MARKETING 10.02.2021 | UNITED STATES | AFTER THE COMPANY’S SUCCESS DURING THE PANDEMIC
Peloton plans to aggressively return to marketing
(Ad Age) – The objective will be to achieve a “substantial increase” in activity during the third and fourth quarters. The brand will also promote new products.
After retiring from marketing following the success of its stationary bikes during the pandemic, Peloton is now planning to return to advertising.
Several executives discussed the strategy in an earnings meeting with analysts. “We are going to be aggressive in marketing again,” said William Lynch, president of the company, at the meeting. “We have had significant organic growth and we want to accelerate it even more,” he added.
According to Lynch, the plan is to have a “substantial increase” in marketing during the third and fourth quarters.
Peloton plans to tell the marketing story of its new Bike + stationary bike, which has more applications and a lower price than the original version, in addition to the Tread product, executives said. Marketing will promote both new items, in addition to growing in new geographies where brand perception is low.
The company, which now has a partnership with Beyoncé, recently acquired Precor, a manufacturer of fitness supplies, to increase production.
For the second quarter, Pelotón reported an increase in total revenue of 128%, to reach 1,200 million dollars, thanks to the growth in subscriptions, which became 625,000 (472% more).
The brand has reaped the benefit of home users who have stopped attending gyms due to the pandemic.
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