\n Follow this Case Study guide lines to complete the assignment. Refer to the CASE STUDY “Peloton or the Gym” \u00a0that is attached.\n <\/p>\n
\n 1. Overview of the company\n <\/p>\n
\n 2. Founded, products, Executive Team, Public(stock price) or Private\n <\/p>\n
\n 3. Financials (Revenues and Profits(losses) for 2021 and 2019.\n <\/p>\n
\n 4. Market Shares of Traditional Gym vs At-Home Gyms\n <\/p>\n
\n 5. Pre Covid, Covid, Current estimate\n <\/p>\n
\n 6. Market Share of Peloton\n <\/p>\n
\n 7. Vs Traditional Gym and At-Home Gyms\n <\/p>\n
\n 8. Pre Covid, Covid, current\n <\/p>\n
\n 9. Possible Marketing Plans for Peloton\n <\/p>\n
\n 10. Choose one option and justify it\n <\/p>\n
\n 11. Potential results of your chosen option (Market Share and Profits)\n <\/p>\n<\/div>\n
Follow this Case Study guide lines to complete the assignment. Refer to the CASE STUDY “Peloton or the Gym” that is attached. 1. Overview of the company 2. Founded, products, Executive Team, Publ
\n Peloton or the gym? More people are choosing both. What that means for the fitness industry PUBLISHED TUE, OCT 26 20219:04 AM EDTUPDATED 4 HOURS AGO Lauren Thomas@LAURENTHOMAS SHAREShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email KEY POINTS Some investors made a bet that consumer fitness was an either-or choice: Either people would return to gyms, or they would find ways to break a sweat at home. The stocks of Peloton and Planet Fitness reflect this thinking. Last year, Peloton shares surged more than 440%, while Planet Fitness\u2019 stock eked out a 4% gain. But many consumers are now opting for a hybrid approach to working out, and both industries stand to benefit. Megan Thompson works out on her exercise bike at home in New York City. Michael Loccisano | Getty Images Julia Yuryev still hasn\u2019t caved and purchased a\u00a0Peloton\u00a0Bike, but the 38-year-old public relations professional is actively considering it. Yuryev said she enjoys taking group classes at her local fitness studio. But since it has reopened, she doesn\u2019t feel like the selection is enough. She said she may consider splurging on an at-home gym for her Los Angeles apartment, as many of her friends have already done. \u201cAt-home fitness is still a consideration for me,\u201d Yuryev said. \u201cThe yoga studio [near me] is only offering certain classes with such limited capacity. They\u2019re scaled back … so not all the variety is there now because of the rules and the labor shortages.\u201d Those in Yuryev\u2019s situation are increasingly opting for a hybrid approach. That could come as a surprise for some investors who bet that consumer fitness options were an either-or choice. Either consumers would break a sweat at home, as they had during the pandemic, or they would revisit the gym once they received their Covid-19 vaccinations. The stocks of Peloton and Planet Fitness reflect this thinking. Last year, Peloton shares surged more than 440%, while\u00a0Planet Fitness\u2019 stock eked out a 4% gain. This year, Peloton shares are down 36% to date, while Planet Fitness is up about 2%. Visits to gyms on the rebound While demand for home fitness equipment has slowed from 2020\u2032s frantic pace, it is still growing. Sales in the United States surged 85% from 2019 levels to reach $3.7 billion last year, according to the NPD Group. Fitness equipment sales were up 20% year over year through August, and up 108% on a two-year basis, the market research firm said. NPD Group was unable to offer a forecast for the category, but\u00a0analyst Matt Powell said\u00a0he expects the market to remain strong as people seek out activities to stay in shape. He noted that sales typically ramp up again in January. Foot traffic to fitness centers, meanwhile, is on the mend. Visits were only down about 8% in early October compared to the same period in 2019, according to Jefferies. Membership at gym chains LA Fitness and The Edge Fitness Clubs bounced back the fastest from pandemic lows, Jefferies said, followed by Crunch Fitness and 24 Hour Fitness. Mark Wahlberg-backed\u00a0F45 Training\u00a0is the biggest laggard, it said. A customer wears a face mask as they lift weights while working out inside a Planet Fitness gym as the location reopens after being closed due to the Covid-19 pandemic, on March 16, 2021 in Inglewood, California. Patrick T. Fallon | AFP | Getty Images \u201cWe\u2019re definitely seeing clear data that show people are getting comfortable again to return to the gym,\u201d Jefferies retail and fitness analyst Randy Konik said in an interview. \u201cWhat\u2019s likely going to happen is demand for gyms will accelerate pretty dramatically. … But demand for [at-home] fitness equipment is likely to stay somewhat strong.