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Peloton’s Current Marketing Strategies

Peloton, a fitness company, benefited immensely when the COVID-19 pandemic began, as consumers had no choice but to consider fitness arrangements from the comfort of their own homes. But as restrictions started lifting and gyms began to reopen Peloton saw demand begin to fall. Earlier this year, CNBC reported that Peloton would temporarily halt production of connected fitness products and try to better manage its costs. Not long after, the CEO stepped down and they laid off over 2,800 employees. Needless to say, the company has been struggling to recover as the world begins to reopen. 

Peloton has been trying to innovate elsewhere due to the challenges it has been facing in the hardware segment, considering that its virtual workout classes have been the one area they continue to excel in. Last week, Peloton introduced a feature called Lanebreak which turns rides into video game levels. The game could be exactly what the company needed, as the game may drive uninspired customers to hop back on their bikes to try it out. Lanebreak is an example of what Peloton does best: its content. “No other connected fitness company offers the experience that Peloton does, and that’s a reason why its users remain devoted despite the company’s uncertain future” (gizmodo.com). 

Example of what Lanebreak game looks like to Peloton riders

Peloton is also pushing a new advertising campaign called “Love Every Journey” that highlights testimonials from customers who were initially apprehensive of the fitness brand but have transformed into devoted fitness gurus due to Peloton’s connected bike and treadmill products. In a press statement, Peloton’s Chief Marketing Officer claims, “This campaign is leading with the unvarnished voices of our members at a time of heightened skepticism because nothing is sharper than the truth.” The social media and print ads use black text on a white background to show the journey of various Peloton converts. Some of the initial testimonials describe Peloton with phrases like “scam,” “fad” and “overpriced coat rack,” and then the ad demonstrates that these same customers have discovered their passion for the brand's community and acquired a love for working out. Conversely, the television ads take a more aspirational approach. They describe reasons why various consumers might start their journey with Peloton, with reasons ranging from a longing to recapture one’s old sports glory days or fit into a new swimsuit before a vacation. The goal of this marketing campaign is that Peloton will be able to survive the current hardships based on its ability to foster long-term loyalty. 

References

Laurenthomas. (2022, January 21). Peloton to halt production of its bikes, Treadmills as demand wanes. CNBC. Retrieved February 23, 2022, from https://www.cnbc.com/2022/01/20/peloton-to-pause-production-of-its-bikes-treadmills-as-demand-wanes.html 

McGarry, C. (2022, February 17). Peloton's video game feature is here, and it's fun. Gizmodo. Retrieved February 23, 2022, from https://gizmodo.com/peloton-lanebreak-hands-on-1848552894 

Pasquarelli, A. (2022, February 22). Peloton tries to bounce back with new marketing push. Ad Age. Retrieved February 23, 2022, from https://adage.com/article/marketing-news-strategy/peloton-tries-bounce-back-new-marketing-push/2401416