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Home > Investor Relations > Management Policy > Medium-term Business Plan

Medium-term Business Plan (Fiscal Year 2010 to Fiscal Year 2014 )

In November 2009, the Hakuhodo DY Group publically announced the formation of a Medium-term Business Plan. Scheduled to run through the fiscal year ending March 31, 2014, the purpose of the five-year plan is to realize sustainable growth for the Group by responding to changing corporate issues and needs. The essential points of the plan are summarized below.

Also refer to the November 2009 announcementPDF

[Core Medium-term Strategy]

The Hakuhodo DY Group strives to be a partner
responsible for realizing optimized corporate marketing activities
across all formats via the pursuit of next-generation, 
comprehensive marketing solutions.

[ For Strategy Realization ]

Core Engines for Strategy Realization

The Hakuhodo Group will strive to maximize value creation by multiplying the two core engines driving its Core Medium-term Strategy.

Marketing Technology
Scientific approach and methodology to realizing effective PDCA cycles and speedy circulation across all corporate marketing activities
Creativity Initiative
Not merely develop the creative capabilities of advertising communication but enlarge the design of the entire information experience for consumers to create a social movement

Business Structure Transformation for Strategy Realization

Transforming our business structure is a critical issue for realizing the Core Medium-term Strategy. Accordingly, we are promoting the transition from a mass marketing-centric business structure to one defined by a comprehensive marketing solutions business. To this end, we will accelerate the pace of this structural transformation, expand the domains we target, put systems into place, and work to diversify earnings models.

Business Structure Transformation

Change in Category Structure Under 4 Mass Media and Other Advertising

In the 4 mass media advertising market, the Group's aim in an adverse climate is to continue claiming an increasingly larger share of billings. In other advertising, the focus will be on billings expansion, with the goal of achieving a 50:50 mix of billings from both media market types by March 31, 2014.

*"Other advertising" includes all categories in Japan outside the traditional 
4 mass media types, namely Internet media, Outdoor media, Creative,
Marketing/Promotion, and Others.

[Medium-term Business Plan]

Plan Period Positioning
Through March 2014 (5-year plan) Transitional period for realizing
business structure transformation
Target Indicators Target FY2013
(Fiscal year ending March 2014)
Operating Income ¥28.0 billion
Operating Margin 16%
Revenue ¥175.0 billion

[ Priority Strategic Domains ]

We have identified the Internet domain, the Marketing/Promotion domain, and the Global domain as three priority strategic domains for achieving our medium-term business objectives.

[The targeting of this domain]

Billings Targets in the Internet Domain

Concrete Measures

[Concrete Measures]

  • I. Strengthen alliance with DAC
  • II. Strategic alliances with external specialist players (incl. M&A)
  • III. Cross-media strategy built on response capabilities in the Internet domain ⇔ Contribution to higher mass media share
  • IV. Combine and enhance linkages with the capacity to enact direct marketing
  • V. Strengthen the development of new clients by developing marketing activities centered on the Internet domain
  • Internet Domain
  • Marketing/Promotion Domain
  • Global Domain

[The targeting of this domain]

In the field of Marketing/Promotion, where market growth is projected, we seek to expand billings in FY2013(Fiscal year ending March 2014) by more than 25% versus FY2009(Fiscal year ending March 2010). Further strengthen structure for greater earnings by expanding domains where we have response capacity and adding to the internal production capabilities that have contributed to Group profit growth.

Billings Targets for Marketing/Promotion Domain

Direction of Response Domain Expansion,
Expansion of Internal Production Capabilities

Hakuhodo Daiko Yomiko TBWA HAKUHODO Tokyo Survey Research HAKUHODO i-studio Hakuhodo Products DAIKO ONES Yomiko CrossCom

  • Internet Domain
  • Marketing/Promotion Domain
  • Global Domain

[The targeting of this domain]

We will double consolidated overseas billings over the next five years by reinforcing efforts in the Asia region, most notably in China, a market where continued high growth is projected.

Targets for Overseas Billings

Direction of Initiatives

  • . Tackle new growth sectors behind Automobiles/Related products and Home electric appliances/AV equipment
  • . Prepare local response capacity (organization, human resources, systems)
  • . Vigorously utilize domestic knowledge, expertise and tools
  • . Strengthen response to domains peripheral to advertising

Further solidify client base
as a marketing partner for Japanese clients