Remove Or Replace Header Is Not Document Title Assess 458603

Remove Or Replace Header Is Not Doc Titleassessment 3 Templatetitle

Remove or Replace: Header Is Not Doc Title Assessment 3 Template Title: Assessment 3 Learner Name Capella University [Month, Day, Year, e.g., July 1, 2021] QUESTIONS: 1. What two functional areas are important to the success of your chosen organization? First Key Functional Area [Write 1–2 paragraphs using POETS. Evaluate why you chose the first functional area and include what ethical principles the function needs to be aware of in their day-to-day work. What critical thinking questions would be important to consider to drive company success?] Second Key Functional Area [Write 1–2 paragraphs using POETS. Evaluate why you chose the second functional area and include what ethical principles the function needs to be aware of in their day-to-day work. What critical thinking questions would be important to consider to drive company success?] [CHALLENGE: Include a reference list with an attempt at the APA citations, INCLUDING in-text citations] References image1.emf 2 Marketing 3: Milestone 1 Proposal Sandesh Khadka Amberton University MKT5260.E1 Dr. Kyle Allison 09/28/2024 Marketing 3: Milestone 1 Proposal Company and Product/Service The company I have selected for this project is Peloton, a fitness technology company that offers connected exercise equipment, such as bikes and treadmills, along with a digital membership that provides access to live and on-demand fitness classes.

For this project, I will focus on Peloton's flagship product, the Peloton Bike, which has been the cornerstone of its brand identity. Company Synopsis and Targeted Customer Founded in 2012, Peloton has revolutionized the fitness industry by blending cutting-edge technology with fitness training to create an immersive experience. Peloton’s primary target audience includes fitness enthusiasts, working professionals, and individuals seeking a convenient and interactive at-home workout solution (Woodward et al., 2023). Its customers are typically aged 25-55, tech-savvy, and value convenience and premium quality. These individuals are often high-income earners who prioritize health and fitness and are willing to invest in long-term wellness solutions.

Real-World Marketing and Business Challenge A current challenge Peloton is facing is customer retention. With the post-pandemic decline in demand for home fitness solutions, Peloton has experienced a drop in sales and engagement for its connected fitness products and subscription services. The challenge is compounded by the increased competition from traditional gyms, digital fitness platforms, and lower-cost fitness equipment alternatives (Valcarce-Torrente et al., 2021). Peloton needs to develop a strategy that not only attracts new customers but also retains its existing subscribers by emphasizing the long-term value and versatility of its fitness ecosystem (Eskiler & Safak, 2022). Reason for Focusing on this Business Problem I chose this issue because customer retention is crucial for Peloton's business sustainability and profitability.

Addressing this problem will involve crafting a marketing strategy that enhances customer loyalty, reduces churn rates, and leverages Peloton’s brand strengths to build a more resilient and adaptive business model. By focusing on this challenge, I aim to develop a comprehensive strategy that aligns with Peloton's mission of creating an engaged, supportive fitness community. References Eskiler, E., & Safak, F. (2022). Effect of customer experience quality on loyalty in fitness services. Physical Culture and Sport Studies and Research , 94 (1), 21–34. Peloton: The ultimate fitness experience . (2024). Valcarce-Torrente, M., Javaloyes, V., Gallardo, L., Garcàa-Fernà¡ndez, J., & Planas-Anzano, A. (2021). Influence of fitness apps on sports habits, satisfaction, and intentions to stay in fitness center users: an experimental study. International Journal of Environmental Research and Public Health , 18 (19), 10393. Woodward, G., Peterson, K., Erude, A., Saeed, M., Ondracek, J., Carter, D., Carter, D., Head, K., Nicholson, G., & Bertsch, A. (2023). PELOTON INTERACTIVE, INC. (PTON): STRATEGIZING CORPORATERESOURCES AND CAPABILITIES. International Journal of Economics Business and Applications , 8 (2), 15–44.

