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Penske Automotive Group logo

Penske Automotive Group Marketing

To deliver exceptional automotive experiences by pioneering mobility solutions that redefine the future of transportation

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To deliver exceptional automotive experiences by pioneering mobility solutions that redefine the future of transportation

Strengths

  • DIVERSIFICATION: Balanced portfolio across new, used, parts & service
  • BRANDS: Represents 35+ premium/luxury automotive brands globally
  • DIGITAL: CarShop digital platform driving 22% of used vehicle sales
  • NETWORK: 320+ retail automotive franchises across US and Europe
  • FINANCIAL: Strong balance sheet with $1.1B in available liquidity

Weaknesses

  • AWARENESS: Brand recognition trails competitors in key markets
  • INTEGRATION: Fragmented marketing systems across business units
  • DIGITAL: Online shopping experience lags industry innovators
  • DATA: Limited unified customer data platform for personalization
  • TALENT: Marketing talent gaps in emerging digital specialties

Opportunities

  • ELECTRIFICATION: EV market expected to grow 25% annually until 2030
  • MOBILITY: Subscription and flexible ownership models gaining traction
  • DIGITAL: 67% of car buyers now start their journey online
  • PERSONALIZATION: Data-driven marketing increasing conversion by 20%
  • AFTERMARKET: Growing demand for premium service experiences

Threats

  • COMPETITION: Digital-first retailers expanding market share rapidly
  • DISRUPTION: Direct-to-consumer models bypassing traditional dealers
  • REGULATION: Changing emission standards impacting product mix
  • ECONOMIC: Inflation and interest rates affecting consumer confidence
  • TECHNOLOGY: AI adoption gap widening between leaders and laggards

Key Priorities

  • DIGITAL: Accelerate digital transformation of customer experience
  • DATA: Develop unified customer data platform for personalization
  • BRAND: Strengthen premium position in mobility solutions market
  • TALENT: Attract and develop next-gen marketing capabilities
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To deliver exceptional automotive experiences by pioneering mobility solutions that redefine the future of transportation

DIGITAL DOMINANCE

Lead the industry in digital customer experience

  • PLATFORM: Launch new integrated digital retail platform with 100% inventory visibility across 320+ locations
  • CONVERSION: Increase digital lead-to-sale conversion rate from 12% to 18% through enhanced user experience
  • ENGAGEMENT: Grow digital touchpoint engagement by 35% through personalized content and recommendations
  • EXPERIENCE: Reduce average online purchase journey time by 40% through streamlined checkout process
INSIGHTS ENGINE

Transform customer data into actionable intelligence

  • PLATFORM: Implement unified customer data platform connecting 100% of touchpoints across 320+ locations
  • SEGMENTS: Develop 12 high-value customer personas with tailored marketing journeys and messaging
  • PREDICTIONS: Deploy 5 predictive models to optimize marketing spend allocation with 85% accuracy
  • AUTOMATION: Automate 70% of routine marketing tasks through intelligent workflow systems
PREMIUM POSITION

Elevate brand perception in luxury mobility market

  • AWARENESS: Increase unaided brand awareness in target segments from 42% to 55% through premium positioning
  • CONTENT: Produce comprehensive luxury mobility content series generating 5M+ qualified impressions
  • PARTNERSHIPS: Establish 3 strategic co-marketing partnerships with premium lifestyle brands
  • PERCEPTION: Improve brand premium perception score from 7.2 to 8.5 on industry benchmark survey
TALENT TRANSFORMATION

