SoulCycle

Name:
Course:
Institute:
Executive Summary
SoulCycle is an indoor cycling studio, co-founded by Julie Rice and Elizabeth Cutler in 2005.
It started as a single studio in New York, Manhattan, it had a mission to serve as a sanctuary,
foster community, and to inspire people, wo had to work out as work routine. This was a step
in renovating peoples’ perspective about workout as work routine into something more fun
and joyful experience. It has now exploded into a multi-million-dollar chain with a cult of
loyal customers across its 99 studios. This business has paved a luxury business of “fitness
boutique industry” to compete in a serving market of customers who will buy into a brand.
This had the competition expanding into uncharted markets, in giving customers an in-home
cycling experience. It has the best fitness trainers and instructors guiding with the best
experience. the customers seem to have loved this activity. SoulCycle is related own by the
famous Equinox Fitness. The marketing plan of the company is very receptive to the firm’s
services. Over the next years SoulCycle can increase its studios and win more customers.

Company Description
SoulCycle was founded in 2005, by entrepreneurs Julie Rice and Elizabeth Cutler in New
York. SoulCycle has its business running in USA, Canada and UK. It has over 99 studios
running all around. The two founders made it to their first studio in 2006 and later on they
started to grow with a good rate, by 2007 they had their 2nd studio and started their first
instructor training program by 2009. By 2010 they expanded healthy. By 2012 SoulCycle
partnered with Equinox and by 2016 it was expanded to California, The Bay area, Miami and
Chicago.
By 2016 they had their own app launched, and they had been growing so fast that they made
really healthy and loyal customers. The had this luxury environment and the best instructors,
that made it famous on social media. SoulCycle gives the customer the satisfaction and the
feeling of in-home activities. The trainers are amazing and they make them all train at the
same pace.
They offer the customers a very comfortable and peaceful environment, making the feel
relaxed and calm. The basic function of soul cycle is to bring soul to people, they customers
said that with every pedal that they take, clears their mind and that it connects them to their
soul, it has made their lives easy and relaxed, they admit that it has brought many positive
changes in their lives.
SoulCycle is for everyone, whoever feel they should join they do, and a recent survey has
shown that their customers are happy with the activity and they enjoy it. SoulCycle provides
soundproof studios, by this the riders feels peace and away from the noise and hectic life
style, which is healthy for anyone.
Before opening into a new city, a team arrives at the location and connects with the people,
company has kept its integrity by maintaining a string bond between the instructors and
riders, who pedal through the 45 minutes of class to the tone of carefully coordinated jams.
SoulCycle want to take it to the next level beyond the studio walls, by bringing the SoulCycle
experience into spinners’ home. It has great followings on all the social media.

SoulCycle’s Mission, Vision, Values and Goals

SoulCycle’s is to bring soul to people, with their one of kind Rockstar instructors that guides
the riders through an inspirational, meditative fitness experience, that is designed to benefit
the body, mind and most importantly the soul.
SoulCycle is making improvements and coming up with next-level cycles and designed
handle bars, they are trying to make the rider’s upper body exercises easier, as the instructors
are making progress. They plan to introduce new designed cycles that rides smooth and are
long lasting.
 Financial Goals
SoulCycle is planning to introduce the new techniques to the studios, and obtaining new
financing and expanding to the spinner’s home. They have targeted to increase the
revenue by 35-45% than the last year. As per the last few years its revenue has been
increasing rapidly.
 Non-financial Goals
SoulCycle is planning to introduce the new design logos and t-shirts that people can wear
causally too.

Core Competencies
SoulCycle uses its core competencies to achieve loyalty by introducing new strategies, in
recent SoulCycle has launched a strategy that if you ride for 15 days in a month you get a
free 3 Soul Extra for next month. This is because there has been a furious rise in demand
for the studio, and many people don’t get to ride their favorite bike with their favorite
instructor. Even on Monday afternoon the classes are booked to full. Most of the people
don’t even get to be booked for a month. The reason why SoulCycle is expanding so
rapidly. Now they introduce the Soul Extra booking, it can be considered as executive
class with an extra $15 per booking. And to increase the sales and services, SoulCycle is
offering 3 Soul Extra for an entire month for those who join for 15 days in a month. This
shows the loyalty of customers and the demand of SoulCycle. SoulCycle has been very
successful in maintaining its relationship with the riders and the instructors.

