Activate Japan

We have more choices than ever before. More careers, more lifestyles, more products, more information, more entertainment. We can even have more money. But, with more decisions to make, we also have less time. So we use technology. Now we can go shopping without leaving the house, we can work at home and socialize at work. We lead multiple lives within a global online community. It might seem revolutionary but today's children will never know anything different. And if you want to get close to tomorrow's customers, you have to operate in their world. Activate is creating the next generation communications agency which marries direct marketing and consumer insights with interactive principles to help you get closer to your customers in this new world. We are driven by the mission to bring brands closer to consumers. By understanding them better. By communicating with them more personally, by creating a dialogue not a monologue. If you believe in this New World let's begin a dialogue.

Tokyo, Japan 26th March 2008 MasterCard’s sponsorship of Japan Fashion Week’s “3GTV Japan” has been the first to use the latest branded interactive mobile video service - Mobiactions. In a tie-up between Activate, KK, a Japan based advertising agency and McCann Erickson International, Sairis Group delivered an integrated Mobiactions campaign for Japan Fashion Week providing unique and compelling media access to live and archived video contents as well as a real-time videoblog for visitors. About the MasterCard Mobiactions IVVR promotion: Tim Smith (CTO of Urban Marketing) says, “MobiActions seamlessly integrates the mobile web experience with the 3G video experience providing advertising agencies a full featured, 360degree platform to present and manage integrated and interactive mobile media campaigns. Based on patented call-to-action-control, exclusive to Urban Marketing, the Mobiactions system guarantees that the viewers WILL experience not only the fun of a cool mobile interactive campaign, but also the BRAND messages which support it.” Mobiactions IVVR is also now available in Australia according to Sam Wilson - Urban Marketing’s Chief Operating Officer. “Now with the availability of interactive video and voice promotions & applications for Japanese and Australian brands, consumers can quickly interact with branded video and audio content via a 3G mobile phone. No longer do you have to wait for a WAP page to download, as the system uses video calling, which is available on 99% of 3G handsets.” “The ability to influence word of mouth communication is at the forefront of any communications strategy,” says Jerry Gentemann, Director of Activate Japan. “Once a big idea is identified, we look to leverage the digital media world and extend the creative concept online whether through digital media relations, 3G and mobile development, website development, or social networking. Activate and its technical partner Sairis have a crystal clear vision of what needs to be done to manage this evolution in the best interest of clients like MasterCard.” “We see this as initially very attractive to advertisers in the youth market, and as the acceptance of these interactive campaigns develops then industries such as music, automotive, real estate and health will demand this as an essential part of their mobile marketing mix,” says Wilson. Mobiactions enables brands to create an interactive mobile branding experience using branded video and audio media. Advertisers can run interactive mobile video and audio promotions for surveys, new product videos, movie trailers, music video voting and competitions as well as any business applications requiring video blogging from a mobile device. www.mobiactions.com

Press Release Activate K.K launches world premier of mobile phone technology at the Japan Fashion Week This spring's Japan Fashion Week from March 10th – 16th will see the latest use of mobile phone technology called 3gtv. The mobile site for the JFW will include a new split screen video call feature that allows viewers to review four different videos at once and select between them to see highlights of the previous days show. Also through the same video call, users can record a video message about their experience at the show and instantly post this video blog during the call to the JFW 3Gtv site. Access to the JFW official homepage and then to the Malibu 3G site, proudly sponsored by MasterCard can be reached here: http://www.jfw.jp/jp/index.html

activate “There are hundreds of ways to sell cars that don’t require TV commercials. We want an agency that understands that.” Daimler Chrysler “To build my brand I need communication that shows brand leadership but also increases transactions.” Visa Asia Pacific “To strengthen one of Volvo’s core values “Enjoy Life” we must increase lifestyle brand value as we build traffic to our dealers.” Volvo Japan Clients can no longer depend on their traditional advertising agency to communicate to consumers one to one. One to one in the client’s mind is communication anywhere the consumer meets the brand. Experience marketing, branded entertainment and even brand environments are “natural” chances for the consumer to meet the brand. Handled effectively these channels are often considered by the client to be the real “selling machine” for their brands.

