Question

1. What do you think of the Peleton commercial? Is it offensive to you?
2. Watch the Ryan Reynolds Response commercial. How does it take advantage of the Peleton controversy?
3. Watch the Peleton for Poor People spoof. How does it make the point about the controversy?
4. What do you think will be the long term effects of this controversy on Peleton’s brand image? Explain your answer

Peloton Backlash: Controversy Over Ads Often Proves Short-Lived

Fitness-equipment maker joins Nike, Gillette, Pepsi and others in facing blowback for a contentious commercial

It is rare for a company’s stock to fall sharply after a poorly received advertisement, but recent history shows fitness-equipment maker Peloton Interactive Inc. PTON +1.47% shouldn’t expect lasting damage from social-media backlash over its recent commercial. Peloton shares fell 15% Tuesday through Thursday, erasing nearly about $1.6 billion in market value, as late-night comedians and social media mocked the company’s holiday ad in which a man presented his wife with a Peloton bike. Adding pressure to the stock price this week was the company’s decision to cut its monthly subscription price to $12.99 a month from $19.49 in an effort to expand its customer base. Brands including Nike Inc., Procter & Gamble Co. ’s Gillette and PepsiCo Inc. have released ads that stirred controversy in recent years. Some faced calls for boycotts and a brief drop in their stock prices, but all are trading at significantly higher levels today than when their controversial ads originally aired. “We don’t think it [the ad] will affect sales,” Justin Patterson, an analyst at Raymond James, said of the Peloton ad backlash. “We live in the era of internet memes, and I think the ad will soon be forgotten and people will move on.” Mr. Patterson added that Black Friday sales for Peloton seemed strong. Allen Adamson, co-founder of branding firm Metaforce LLC, said Peloton may be an outlier. “Peloton’s share price is fueled by brand buzz and cult-like users,” he said in an email. Because of the subjective nature of advertising, companies have long had to deal with harsh criticism of their pitches. The advent of the web and the explosion of social media platforms such as Twitter have helped fuel criticisms and supercharged controversies. Peloton’s TV ad has been lambasted on social media with many claiming the ad was sexist, because it could be seen as a husband encouraging his already thin wife to exercise, and confusing because the wife already appeared fit. About 73% of social-media mentions of the Peloton ad during the past two weeks have had negative sentiment, according to research firm Sprinklr. The company has stood by its ad and defended its marketing by sharing positive emails it has received about the commercial with some media outlets. “Our holiday spot was created to celebrate that fitness and wellness journey,” the company said in a statement. “While we’re disappointed in how some have misinterpreted this commercial, we are encouraged by—and grateful for—the outpouring of support we’ve received from those who understand what we were trying to communicate.” The spot began airing on TV on Nov. 4 and has run more than 7,600 times, appearing on high-profile programs such as NFL football games and during Macy’s Thanksgiving Day Parade broadcast, according to iSpot.tv. The ad-tracking firm estimates Peloton has spent $112.6 million on TV ads this year, as of Wednesday. Friday, Peloton shares bounced back, rising 4.2% to $32.63, but still ended the week more than 10% below its Monday close. While nasty consumer eruptions over ads have become commonplace on Madison Avenue, few companies have seen their stock prices drop as a result. Nike’s stock slid 3.2% last year after it released its now-famous ad featuring former NFL quarterback-turned-activist Colin Kaepernick, which drew plenty of backlash and calls for boycotts. Nike’s stock quickly rebounded, and the Oregon-based sneaker giant posted higher sales following the campaign’s release. The ad also went on to win an Emmy for outstanding commercial. Shares of Procter & Gamble fell 0.7% on Jan. 14, the day Gillette razor maker unveiled its “toxic masculinity” commercial tackling sexual harassment and bullying. Procter shares rose by 0.9% the next day. A PepsiCo ad in 2017 featuring celebrity Kendall Jenner was met with such harsh criticism that the beverage giant pulled the commercial. The company’s stock barely moved in the days following the onset of the controversy. “It’s rare to see a big decrease or even a significant increase in stock value because of a commercial. People don’t typically make a connection between a company’s marketing and its value on Wall Street,” said Jeff Goodby, co-chairman of Goodby, Silverstein & Partners, a unit of Omnicom Group Inc. “I wish they would—it would make our work more valuable.” In 1984, Apple Inc.’s stock rose 0.9% a day after its widely acclaimed “1984” Super Bowl ad aired. A year later, the company’s shares rose 2.7% in the first day of trading after its much-derided “Lemmings” Super Bowl commercial. Under Armour Inc.’s stock fumbled in 2008 after the company said it would run a commercial during the Super Bowl. Investors were spooked by the fact that the Baltimore-based sportswear maker was spending a big portion of its annual ad budget on the ad.

Corrections & Amplifications
Peloton Interactive has spent $112.6 million on TV ads this year, as of Wednesday, according to estimates from ad-tracking firm iSpot.tv. An earlier version of this article incorrectly said Peloton had spent $84.2 million.

Answer 1

Answer)

1. Peloton commercial was not right in the sense that its message came out as misogynist and at same time unrealistic ,I found it offensive for same reasons as pointed above,such ads create wrong expectations.
2. Ryon reynolds commercial took advantage by reciprocating feelings of audience when the same lead looks exhausted or when one if the friends points out that she looks great or escaping as in escaping from exercise bike and such husband.
3. in it instead of expensive luxury exercise bike space to do pushups is gifted and it takes a view on how luxury is showcased in the advertisement,it also looks at how such commercials mocks common people with unreal expectations.
4. There are 2 points to it,first is brand image and product usage,yes brand image does take a hit but in short run only, in long run,the negative effect will diminish because of its product usage ,will its users stop purchasing products,answer is no,its product users focuses on product value which if it is good they will buy,trollers may troll it but for its loyal users it is of not much difference as they are its users and would not change their exercise equipment,as for potential customers,they may feel hesistant to try it out but for some they may get intrigued,so long term impact will not be affected by this advertisement.

Answer is complete.Thank you!