Stellantis Pro One Brand Coverage Strategy: an integrated model of Efficiency, Differentiation, and Adaptive Governance in the European LCV Market

In this study, the analysis centers on the Brand Coverage Strategy developed by Stellantis Pro One. The intention being the examination of the industrial, economic, and organizational effects within the European Light Commercial Vehicle (LCV) market. The strategy is not only a plan for the rationalization of the business, because it represents an evolutionary approach to strategic management, having the capability to integrate industrial rationalization, business differentiation, and governance within a single operational framework. By employing a mixed-method approach combining qualitative analysis and quantitative simulations carried out on the K9 platform, the research demonstrates the Group’s new three-level line packaging architecture, Smart Model, Mid Trim, and High Trim, proves the capability to enhance market share, profit realization, and the optimal organization of the product line without an augmentation of fixed costs and production capacities. From the quantitative analysis, the results indicate an increase in volume between 6% and 10% and an increment in profit between 2.4% and 5.7%, depending on the levels of demand elasticities. On the other hand, the move also assists in the reduction of pressures attached to the promotion aspect, enhancement of the competitive positions, and the general brands’ image within the group. From a theoretical standpoint, the Brand Coverage Strategy appears to be the realization of the Dynamic Capabilities theory, where the co-existence of efficiency, differentiation, and flexibility finds equilibrium. From a management perspective, the current study could offer useful information for the management of a multi-brand portfolio, the setting up of price based on value, as well as the development of flexibility in governance. The Brand Coverage Strategy appears to be structurally sustainable business model, capable to achieve the transformation of industrial modularity and variety into resilience and innovation drivers. The approach presents a replicable framework for the management of multi-brands in the future, integrating efficiencies, flexibility, and value in the framework of a unique strategic approach.