The mobile telephony landscape in Japan is very sophisticated and changes more rapidly than in any other country in the world. New technologies have been introduced so that customers can use the phone almost with the same functionality of a credit card and certainly vendors have made mobile phones as functional as cash earning the nickname “e-wallet.” A case in point the extensive train system throughout the country now allows its riders to board the train and pay for his or her fare at the seat. Scanning devices are above each seat next to the reading lamps. Even the common Coca-Cola vending machines accept the e-wallet that can be embedded in every mobile handset in Japan. There are over 1.5 million of these type vending machines. The “Smart” pumps at Exxon Mobile stations, toll-booths on the freeway, theater tickets and so on are all mobile phone payment accessible. Clients cannot afford not to explore this opportunity before their competitors embark on a faster track to potential consumers. Toward that end it is extremely important that brands deliver a snapshot of the relevant mobile or m-commerce and securities technologies and how they could impact the future development of their businesses. Craig Courter, COO of Baker McKenzie, said, “We live in an ideas jungle…. the most important skill a project manager can bring to bear is the ability to sort, categorize and prioritize all of the ideas…only then can you implement a change that truly advances your strategy.” In the mobile telephony industry there is truly a jungle of new ideas.

Both the Mission Statement and the Vision Statement reaches every area of the organization and is understood by their customers. A good company Mission Statement and Vision Statement needs to capture the essence of an organization without being so vague that it could apply to every other company too. To capture the essence it should focus the energies of the whole organization, and their customers too, in a purposeful way. I can say that the types of people that my former company BBDO hired all had a passion and energy for the vision and clients had that passion too. That company attracted a certain breed of customer that was ready to break some rules or push the envelope to be different. The client list was a who’s who of innovators and pioneers, Pepsi, Apple, FedEx are examples…even the theme lines we developed for clients and firms that the company handled had a vision for the company. GE, We bring good things to life, Visa bring your appetite but don’t bring your American Express. These companies had a clear vision. Both statements must be true. BBDO believed its statement had to be proven by winning the Agency of the year at Cannes, or the best Super Bowl spots…awards were critical to prove its commitment to the vision. I think the Mission Statement differs from the vision in one respect. The Mission Statement simply and practically outlines what it will take to deliver the Vision by outlining directives and regimentation. The Vision Statement can be ambitious and it can reveal how a company inspires its employees, customers and stakeholders to take the initiative and give momentum to the success of a company.

Nissan is another company worth exploring with regard to Informal Structure. Although Nissan as a Japanese company has an extremely formal and hierarchal organizational structure Carlos Ghosn created a temporary informal structure to initiate change and reach his aggressive goals for the troubled automaker. “Ghosn's challenge was to act quickly, yet minimize the inevitable resistance that arises when an outsider tries to change traditional Japanese business practices. To resolve this dilemma, Ghosn formed nine cross-functional teams of 10 middle managers each and gave them the mandate to identify innovative proposals for a specific area (marketing, manufacturing, etc.) within three months. Each team could form sub-teams with additional people to analyze specific issues in more detail. More than 500 middle managers and other employees formed a new informal structure to implement the so-called Nissan Revival Plan. After a slow start—Nissan managers weren't accustomed to such authority or working with colleagues across functions or cultures—ideas began to flow as Ghosn stuck to his deadline, reminded team members of the automaker's desperate situation, and encouraged teams to break traditions. Three months later, the nine teams submitted a bold plan to close three assembly plants, eliminate thousands of jobs, cut the number of suppliers by half, reduce purchasing costs by 20 percent, return to profitability, cut the company's debt by half, and introduce 22 new models within the next two years. Although risky, Ghosn accepted all of the proposals. Moreover, when revealing the plan publicly on the eve of the annual Tokyo Motor Show, Ghosn added his own commitment to the plan: "If you ask people to go through a difficult period of time, they have to trust that you're sharing it with them," Ghosn explains. "So I said that if we did not fulfill our commitments, I would resign." Within 12 months, the automaker had increased sales and market share and posted its first profit in seven years. The company introduced innovative models and expanded operations. Ghosn, who received high praise throughout Japan and abroad, will likely become head of Renault. The change process that Carlos Ghosn launched at Nissan seems to be smoothly executed, but it was buffeted by uncertain consequences, organizational politics, and various forms of resistance from employees and suppliers.” (Kreitner, Kinicki, 2004)

