Cases of synergy 3 and 4 tasks

Case problem 3
The local company AutoPlan, engaged in the production and sale of cars, entered the market in 2014.

Until 2019, products had an average income and did not develop much, remaining at the regional level.


In 2019, management decided to restructure the company and enter new sales markets in other cities, but this policy achieved rather negative growth dynamics and did not produce any positive results throughout the year. Promotions and discounts provided by the company also did not bring results. Management tried promotion through targeted advertising, placing banners and billboards. But the problem was not solved, perhaps also because the company’s finances did not allow for a favorable geographical location of the new branch, but only in the region. The AutoPlan company reduced the number of cars produced and the conveyors stopped. In this market segment in more developed cities, where the company was striving, there is a more powerful competitor - company “C”, which needs to open production in this region in the central part in order to increase the number of sales and achieve a leading position.

1. What strategy can the AvtoPlan company use in this case?
2. How would you describe the strategic concept of the company, does it exist?
3. What can you advise a company in the field of promotion, advertising and PR to develop its own brand in a new location?
Evaluate the chances of "AutoPlan" to reach a new level of income in connection with the opening of branches in major centers of the country
Case problem 4
Company A is a retail chain selling food and non-food products. It belongs to the format of a hard discounter and can afford to sell goods 20–30% cheaper than competitors. The company was founded about 10 years ago. In the last 3-4 years, the company has been actively developing and conquering new markets in Russia and neighboring countries, the total number of stores is already more than 1000.
Distinctive features of the company:
- Decentralized control system
- The company develops only at its own expense
- Retail prices in the company’s stores are 20-30% lower than competitors
- The company does not invest in expensive equipment and services
- Product matrix of stores up to 1000 items of goods

At the same time, the success of the company varies in different regions. In region B, the company has been on the market for 5 years. Over these 5 years, the company has opened more than 12 stores, 7 of which are currently operating; the company was forced to close the remaining stores due to their lack of profitability. Operating stores do not show the expected current profitability and amount to no more than 1%, in addition, the dynamics of the results is negative, which does not suit the company’s management. Revenue from existing stores falls by 10% compared to last year.
At the same time, according to the company’s calculations, the market capacity of this region allows the opening of up to 30 chain stores.
You are the new head of the region. Before joining the company for this position, you knew and heard little about the company. You are tasked with improving the results of current stores to +15% LFL and increasing the total number of stores in the region by 2 times over the next 3 years, increasing store profitability to +3%.
It is clear that the region requires a comprehensive solution to improve efficiency.

1. Analyze the stated problems of the company in region B, suggest solutions?
2. Develop a strategic action plan?
Suggest a set of measures related to marketing?