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Hyacinth Vibangco (217134099)

Schulich School of Business

PELOTON
Brand Strategy Analysis

The best version of themselves?

MKTG 4550: Brand Management

Prof. Ashley Konson
3 February 2022

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relationship with consumers and the surrounding
PRODU CT -MARKET community.
Peloton Interactive Inc. participates in the
Both industry and sector are in uenced by
Gym & Exercise Equipment Manufacturing industry,
the following key elements:
which falls under the Health and Fitness market.
• Demand from gym, health and tness clubs,
Main activities in this industry include • Per capita disposable income, and
producing home exercise equipment, gym • Import penetration into the manufacturing sector.
equipment, aerobic machines, and strength
training equipment. Exercise bikes are the third- C OMPE TI TION
largest product segment — behind treadmills, and Brunswick Corporation and Amber Sports
elliptical and step machines — in the US (ie. Oyj own the largest shares of the Gym & Fitness
American, stationary bike users) (Ristoff, 2021). Equipment Manufacturing industry — 31.6% and
5.2%, respectively (Ristoff, 2021).
2021 Industry Brunswick Corporation is a global
Revenue: Key Success Factors manufacturer and distributor of cardiovascular and
$2.1 billion • Established name. strength training tness equipment (eg. treadmills
• 1.4% growth since • Stock control. and hand weights). Their buyer pool is primarily
2016. • Ability to quickly made up of commercial institutes, which has
• Expected to increase adopt new hindered sales in the past few years as COVID
an additional 2.0% in technology.
restrictions have closed off second tier buyers (ie.
the next ve years. • Range of clients.
(Ristoff, 2021)
their buyers’ consumers) (Ristoff, 2021). To mitigate
nancial challenges, Brunswick has been
expanding their portfolio through acquisitions
MA R KE T S T RU C T URE & EVO LUT I ON (Ristoff, 2021; Marketline, 2021).
Hand weights, stretch bands, and yoga mats Amer Sports Oyj, too, has made several
are what most households traditionally have. acquisitions in response to the pandemic. The
However, since the growth of the internet and its premium tness equipment manufacturer
heavy implementation into society’s every day life, (specializing in elliptical machines), however, has
the health and tness market has adopted new been able to avoid the scale of Brunswick’s
technology to survive in the modern age — one purchases, as the prior places research and
that values convenience, design, and connectivity. development in auxiliary digital services at the
Thus, emerges the Interactive Fitness sector. forefront of their strategy (Ristoff, 2021).
Additionally, Amer has elevated their position in
the industry by having a hand in the Outdoor and
Ball Sports sector (Ristoff, 2021).
Speaking speci cally on the Interactive
Fitness sector, Peloton recognizes SoulCycle — a
subsidiary of Equinox Group — as their greatest
competitor (Peloton Interactive Inc., Company
Overview, 2020). SoulCycle exclusively
manufactures and distributes cycling and spinning
bikes, with few deviations into app development,
headphones, and apparel. Their offerings are
predominantly found in gyms of which they own —
Fig. (1) Market Structure; red line signi es Peloton’s work opposed to the individual homes and workplaces
of their consumers. Accordingly, the majority of
This sector is characterized by its (1)
SoulCycle’s revenue is generated by class-
luxurious and tech-incorporated products, (2)
attendance fees.
customizable features, and (3) deep, personal
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C ONSUMER A N ALYSIS
C ATE G ORY E N T RY POIN T S

Why With What

1. Wanting to adopt a more healthy lifestyle • Athletic apparel (eg. running shoes and
2. Ability to exercise in private, as more of a breathable clothing)
preference and comfort • Other exercise equipment (eg. strength training
3. Inability to visit a public gym because of COVID weights)
restrictions • Other work, gym, hotel, and/or club amenities
4. Encourage employee and consumer (eg. hotel • Workout supplements
guest) well-being • Healthy, possibly organic, foods and beverages
5. Acting on social surrounding recommendations

While
When • Leisure time
• During a change in life style (eg. becoming • Before and/or after work; possibly while on break
parents and/or having a more intense workload) • During athletic practice (eg. for a sports team)
• Visiting a hotel, gym, or country club
• During the COVID lockdown restrictions
• Time away from familial responsibilities
• Joining a tness focused or af uent community

Where Feeling How

With Whom
• Showrooms found in highly dense, af uent areas • Healthy
• Oneself
• Online, exclusively through the company’s own • Energetic
• Family and friends
website • Dedicated
• Colleagues
• Gyms and other tness centres • Ambitious

SE GME NTAT ION MO D EL

Consumers entering this sector are largely interested in (1) luxurious and tech-incorporated
products, (2) customizable tness routines, and (3) the personal attention from brands. There are,
however, subcategories of unique seekers.