This came from an interview with the chairman of Diesel and how he sees the brand as global…not Italian. When anyone calls the head office of Italian fashion giant Diesel in Molvena, northern Italy, staff always answer the phone with "Welcome to the Diesel planet." That's because chairman Renzo Rosso jokingly describes himself and his empire as being from another universe. The 45 year old Rosso is a walking advertisement for his company. Everything he wears — from head to toe and including his underwear — is Diesel. Established in 1978, Diesel is an innovative design company whose main product lines are denim and underwear for men and women, clothing for kids aged between two and six, a line of sportswear, luggage and fragrances. The company has grown so rapidly that the Italian home market now represents only 15% of the company's annual sales. A bundle of energy, Rosso took over the reins in 1985 from Adriano Goldschmied with whom he co-founded Diesel in 1978. He views the world as a single, borderless macroculture. From day one, he and his staff have dared to be different, whether it is making jeans layered with a metallic mesh to give them a permanent rumpled appearance, waistcoats designed to resemble life jackets, T-shirts with shark warnings or jackets featuring US tank manuals. At one fashion show in Europe, Rosso turned the tables on the audience and made them walk the catwalk with models inspecting them as they passed by. Diesel "aliens" have set up 120 stores in 80 countries. The showpiece is their Japan flagship store, a three story, 640 square metre house of fun in Tokyo's fashionable Harajuku. Diesel already has several stores in Japan but a walk through the Harajuku premises is like visiting another world. The store manager, a young man sporting a pink topknot and little else in the hair department, greets you before bounding off to check a display, his cell phone permanently stuck to his ear. Soon you are wandering around in an environment in which fashion, architecture and design blend together. Customers are served free drinks at the third floor cafe; PCs and CD players are set up for your enjoyment, whether you buy anything or not. Rosso comes to Japan two or three times a year, seldom staying longer than 48 hours. When he is not working, he is out snowboarding, playing soccer or drinking with his staff and family. During a recent whirlwind trip to Tokyo, Rosso sat down with Japan Today editor Chris Betros to discuss the Diesel universe. What do you think of Japanese fashions? I think they're great. I like how Japanese pick up fashion trends and then take them to the extreme. You don't see that anywhere else in the world. Where do your clothing engineers get their ideas? We're a global product, so we draw on every culture. Each one of our designers is provided with funding for at least two research expeditions to go anywhere in the world. When they come back, we all get together and take some things from Japan, France, America or wherever. I like to think of Diesel as a giant tree whose roots are Italian with different branches representing various countries. We started off selling jeans. Now we are selling a way of life. And what's that? You should turn your back on the style dictators and forecasters and let your own tastes lead you. Sampling, mixing and style surfing are the best ways to go. Do young Japanese like the same outfits as their counterparts overseas? Kids are the same all over the world. Up until about ten or even five years ago, that wasn't always the case. But today, Japanese kids like the same fashions, supermodels, film stars and sports superstars as anywhere else. Diesel’s target is as he calls them, kids…18 to 24

Although Western agencies have been established here in some cases over thirty years and Western clients like GE even longer, over 100 years! It is these differences that tend to mystify the foreigners who come to Japan to do business. Perhaps these differences are rooted in the Japanese culture. Hopefully I can shed some light on the subject because it is fundamental to our belief that a contact and network here is extremely valuable. In the West advertising goes head to head, toe to toe. Especially in politics. The logic goes a little bit like this, Tell them why you are different Tell them why you are the best Then they will want to buy Then they will become hooked on you because they can justify their purchase. In Japan the “logic” of the approach is quite different…perhaps… Make friends with them Prove you understand their feelings Show that you’re nice Then they’ll want to buy Then they’ll find out what’s good about you This whole approach characterizes how the Japanese approach business. The one element that is most important before business can be transacted is the development of a relationship. Japanese business is an ambiance where feelings are paramount and the most important gauge to measure how clients respond to your communication is the answer to the question often asked in research, “Is your product and company "Shitashi mi yasui" or easy to feel familiar with?”