1. Please respond to the post below regarding the subject
2.
Describe your product and your target market (again) in a few sentences.
The product is Peloton’s virtual reality personal trainer. The target market are women from ages 28 to 43 who are part of middle to higher social classes.
What is the main reason you want to introduce your product there?
This product can be successful in a lot of places around the world. Peloton’s newest product should do great in a country like United Kingdom. The reason being because the UK is a large country and one with a good economy. This will also bring more awareness of Peloton’s newest product to the Europe region, besides the UK. Also, in larger cities like London, this product should be able to benefit a lot of people, especially those within the targeted market.
Describe (in 3-4 sentences) the country and its present economic and political stability (or instability).
One of the countries this product will be introduced in is the United Kingdom. The UK has a strong economy, it is the 6th largest economy in the world (United Kingdom: Economic and political outline, 2024). They do have political stability; they have a King which serves as the head of state and a prime minister who also works along with the house of parliament. (United Kingdom: Economic and political outline, 2024).
How does the foreign country’s culture and history affect your target market’s needs? Or does it?
The target markets needs should not be affected too much in United Kingdom due to their culture and history. It seems that in the UK millennial women do want to be more physically active, but often complain that they are too tired after work or that due to work they do not have too much time to work out (The UK fitness report – 2023/24 gym statistics 2022). Therefore, this is a great opportunity for Peloton to focus on their same targeted market and motivate these women to work out from home.
Will you need to adapt your product in any way? If so, how and why?
The product should be adapted to local conditions to reduce the chances of failure (Peter & Donnelly, 2018). Therefore, it will be best to understand and get familiarized with the UK’s marketing strategies and conduct research to ensure the product meets the customers demands. One of the main differences is that in the U.S. marketing is conducted more individualistic, while in the UK marketing is collectivistic (Nakatomi, 2022). Knowing these main differences should set the marketing team up for success.
What are some pricing regulations that affect how you will adapt the price and promotion of your product? Or, will you be able to use the same pricing and promotion strategies as you use in the U.S.? If so, why?
Deciding the price for a product that will be introduced to another country is really complicated. The product then also has to meet with “the essential requirements, safety regulations, having a technical file, having a Declaration of Conformity, marking and labelling of the product to enable traceability,” (UK law on the design and supply of products 2024) and many others. There is clearly lot that needs to be considered. Other things are the tariffs, antidumping laws, taxes, inflation, and currency conversion (Peter & Donnelly, 2018). For example, one must understand that there is a difference between the US dollar to the British pound, at the moment $1 equals .80 pounds. Therefore, the same pricing will not work in order for Peloton to be profitable within the UK. The pricing will be established once all of these regulations and differences are considered. The price will be fair for the UK, but profitable enough for Peloton.
Will you distribute your product differently than you do in the U.S.? How and why?
Distribution will be different in the United Kingdom than the way it is in the U.S. For foreign distribution it will be necessary to establish a marketing infrastructure, this will help Peloton which by investing in a foreign partner who will assist with manufacturing and distribution of this product (Peter & Donnelly, 2018). Having a partnership like this one abroad will help delivering the product successfully and more time efficient. It will be best to have a company that can assist with manufacturing the product abroad and then being in charge of distributing the product across the country.
