showcase the companyís category niche as a symposium/expo within the larger show. The companyís participation was not defined by square footage, but rather by its educational contribution to the industry.

Results

The exhibitorís heightened profile as the symposium sponsor justified its tradeshow expenditure. In the end, the company increased its original expected investment significantly from $268,000 to $634,000. Whatís more, the show producer gained significantly more income than if it had remained fixed to its original contract. The company exceeded its targeted goals and remained involved in the event.