Summary.
Problem: Provide a business based suggestion for Peloton to regain lost market share following the spike during quarantine.
Insight: Despite the company’s financial hardships since the pandemic, Peloton’s brand is still its most valuable asset. The retention rate of the brand remains high, but acquisition costs of introducing customers to the Peloton lifestyle are far too high..
Opportunity: Educate the community on the breadth of products that Peloton offers. Use lower priced products such as the Peloton app and merchandise as a cost-effective way to enter the Peloton brand.
We Discovered:
Peloton has struggled since the pandemic. Peloton still makes the highest quality exercise bike available to the average consumer, but the consumer no longer needs to purchase their own bike. The business landscape of the pandemic is over, gyms remove the need to purchase expensive in-home exercise equipment. However, the pandemic provided Peloton with a world famous brand that is proven to have a high retention rate.
So…
Peloton needs to focus on its highest quality product, its brand. Rather than decreasing the price of the bike, the company’s largest loss leader, Peloton needs to aggressively reduce the price of entry into Peloton as a lifestyle brand.
Influencer Focused Marketing
Peloton has something that no other fitness brand does, in-house influencers. The instructors of Peloton fitness classes have become celebrities in their own right. Our primary research showed that access to classes is the primary reason that people invest in Peloton equipment, so it makes since to make the instructors the face of the campaign.
Social Media
Consumers that have not purchased a Peloton product still remain interested in the original content that the brand produces. We decided to take advantage of this interest and use the Peloton Instagram account to advertise the low cost options that Peloton provides.
Out Of Home Placements
Because this campaign was designed to take place in 2020, we wanted to target consumers when they were engaging in a new daily task, commuting. We chose to advertise in public transport stations in order to target consumers when they were both restless and had nothing to do.
