Peloton Who?

    When I think about Peloton, I think about their annoyingly catchy, overplayed commercial. You know the one, where a wealthy, attractive individual wakes up willingly before the crack of dawn to exercise on their peloton. And I almost forgot- they enjoy it. I get the hype, you are drawn to the product because you feel as though you are accomplished, fit, successful, and don't even have to leave your house. Personally, I ignored these commercials due to the fact that I did not exactly fit that picture. I dismissed Peloton almost immediately based on simply the price.

    Today I saw a different type of Peloton commercial; one where instead of showing that little fantasy land clip, they showed normal people, that weren't perfect, working out on Peloton bikes. Their message stated, "It's you. That Makes Us.". 

(Peloton, 2021)


    I must not have been the only person with those thoughts, because Peloton has created a new marketing campaign after their covid surge came to an end. Their goal is to appeal to everyday customers by lowering the price of their bike, "Consumers can’t get over the massive price hurdle the brand demanded, which it now acknowledges. The company announced a loss of $313.2m (£228m) during the fourth quarter to 30 June, despite revenue growing by 54% to $937m (£682m).

In response to dismal financials, Peloton will slash prices across its portfolio to gain the brand more mass appeal. Its original bike product will be reduced by around 20%, a longer 43-month 0% interest financing plan will be introduced for its Bike+ and Tread products, which equates to approximately $59 (£43) per month.

The company says it acknowledges its product prices “remains a barrier” and wants its most popular products to be at an “attractive everyday price point”. (Pham, 2021)

    This move on Peloton's part is their way of choosing a different demographic of people to target. Instead of the upper class, they are now lowering the price to appeal to normal people, or so they say "us". I am eager to see if this shift in their target market will have any increases in numbers vs their last few quarters. Additionally, I wonder what will be their next move if not. Regardless, I think that watching Peloton's marketing moves in a COVID vs non-COVID world will be valuable for marketers to see first-hand how a company chooses to navigate its company in different circumstances.


Pham, M. (2021, August 27). McDonald's, RIMMEL, Peloton: 5 things that mattered this week and why. Marketing Week. https://www.marketingweek.com/mcdonalds-rimmel-peloton-5-things-that-mattered-this-week-and-why/.

Peloton. (2021, July 23). It’s You. That Makes Us. [Video]. YouTube. https://www.youtube.com/watch?v=1WPWGKxWyk4

Comments

Post a Comment

Popular posts from this blog

Pennies Are Out Of Style

  JCPenney, an American Department store chain that was founded in 1902, was once a booming business and one of the first pioneers of stores that moved their sales online into the world of e-commerce.   However, since then, they have declined to the point of filing for bankruptcy in May of 2020. What happened? JCPenney made itself known and loved for its fair pricing strategy and noble American values. The company also had the right idea at first to jump on the e-commerce bandwagon, and in turn, they were one of the first to see just how profitable sales can be using an additional channel than in stores, "For much of its history, JCPenney was an e-commerce leader. It was one of the first department stores to put its catalog online — a strategy few other competitors tried out at the time. In 2006, online sales exceeded $1 billion — another milestone for physical retailers trying out e-commerce." ( Weissman, 2020) After instituting its online platform in 1994, the JCPenney webs...
Read more

First Post

Hello and Welcome to Mia's Marketing Memoir-      My name is Mia Carpenter and I am a senior Marketing major at West Virginia University. I am a young, ambitious business professional and I am passionate about what I have learned thus far about all things business over the past 3 years. I enjoy writing and can not wait to dive into current marketing news as well as see the way marketing evolves over time.     Here at my blog,  I will be sharing my marketing knowledge as well as the information I continue to learn throughout my upcoming career in the industry. I am eager to speak about the things I find interesting as well as hearing some feedback from others in the marketing field on the web, as I have much still to learn and many different insights to take in.        Sit back, relax, and enjoy the ride!
Read more