Toyota and Dentsu collaborate to innovate marketing strategies and achieve digital transformation.

Toyota Motor Corporation, advertising agency Dentsu Group, Dentsu Inc., and Toyota's subsidiary Delphys Inc. announced on September 16 that they will establish a holding company, which will begin operations in January 2021. The new entity aims to enhance Toyota's communication with consumers through innovative marketing and support Toyota's digital transformation journey.

This holding company will have two subsidiaries: one will focus on enhancing Toyota’s marketing strategies and strengthening consumer trust, while the other will concentrate on digital transformation, leveraging technology to deepen Toyota’s relationship with its customers. Toyota will hold a 66% stake in the holding company, while Dentsu will own the remaining 34%.
In recent years, with blogs, social networks, and other forms of social media rapidly permeating people's lives, the primary sources of information dissemination now include not only traditional mass media but also a diverse range of groups—such as individuals, organizations, and companies. At the same time, the methods of information transmission have become increasingly varied.
Toyota, which has been focusing on its own media outlets such as the Toyota Times, has been directly communicating "Toyota's authentic self" to customers and other stakeholders. To address the aforementioned changes, the company is adopting innovative communication strategies aimed at delivering the most trustworthy information.
Toyota introduces on its website that the Toyota Times serves as a medium to share internal Toyota insights with everyone connected to the company, aiming to authentically showcase Toyota's true identity—warts and all—to partners who are jointly shaping the future of mobility.
Furthermore, with the rapid advancements in areas such as connectivity, automation, sharing, electrification (CASE), and Mobility as a Service (MaaS)—alongside society's growing ability to connect everything and every service through information—Toyota has already begun its transformation into a company that "mass-produces" happiness, exemplified by initiatives like Woven City.
Toyota believes that achieving innovation in relevant business models on its own will be challenging. The company also anticipates the need to quickly and accurately understand customer insights and needs, and seamlessly integrate them into its new ventures. Moreover, Toyota recognizes the importance of forging partnerships with like-minded collaborators—and working alongside these companies to deliver mobility services to people around the globe.
Based on this vision, Toyota has decided to transform Delphys—already a powerhouse in automotive marketing and retail centered around car sales—into a standalone entity, rather than merely an advertising agency operating within conventional frameworks. This move will enable the company to: innovate in how it communicates to build meaningful brand relationships, fostering unparalleled customer trust; anticipate evolving market trends, such as the rapid advancement of the digital society; and navigate challenges while driving business forward with agility and creativity.

Additionally, since Toyota shares a common vision with Dentsu and given Dentsu's long-standing track record of successful marketing and business development both in Japan and internationally, Toyota has decided to jointly implement this plan with the two companies. Toyota believes that Dentsu will bring invaluable expertise and experience in integrated marketing communications as well as the digital domain, enabling rapid advancement in innovation.
This new business structure is not bound by existing methodologies and goes beyond the traditional scope of advertising agencies and automakers. Toyota, together with Delphys and Dentsu, will collaborate to identify the products and services that customers truly desire—and will strive to deliver them. In September 2020, Toyota, Dentsu Group, and Delphys signed an alliance agreement focusing on both capital and business cooperation. As part of this agreement, Delphys plans to strengthen its investment in Dentsu Group through third-party funding. Under the terms of this partnership, the three companies will jointly launch a groundbreaking new business structure in the future.
Later, after receiving approval from the government’s competition authority, Dentsu Group plans to invest in Delphys and prepare for the newly established joint venture company to launch its business operations in January 2021. As a subsidiary of the holding company, the new entity will build upon Delphys’ existing expertise, focusing on initiatives such as communication innovation that strengthens brand identity and fosters unparalleled customer trust; marketing innovations tailored to adapt to evolving trends—like advancements in the digital age; and strategies to effectively address the unique challenges posed by today’s mobility-driven business landscape.
Another company under the holding company will drive digital transformation in the retail sector, serving as a research entity in the field of digital communications to develop new mechanisms and business ventures. This newly formed holding company—jointly established by Toyota, Dentsu, and Delphys—will oversee the operations of the two new entities: the first company will evolve from the foundation of Delphys, while the second is an entirely new establishment. The holding company will also make strategic decisions in the area of marketing innovation.

Translated from Sina Auto

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