It grew a bit fast and revenue has now struggled. “Here, Peloton seems to have a revenue and cost issue. He thought that, “Peloton’s issues do not seem to meet the typical drivers of Chapter 11, which are either pressure from a lender or a liquidity problem. Isaac Marcushamer is a bankruptcy attorney and founder and partner of DGIM Law. There is no excuse not to, especially with a dedicated audience chomping at the bit for information.” Time To Explore Bankruptcy? The lesson here is to get in front of the situation and get your message out to avoid speculation and doubt before coverage spirals out of control. This is a great opportunity for them to own their own narrative. Leadership needs to work under the assumption that internal memos will get leaked, especially for public brands. “Peloton has too strong of a following to fade away with more than a million users and instructors that are increasingly becoming their own celebrity brands. ![]() ![]() Mike Moses is a senior account executive and member of the crisis communication team at Matter Communications, a national brand elevation agency. just one product for all, and find ways to have smart partnerships with national gym chains that could incorporate their products on-premise,” Grimm concluded. “Peloton should consider a product rebrand to show innovation with their star instructors-incorporate more interactive and customizable elements to each specific user vs. Will consumers find that palatable? Based on the recent crisis, there is reason to be skeptical. They need to evolve their products, and they plan to do so in April of this year with their ‘Peloton Guide’ strength training product. He observed that, “It is clear Peloton must adapt or die to maintain its market position and financial solvency in a post-pandemic society. “Competitors became more aggressive for Peloton’s market share, consumers broke away from quarantine and returned to gyms or non-at home workout routines, and Peloton found itself in a unique position during the pandemic when most brands struggled with maintaining supply chains: they are buried with product supply with little demand,” Grimm said. Michael Grimm is vice president of Reputation Partners, a national strategic communications firm He thought that, “Peloton badly misjudged its ability to sell its bike and tread products throughout the latter stages of the pandemic in 2021 and into 2022. “While I wouldn’t say Peloton’s demise is a sure thing, barring an imaginative new approach and some significant new branding, my call is that Peloton will continue to contract, rather than grow, and that’s only sustainable for so long,” he concluded. The story is filled with dismal, disappointing sales and profit figures, and included plans to halt production of several products due to a significant dip in demand. Labunski observed that, “The story that CNBC broke this week could signal the beginning of the end for Peloton. As demand soared during the pandemic, Peloton struggled to meet the demand for its equipment, but that surge proved to be short-lived” he recalled. “The avalanche of negative press about design flaws that led to scores of injuries and the death of a child forced the pricy fitness company to recall around 125,000 expensive treadmills. After all, that’s why reputation management exists! But when bad publicity reaches a critical mass, it may be impossible to save a floundering business. Companies can weather a little bad publicity. ![]() Reputation management expert Baruch Labunski said, “I don’t see a bright future for Peloton. From a communications standpoint, Peloton has to get in front of the story and clearly communicate all of this through all channels available, including on their website, in the media, and on social media.” The Beginning Of The End? “And finally, it will need to instill confidence in the financial community to ensure the stock price recovers and continues growing, and that the company has access to capital it needs to execute its recovery plan properly. Price adjustments are part of that, but a big picture marketing plan, collaboration with other companies, and additional sources of revenue would also play a role. Then, it needs to re-establish consumer confidence by articulating a long-term plan to increase demand and restart production. “The solution here is for Peloton to first come up with a plan to bring prices in line with what consumers are willing to pay.
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