I saw a funny meme on Instagram.
Q: How can you tell if someone owns a Peloton bike?
A: You don't have to ask because they will tell you within 30 seconds of meeting them.
I'm GUILTY as charged!
Peloton has been around for years and built a cult-like following.
Then came the pandemic.
Trapped in our homes we were looking for ways to relieve stress and stay in shape.
They didn't have to advertise.
Their tight-knit community spread the word.
$2400 with zero interest payment plans...
...why not give it a shot?
At the time, it took almost three months for delivery.
Peloton was on fire in a good way with record sales and a strong community.
Last week, Peloton stock dropped 25%.
Peloton is on fire in a bad way.
They didn't do anything obvious to offend their community.
Their big mistake was not planning for life after the pandemic.
Fitness junkies love their gyms.
It's their social life.
Of course, Peloton sales would plateau, and engagement would level off.
Three recent events poured gasoline on the Peloton dumpster fire.
Last month Mr. Big, of Sex and the City Fame, died of a heart attack after riding his Peloton, in the And Just Like That premiere episode.
Peloton responded with a viral video showing Mr. Big in a romantic moment with his Peloton instructor.
Days later, women started accusing Chris Noth, who plays Mr. Big, of inappropriate behavior IRL.
Peloton stock plummets after the double whammy of negative publicity.
Last night on the season premiere of Billions, Mike has a heart attack after a Peloton ride.
More negative PR that is out of Peloton's control (they didn't approve of the use of their brand name in the show).
Bike production will be halted for two months.
Fringe users are dropping their $40/month membership.
There's still a cult-like following but Peloton is scrambling to save their brand.
Peloton is expanding their training to include yoga, stretching, strength, meditation and even boxing.
They're partnering with big-name talent like Beyonce.
They're dropping their prices to attract new buyers.
Can a premium brand drop their prices 40% and maintain their elite status?
It's kinda like Nordstrom dropping their prices to attract Walmart shoppers.
What do you think?
Can a premium brand reinvent itself as a more affordable option without alienating its cult-like community?
It will be interesting to see how this plays out.