Peloton is widely known as the Cadillac of home exercise bikes. They have a fiercely loyal customer base and command a premium price tag. While they've been around for eight years, their marketing efforts have drastically increased over the past few months. In fact, you probably remember the infamous Peloton ad this past winter that had everyone talking (including us).
Last week, Peloton announced a brand new model and a significant price cut for the original bike. While still expensive, does this price drop indicate that Peloton will expand its reach into new audiences? Let's look at some data!
A recent survey of 3,300 U.S. adults revealed that just 2% of the population currently owns a Peloton, and another 4% intends to purchase one in the future.
Purchase intent is 4% overall both in general and when specifically asked about buying the original model at a significant discount, indicating that the price drop alone is not enough to draw in new customers. Interestingly, 18-24 year-olds are most likely to join the Peloton club in the future, despite having lower purchasing power than their older counterparts.
From my point of view, the most surprising insight is Peloton's brand importance relative to price. Current users overwhelmingly view the Peloton brand as more important than price; however, those who intend to purchase view price and brand as equally important.
In other words, Peloton users are loyal and firm believers in the brand, whereas those who intend to purchase are looking for the best value. While the brand is still important to them, some may choose a less expensive bike from a reputable brand, given the equal weight placed on brand and price.