What is Peloton’s consumer value proposition (CVP) that Foley had at the start of the business?

Peloton Case Analysis Write up
75 points
Learning Objective: Understand the value of determining brand’s value proposition / positioning when building a new product/service.
1. What is Peloton’s consumer value proposition (CVP) that Foley had at the start of the business? Do you see that come through in the Peloton’s Mission today? (CVP is the whole cluster of benefits that a company promises to deliver to their target; the benefit plus the Points of Difference)
2. What type of consumer was Peloton targeting at the start of their business? Think through the four descriptors of a segment (demo, geo, psychographic, behavioral). There is not a lot of data in case; can be general. What pains point(s) or needs did Peloton solve for their target?
3. Who was Peloton’s Frame of Reference?
4. Was Peloton’s CVP compelling? If so, why did 400 VC’s turn Foley down? Why did Soul Cycle and Flywheel turn down Peloton’s early offer for a joint venture?
5. Were Peloton’s business decisions appropriate, even though they added cost and complexity?
6. Michael Porter’s quote from last class “Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value.” Reflect on that quote and then answer, what aspects of Peloton’s business strategy made it difficult for competitors to replicate?
7. Do you see any parallels between Peloton’s business model and higher education’s alternative approaches to learning coming out of pandemic?
Full points:
· Clear, concise articulation of your point: may use bullet points and may write each answer out under the question.
· All points of view are supported by facts, points noted in the case, situation/background of the case or lecture concepts.
· Illustrate ability to connect concepts from class in answer when applicable.

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