(3) Key Tasks and Management Strategies
a. Strengthening and Expanding the Promotion Business
In response to increasing information technology advances and their penetration into society, the ContactPoint™ between corporations and consumers has diversified, creating demand for integrated sales promotion proposals that cover all ContactPoint™, from advertising campaigns to the final stage of purchasing at the retail level. In November 2006, DENTSU TEC provided the funds to establish Dentsu Retail Marketing, which has begun developing marketing services. Such services include support for business negotiations between manufacturers and retailers, retail space design, point-of-purchase (POP) promotions and merchandise management at in-store sites.
In January 2007, we forged a capital and business tie-up with Recruit Co., Ltd., with which we already had a cooperative relationship in such areas as free magazines. Through this tie-up, we are developing new media and marketing services to create sales promotion solutions using contactless IC card/ chip technology that will leverage contact points, and ultimately sales.
Going forward, Dentsu, assisted by DENTSU TEC, which became a wholly-owned subsidiary in April 2006, will focus on the areas in which we can anticipate clients' needs and thus profitability over the medium to long term. We are making Groupwide effort to take priority measures that add higher-value to existing promotional activities and provide integrated services leveraging digitization.
|