afaqs!

A $2000 bike looks beyond the affluent

By afaqs! news bureau, New Delhi, October 27, 2017
Peloton had been targeting a core, affluent audience. Now, it is shifting gears.
Fitness startup Peloton has a new financing program and holiday marketing effort

With a price tag of $1995, it is not a bike that everyone can afford. Although most of the early adopters were the rich, around 18 months ago, Peloton realised that it needed a wider market and audience.

After having raised $450 million so far, it changed gears. It now has a financing programme to get more customers to opt in for a subscription service, launched an ad campaign more relatable to a broader audience and went on to sponsor an NBC Olympics.

The company has partnered with Westin Hotels & Resorts to get its bikes and classes in front of more of its target audience, as well as expanding its showroom footprint across the country.

In the crowded fitness space, moved its ad campaigns located mainly in plush upscale homes to a new campaign for next month that features, among others, an older man who loves outdoor biking and a mom whose young daughter comes in on a small tricycle while she's biking. The campaign will focus more on the experience than the product.

Peloton generated $170 million in revenue in 2016, up from $60 million in revenue in 2015.

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Source : https://www.wsj.com/articles/peloton-shifts-gears-with-more-attainable-marketing-plan-1508959554