Why is Dentsu Inc. a consulting firm?

STEP１
Let's get excited together to enhance corporate value

Dentsu Inc.
Marketing Design Center
Consulting Office
Office Manager Takashi Asaoka

 

Amid expectations for Japan's economy to enter a period of substantial growth, a movement is emerging to fundamentally reexamine the future of companies. Rebuilding brands is one such effort. Since its full launch in 2010, Dentsu Consulting Inc.'s Consulting Office has leveraged right-brain thinking to tackle branding and various management challenges. This series will explore the Consulting Office's approach to 'partnership,' driven by its mission to enable the robust growth of client companies.

Part 1: Why Consulting at Dentsu Inc.?

Brands Are Not Just Images, They Are the Source of Corporate Growth

 

Brand strategy was revisited in Japan starting in the mid-1990s. After the bubble burst, Japan's economy stagnated, leading to what became known as the "Lost Decade." During this period, companies fought for survival, focused on cost reduction, and worked to build leaner management structures. They pursued M&A and attempted business model transformations, moving beyond their traditional core operations. When significant changes occur in a company's operations, self-reflection inevitably follows: "Who are we, really?" An atmosphere began to emerge where companies questioned their own identity.

It was during this period that Dentsu Inc. recruited David Aaker (Professor Emeritus, University of California, Berkeley), a leading authority on brands, as an Executive Advisor. In his writings, Aaker strongly argued that "a brand is not merely an image, but corporate equity" – essentially, that the brand itself is corporate value. This became a catalyst for reevaluating brand theory in Japan as well.

Previously, there was a tendency to view brand strategy as part of marketing communications. However, the idea that brands are actually a higher-level concept within a company's business management strategy became widely accepted. The positioning of brands underwent a significant shift.

Meanwhile, the social and economic environment surrounding companies underwent major shifts. The proliferation of social media demanded a shift from traditional "company-centric" communication to "customer-centric" communication aligned with customer values and lifestyles. Furthermore, under the increasingly powerful influence of distribution channels, brands themselves faced elimination. We entered an era where traditional brand-building methods no longer applied.

Overseas, the role of Chief Marketing Officer (CMO) has already become crucial within companies. It's even said that over 60% of Fortune 500 companies have a CMO. In contrast, the reality in Japan is that only about 5% of companies currently have a CMO. However, even in Japan, companies are beginning to establish CMO-like organizations as sections reporting directly to the president. This trend of prioritizing the CMO role will undoubtedly strengthen going forward.

 

Creating meaningful differences through exciting consulting

 

Amidst the demand for brand redefinition and reconstruction in Japanese industry, Dentsu Inc. launched its full-scale consulting business in 2010. We didn't just offer brand consulting; we built a team capable of proposing solutions for diverse management challenges—from mid-to-long-term corporate strategy to developing new business models and products/services—all grounded in brand expertise.

Naturally, our role is to deliver consulting services that are distinctly different from those of typical business consulting firms. As we'll detail in this third installment of STEP 1, Dentsu Inc. possesses traditional right-brain creativity and proposal capabilities, coupled with breakthrough problem-solving power.

We call the consulting services we provide to clients "Exciting Consulting." While logical, left-brain thinking is essential in consulting, we build upon that foundation to unleash unique, right-brain creativity that excites our clients. This naming reflects that very spirit. Our mission is to deliver proposals that make executives and corporate planning managers think, "Following this approach feels like it could work. We believe something interesting is about to happen."

Another key difference between Dentsu Consulting Inc.'s consulting and typical business consulting firms is our proximity to clients through daily communication. This is a natural position for an advertising agency. By deeply understanding our client companies' insights, we can truly deliver "client-centric" consulting.

This is my personal belief: brand strategy is about creating "meaningful differences for the customer." This elevates customer expectations for products and services, driving purchase intent. Similarly, in consulting, we aim for client companies to experience this "meaningful difference." That is the "exciting consulting" we strive for.

The term "excitement" might sound a bit lighthearted, but many top executives place their trust in our capabilities built upon that very "excitement." Next time, I'd like to discuss why top executives place their trust in Dentsu Consulting Inc.