Amid the drastic change in the management environment, Roland Group formulated the “Medium-term Business Plan 2016/3” for three years from the fiscal year ending March 2014, which clarifies the Group’s strengths and challenges through looking back on what we have so far experienced.
Medium-term Business Plan (Consolidated)
Medium-term Business Plan (Electronic Musical Instruments Business)
With regard to the Medium-term Business Plan, we will discuss Electronic Musical Instruments Business.
・Strive to be an attractive brand which stimulates creativity
・Expand the number of people who actively enjoy music and video
・Create richer lifestyles with electronic musical instruments technologies
Policy of the Medium-term Management Plan
Roland Corporation will establish firm foundations for stable revenue bases. For that purpose, we will deal appropriately with the internal challenges, making use of Roland's strengths as described below:
- ・Strong global brand
- ・Creative digital technologies
- ・Product competitiveness of musical instruments backed by “art ware (sensitivity)”
- ・Market creation strength through solutions unique to electronic instruments
-Internal Challenges to be solved
- ・Enhancing the capability to deal with market demands
- ・Strengthening the marketing capability in each local region
- ・Remedying the high-cost structure (costs, selling, general and administrative expenses, etc.)
- ・Promoting more efficient supply chain management, in particular, in development, production and sales managements
In carrying out the Medium-term Business Plan, the Company will take the following three measures:
- Improvement of Earnings Power and Establishment of Foundation
- ・Promoting business structural reforms
- ・Strengthening earnings management framework
- ・Creating SCM structure
|The Company will continue the business structural reform continuously in order to create earnings bases for future growth. In this coming three years, we will curtail the fixed costs amounting to approximately 1,500 million yen mainly in overseas operations, and at the same time we will also promote global purchasing with the aim of cutting down on variable costs and expenses. In addition, the Company will enhance profit management by category and product in order to secure an enhanced earnings structure. Furthermore, the Company will also address supply chain management and optimize the stock levels.
- Strengthening Regional Response
- ・Reinforcing direct marketing approach
- ・Improving distribution channels in China
- ・Improving products and contents for emerging countries
|The Company will intensify its direct marketing approach to end-users in North America, Europe and Japan where online sales are being as one of the strong distribution channels due to a rapid change in distribution market. In China, we will improve distribution channels with an emphasis on “shop-in-shop” strategy, so as to facilitate sales of pianos especially in major cities. In emerging countries, we will activate our market approaches, including marketing musical instruments meeting each local music culture and developing contents for sounds and accompaniment style.
– Strengthening of Product competitiveness
- ・Recovering the sales in the existing business fields
- ・Cultivating an in-depth musical instruments
- ・Expanding the business domain
|In the existing business fields, the Company will continue to improve its competitive strength, aiming at manufacturing musical instrument with high added value, as well as setting attractive prices through low-cost operation. In addition, we will also aggressively release new products in new musical instrument fields. Furthermore, we will try to expand our business domain in business fields other than musical instruments by application of our proprietary expertise and technologies accumulated into the other fields.
Medium-term Performance Plan (Electronic Musical Instruments Business)
In the fiscal year ending March 2015, the Company will try to achieve effects for earnings improvement and also secure a solid sales recovery. Successively, in the fiscal year ending March 2016, the Company will aim to achieve an operating margin of 5% or more and a ROIC* of 6% or more so as to exceed the capital cost.
*Return on invested capital (ROIC) = Net operating income after tax/Invested capital (= Operating capital + Noncrrent assets)