Situation Analysis
The marketing strategies for SoulCycle represents overwhelming opportunities, they
contain challenges but the firm is confident that they can still achieve the goals. A SWOT
analysis represents the strength, weakness, opportunity and threats.
SWOT analysis is helpful in obtaining and evaluating company’s position in the
marketplace. SoulCycle has impressive strengths and has shown amazing growth and
revenue in the past years, and is looking forward to new opportunities. Looking at the
devotion of the founders and the members, and loyal customers, the financial
management places the company in a good growth level. The recent expansions and the
new services along with new policies for customers will take the company into new
marketplaces, and the company is ready to go for it. As the company is introducing new
policies and bonuses for the customers, including the new online expanded registrations
and services, the management has to guard against the competitors and copycats.
However, the company have strong relationship with customers, that makes the company
strong.
STRENGTH WEAKNESS
 Geographical Presence in  Company may lose
different regions. attractiveness due to short or
 The wide product portfolio excessive inventory.
allows to expand customer  Cash Shortage or low net
base. assets negatively effects the
 Strong online influence in liquidity position.
social media.  Insufficient budget for
 Access to suppliers that offer marketing.
material at low cost.  High employee turnover.
 Strong financial position can  High job stress and low
let company invest more. worker’s morale.
 Strong location positions, and
expanded growth.

SWOT
OPPORTUNITY THREATS
 The consistent growth in  The changing regulatory
population. framework.
 Increased demand.  Increased number of direct
 Customers may demand for or indirect competitors.
new and enhanced  The rise in inflation
services/products. increases the cost of
 Raise in customers. production and effects
 Increased popularity on social business profitability.
media.  The globalization pushes
 Reduction in increased interest company to break the
rates. national boundaries.

Competitors in the In-door Cycling Market

Indoor cycling is becoming more in the competitive space in the fitness industry. Until 2012
SoulCycle was the invincible company in the indoor cycling, fitness market with its cult
following and rising number of fans on social media and a huge customer count, with per
class rate of $36. Then Peloton came along, founded in 2012, with a wide range of high-tech
support and users than can access from anywhere worldwide, through live-streaming. They
made it possible to have the best cycling experience without even leaving the bedroom.
Peloton is making an impact on the fitness business market, by providing high-tech gears to
the customers. Providing the customers, a high-tech environment for exercise and even have
touchscreens attached to the cycles. The cycles are interesting at Peloton as they are user
friendly. Now comparing it to SoulCycle, as it’s mantra says online “it’s a powerful mind-
body experience” and they absolutely mean what they say, apart from being the oldest in the
fitness business SoulCycle doesn’t allows phones in the class, it is totally natural with the
vibe experienced by the riders, they have a sense of mind, body and soul connecting. Also,
the customer loyalty is greater than before as they provide a healthy environment with the
instructors training. SoulCycle is best opinion if you don’t want to work out alone, and as
commented by the users it is more fun. But still Peloton is the biggest competitor for
SoulCycle.

The Target Market

In the target market, SoulCycle’s active customers are the ones that crave for enjoying a
natural and tech free environment, as SoulCycle’s’ basic moto is that anyone can be an
athlete, and that they are achieving perfectly, this is explained by how the demand for
SoulCycle is increasing day by day. Even Monday afternoons are booked. It’s most
customers are from a group who are stuck in their regular lives and want to have a peaceful
environment and those who want to connect and calm their minds, bodies and souls. As the
environment provided by SoulCycle is unique and it motivates the customers to put in full
effort, that actually helps them in achieving their goal, one class costs $36. SoulCycle’s
yearly revenue is approx. $100-$500 million.

The Market Mix

Product Strategy
SoulCycle is providing the customers with more unique exercises along with new exclusive
offers. The only reason that SoulCycle is so famous and have a strong customer loyalty is
because of its unique ways and new offers that they make to customers. Their recent new t-
shirts that are sold so fast, because of the customers feel a confidence in wearing the logo, to
express what community they belong to.
Distribution Strategy
Before the COVID Pandemic, in early 2020 SoulCycle expanded to 99 studios, and they are
still planning to expand. They are active in United States, Canada and United Kingdom, as
the customers’ demands are increasing SoulCycle is planning on expanding.
Promotional Strategy
Due to high demand of customers and an increase in number of customers, SoulCycle has
provided new promotions, and offers for the customers. The Soul Extra offer, which is that if
you are regular for 15 days in a month you will get 3 bonus Soul Extra for free for the next
month. Soul Extra is a premium class that gets you booked easily, and it costs an extra $15
per class.

Budget, Schedule and Monitoring

Throughout SoulCycle is increasing in the revenue every year, the following graph show an
increase in the revenue over the past few years f. With a projected sale for the next years.
Following figure shows how the customers felt about SoulCycle.

Over the past years, SoulCycle has increased to 99 studios, before the COVID-19 Pandemic
SoulCycle had 99 active studios. From 2006 to 2020 SoulCycle has created 99 studios from
which 88 are in USA and the other 11 in Canada and United Kingdom. SoulCycle is planning
on expanding to more studios, and even considering in spinner’s house.