Peloton is a premium priced in-home exercise bike. Consumers who buy a $1,995 Peloton bike, pay $250 for delivery and setup, and $39 monthly membership fees are buying into a lifestyle and a closely connected community of like-minded exercise enthusiasts who ride together through classes on-demand or live-streamed to an internet-connected tablet on the bike. Peloton founder John Foley designed Peloton to take spinning classes to tech-forward, time starved customers who have on-demand lifestyles. The high priced product appeals to a broad audience, so they offer a financing option that bundles the bike with a monthly subscription for $97 a month for 39 months. Its users are part of a microculture, and communicate as tribes on social media. Although the price seems high, most customers see it as a bargain for what they are getting. And, in the case of Peloton, raising prices increased demand for their bikes, which were initially offered at $1,200.  

Discussion Questions

Is Peloton's model sustainable, can its customers stay loyal over the long run?

How does Peloton's pricing affect its image?

Visit the website https://www.onepeloton.com/ and comment on its strong and/or weak marketing points. Also give your recommendations for improvement.