Peloton Stock Falls Somewhat as the Firm Repositions Itself as a Fitness Company

Peloton Stock

Peloton Stock (NASDAQ:PTON)

Peloton Interactive (NASDAQ:PTON) has announced the beginning of a new chapter for the firm to broaden its appeal beyond the sale of stationary bikes. Peloton Stock is the first company to openly acknowledge that not all customers would purchase high-end gear for their homes.

By relaunching the Peloton brand, we want to convey the excitement and abundance of our services to all our customers. In a statement released today, Peloton’s Chief Marketing Officer Leslie Berland explained how the company is working to change the minds of its current and prospective customers.

According to the firm, their new ad campaign will highlight that Peloton has workout options for people of all ages, skill levels, and backgrounds. A new creative campaign, in addition to the new brand identity, is being introduced in the United States and Canada. Later this year, we’ll release our local market creative campaigns.

User feedback significantly influences the rebranding strategy shift to Peloton. More than half of all exercises were not cycling-related but split throughout the 16 training modalities ranging from yoga and meditation to walking and strength, according to the company’s most recent financial quarter statistics. For the first time since its introduction in June 2018, the Peloton App will provide access to the largest assortment of free courses ever made available by the company.

With the introduction of the three new App Membership levels today, Peloton (PTON) now offers five different Membership levels, in addition to the already existing All Access Membership (for hardware owners) and Guide Membership. The updated program levels include a “Gym” option for using the program in public workout spaces, making it suitable for newcomers and seasoned athletes. In addition, the App will be the primary place users can access Peloton Row content. The tiered app approach price ranges from $12.99 per month for the lowest tier to $24 for the highest.

On Tuesday, Peloton’s membership levels and the Peloton Gym functionality were released in all five of the company’s worldwide marketplaces.

In Tuesday’s early trade, Peloton stock jumped 1.85%.

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About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.