“No Equipment Necessary”

Emphasizing Peloton’s Subscription Model

The Ask

Sales were down across multiple fiscal quarters with people going back to traditional gyms. We were asked to look at what the brand could do to help revitalize sales back to company high pandemic levels. 

  • The Challenge

    The company's stock dropped 34% following its fiscal first-quarter earnings in November 2021.

  • The Challenge

    By November 2022, Peloton has shifted all of its manufacturing overseas and laid off over 5,200 employees.

  • The Opportunity

    In the second quarter of 2023, Peloton had 3.03 million subscribers – over a 9% year-on-year increase, with an annual retention rate of over 92%.

  • The Opportunity

    As of June 2021, Peloton had over 800,000 digital-only subscribers – an increase from the 316,800 subscribers in 2020.

Strategy

Reduce the price of entry into Peloton as a lifestyle brand.

Refocusing on the Peloton App subscriptions is the most profitable path forward. We know that once you have joined you are likely to stay and have high favorability.

  • Peloton appeals to individuals who value convenience, personalization, and interactive experiences in their workouts.

  • Target those who are interested in integrating digital technology into their fitness routines and goals.

We’re still known primarily as a stationary bike company. The app has never been a focal point of our marketing campaigns or growth strategy. The digital app needs to become the tip of the spear.

— Barry McCarthy, CEO

Results

An education campaign on the breadth of products offered by Peloton, with a heavy focus on the app.

Focusing on the mobile app and subscription model allows the company to capture new members who are looking for lower cost entry points into the brand, and ultimately allows for a higher customer retention rate for Peloton. 

Media Tactics

  • The campaign would be best suited for digital channels, since we know that is where instructors are interacting with our desired audiences. Find ways to retain talent and leverage their fame to drive memberships to the Peloton App.

  • Highlight language around using non-stationary products and a visual representation of the “ease of use”.

Meet the Team

Troy Fultz (ST)

Ruby Shan (ST)

Sarah Hardin (ST)

Max Warren (ST)

My Role

Project Management, Primary and Secondary Research, Brand Audit, Category and Consumer Research, User Journey Mapping, Strategic Development, Creative Briefing, Deck Design

Deliverables

Primary Research (Survey; IDIs), Positioning, Brand Strategy and Messaging, Social Media Strategy, OOH Advertising

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