10 page powepoint using the key points of the capstone paper below including speakers notes

10 page powepoint using the key points of the capstone paper below including speakers notes

® njeads - HOB B UNM SapI|s apn ul 3s I voneyuasaud pue 3 ed = ras Sr b a = SUOLEpUSWIWOIal ajo o1ydess pue fensia Addy 101 - MOd 104 "Jx3) pa13|ing ro Wisi ar vey) 9) 31A15 Yd JuSLIN> 0) Suipioaoe D311ULIOY B18 SU =. "SUoAIBna s J eads ppy ‘sainuiw g pasdxa OJ :uonejuasaid eipapy 28essaw |EJ3A0 3Y] WO ; SunjuIy] [E20 PUE HC pue ‘nj30adsa. ‘[euoiss Strategies to Revamp Peloton’s Revenue2 STRATEGIES TO REVAMP PELOTON’S REVENUE Executive Summary This report focuses on the strategies and methods, which Peloton can use to help the fitness equipment manufacturer Peloton in order to improve its declining revenue over the years. The primary products of the business have been identified as stationary bicycles, treadmills, and indoor rowers equipped with Internet-connected touch screens that stream live and on-demand fitness classes through a subscription service. Peloton needs to improve its business strategies to make a comeback and to improve its revenue. The report is a detailed analysis of the methods and strategies, which can help in revamping the revenue of Peloton. Table of Contents Introduction4 Primary Factors Behind the Downfall4 Strategies and Recommendations for Improving the Revenue5 Global Expansion5 Increasing the Hardware Range5 Expanding the Business through Acquisitions6 Expanding Through Apparel6 Becoming an Open Platform7 Advertisement7 Moving into Nutrition8 Wearables9 Making Use of Latest Technologies9 Marketing Opportunities10 Four Ps of Marketing Mix for Peloton10 Developing Better Business Strategies14 Conclusion16 References17 Introduction Peloton is a company with its origin in America. This is an exercise equipment and media company with its primary products to be stationary bicycles, treadmills, and indoor rowers equipped with Internet-connected touch screens that stream live and on-demand fitness classes through a subscription service. Peloton has been making extensive use of technology and design to connect the people across the globe through fitness. Despite of the innovation and technology they have been putting in, it has been observed that the revenue of the company is going down. To address Peloton's declining revenue, a multifaceted approach is essential. Firstly, diversifying offerings beyond stationary bicycles, treadmills, and indoor rowers could attract a wider audience, potentially through new fitness equipment or accessories. Targeted marketing campaigns aimed at specific demographics or untapped markets, leveraging influencers and data analytics, would amplify brand visibility. Further international expansion into regions with untapped potential and strategic partnerships with corporations for wellness programs could broaden Peloton's reach. Building a stronger sense of community among users through online forums and social media would enhance engagement and retention. Diversifying content to include specialized programs like nutrition workshops and mindfulness sessions could attract new subscribers seeking holistic wellness solutions. Collaborations with complementary brands and innovative pricing models could also entice diverse customer segments. Continuous innovation, such as integrating virtual reality experiences or AI-powered coaching tools, would maintain Peloton's competitive edge. Finally, proactive customer retention strategies, such as loyalty rewards and personalized recommendations, would foster long-term customer relationships, ultimately reversing the trend of declining revenue and ensuring sustainable growth in the connected fitness market. This report focuses on strategies and recommendations, which can be used to revamp the declining revenue of the business. Primary Factors Behind the Downfall During the pandemic, Peloton was one of the highest money-making companies and enjoyed tremendous success. However, in the year 2022, Peloton started to notice a downfall making it evident for the management to lay off more than 5000 employees as the revenue was decreasing exponentially. Some of the primary factors, which contributed to the declining revenue were fading popularity of at-home fitness devices, poor logistic operations of the business as well as outdated marketing strategies (CNBC, 2023). Furthermore, subscriptions of the company started to dip in the year 2023. Additionally, the company had to revoke a large number of units of one of its bikes leading to a bad word of mouth, which had an adverse impact on the sales of the company. Also, as people started to move out of their homes and started visiting gyms, the sales of their bikes and treadmills fell. In addition to this, the top management of the company was also not stable. This further added to poor leadership contributing to the downfall of the business. Peloton's decline in revenue and instability in 2022 and beyond can be attributed to a myriad of factors beyond the initially identified ones. Alongside the fading popularity of at-home fitness devices and logistical challenges, disruptions in the global supply chain during the pandemic likely compounded Peloton's difficulties in fulfilling orders promptly, leading to customer dissatisfaction and potential