Case #2, Peloton which covers Chapters 3, 4 and 5

Its now January 2022, over a year into the Covid-19 pandemic. The beginning of the year typically is a time when many make resolutions. One of the most popular resolutions continues to be newfound fitness regimes. The daily lives, routines, and rituals of many have been disrupted in ways we never imagined.

Gyms and fitness providers have been impacted more than many other sectors. The desire to consume the product remains (working out) but, the ability to do so, in a traditional sense, at a gym, in a group fitness class no longer is an option.

What now? People are still eager to stay healthy, arguably more than ever being confined to their homes, and are finding other ways to get in their workout. What does one do to stay fit when gyms are closed? Find a way to work out in the comfort of their own home.

There has been significant disruption to the fitness industry. Peloton has leveraged industry-leading technology, world-class instructors, and changes in behaviors as a result of COVID-19. They are able to offer fitness club quality classes on demand, a worldwide exclusive group, and leaderboard performance metrics to compare your progress to the other 6 million users.

If you havent heard of Peloton, check out this 1 minute video.

https://videos.ctfassets.net/6jnflt57iyzx/4VdP07fXP6gwBxyqgDQipZ/6a1a22281a55f2bb43c148c2a0e9dfd7/1558496708.mp4

The Customer-Driven Marketing Strategy allows you to better pinpoint the needs of a segment and ultimately a target audience then further differentiate the product attribute to communicate superior value in the minds of these consumers.

It helps articulate specifically what your value proposition is and how it aligns with the perceived value of the intended target audience. Simply said, it tells people what you sell and who is the most likely to buy it.

It considers whats going on in the marketplace in which changes in the operating environment create opportunities for a particular product or an organization. What could we do next and whats best for us?

If you were an owner of local Sudbury-based, independent bricks and mortar gym, what would you do to compete in this new environment? In your answer, dont replicate what Peloton is doing, you need to be first or different to the market and focused on a specific audience.

Apply your recommendations to the case/situation above.

Come up with an idea for (1) a new product or service or; (2)a variation of the current product or service or product that would open up a new market opportunity for the Sudbury-based, bricks and mortar gym. This could be a modification of an existing product, selling the same product to an alternative industry.

(4 marks)

Define a customer-driven marketing strategy.

Who is the ideal customer? Clearly explain (1) segment and (2) target market (buyer persona). (2 marks)

How is your new idea different from Peloton's? (2 marks)

Explain in detail how you will provide superior value to this new market. (2 marks)

(6 marks)

Total 10 mark