Tag Archives: Fitness

Rent and return these shoes

Let’s start with a quiz: How many running or athletic pairs of shoes do you own? How long do they last? How much do you spend?

If your closet is like mine, you probably have at least six pairs, of which five pairs are very used and dirty. It would be nice if we could wear running shoes until they are worn or dirty, and then just trade it them in for a new pair. Well, as luck would have it, Swiss footwear company On Running is now offering a new running shoe called “Cyclon.” But Cyclon is not for sale – only for rent. Yes, rent. Use, wear, and return them for a new pair.

Cyclon is available for a monthly fee of $29.95. It is a subscription service for not only a performance running shoe, but a fully recyclable plant-based shoe. Castor beans are used as the base, and the shoe upper is sewn from a single piece of fabric to help reduce waste. On Running focused on the challenges of not only creating a fully recyclable shoe, but also making sure that the shoes were returned to be recycled. Thus, the subscription model of ‘rent and return’ gives On control of the recycling process.

It seems to have resonated with the market – in the first 48 hours after launching Cyclon On signed 2,000 subscribers! On needs 5,000 people to sign up per region in order to ship the shoes at reduced carbon footprint of the transportation.

Let’s go for a run!

Group Activities and Discussion Questions:

  1. Discuss a subscription business model. Poll students: What subscription services do they use? Other services they can name? (Ex: meal kits, shave clubs, entertainment, etc.).
  2. Poll students: On average, how much do they pay for a running shoe and how long does it last? How many pairs of athletic shoes do they have currently?
  3. Show On Running website: https://www.on-running.com/en-us/cyclon
  4. Show video of founders discussing Cyclon: https://youtu.be/VtosSdRZcsA
  5. What is the target market for Cyclon?
  6. What elements should be in the marketing program for this shoe?

Sources: Outside Online; other news sources

 

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Peloton Adds New Products and Cuts (Some) Prices

The pandemic has been tough on most companies. Consumer demand for products has shifted, as well as buying behavior. Some companies won’t make it successfully through this period. However, unlike other companies, Peloton seems to have weathered the Covid-19 pandemic very well. Sales for home fitness equipment have been strong as gyms and fitness centers have closed or limited the number of patrons in their facilities.

Recently, Peloton expanded its product line with new versions, and has cut prices on older equipment by roughly 16%. Peloton currently sells two primary types of exercise equipment: a stationary bike priced at $2,245 and a treadmill priced at $4,295. When the new products launch, the new Peloton Bike+ will be $2, 495, but the older bike will be reduced to $1,895. The new bike will accommodate more than just biking and includes upgraded cycling, a better sound system, and a 24-inch touchscreen that swivels for yoga or weight training in a different area.

The new treadmill will be cheaper at $2,495 compared to the existing treadmill at $4,295. The new prices are intended to extend the customer base while still offering high-margin products.

Peloton continues to offer “connected fitness” to its subscribers, linking them to instructors and other workout fans so that even when working out alone at home, customers can connect with a community of other riders and instructors. Monthly subscription memberships are $39/month and the company currently has roughly 866,000 subscribers. In addition to cycling classes, the company streams yoga instruction, strength training, running, and more workout programs.

Ready to ride?

Group Activities and Discussion Questions:

  1. Discuss industries impacted by Covid-19. Which companies are winners? Losers?
  2. How has the pandemic impacted Peloton?
  3. Show Peloton’s Web site: https://www.onepeloton.com/
  4. What is the impact of the new products and price reductions for older products?
  5. Compare a Peloton bike and subscription to the average gym membership. What are advantages and disadvantages?
  6. Divide students into teams and have each team research and compare Peloton’s products and services to its competitors:
    1. NordicTrack: https://www.nordictrack.com/
    2. Echelon Fitness: https://echelonfit.com/
    3. Mirror: https://www.mirror.co/
    4. Tonal: https://www.tonal.com/
  7. What pricing strategies is Peloton using? Will this be an advantage or a disadvantage compared to the competition?

Sources: Associated Press; New York Times; Wall Street Journal; other news sources

 

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Working Out from Home

The impacts of the coronavirus pandemic is changing consumer behavior and the dynamics of many industries. We have seen shortages of essential items such as toilet paper, eggs, and flour. There has also been a steep rise in the sales and uses of technology as people have moved to working from home and dramatically reduced their social interactions. Virtually all aspects of our lives have been impacted in one way or another, including how we exercise and work out.

With gyms and fitness centers closed due to coronavirus concerns, people have moved to new ways to work out. New fitness routines include using old-fashioned home equipment, online Zoom workouts, and high-tech Internet-connected equipment. Many of the newer market entries also include artificial intelligence to help determine and guide workout plans.

The new equipment is decidedly interactive; some include motion-sensor cameras, 3-D modeling, A.I. generated coaching, automatic adjustments when the user is struggling, and mobile apps. These workout devices include stationary cycles, treadmills, weight-lifting equipment, and interactive mirrors. Most require a hefty initial investment plus a monthly subscription fee. Some even provide interaction during workouts with other people, and help build a community of patrons. However, if you want social interaction, you’ll have to wait for gyms to reopen.

Ready, set, go!

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Review various fitness products and services. What products are competitors?
  3. Show a variety of newer, high-tech fitness devices:

Carol: https://carolfitai.com/

Tempo Fit: https://tempo.fit/

Bowflex: https://www.bowflex.com/

Tonal: http://tonal.com/

Hyfitgear: https://www.hyfitgear.com/

Peloton: https://www.onepeloton.com/

Mirror: https://www.mirror.co/

  1. Have each team research one of the companies. What does each provide? Cost? Market? Subscription? Activities?
  2. Then, have each team provide a positioning map based on their research of the companies.

Source: New York Times; Wall Street Journal; other news sources

 

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