Peloton: Brand Damage from Holiday Advertising
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.
- To highlight how companies inadvertently create and promote advertisements that may be perceived as sexist, and the brand damage caused by such advertisements;
- To provide an example of how one company’s perceived sexism in commercial advertising caused damage to its value and created swift repercussions both socially and financially;
- To encourage analysis of how brands are intricately tied to financial aspects of the company;
- To demonstrate how a corporation’s advertising decisions will be increasingly scrutinized, particularly with the accessibility of social media;
- To examine the role of commercial advertising in corporate reputation management.