Toward Energy Retail Liberalization: Creating New Business Together with Customers Launching Team "DEMS"—a Cross-Organizational Dentsu Group Initiative

Dentsu Inc. launched Team DEMS (Dentsu Energy Management Services), a cross-organizational group of energy professionals, in February 2015. This initiative aims to contribute to the creation of new business by its clients, recognizing that the energy industry structure is entering its most significant transformation period in history, including the liberalization of electricity in 2016 and gas retail in 2017.

　Team DEMS leverages the Group's specialized knowledge and expertise in "Energy" × "Communication" to provide one-stop services for clients' new ventures, from strategic planning and product development to channel development and advertising communications.

　The group's initiatives toward energy retail liberalization date back to 2007. It established an energy-related project within Dentsu Inc.'s headquarters, conducting various research while building a network with external experts and providing its accumulated knowledge to numerous energy-related companies. Subsequently, it engaged in business development anticipating smart meter installation. Since 2011, it has focused on building schemes for new business development toward retail liberalization and developing marketing-related services, providing consulting to many energy-related companies.

　Furthermore, in December 2014, it conducted its own survey targeting 5,000 households across the nine power company service areas nationwide. The results revealed extremely high expectations for energy retail liberalization. For example, regarding switching electricity providers, the potential segment with the possibility of switching reached 70%*.

*A total of 74% responded they would consider changing electricity providers in the future: 3% wanted to switch immediately, 14% were considering switching, and 57% were considering it but unsure whether they would switch (based on Dentsu Inc.'s proprietary survey "Electricity Liberalization Core Survey" conducted in December 2014, targeting 5,000 men and women aged 20-60 in the service areas of 9 power companies excluding Okinawa).

Moving forward, Team DEMS will provide customers with the following five solutions, drawing on accumulated insights and expertise, shifts in consumer awareness observed in energy-related surveys, and examples of energy liberalization overseas.

1. Consulting Services

　・Business planning and strategy formulation

　・Providing various survey data and overseas case studies

　・Providing and analyzing information on national policy trends

2. Business Development Domain

　・Development of new businesses utilizing national subsidy programs and other systems

　・New business development accompanying the creation of new sales channels and distribution networks

3. Marketing Domain

　・Formulation of marketing strategies

　・Planning and implementation of communication strategies

　・Planning and implementation of various marketing initiatives, including area marketing

　・Planning and implementation of optimal approaches targeting specific demographics, customer acquisition, and CRM initiatives

4. Sales Promotion and Marketing Campaigns

　・Planning and execution of sales promotion and marketing campaigns

　・Planning and implementation of sales channel strategies

5. Corporate Collaboration

　・Planning of alliance initiatives

　・Introduction and matching of marketing partner companies

　Team "DEMS" aims to contribute to Japan's energy future through these comprehensive energy solutions.

■Team "DEMS" Logo Mark