Developing an Ecosystem of Fitness
Peloton, founded in 2012, is an American exercise equipment and media company. Peloton's main products are Internet-connected stationary bicycles and treadmills that enable monthly subscribers to remotely participate in classes via streaming media.
Peloton’s popularity peaked during the pandemic because of its unique proposition. But in 2021, uncertainty around the pandemic and a desire to return to social spaces affected Peloton’s growth and its stock price fluctuated greatly. Scandals and data breaches added to the pressure caused by maintenance and supply chain issues. We were tasked with creating a strategy that could reinvigorate the business to ensure cultural relevance in the future.
The public perception of the Peloton brand revolves heavily around their bike, however, the true differentiation of the brand goes beyond the equipment. The services and experiences of the brand are Peloton’s strongest equity, championed by its network of star instructors who welcome and entertain users. Not only is Peloton competing with other fitness, workout equipment companies, and gyms, but they’re also competing against other media companies that are fighting for consumer attention and time.
Through an examination of perceptions in the media, recent business performance, cultural shifts and Peloton’s response to challenges, we crafted a strategy that highlights the company’s strengths to align itself with the future. We proposed that Peloton should reposition itself as a Holistic Entertainment Ecosystem, providing a heightened experience to loyal customers and attracting new audiences.
We suggested different activations that created new touchpoints for the brand and amped up the fun.
1. The Peloton Kitchen
A cooking channel hosted by the users’ favorite Peloton instructors, embedded within the existing Peloton app. The consumers are interested in the instructors’ lives and the instructors are enthusiastic about nutrition and cooking. These instructors can teach cooking classes which will be filmed at a kitchen studio that can be doubled up as a place for exclusive in-person events.
2. Peloton Docuseries
Peloton could highlight their legacy and vision in their tenth year by launching an 8 episode docuseries in 2022. Focusing on the highly admired instructor’s lives with behind the scenes footage to amplify the functioning and energy of the brand. Docuseries have grown in popularity and this format of storytelling is a great way to allow potential users to discover the brand.
3. Gamification with VR:
Personalized and interactive gaming through exciting VR landscapes can heighten the experience allowing for a hybrid indoor-outdoor workout. With the power of better user data, analyzed to develop content that is inherently Peloton, this company can own a new equity in a new dimension. Each new game launch would create buzz for the brand with the potential of expanding into VR Rooms at Peloton studios for group workouts and VR challenges.
With the introduction of these new offerings, we aim to shift Peloton's focus from fitness to an ecosystem of entertainment.