News Releases

Apr 19, 2000 09:53 AM

-- New brand management is implemented to improve corporate value --

TOKYO, Japan, April 19, 2000 -- Hitachi, Ltd. (NYSE: HIT) today announced that the company, which marks its 90th anniversary this year, is introducing a new brand management program designed to increase the value of the Hitachi brand and make it the customers' brand of choice.

This will provide impetus to the promotion of a structure that continues to create corporate value, and will thereby make it possible to provide products, systems and services that go a long way toward helping to attain the goals of the "i.e. HITACHI" medium-term consolidated business plan announced last November.

With corporate management becoming increasingly globalized and operating in a climate shaped by the evolution toward a knowledge-based society, enterprises find themselves having to utilize their competitive edge and maximize their corporate value in order to achieve corporate progress and development on a major scale. A company's vision is symbolized by its brands, which are becoming an increasingly important management resource for winning out in an age of megacompetition.

The aim of introducing the new brand management program is to use the shared employee understanding of the concept embodied by the Hitachi corporate brand to implement corporate activities on a consistent basis and build brand value. This will increase corporate value, by acquiring customers who feel a bond with the Hitachi brand, thereby giving Hitachi a superior market position and a high-profit structure. The promise of value inherent in the Hitachi brand will also form the core of a shared sense of a common identity and vision among employees that will generate pride and a sense of togetherness.

In promoting the new brand management program, Hitachi's aim is to create change and speed up business model innovation, to make Hitachi the brand of choice.

To implement the brand management program, a brand platform has been formulated that clearly defines the value promised by the Hitachi brand, and the implementation of corporate activities that enhance brand value and the promotion of corporate change and reforms have been made a management policy. This has been incorporated into a new corporate statement, "Inspire the Next," which will be vigorously publicized inside and outside the company. It will also be disseminated as a specific marketing strategy within the business divisions and Hitachi Group companies, starting with the building of strategic brands in the net and digital media businesses.

Employees will be encouraged to actively participate in ways of increasing brand value. To this end, educational programs will be implemented at the company's business facilities and related companies as a way of deepening employees' understanding of brand value. Various other means will also be utilized for this purpose, such as concept books and videotaped messages from the president of Hitachi.

On April 1, a Brand Management Group was established within the Corporate Communications section to plan and promote these brand management policies.

Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1998 (ended March 31, 1999) consolidated sales of 7,977 billion yen ($65.9 billion*). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web site at http://www.hitachi.co.jp.

*At an exchange rate of 121 yen to the dollar.