\u201d Searches for digital fitness platforms, including Peloton and\u00a0Tonal, peaked in January, as consumers committed to New Year\u2019s resolutions. Then, searches ticked up slightly in August when the delta variant became a widespread threat, Jefferies said. While online searches for at-home workout products like jump ropes and yoga mats reached an all-time high in April 2020, those queries have dwindled ever since. Still, Konik expects many U.S. households \u2014 if afforded the option \u2014 are going to choose a hybrid approach to working out. \u201cPeople are going to realize they can work out at a gym three days a week, and then three or four days a week just do something at the house or in the basement,\u201d he said. \u201cIt\u2019s all about convenience.\u201d This mindset is reflected in fitness companies\u2019 recent offerings. Peloton\u00a0has a growing corporate wellness program. Mindbody, a booking platform for the health and wellness industry, is also\u00a0hoping to cater to businesses\u00a0as they bring workers back to office buildings. Life Time Fitness, a high-end gym chain that\u00a0went public earlier this month, redesigned its mobile app and launched a digital-only subscription during the pandemic. That\u2019s still an option that it\u2019s marketing to customers today. Mark Mullett, co-founder and co-CEO of Obe Fitness, said the rapidly evolving landscape has allowed for people to choose from what he calls a \u201cfitness buffet.\u201d Obe is an at-home fitness app that offers livestreamed and on-demand workout classes to members who pay $27 each month. \u201cWe love the fitness buffet: You\u2019re working out at home three days a week, going to your local studio one day, and the next day you are going for a run with friends,\u201d Mullett said. \u201cOur job is to make sure that we\u2019re delivering people all of the content, all of the community and all of the results they need.\u201d Obe recently launched spin classes for its members who already have bikes at home or use them at the gym. The company has also been working with\u00a0Gap\u2019s Athleta brand, which is\u00a0an investor\u00a0in Obe, to host in-person workout events. Competition at home heats up Amid the increased demand, a flurry of new entrants is making for a more crowded space and pressuring companies to spend more to woo users. Peloton\u00a0announced in August plans to increase\u00a0advertising, as it pitched its lower Bike price and redesigned Tread. Its sales and marketing spending accounted for 24.5% of revenue in the three-month period ended June 30, up from 14% a year earlier. Hydrow, a connected rowing maker that\u00a0counts Lizzo and Justin Timberlake as investors, debuted a marketing campaign in October called \u201cHydrow High.\u201d It will appear in print and digital ads as well as on broadcast television through the holiday season. The company declined to comment on how much it will spend on the project, but it said it is its most far-reaching effort to date. Hydrow, the maker of a $2,295 rowing machine, said it has secured nearly $200 million in financing. Source: Hydrow \u201cOne of the goals of this campaign is to demystify rowing and make it more accessible and appealing to a wider audience,\u201d Hydrow chief commercial officer Gretchen Saegh-Fleming said. \u201cThis idea of the Hydrow high is that people feel so much better and stronger after working out.\u201d One of Hydrow\u2019s rowing machines retails for $2,295, compared with Peloton\u2019s original Bike\u2019s price of $1,495 and Tonal\u2019s weight-lifting machine at $2,995.\u00a0Lululemon\u2019s Mirror device retails for $1,495, while Liteboxer, and at-home boxing device, costs $1,695.\u00a0That\u2019s just a few. You can also pay $2,799 to upgrade your home gym with CLMBR, a vertical climbing wall. Frame Fitness, a connected reformer machine for Pilates, is on presale for $2,999. There are many more. On top of the equipment cost, users pay a monthly fee to access content. A Peloton membership, for example, is $39 a month. Tonal\u2019s membership is $49 monthly. \u201cThe explosion of at-home fitness directly parallels to the explosion of e-commerce over the last decade plus,\u201d BMO Capital Markets analyst Simeon Siegel said. \u201cThe door has been opened for dollars to be thrown at various connected exercise equipment makers because the consumer has given them a mission,\u201d he said. \u201cJust like the amount of start-ups that erupted across e-commerce when consumers gave retailers permission to enter their living room.