Pep Boys 2008 Annual Report Download - page 4
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MARKETING
While we’ve reduced our total marketing budget for 2009, we’ve actually increased our budget for service-
related advertising. Tires are our biggest category and we have found that this category responds well to our
promotional advertising. The tire promotions benefit retail as well as service. For service, it succeeds in informing
customers about our service capabilities. For retail, it appeals to DIYers since they need to purchase tires also, and
cannot install tires themselves. The message is delivered via TV, radio, print, direct mail, email and the web - with
TV providing the greatest impact on customer acquisition. The advertising has a more contemporary look, feel and
sound to attract a broader male and female customer base. The tag line, “When the light comes on – just come in -
Pep Boys, Does Everything. For Less!” is intended to inform customers of both our full service offering as well as
our value proposition.
Now launching is our rewards program, which is integrated with a more robust CRM program. And they will
both be followed by a more robust pepboys.com, that will include on-line service scheduling and many more
customer benefits.
SERVICE SPOKES
When we announced our strategic plan in the fall of 2007, we identified two meaningful legacy issues - store
size and market density. We are addressing our larger than necessary stores with our Automotive Superstore. It
provides space for a wider array of automotive products and for a deeper assortment of parts. It allows us to fulfill
our Does Everything. For Less! brand promise.
Regarding market density, since the 1990’s the company has been spread across more than 30 states and Puerto
Rico. Our new marketing approach is more cost effective given our lack of density. And service spokes will allow
us to fill in the gaps between our superscenters. Our supercenters were built to be destination stores. Our service
centers will offer customer convenience. They allow us to be close to our service customers’ home or work. They
are lower cost and more efficient. And they leverage the inventory in our supercenters and the trucks that are
already on the road serving commercial customers. Our first service center just opened in Ventura, California. We
are targeting 15 this year and 20 to 40 in 2010.
MOVING FORWARD
2008 was a difficult year for Pep Boys. But it’s now in our rear-view mirror. We are pleased with the progress
that we have made and are encouraged with our prospects for transforming this 88-year old company into a success
story.
Michael R. Odell
Chief Executive Officer