The Intersection of Brand & Performance MarketingFebruary 2017

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Agenda

1. Peloton Overview

2. Brand Marketing Overview

3. Acquisition Marketing Overview

4. Brand / Acquisition Relationship

FROM OUR STUDIO IN NYC

LIVE & ON-DEMAND

PELOTON IS A TECH COMPANY

DISRUPTING THE FITNESS SPACE.

WE BUILT A STATIONARY BIKE THAT ALLOWS YOU TO TAKE

STUDIO CYCLING CLASSES

ANYTIME, ANYWHERE

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P E L O T O N L A U N C H E D

2014

N P S S C O R E

91

W O R K O U T S T A K E N

5.6M

B I K E S S O L D

80,000+

O N E - Y E A R R E T E N T I O N R A T E

96%

Peloton by the numbers

G L O B A L R I D E R S

285,000

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Peloton is a completely unique, vertically integrated business that gives you the best

platform and best content, right at your fingertips

Hardware

Software

Media

Retail

Logistics

Entire Tech Stack

Award-winning bike and bike designTablet computer, 4x bigger than iPad;

CM founded by team from Foxconn

Client-side SW: Custom Android /

Linux Operating System

Python Cloud Services handling

5K real-time requests per second

4,000 on-demand classes accessible

anytime from the cloud

12 hours of live television

quality video streamed daily

20 retail stores in luxury malls and

high-end locations nationally

Robust inside sales team / operation

complementing ecommerce website

Growing national operation of Peloton

Mercedes Sprinter delivery vans

Peloton employees extending brand

via best-in-class, in-home deliveries

Peloton is the most immersive, socially motivating fitness experience

22 IN. SWEAT-PROOF

HD TOUCHSCREEN

UP TO

14 LIVE CLASSES DAILY

TRACK METRICS

SEE HOW YOU STACK UP

AGAINST OTHERS

IN REAL TIME

IN YOUR HOME

ON YOUR SCHEDULE

4000+ CLASSES ON-DEMAND

We are taking the world by storm, with over 80,000 bikes sold in all 50 states & 285,000

global riders

Our riders love Peloton…

“ ““Access to live classes from

home? There’s nothing easier.”

- MICHELLE R.

“Not only do you have the best spin bike,

the best instructors in the world, but all

the fellow rider support too!.”

-TRICIA B.

If you’re new to this, I’ve some bad news

for you. It’s addictive. Beyond anything

I’ve done before.

- TRISTAN M.

Initially, I had doubts. But now I can’t

see my life without Peloton. It always

works on my schedule.”

- DEMETRI Y.

…And so does the press

“The Peloton is attractive, addictive,

and seriously whips you into shape.”“Peloton has become a cult favorite,

thanks to its energetic teachers...”“The Bergdorf's of bike studios”

“Tried. Tested. Trusted. Genius!”“Easily the best indoor workout.”“The best cardio machine

on the planet.”

BRAND MARKETING

OVERVIEW

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We’re building a brand consumers love from the moment they set eyes on the bike.

Brand Strategy

Consumer

Insights

Build a Foundation

for an Ownable

Brand

Integrated Campaigns

Grassroots

PR

Partnerships

Events

Ambassadors

Drive Awareness and

Consideration Efficiently &

Effectively

Integrated

Campaigns

Feature / Content

Launches

Turn consumers into

brand loyalists

Awareness

Aided Qualified Awareness

Creative Test Scores

(LINK, CTRs)

Site visits

Marketing Channel

Engagements

Brand Health + NPSAlways tracking and optimizing:

Brand Marketing Overview

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Peloton began with a consumer insight…

PEOPLE WANT TO WANT TO WORK OUT…

“There are feelings partway through rides, where you are in a

good groove and you feel like you can keep going. I feel strong

and empowered.”

- JERI, CONSUMER

“There is a satisfaction in knowing that you have accomplished

something. Post muscle fatigue means results. It shows

commitment.”

KELLY, CONSUMER

HOWEVER…

COMMITTING IS THE HARD PART

”I don’t go to SoulCycle… there’s all these incredibly fit gay

men there that I don’t wanna keep up with, and I don’t want

them to insult me either.”

- KARA, CONSUMER

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PELOTON’S CONSUMER PROMISE

MAKES YOU WANT TO SHOW UP

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REASONS TO BELIEVE

An integrated experience

designed to pull you in and

ensure you literally show up.

EMOTIONAL BENEFIT

A transformative experience so

you show up as your full self all

day long.

FUNCTIONAL BENEFIT

Entertainment and

competition to show up at

your best on your terms.

ACQUISITION

MARKETING OVERVIEW

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Acquisition Marketing Overview

The acquisition team’s goal is to build qualified awareness and drive sales at an efficient CAC.