\u201d The companies that will be most successful will be those that keep churn rates as low as possible \u2014 meaning people stick around month after month, Siegel said. \u201cUltimately, engagement is critical,\u201d Siegel said. \u201cSo what gets someone to not cancel? That\u2019s the biggest question out there.\u201d Peloton is one of the only publicly traded connected fitness companies that divulges its churn rate, which has stayed impressively low. Peloton\u2019s average net monthly connected fitness churn was 0.73% in its latest fiscal quarter. It had seen a six-year low of 0.31% in the prior quarter. Its churn rate tends to be lower in the winter months. Tonal and Hydrow are reportedly exploring public offerings, which would give investors greater insights into user trends. The companies declined to comment on their plans. Building a community Peloton is, meantime, making the bet that its branded T-shirts, hoodies and sweatsuits can serve as walking billboards \u2014 even as some of its users return to gyms. In September, it dropped its biggest selection yet, in tandem with a massive marketing push around the company\u2019s clothing arm. Ads for Peloton apparel have been pasted across billboards, digital subway slots and even empty storefronts across New York City. People walk by a storefront in New York City\u2019s SoHo neighborhood, where Peloton is advertising its apparel line. Source: Kevin Stankiewicz, CNBC \u201cWhen you see someone wearing Peloton you realize you\u2019re part of that community together, and there\u2019s something sweet about it,\u201d said Jill Foley, vice president of apparel at Peloton, in an interview. \u201cIt\u2019s really powerful.\u201d Entrepreneurs in this space say community building is key \u2014 whether that\u2019s at the gym or at home. Khalil Zahar, founder and CEO of the at-home boxing business FightCamp, said companies that make users feel as if they belong to a group of like-minded people are going to be the ones that stand the test in the coming months. \u201cNow that we are back in the gym, many of the concepts that worked for connected fitness during the pandemic may no longer be viable in a post-pandemic world,\u201d Zahar said. \u201cHowever, there\u2019s a silver lining for consumers as it will undoubtedly force companies to make their products better, and the companies who survive these next few years of transition will come out much stronger,\u201d he added. According to Zahar, the best products are those that keep new content coming and have engaging instructors. Back in Los Angeles, Yuryev said she\u2019s still working through justifying the expense of buying an at-home fitness machine, like Peloton, in addition to taking group classes. Her friends are also motivating her to make a decision, she said. \u201cFlexibility, especially with all of the remote work, is important,\u201d she said. \u201cAnd I really need that feeling of community.\u201d Case Study 1- Guidelines Overview of the company Founded, products, Executive Team, Public(stock price) or Private Financials (Revenues and Profits(losses) for 2021 and 2019. Market Shares of Traditional Gym vs At-Home Gyms Pre Covid, Covid, Current estimate Market Share of Peloton Vs Traditional Gym and At-Home Gyms Pre Covid, Covid, current Possible Marketing Plans for Peloton Choose one option and justify it Potential results of your chosen option (Market Share and Profits)<\/p>\n","protected":false},"excerpt":{"rendered":"
Follow this Case Study guide lines to complete the assignment. Refer to the CASE STUDY “Peloton or the Gym” \u00a0that is attached. 1. Overview of the company 2. Founded, products, Executive Team, Public(stock price) or Private 3. Financials (Revenues and Profits(losses) for 2021 and 2019. 4. Market Shares of Traditional Gym vs At-Home Gyms 5. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/288986"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=288986"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/288986\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=288986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=288986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=288986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}