Tag Archives: trends

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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The Ford Bronco Returns to Action!

As we’ve written in previous articles, no product lives forever. There are always new innovations, trends, social forces, competition, and technologies that push products forward. Every product eventually reaches its final stage in the Product Life Cycle (PLC) – decline/harvest – when the product is put to sleep and resources are reallocated to up-and-coming new products.

But every now and then consumers grow nostalgic for products from the past. Perhaps the product brings back a happy emotion or a strong memory. Or maybe it’s a little bit of longing for days gone by. Or maybe it’s a desire for something different and cool-looking. Trends have a habit of cycling back as years go by.

New to the trend cycle is the resurrection of Ford’s iconic Bronco. The company has announced a new retro-looking Bronco that recalls the rugged, boxy looking original from the 1960s. (The Bronco was retired from production in 1996.)

Bronco has its work cut out for it as Jeep Wrangler holds the top position in the off-road automotive category. To compete with the leader, Ford has two Bronco models and pricing starts at $29,000 up to $60,000 for larger engines and more options and trim.

Welcome back, Bronco. It’s good to see you.

Group Activities and Discussion Questions:

  1. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  2. How are cars moved through the PLC?
  3. Next, discuss the life cycle of the Ford Bronco.
  4. Show video introducing the new Bronco: https://youtu.be/-v1urLWR5zg
  5. How is Ford repositioning the car on the PLC?
  1. Show Bronco’s Web site: https://www.ford.com/bronco/
  2. Divide students into teams. Have each team draw a product life cycle and place various products and services into each stage.
  3. Next, have students brainstorm on how to reposition or revise products/services to that they can move into an earlier stage of the life cycle or be reinvented for a new life.

Source:  Wall Street Journal; other news sources

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Airbnb: Agility in Services

Companies and marketers are facing unusual times. Since the coronavirus has impacted global businesses, nearly all companies have had to make pivots in strategy to accommodate the rapidly changing environmental conditions.

One of the industries hardest hit by the coronavirus is travel and tourism. Airplanes are nearly empty as states implement stay-at-home policies. Hotels have empty rooms. Restaurants are restricted to curb-side delivery only. Honestly, it’s a mess and every marketer has to be up for the challenge and demonstrate agility.

Case in point: Airbnb has had to halt its ‘Experiences’ business where local residents provide unique experiences to travelers. It hosts 40,000 events in more than 1,000 cities around the globe. But, due to coronavirus, the in-person experiences are closed until stay-at-home restrictions lift.

Pivoting with the changing environment, Experiences offers online events in more than 30 countries. Experiences include tango lessons with a Latin Grammy nominee, guided meditation with sleepy sheep in United Kingdom, meditation with a Japanese Buddhist monk in Japan, and my favorite – a day in the life of an Olympic bobsledder!

Airbnb provides free experiences for isolated senior, giving them an opportunity to meet new people, but also travel anywhere in the world to learn something new.

Search out new experiences.

Group Activities and Discussion Questions:

  1. Discuss the differences between marketing products and marketing services.
  2. What has been the impact of the coronavirus on the travel and tourism industry?
  3. What are ways that this industry can stay relevant and responsive to a changing marketplace?
  4. View the Airbnb Web site: https://www.airbnb.com/s/experiences/online
  5. A video about the service can also be found at: https://youtu.be/XhaTCzKrEtE
  6. Discuss the Airbnb experiences. Which ones would student try?

Source: Ad Week; Associated Press; other news sources

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