Peloton: Brand Damage From Holiday Advertising

Abstract

In preparation for the holiday shopping season, Peloton, a home exercise equipment manufacturer and workout streaming service, created controversy with one of its advertisements in 2019. A number of reactions accused the company of reinforcing sexist stereotypes. The aftermath included a loss of more than $1 billion in market value, social media outcry, and the creation of a number of parodies mocking the Peloton commercial. The company now hopes to rebound from its financial and reputational damage, just before the holiday season

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2023 Sage Publications, Inc. All Rights Reserved

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Resources

Appendix 1: Peloton Response to CNBC, Supportive Emails and Facebook Post

The contents of the email are as follows:

“Peloton logo (blacked out content right-aligned)

Peloton Ad Encouragement

1 message

Ally (last name blacked out)

To: “press@onepeloton.com” press@onepeloton.com

Hi there!

I just read an article about all of the pushback Peloton has been receiving about the airing commercial of the woman who receives a Peloton bike from her husband for Christmas. All I wanted to do was send an email for encouragement in a world where people are very heavy with their criticism and very light with their praise. I think it is a thoughtful commercial, the first time I saw it I thought, “that was a sweetly portrayed ad.” I’m sorry for any and all of the negativity that has been spread because of this holiday marketing ad. I’m sure Peloton has an awesome, hard working, and skilled team of marketers – I hope they keep their heads up!

This email may not even get to anyone, which is totally okay! I just wanted to spread a little brightness and positivity, I think Peloton is awesome! I’m hoping I get one for Christmas myself. Smiling face with smiling eyes emoji.

Merry Christmas,

Ally (last name blacked out)”

An email dated Tue, Dec 3, 2019, at 11:13 AM.

The contents of the email are as follows:

“Peloton logo (blacked out content right-aligned)

Peloton support of ads

1 message

Richard (last name blacked out) via Press <>

Reply to: Richard (last name blacked out)

To: press@onepeloton.com

Hello, I just wanted to say that I think all these people hating on your ad are ridiculous. It’s a bunch of nonsense. My wife and I love your ad and if we could afford one would absolutely buy one ourselves. My wife is in great shape, but just like many other women, wants to lose a few extra pounds just to feel her best about herself. Me, lol, well I’m just fat because I don’t have time to go to the gym with my schedule…lol… Every time your ads airs we both look to each other and say we wish we could get one. I would absolutely buy one for her for Christmas and she would know I’m not saying anything negative or sexist by it… It’s what she wants. There’s nothing wrong with getting your spouse what they want for Christmas as far as I recall. I honestly think more people would do the same if they could afford to. Anyhow, this may never get read at all anyhow, but it annoyed me enough to write you in support. Lol.

Rich”

An email dated Tue, Dec 3, 2019, at 2:18 PM.

The contents of the email are as follows:

“Peloton logo (The name Jessica Kleinman and blacked out content are right-aligned)

Positive affirmation for your product

1 message

Melissa (last name blacked out)

To: “press@onepeloton.com” press@onepeloton.com

I just heard an ad on tv about people criticizing the peloton based on a Christmas ad. Well, I have a different story. My sister-in-law was diagnosed with triple negative breast cancer. Her daughter knew how important working out was to her mom, however due to the chemotherapy she was receiving at Moffit, she was unable to go to her Gym bc of her immune system. The peloton was her saving grace this year through chemo, a mastectomy and recently radiation. My sister-in-law showed me with pride what her daughter’s gift meant to her. So I hope when your company has future ads, they will consider this side of your product.

Sincerely,

Melissa (last name and other information blacked out)

Sent from my iPhone”

An email dated Tue, Dec 3, 2019, at 6:52 PM.

The contents of the post are as follows:

Peloton Holiday Ad: When I that ad, I see a woman who is lovingly gifted a Peloton bike because it is something just for her. Already a working professional, devoted mother and wife, I see a woman who is trying to juggle it all – sometimes successfully and sometimes (perhaps only to her) not so successfully. I see a woman who is concerned that she has been given a bike just for her and is concerned will she be able to make time in her already busy life to honor the gift that been given to her?

I see a professional woman with little time for herself who becomes surprised that she can find a small amount of time for herself to work out and

I see a woman who, with the Peloton community, she is surprised that she looks forward to it, and loves it.

I see a woman who, at the end of the year, is surprised and thankful for the gift that is Peloton, the community and the accomplishment that she achieved to be **healthier** both physically and mentally.

I did not ever see an already slender woman who wanted to lose weight.

I love this ad, because, in it, I see me #iamthepelotonwoman #socalHH”

Below that text is a photo of a woman taking a selfie while working on a Peloton bike. The bike has a monitor connected to it. Below the photo is a YouTube link titled “The Gift that Gives Back | Peloton Bike Commercial.” The snippet below the title reads “This holiday, give your loved ones the opportunity to discover their…”

Michel Selmer, Kara Snodgrass and 391 others reacted to the post by liking, loving, or laughing and 99 people commented on it.

Heather Haworth’s Facebook post.

Source: https://www.cnbc.com/2019/12/04/peloton-says-its-disappointed-in-how-some-have-misinterpreted-ad.html

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2023 Sage Publications, Inc. All Rights Reserved

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