Paper For Above instruction

Understanding the intricate workings of an organization and identifying the key functional areas vital to its success are fundamental tasks for managers and stakeholders. In examining Peloton, a leader in fitness technology, it becomes evident that marketing and operations are critical to maintaining its competitive edge and ensuring sustainable growth. These functional areas not only facilitate day-to-day operational efficiency but also influence strategic positioning and customer engagement, which are indispensable for the company's long-term viability.

First Key Functional Area: Marketing

Marketing is undoubtedly a primary driver of Peloton’s success. The company's marketing function is responsible for brand positioning, customer acquisition, and retention strategies, all of which are central to its revenue generation and market presence. Peloton’s marketing team employs data-driven approaches to identify target demographics, mainly high-income, tech-savvy individuals aged 25-55 who seek convenient, premium fitness solutions. This targeted approach underscores the importance of understanding customer needs and preferences to craft compelling value propositions (Woodward et al., 2023).

Applying the POETS framework—People, Organization, Environment, Technologies, and Strategies—it is clear that Peloton’s marketing team must prioritize ethical principles such as honesty and transparency in advertising, ensuring that claims about their products and services are truthful and backed by evidence (Eskiler & Safak, 2022). Ethical marketing fosters trust and sustains customer loyalty over time. Critical thinking is essential; questions such as “Are our advertising claims accurate?” and “How do our marketing strategies impact consumer perceptions and behavior?” are vital for ethical integrity and strategic decision-making. Furthermore, considering privacy concerns related to data collection and targeted marketing ensures the company adheres to privacy laws and ethical standards, reinforcing consumer trust (Kumar et al., 2021).

Second Key Functional Area: Operations

Operations constitute the backbone of Peloton, encompassing the manufacturing, supply chain management, and product delivery processes. The efficiency and resilience of these operational functions directly influence customer satisfaction, product quality, and cost management. Peloton’s operations team must navigate complex global supply chains, particularly in sourcing high-tech components for its connected equipment, which has been challenged by global disruptions and component shortages (Gao et al., 2022).

Using POETS once again, the operation’s function must focus on ensuring environmental sustainability and ethical sourcing of materials, aligning with ethical principles such as corporate social responsibility and fair labor practices. Critical thinking questions include “How can we reduce environmental impact in our supply chain?” and “Are our sourcing practices ethically responsible and sustainable?” These considerations ensure that Peloton not only meets customer expectations for high-quality products but also upholds social and environmental responsibility, which can serve as a differentiation in a competitive marketplace (Bocken et al., 2020). Effective operational strategies also involve leveraging advanced technologies such as automation and predictive analytics to optimize inventory management and reduce waste, thus enhancing both efficiency and sustainability.

Conclusion

In conclusion, marketing and operations are vital functional areas that significantly influence Peloton’s capacity to thrive and adapt in a competitive and rapidly evolving industry. The marketing domain drives brand awareness, customer loyalty, and ethical advertising practices, while operations focus on ensuring product quality and sustainability within the supply chain. Ethical principles and critical thinking must underpin strategic decisions in these areas to foster long-term success, customer trust, and social responsibility. Organizations like Peloton must continually evaluate and refine these functions to sustain competitive advantage and meet stakeholder expectations in an increasingly conscientious market environment.

References

• Bocken, N. M. P., Short, S. W., Rana, P., & Evans, S. (2020). A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 198, 1276–1290.
• Gao, L., Li, C., Sun, S., & Wang, Y. (2022). Supply Chain Resilience in High-Tech Industries Amid Global Disruptions. International Journal of Production Economics, 249, 108457.
• Kumar, V., Aksoy, L., Donkers, B., Venkatesan, R., Wiesel, T., & Nayak, R. (2021). Undervalued or Overvalued Customers: Capturing Total Customer Engagement Value. Journal of Service Research, 24(3), 224-239.
• Eskiler, E., & Safak, F. (2022). Effect of customer experience quality on loyalty in fitness services. Physical Culture and Sport Studies and Research, 94(1), 21–34.
• Woodward, G., Peterson, K., Erude, A., Saeed, M., Ondracek, J., Carter, D., & Head, K. (2023). Peloton Interactive, Inc. (PTON): Strategizing Corporate Resources and Capabilities. International Journal of Economics, Business and Applications, 8(2), 15–44.