Dentsu Inc.'s overseas headquarters, Dentsu Aegis Network, announced on October 19th that it had reached an agreement with Fountainhead Entertainment Pvt. Ltd. shareholders. The agreement involves acquiring 90% of Fountainhead's shares and granting the Dentsu Group the option to gradually increase its stake and make Fountainhead a wholly-owned subsidiary.
The company possesses strengths in the activation domain, an area experiencing heightened client interest and market growth in India.
Activation is a marketing approach that enhances consumer engagement (consumer involvement with a brand) through marketing events where products or services can be physically experienced. This drives short-term purchase promotion and increases brand favorability and trust in the medium to long term.
Founded in 1994, Fountainhead has driven business in this field since its inception and has now expanded its activities into events in the music and sports sectors. It also provides marketing services utilizing digital media, including SNS.
Following the acquisition, the company plans to deepen collaboration with psLIVE, another Dentsu Group specialty brand with strengths in activation similar to Fountainhead, and merge the two companies by 2016. This will position the Dentsu Group as owning India's largest marketing company in the activation sector.
The Dentsu Group's business operations in India and an overview of Fountainhead are as follows.
■ Dentsu Group's Business Operations in India
Integrated advertising agencies: Dentsu Communications, Dentsu Creative Impact, Dentsu Marcom; Creative agency: Taproot Dentsu; Media and communications agencies: Carat, Dentsu Media; Vizeum, digital agencies Dentsu Webchutney, iProspect, Isobar, WATConsult, OOH agencies Milestone Brandcom and Posterscope, activation-focused marketing company psLIVE, and Amnet, which provides advanced trading desk services for programmatic advertising.
【Fountainhead Company Overview】
Company Name: Fountainhead Entertainment Pvt. Ltd
Headquarters: Mumbai, India
Also has offices in Delhi and Bangalore
Established: 1994 (Operations commenced February 1995)
Shareholder Structure: After Share Acquisition
Dentsu Inc. Aegis Network: 90%
Fountainhead Management 10%
Revenue: INR 340 million (approx. ¥630 million) (fiscal year ended March 2015)
Representatives: Brian Tellis (Chairman)
Neale Murray (Managing Director)
Number of Employees: 205
Business Activities: Provides services including marketing events and promotions in the activation domain, as well as digital marketing
Dentsu Inc. News Release : http://www.dentsu.co.jp/news/release/2015/1019-008415.html
