How to Create a Value Promise

Recipe #1: Define Your Unique Business Domain

When formulating a value promise, the first step is to clearly identify your business domain — essentially, “What kind of business are we in?”
There is a famous story from the United States during the decline of the railway industry, when a company declared, “Our business is not railroads, but transportation.” By redefining its domain beyond railways to encompass broader transportation services, the company successfully revitalised its operations.

By continuously redefining their domain in response to changing times, companies can achieve sustainable growth.

In 1955, Tetsuhiko Fukutake, then a middle school principal in Okayama Prefecture, founded Fukutake Shoten, driven by a long-held dream of entering the publishing industry. Originally an educator, Fukutake launched the correspondence education brand Shinken Seminar, which rapidly grew to become the industry leader.

By 1986, Soichiro Fukutake, the second-generation president, had taken over the company, which then boasted annual sales of approximately ¥59.4 billion. However, the business soon faced significant challenges: a shrinking student population limited growth; public perception of the exam preparation industry became increasingly negative; and rapid expansion led to internal organisational divisions.
At this critical juncture, President Fukutake introduced the concept of Benesse.

Benesse derives from Latin, meaning “to live well” (bene = well, esse = to be).

He declared before all employees:
"We do not provide exam preparation; rather, we support people who seek to live well. To do so, we ourselves must strive to live well each day."
Subsequently, the company restructured around the domain of Benesse — living well — expanding its business to serve learners from early childhood to the elderly.
In 1995, Benesse became both the company name and its core value promise. By March 2001, the group had achieved consolidated sales of ¥262.9 billion, with standalone sales of ¥193.3 billion.

Successful formulation of a value promise begins with the clear definition of a unique business domain — one that encapsulates the company’s essence and strategic direction.

Recipe #2: Clarify the Essence of Your Strengths

Just as every individual possesses unique traits and strengths, every organisation has its core competencies — the fundamental technologies and capabilities at its heart.
It is widely understood that diversification beyond core competencies often yields suboptimal results.
Brand strategy, therefore, is not about “how to outperform others”, but rather about “how to clearly define your relationship with others and establish strategic segmentation.”
Within the broader market landscape, the key to brand strategy lies in effectively leveraging your own core competencies.

In 1899, Ichitaro Kanie, the founder of Kagome, began cultivating Western vegetables and became the first in Japan to successfully germinate tomatoes. He subsequently started producing tomato sauce — now known as tomato purée.
Since then, Kagome has consistently grown and expanded its business centred on the tomato.

In 1999, upon celebrating its 100th anniversary, Kagome redefined itself with the clear declaration of being a “Tomato and Vegetable Company.”
This involved a rigorous focus on the business domain — deliberately shedding all activities unrelated to tomatoes and vegetables — thereby forging a direct and unambiguous link from core competencies to its value promise.

Structure of the “Tomato and Vegetable Company”

Corporate Mission:

To develop the tomato as the quintessential umami seasoning for 21st-century Japanese cuisine.

To cultivate vegetable-based beverages as national health drinks.

Business Domain:

Tomatoes and vegetables.

Core Competence:

「Refining the Tomato & Vegetable」

Value Promise (Core Value):

A rich culinary world centred on tomatoes and vegetables.

While defining the value promise based solely on core competencies is essential, it is nevertheless incomplete. This is because the value promise represents a bond linking the company’s core competencies — its offered value — with the customer’s expected value. Therefore, it must also be informed by the characteristics of the target customers and the values they anticipate.

In 1890, Nagase Shoten, a Western sundries trader, successfully developed Kao Soap as a competitive alternative to imported cosmetic soaps. In 1928, based on research into oils and fats used as raw materials for soap, the company launched Econa, a commercial edible oil product. Over time, the company diversified from personal care (soaps, shampoos) and food products to household items (laundry detergents, etc.) and cosmetics. This expansion represented a diversification strategy leveraging core competencies in soap and oil research.

However, in 1986, Kao ventured into information technology products such as floppy disks, applying its expertise in surfactant technology derived from detergents. By 1999, Kao had completely withdrawn from this sector. The brand failed to deliver value to its new target customers, who possessed very different characteristics from its traditional consumers. The company lacked understanding of what this new audience sought and what triggered their purchase decisions, resulting in a misguided pricing strategy.
Subsequently, Kao revised its management approach, refocusing investment on the healthcare and beauty sectors, areas in which it excelled both technologically and in marketing, embodying cleanliness, beauty, and health. This strategic realignment led to record operating profits in the fiscal year ending March 2001.

Recipe #4: Elevate the Value Promise as Social Value

We have identified several important ingredients necessary for crafting a value promise. Now, I would like to outline several essential conditions required to process these ingredients effectively.
Firstly, the value promise must be clear and distinctive.
As the unique value and philosophy of the company, even if expressed in language similar to competitors, it must embody a worldview that is truly special. Moreover, it should be so straightforward and compelling that both employees and customers immediately understand and embrace it.

Secondly, it must resonate as a social value.
For instance, Benesse’s “Living well” concept speaks deeply to individuals striving for a fulfilling life and simultaneously proposes a new model of autonomous individuality. This concept challenged and enriched traditional Japanese culture and society.

Similarly, Kagome’s commitment to creating a rich culinary world through “tomatoes and vegetables” reflects a corporate pledge to elevate the umami of tomatoes as a foundational element of Japan’s evolving food culture, alongside soy sauce and miso.
A value promise should encompass not only an economic commitment but also a cultural and societal one.

Thirdly, it must be shared internally and externally.
As a bond connecting company and customer, the value promise delivers value to customers while simultaneously serving as a guiding principle for employees and becoming ingrained as organisational culture.
Benesse’s “Living well” began as an internal slogan. Posters proclaiming “Live surprisingly well today” adorned the company’s walls, sparking an internal revitalisation movement. This concept later expanded into the company’s business domain and ultimately became the corporate brand itself.
Brand strategy, therefore, can be understood as a fractal pattern — where the individual and the collective, employee and customer, mirror one another. The smallest unit of this fractal — the archetype — is the value promise.