loss of sales. Moreover, heightened competition within the connected fitness market, coupled with emerging startups and traditional fitness equipment manufacturers entering the fray, eroded Peloton's market share and pricing power. Product quality concerns, exemplified by the large-scale recall incident, likely undermined consumer trust and deterred potential buyers. Furthermore, as competitors proliferated, maintaining subscriber loyalty became increasingly challenging, particularly if Peloton's content offerings were perceived as stagnant or insufficiently diverse. Economic uncertainty, including changes in consumer spending habits or inflationary pressures, could have further dampened Peloton's sales prospects, particularly for high-ticket items like stationary bikes and treadmills. Negative publicity and brand perception issues, such as controversies involving company executives or customer service complaints, likely tarnished Peloton's brand image, dissuading potential customers from engaging with the company. Additionally, if Peloton failed to innovate its products, services, and content offerings to keep pace with evolving customer preferences and industry trends, it risked losing relevance and appeal over time, further exacerbating its revenue decline. Addressing these multifaceted challenges would necessitate a holistic strategy encompassing product innovation, supply chain optimization, customer experience enhancements, marketing revitalization, and leadership stability to steer Peloton back towards sustained growth and profitability. Strategies and Recommendations for Improving the Revenue Undoubtedly, Peloton has faced a massive downfall during the years 2022 and 2023. The business has been making extensive efforts to bounce back and has been putting in a lot of effort to come up with strategies for the revival of the business. Certain strategical recommendations, which the business can use to improve its revenue are: Global Expansion There is a huge opportunity for Peloton to grow in the international market. There are currently four markets, where Peloton has been selling its fitness products. These markets are US, Canada, UK, and Germany. However, there is a huge scope for growth of the business in markets like India, Mexico, Australia, and China. Peloton should think of selling its products in these markets as demand for luxurious fitness products in these markets has been growing. Therefore, Peloton can increase its revenue by expanding into the global markets (Winchester, Pleggenkuhle-Miles & Bass, 2021). Furthermore, in countries like Australia, New Zealand, and India there is a huge English-speaking population and therefore making it easy for Peloton to expand into these regions. Since, Peloton has Spanish-Speaking instructors so expanding into Mexico could be a logical step for Peloton. Expanding into international markets such as India, Mexico, Australia, and China offers Peloton significant opportunities for growth beyond revenue expansion. Adapting to local cultures, Peloton would need to tailor its marketing strategies and content to resonate with each country's fitness trends, collaborating with local influencers and offering content in multiple languages where necessary. Efficient logistics and distribution networks are crucial, navigating regulatory requirements and customs procedures to ensure timely delivery. Localization of content is paramount, offering classes tailored to regional activities and featuring instructors from diverse backgrounds. Investing in brand awareness and educational initiatives would be essential to introduce Peloton and educate consumers about connected fitness benefits. Thorough market research would inform strategic decision-making, understanding consumer behavior and competitive landscapes. Partnerships with local businesses and gyms could help establish a stronger foothold, while excellent customer support in multiple languages is vital for building trust and loyalty. By addressing these associated points and leveraging its strengths, Peloton can successfully penetrate new markets and meet the growing demand for luxurious fitness products globally. Increasing the Hardware Range There is a huge opportunity for Peloton to expand its range or hardware. They have been primarily working in the area of bikes and treadmills. Expanding their range of hardware to connected weight machines, connected rowing machines and many more could provide a range of choices to the customers and therefore helping Peloton to improve its revenue in the nearing future (Gazzola et al., 2020). Adding more hardware to the range of available products is necessary to improve the declining revenue of the business. Expanding into categories like strength building, floor and mediation can provide this fitness equipment manufacturer with more opportunities to revamp its declining revenue. Expanding Peloton's hardware range beyond its primary offerings of bikes and treadmills to encompass connected weight machines, rowing machines, and additional fitness equipment represents a pivotal strategy for revenue growth and business resurgence. By diversifying its product portfolio, Peloton not only broadens its appeal to a wider customer base with diverse fitness preferences but also mitigates the risk associated with overreliance