Peloton’s Masterclass in Brand-Building
Record sales and Peloton just cut marketing to zero — relying on a strong brand to drive word-of-mouth sales
Record Sales During a Crisis
The battle for profitability is nothing new for Peloton; the company has been engaging in this uphill exercise since long before its IPO last September. With pivot after pivot, they’ve tried countless angles to achieve the coveted milestone. But the one thing that no one could have predicted — a global pandemic — might have been exactly what the company needed to put them in the right direction.
Starting in mid-March, Peloton paused all advertising in most of its major markets. Meanwhile, revenue skyrocketed 66% year-on-year to $524 million during the period. As global demand for at-home fitness solutions reaches new heights, so too is the revenue of those companies who’ve prepared for it.
Peloton’s years of brand-building seem to be starting to pay off as sales grow organically through word-of-mouth and social media, despite cutting their advertising budget to zero.
But what does this mean for Peloton? How did they achieve this? And most importantly, how can we follow this success? You’ve got questions, I’ve got answers. Let’s ride.
