Dentsu Inc. Establishes New Company and Restructures Business to Strengthen Promotion Domain

The text of the Dentsu Inc. news release distributed on October 14 is as follows.

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October 14, 2016

Dentsu Inc. Establishes New Company and Restructures Business to Strengthen Promotion Capabilities

― Accelerating Growth Strategy with Experience Value Creation Business and Digital-First Promotion ―

Dentsu Inc. and its subsidiary Dentsu Tech will implement a business reorganization effective January 4, 2017, to accelerate their growth strategy in the promotion domain. The Event & Space Design Bureau at Dentsu Inc. headquarters and the event & space-related departments at Dentsu Tech will be integrated. The current Dentsu Tech will be reorganized and renamed "Dentsu Live Inc.," while a new company, "Dentsu Tech," will be established. This business restructuring, similar to the launch of Dentsu Digital Inc. in July this year as a group company specializing in digital solutions, is part of the group's domestic business strategy aimed at enhancing the value it provides in areas growing in importance for clients' marketing activities.

■About "Dentsu Live Inc."

The Dentsu Group has redefined event and space development as a "business that creates real experiential value." By integrating the event and space businesses of Dentsu Inc. and Dentsu Tech, it has launched Dentsu Live Inc., the largest event-specialized company in Japan by revenue. By consolidating specialized talent and know-how, it will provide advanced, one-stop production services covering everything from planning and design to staging, production, operation, and integration with digital marketing.

Beyond traditional event and space development, Dentsu Live Inc. will pursue the following four new strategic business areas:

① Business enhancing experiential value with cutting-edge digital technology:
Leveraging cutting-edge technology to amplify attendees' emotional experiences and drive their dissemination. Furthermore, by integrating attendee data with digital marketing methodologies, it will advance business development aimed at further enhancing experiential value.

② Business developing and operating stores from a lifestyle marketing perspective:
We will advance high-value-added business by developing experiential content and operational programs from a lifestyle marketing perspective to build store brands.

③ Investment-Based Event & Space Development Business:
We will develop investment-based business models, including performance-style events utilizing high-profile content and the utilization of prime real estate as event spaces.

④ Next-generation city branding business:
We will advance innovative urban development initiatives, anticipating regional revitalization demand and overseas visitor demand, through a software-focused approach that integrates entertainment and technology.

■About "Dentsu Tech"

The sales promotion business traditionally provided by "Dentsu Tech" will be transferred to a new company, also named "Dentsu Tech," which will accelerate the shift to a production and implementation structure capable of meeting growing customer demand for digital marketing, including the digitization of various campaign operations. The new "Dentsu Tech" will be reborn as a next-generation promotion company with the ability to solve problems across the entire promotion domain, starting from digital. By strengthening its digital production capabilities—integrating various promotional measures through digital technology—it will provide services that meet clients' diverse digital marketing needs.

The new Dentsu Inc. Tech will strengthen and expand the following digital-first promotion services, in addition to traditional sales promotion activities:

① Digital Marketing & Promotion:
We will provide data-driven marketing operations and related digital promotion services.

② Direct Marketing:
We will produce and operate direct marketing services such as owned media and e-commerce.

③ CRM (Customer Relationship Management):
We will promote initiatives to cultivate loyal customers based on customer and purchase data.

④UX (User Experience) Design:
Provide customer-centric digital promotion services through video development and content utilization.

⑤Digitalization of Campaign Operations:
Digitize campaign operations using smartphones and the web.

⑥ Digital Creative Production:
Develop, produce, and manage creative content tailored for digital media.

 

＜Company Overview of Dentsu Live Inc.＞ (Surviving Company of Dentsu Tech)
Company Name: Dentsu Live Inc.
・Location: 1-8-1 Higashi-Shinbashi, Minato-ku, Tokyo (within Dentsu Inc. Headquarters Building)
・Capital: ¥2.65 billion
・Shareholding Ratio: Dentsu Inc. 100%
・Officers: Representative Director : Keiichi Maeda (Current Dentsu Inc. Executive Officer)
　COO: Jun Naito (currently Director, Dentsu Inc. Event & Space Design Bureau)
・Date Established: August 14, 1950 (Scheduled to commence operations on January 4, 2017)
・Number of Employees: Approximately 400
・Branches: Kansai Branch / Nagoya Branch
Consolidated Subsidiary: Dentsu Event Operations Inc.

＜Company Overview of Dentsu Inc. Tec＞ (Newly Established Company)
・Company Name: Dentsu Inc. Tec Inc.
・Location: 1-5-3 Uchisaiwaicho, Chiyoda-ku, Tokyo
・Capital: ¥1 billion (planned)
・Shareholding Ratio: Dentsu Inc. 100%
・Officers: Representative Director: Yasuhiro Matsubara (currently President and Representative Director, Executive Officer of Dentsu Tec Inc.)
・Date of Establishment: January 4, 2017 (Business operations scheduled to commence on the same day)
・Number of Employees: Approximately 900
・Branches: Kansai Branch / Nagoya Branch
Consolidated Subsidiary: Dentsu Retail Marketing Inc.
　Dentsu Customer Access Center Co., Ltd.
　Dentsu On-Demand Graphic Co., Ltd.

As part of the integration of promotional operations in the Kyushu area, the current Dentsu Tech Fukuoka Branch is scheduled to be integrated into Dentsu Kyushu Inc. (effective January 1, 2017).

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Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2016/1014-009064.html