on a single product category. This move aligns with evolving consumer trends towards holistic wellness and multi-functional fitness solutions. Moreover, expanding into new hardware categories enables Peloton to meet the varying needs of customers by providing comprehensive fitness solutions that encompass strength training, cardiovascular exercise, and more. Such diversification not only enhances Peloton's value proposition but also bolsters its subscription services, as customers purchasing connected weight machines or rowing machines may be more inclined to subscribe to Peloton's digital content for guided workouts and training programs tailored to their equipment. Furthermore, by capitalizing on emerging trends and positioning itself as a comprehensive wellness brand, Peloton can solidify its brand reputation for innovation and excellence in the connected fitness space, fostering brand loyalty and attracting new customers. Ultimately, this strategic expansion into new hardware categories affords Peloton a competitive advantage, setting it apart from competitors and ensuring its continued leadership in the rapidly evolving fitness industry. Through continuous innovation and a commitment to meeting the diverse needs of its customer base, Peloton stands poised to revitalize its business and drive sustainable revenue growth in the years to come. Expanding the Business through Acquisitions Acquiring more businesses like Precor can help Peloton expand into more locations. Also, acquiring more businesses like Precor can help Peloton get access over a large number of equipments. Companies like Precor have a better presence in hotel gyms and other fitness clubs and therefore making it easy for Peloton to improve its revenue. With the help of Precor, Peloton can reach out to a greater number of customers in fitness clubs, hotels, resorts, and spas. Also, Peloton can think of expansion through shared subscriptions with huge chains of gyms. Combination of Peloton’s technology with the brick mortar locations apart from the customers home can significantly help to improve the declining revenue of the business. Acquiring businesses like Precor offers Peloton strategic advantages beyond merely expanding its physical presence and equipment inventory. With Precor's established presence in hotel gyms, fitness clubs, and other commercial fitness facilities, Peloton gains access to a wider customer base and distribution network. This not only enhances Peloton's revenue potential by tapping into new market segments but also strengthens its brand presence in locations where it might not have been previously accessible. Additionally, acquiring Precor allows Peloton to leverage its existing relationships with fitness clubs, hotels, resorts, and spas, facilitating smoother integration and adoption of Peloton's technology and offerings within these establishments. This opens up opportunities for Peloton to offer shared subscriptions or partnership programs with large chains of gyms, providing added value to both customers and business partners. Moreover, combining Peloton's innovative technology with the physical presence of brick-and-mortar locations expands the reach of Peloton's ecosystem beyond customers' homes, offering a seamless fitness experience across multiple touchpoints. This not only addresses the evolving preferences of consumers who seek flexibility and convenience but also positions Peloton as a comprehensive fitness solution provider catering to diverse needs and lifestyles. Overall, acquiring businesses like Precor enables Peloton to broaden its market reach, enhance its revenue streams, and solidify its position as a leader in the fitness industry through strategic partnerships and innovative offerings. Expanding Through Apparel It is extremely important for Peloton to focus on other range of its products such as apparels. Though Peloton apparels are available for purchase online and through certain stores, there is still a huge scope of acquiring the market through apparels. Apart from sportwear, peloton must think of its expansion through sport accessories. One of the major disappointments that the customers of Peloton have been facing is that most of the apparels are out of stock. Therefore, Peloton has to think about availability of its products. They have to improve their inventory to be a game changer in the market. It is evident that the instructors Peloton has is a driving force of the business and therefore, following the trend and designs of the instructors into the apparel range can help attract customers. Expanding Peloton's product range to include apparel and sport accessories presents a significant opportunity for revenue growth and brand expansion. While Peloton already offers apparel for purchase online and in select stores, there is untapped potential in capturing a larger share of the market through these product categories. By diversifying into sportswear and accessories, Peloton can cater to the lifestyle needs of its customers beyond just fitness equipment, providing a comprehensive ecosystem of products that align with their active lifestyles. However, one of the key challenges Peloton faces in this regard is ensuring product availability. Customers have expressed
Mar 27, 2024

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