DIRECT TO CONSUMER

WE HAVE THE ABILITY TO CLOSE

THE LOOP BETWEEN MARKETING

AND SALES

MEASURABLE IMPACT

WE’RE NOT DIRECT RESPONSE,

BUT WE ALSO EXPECT OUR

BRAND BUILDING EFFORTS TO

MEASURABLY LEAD TO SALES

STORYTELLING FIRST

WE LEAN ON GOOD

STORYTELLING, INSTEAD OF

PROMOTIONS, TO ACQUIRE

CUSTOMERS

BRAND / ACQUISITION

PARTNERSHIP

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Brand & Acquisition used to work in parallel, but not together

BRAND

● Briefed creative team

for new campaign

assets

● Approved creative for

deployment

● Repeated process for

next campaign

ACQUISITION

● Deployed creative from

brand/creative team

based on sales goals

● Tracked performance

● Optimized spend behind

assets to achieve sales

targets

● Repeated process for

next campaign

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Brand & Acquisition now work lockstep in virtuous cycle

BRAND

● Briefs creative team

based on brand

priorities & acquisition

media plan

● Approves creative for

deployment

● Aligns on performance

with acquisition team

and rebriefs creative

team for new assets

CREATIVE

BRIEF Based on messaging

needs (offer,

convenience, etc.)

DEPLOY

CREATIVEAfter aligning with

internal team

ADJUST

CREATIVE

(COPY/IMAGES)

ACQUISITION

● Provides brand with

acquisition strategy,

media plan &

recommended asset

creation list

● Deploys creative

● Tracks performance and

shares learnings and

best practices with brand

team

● Deploys newly optimized

assets

ALIGN ON

PERFORMANCEAdd-to-carts, CTR, etc.

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HOLIDAY CAMPAIGN

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Peloton’s holiday campaign was the first test of this new, optimized process

CREATIVE A

CREATIVE

BRIEF Based on messaging

needs (offer,

convenience, etc.)

DEPLOY

CREATIVEAfter aligning with

internal team

ADJUST

CREATIVE

(COPY/IMAGES)

CREATIVE B

ALIGN ON

PERFORMANCEAdd-to-carts, CTR, etc.

• VS. YAG: +810% in add-to-carts, +844% in bike purchases, -8% in purchase CAC

• VS. FALL: ~ -58% in purchase CAC from fall

• Results driven by seasonal creative, prospecting efforts prior to holiday, and efficiency in

media buys

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Feedback loop allowed for optimizations to both copy and creative

LEARNING

Male model performs better than female model

ACTION

Create more assets featuring male model, with

similar message but slightly different copy

LEARNING

Rider testimonials are powerful tools

ACTION

Use same video creative but update copy to

feature real rider quotes / reasons

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The entire cross-functional team worked in the feedback loop developed for brand

& acquisition

AGENCY CREATIVE

(with input from internal team)INTERNAL HOLIDAY BRIEF

(including Email, Acquisition, Retail inputs)

ACQUISITION

FOCUSED

EXECUTIONS

ENGAGEMENT/

RETENTION

BRIEF

ENGAGEMENT FOCUSED

EXECUTIONS

(including Boutique)LAUNCH

INTERNAL ITERATIONS

(Acquisition & Retention) PLAN FOR HOLIDAY 2017

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Peloton’s holiday campaign was a 360-degree effort to ensure consistent

messaging

Retail Signage Email DisplayOrganic +

Paid SocialDigital Video

Versions for

leads +

home riders

Includes video,

static images, and

image carousels

Complemented by

our non-holiday TV

spot, which is on

heavy national

rotation. Originally

used Fitness

Evolved, now

flipping in B&W

digital video

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Why is this optimized hand-in-hand approach important?Key Takeaways

● Both media & brand priorities should inform creative. We should tell the brand story while

optimizing towards measurable metrics

○ Media buy will inform creative, creative will inform media buy & targeting

○ Allows us to succeed even with two slightly different goals (brand telling the key

story / building equity, and acquisition focused on performance metrics)

● Digital as a medium allows for quick adjustments to creative (as opposed to other media

channels), which results in better performance

● Can create multiple versions of creative appealing to different targets & segments

● Real-time learnings help inform creative in other channels

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FUNNEL OPTIMIZATION

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A MOMENT 1 WEEK – 2-3 MONTHS 2 WEEKS 72 HOURS

Utilize insights from path to purchase research to optimize messaging across

various stages of customer lifecyclePOST-

PURCHASEAWARENESS IDEALIZATION RATIONALIZATION

CO

NS

UM

ER

’S E

MO

TIO

NA

L S

TA

TE

Intrigued

Infatuated

Excited

Addiction

Pragmatic,

Responsible

DECISION

WHOA, WHAT’S

THAT?! MEET-CUTE.

‣ The first image of

the bike, usually on

social media or a

commercial on TV,

is often arresting,

and sparks action

LOVE AT FIRST SIGHT,

CONTINUING TO

DREAM

‣ The super emotive

“love” phase, when

consumers are

dreaming about the

bike and what it would

be like to own one

PLEASED, THEN

ANXIOUS &

IMPATIENT

‣ There is an uptick in

excitement when the

order is placed, but

the gap in time

between payment

and the first ride can

inspire anxiety.

FEELING THE PULL

OF REALITY

‣ The “fact-finding”

phase, when

considerations

become sharply

practical, and the

focus is on

pragmatic, logistical

questions

NE

GA

TIV

EN

EU

TR

AL

PO

SIT

IVE

Apprehensive

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ENHANCE FB CUSTOM AUDIENCE

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Utilize customer segmentation research to add psychographic segments to FB

custom audience

AOVEngagementPurchase

Purchase

LAL

Engagement

LAL

AOV

LAL

Behavioral Segments Psychographic Segments

Segment 1

LAL

Segment 2

LAL

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