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Revitalizing Peloton’s Growth

Our team conducted a comprehensive marketing analysis for Peloton, focusing on strategies to counteract its post-pandemic challenges, including a significant drop in customer retention, a 90% decline in stock value since 2021, and increasing competition from more affordable fitness providers. The objective was to propose innovative solutions that would stabilize Peloton’s revenue streams, expand its reach, and rebuild brand loyalty—particularly among Gen Z and Millennial consumers, who are critical for long-term growth.

One of the standout strategies involved introducing Peloton products into high-traffic, shared spaces such as local gyms, apartment complexes, physical therapy offices, and college campuses. This approach was based on the insight that allowing users to experience Peloton in shared environments could increase adoption and brand exposure without requiring immediate personal investment. A notable example supporting this strategy is Peloton’s partnership with the University of Michigan, which includes branded bikes in athletic facilities, discounted student pricing, and opportunities for student-athletes to participate in promotional deals. This partnership has proven successful in engaging younger audiences and fostering long-term brand loyalty.

Our research also highlighted that 38% of Peloton’s revenue in 2022 came from its subscription services, demonstrating the importance of expanding digital offerings to maintain consistent cash flow. Given that 74% of Gen Z consumers prioritize personalized products, we recommended enhancing Peloton’s digital experience with personalized class recommendations and gamified fitness challenges to increase engagement.

To further strengthen its market position, we proposed leveraging influencer marketing, not only through traditional celebrity endorsements but also by collaborating with social media personalities who have an authentic connection with younger audiences. An example we referenced was Peloton’s partnership with singer Lewis Capaldi, which garnered over 1.3 million views on TikTok, far surpassing the platform’s usual engagement. This highlighted the potential of targeted influencer partnerships to create viral moments and boost brand visibility.

Another critical aspect of our plan was addressing Peloton’s public relations issues and safety concerns, which have negatively impacted its Net Promoter Score (NPS). Between 2020 and 2021, Peloton’s NPS dropped from 83 to 70, following high-profile equipment recalls and safety incidents. To counteract this decline, we recommended a transparent communication strategy paired with campaigns emphasizing safety improvements and product reliability.

This project stood out for its multi-faceted approach, combining detailed market research, consumer behavior analysis, and innovative marketing strategies to provide Peloton with a clear roadmap for revitalizing its brand. Special credit goes to my teammates Kameryn Ragan, Shannon Stifflear, Simon Kotok, and Michael Murphy, whose collaboration was essential in crafting a data-driven, actionable strategy designed to help Peloton regain market traction and foster long-term growth.