Environment

Cross-marketing research memo (3): Restructuring business units to respond to environmental changes | Reuters


* 15:23 JST Cross Marketing Research Memorandum (3): Reorganization of business segments in response to environmental changes
■ Business Overview

1. Business content
In response to these changes in the industry environment, Cross Marketing Group3675Restructure its business units in FY06/2021. As a marketing solutions company, it can handle the entire marketing process of DX expansion, but the business reorganization in particular deepens the research business and expands the marketing tools. Specifically, in the digital marketing business, marketing tools such as digital promotion, EC/marketing support, system development/maintenance/operation, and human resource services are integrated. In addition, the research business is divided into data marketing business and insight business. The data marketing business focuses on online-centric data collection and other businesses, and the insight business focuses on consulting and other businesses to support customer decision-making. a system to support. By doing so, the policy aims to clarify the client’s status as a marketing DX partner, while incorporating areas of business that cannot be explained by grouping, such as online research and marketing solutions. We can already fully support research work in Japan and overseas, which is our original business, but there seems to be a lot of room for growth in digital marketing such as Internet advertising and media placement.

(1) Digital Marketing Business
In terms of digital marketing business, we provide comprehensive IT business solution services such as digital promotion, EC/marketing support, system and application development/maintenance/operation, and IT human resource services. In terms of system development, we have advantages in the construction and operation of systems that require robustness such as financial institution applications, EC payment and point management, as well as large-scale systems with 1 million members. Digital promotion uses the consumer data in the large-scale panel network established by the alliance to provide cutting-edge marketing services such as accurate and optimal promotion. In terms of marketing support, we operate a variety of media that meet the needs of our clients. Among them, Do House, which became a subsidiary in January 2021, has an excellent reputation for contact with manufacturers, product inventory and handling, operates promotional media such as “Moratame.net” and “Tentame!”, and stands out with free sample promotions* .It also has a consumer network. With the acquisition of subsidiary Do House, the company’s promotion sector now has the scale of 8 million people across the group.

* Sampling promotion is a promotion method that distributes cosmetics, beverages, food, etc. to consumers, conducts questionnaires, and uses them for multi-purpose marketing such as product development and product development support for manufacturers.

(2) Data marketing business
In the data marketing business, we provide services such as data collection through online and offline research to support customers’ business activities and marketing campaign decisions. What matters most in online research is the quantity and quality of the survey panel. In terms of volume, the number of active survey groups (promotion groups) including alliance partners is about 5.24 million, which is the largest in Japan, and the number of surveys for the entire group is about 20,000 per year. The quality covers a variety of basic attributes such as gender, age, and place of residence, as well as basic attributes such as cohabiting family members. Member registration information is updated every year, and the basic attributes of the panel are kept upwards – so far. In addition, the quality control of the panel is thoroughly enforced, such as the unregistering of malicious fraud respondents. In order to conduct the survey smoothly, we have prepared a large number of thematic groups in advance on specific topics such as car ownership.

(3) Insight into business
The Insights business helps customers make decisions by providing solutions such as analysis, reporting, consulting and consumer insights. As a result, we conduct more than 1,300 group interviews per year to uncover insights, and conduct on-site surveys such as tastings and tastings almost daily, approximately 360 per year (during the cancellation of corona damage or moving from venue to online). ). We also analyze published data using SNS, etc., and provide data-driven consulting that integrates questionnaire data and secondary data. For example, Medilead, a healthcare and medical-focused subsidiary, has established groups of physicians/health care professionals and patients and, based on research on such specialized groups, supports the development of health management programs and morbidity risk models. , supports and supports the evaluation of papers, research and medical technology related to drug discovery and clinical trials, and is well received. Insight business in this specialized field requires research companies to secure specialized human resources and deal with new technologies, so it can be said that it is a service with extremely high added value, and it is difficult for new entrants to enter, which is the strength of the company. It has become. Furthermore, our ability to propose holistic marketing solutions that flexibly utilize digital marketing business functions is one of our strengths.

(4) Overseas business
Overseas business is not an independent sector, but it is an important way to talk about the company’s future. It has data marketing business and insight business in more than 20 bases in 10 countries around the world. Entered China in 2012, and incorporated Cadence into a subsidiary in 2014, but profitability was blocked from around 2018, and structural reforms began in 2020, such as focusing on Cadence. .. In the second half of 2021, the system will be refined, and the profit improvement is mainly significant in the United States. Currently, we are strengthening the infrastructure for large companies in Japan, the United States and Europe.

The business model of the entire customer marketing process
2. Business Model
The company’s business model is characterized by providing high value-added integrated marketing solutions by combining the research function (understanding of consumers) of the data marketing business and insight business with the execution support of the digital marketing business. Specifically, we will efficiently collect consumer data such as ancestral online research and offline research, and analyze and understand the “why” of consumers. We support our clients in executing their marketing by utilizing accurate marketing tools based on this data and understanding. Also, since the company is involved in the entire marketing process, it can help solve customer problems in various situations. In addition, it can be said that a support system that flexibly solves problems by uniting all persons in charge, such as sales, researchers, and directors, and integrating each business is also a major feature.

(Written by FISCO Guest Analyst Hitoshi Miyata)

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