Name of Customer
Dimensions Sought Customer-Related Characteristics
Segment

• Readily available and These individuals travel often as part of their job.
Business convenient data tracking Being that they are not in one place for a long
• Paired amenities (eg. full period of time, these consumers want the best
People on gyms and spas) out of each experience — meaning that they seek
the Go • Upscale temporary-living luxury accommodations with amenities that can
quarters serve their hectic, fast paced lifestyle.

• Community of like-minded
Being part of the highest society is this group’s
people
core interest. For them, every part of their lifestyle
Aspiring • Exposure to experts in
is meant to bring networking opportunities.
their eld
Socialites • Recognition among social
These individuals can found in country clubs,
charity bene ts, and other socialite events.
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• Community of like-minded This group wants the best of the best to

people accomplish their health and tness goals. For
Health & • Reliable testimonials them, simple and generic exercise equipment is
Fitness • Connections to other not enough. Features such as real-time tracking,
tness products and range of exercise disciplines, and an inspiring
Addicts services (eg. if there is a community is just as important as tools and
purchase package) equipment.

Dependence on location, climate, terrain, and

Augmented season forces this group to seek alternative
• Augmented reality
tness routines. A cyclist from sunny California to
Experience • Equipment that simulates
snowy Alaska, for instance, may pursue
real-life activities
Enthusiasts experiences that can best emulate their ideal
workout environment.

BRAND AN ALYSIS
LE AD ER S H IP P H ILO SO P HY & BRA ND NE T WORK ME MORY

Mission:
“Peloton uses technology
and design to connect the
world through tness,
empowering people to be
the best version of
themselves anywhere
anytime.”
(Peloton Interactive Inc., Peloton…)

Values:
• Put members rst
• Operate with a bias for action
• Empower teams of smart
creatives
• Be the best place to work
• Community

Tension
Pursuing and maintaining a healthy lifestyle can be daunting for some; it is dif cult to juggle work, family,
friends, and our own well-being.

Brighter Future
A society and tness culture that encourages healthier and more-conscious customs, while providing the
individual resources and accommodations that members need.

Brand Purpose
To “bring immersive and challenging workouts into people's lives in a more accessible, affordable and ef cient
way.
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References

Dinger, E. (2018). Peloton Interactive, Inc. In S. Long, D. Jacques, & P. Kepos

(Eds.), International Directory of Company Histories (Vol. 200, pp. 325-328). St.

James Press. https://link.gale.com/apps/doc/CX3674700078/GVRL?

u=yorku_main&sid=bookmark-GVRL&xid=7e6c236e

Marketline. (2021, September 20). Peloton Interactive Inc. Retrieved January 30,

2022, from https://advantage-marketline-com.ezproxy.library.yorku.ca/

Company/Summary/peloton-interactive-inc_2491114.

Peloton Interactive Inc. (2020, May). Company Overview - Investor Relations.

Retrieved January 28, 2022, from https://investor.onepeloton.com/static- les/

701c7555-55e3-4f82-8b70-b58463ed44aa

Peloton Interactive Inc. (n.d.). Peloton®: Exercise Bike with Indoor Cycling classes

streamed live & on-demand. Peloton® | Exercise Bike With Indoor Cycling

Classes Streamed Live & On-Demand. Retrieved January 29, 2022, from

https://www.onepeloton.ca/

Ristoff, J. (2021, May). Gym & Exercise Equipment Manufacturing in the US.

Retrieved January 26, 2022, from https://my-ibisworld-

com.ezproxy.library.yorku.ca/us/en/industry/33992b/about.

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