Build world-class digital marketing capabilities

  • EXPERTISE: Recruit 5 senior-level experts in digital marketing, data science, and CX design
  • DEVELOPMENT: Implement digital marketing certification program with 85% team completion rate
  • INNOVATION: Establish AI/ML Center of Excellence with 12 trained team members across functions
  • CULTURE: Increase marketing team engagement score from 72 to 85 through empowerment initiatives
METRICS
  • REVENUE GROWTH: 8% YoY for 2025
  • CUSTOMER ACQUISITION COST: $280 per new customer (15% reduction)
  • NET PROMOTER SCORE: 72 (from current 65)
VALUES
  • Integrity - Act with honesty and transparency in all interactions
  • Excellence - Strive for outstanding performance in every aspect of our business
  • Innovation - Embrace change and continuously improve our products and services
  • Teamwork - Collaborate effectively to achieve common goals
  • Customer First - Put customers at the center of everything we do
Penske Automotive Group logo
Align the learnings

Penske Automotive Group Marketing Retrospective

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To deliver exceptional automotive experiences by pioneering mobility solutions that redefine the future of transportation

What Went Well

  • REVENUE: Record quarterly revenue of $7.5B, up 7.2% year-over-year
  • DIGITAL: Online leads conversion increased 15% through new platforms
  • SERVICE: Fixed operations revenue grew 8.4%, outpacing vehicle sales
  • LUXURY: Premium brand mix improved to 71% of new vehicle revenue
  • EFFICIENCY: SG&A as percentage of gross profit reduced by 110 basis pts

Not So Well

  • USED: CarShop used vehicle unit sales declined 3.2% year-over-year
  • MARGINS: New vehicle gross profit per unit compressed by 4.5%
  • TRAFFIC: Showroom traffic decreased 6% across comparable locations
  • CONQUEST: New customer acquisition costs increased 12% year-over-year
  • INVENTORY: Supply constraints affecting availability in key segments

Learnings

  • INTEGRATION: Coordinated marketing across channels drives higher ROI
  • SEGMENTATION: Premium buyers responding to differentiated messaging
  • DIGITAL: Investment in online experience directly impacts conversion
  • LOYALTY: Service department satisfaction correlates with repurchase
  • CONTENT: Video content generates 2.3x engagement vs. static content

Action Items

  • PLATFORM: Implement unified marketing automation platform by Q3 2025
  • CONTENT: Develop premium brand storytelling strategy across channels
  • EXPERIENCE: Redesign digital customer journey with mobile-first focus
  • DATA: Launch customer data platform to enable personalization at scale
  • MEASUREMENT: Deploy enhanced attribution model for marketing ROI
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To deliver exceptional automotive experiences by pioneering mobility solutions that redefine the future of transportation

Strengths

  • ANALYTICS: Advanced reporting capabilities across business units
  • INVESTMENT: Commitment to technology modernization initiatives
  • AUTOMATION: Successful implementation of marketing automation tools
  • LEADERSHIP: Executive team supports AI-driven transformation
  • ADOPTION: Early pilots showing promising ROI in targeted areas

Weaknesses

  • INFRASTRUCTURE: Fragmented data architecture limits AI potential
  • SKILLS: Limited specialized AI/ML talent within marketing team
  • GOVERNANCE: Unclear data governance policies hampering progress
  • INTEGRATION: Legacy systems not designed for AI compatibility
  • STRATEGY: Lack of comprehensive AI roadmap for marketing

Opportunities

  • PERSONALIZATION: AI-driven experiences can lift conversion by 25%
  • PREDICTION: Demand forecasting could optimize inventory by 15%
  • EFFICIENCY: Automation of routine tasks could reduce costs by 30%
  • INSIGHTS: Customer journey analysis can increase retention by 20%
  • INNOVATION: Generative AI enabling new creative capabilities

Threats

  • COMPETITION: Industry leaders investing $50M+ in AI capabilities
  • PRIVACY: Evolving regulations restricting data usage patterns
  • EXPECTATIONS: Rising customer expectations for personalization
  • TALENT: Fierce competition for AI/ML specialists in automotive
  • SPEED: Accelerating pace of AI innovation requiring quick adoption

Key Priorities

  • PLATFORM: Build unified customer data platform for AI applications
  • TALENT: Develop AI Center of Excellence within marketing
  • ROADMAP: Create phased implementation plan for marketing AI
  • EXPERIENCE: Launch AI-powered personalization across touchpoints