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Jeffrey Schneider
02/22/23
Comm 468

Corporation Case Study: Company of Peloton

Description & Background of organization -

The company Peloton was created in 2012 on the basis of creativity and innovation in the

world of working out. The creators of Peloton learned to develop the technology to bring intense

workouts to the places where families needed them most. Balancing work life and creating a

workout program to drive to everyday is not always as feasible as it could be for working

mothers and fathers. Efficiency was a goal of the creators to cater toward all types of people. The

company of Peloton has grown their company to a multi million dollar organization in the last

ten years. The company has achieved this through the severe and dedicated consumers who

purchase these items. The company built this product on the basis of workout instructors going

online and teaching these interactive classes keeping the same intensity that some in person

classes can bring to people. This new type of technology ranges from bicycle workouts, rowing

machines, treadmill workouts and boxing coaches.

Problem at hand -

In the year 2021 Peloton faced extreme backlash for one of the worst PR crisis in the

industry. The crisis at hand that Peloton had to face was the death of a child and over 70 more

people injured from their products. The problems result from mishaps coming from its

Tread,Tread+Treadmills over a period of time. The death of the child was the tipping point this

company could no longer contain. The company was forced to recall a big number of their

products quickly before the problem rose any bigger. The suspected problem arose from the

potential possibility of safety measures not being taken to the extent they should have been for a
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company of this caliber. Putting life in the hands of such a successful company and death results

are a downhill battle for Paloton. The possibility of children being dragged under the belt of the

treadmill was where the suspected investigation began.

PR Issue Perceived -

The Issue perceived from the company of Peloton derives from the many small accidents

followed by the death of the young child. The company failed to make adequate response and

action in the proper time. Critics and customers did not waste any time in letting the company

know how they felt and how it would affect the company. This kind of behavior by Peloton is

asking for turmoil from the inside out. With multiple reports of customers being pulled out from

under and entrapped under the treadmills in 2018 and 2019 Peloton neglected to report any

incidents to the commison as required by law according to USA today.

How the organization handled the issue from a PR perspective -

The main issue that insured this accident was the initial response from the CEO John

Foley. Or that lack of response, Foley didnt state much from the beginning of the smaller

incidents. Not making much of a stride to find change or help his company's brand when it came

to his very own customers. Foley eventually led his decision to dismiss the incidents as a “ small

handful “ of “ Tragic accidents “. These comments did not go well for this CEO. The company

received much backlash for this lack of care for such a horrific tragedy for the one young child

and many more injuries. The BBC reported on the incident, receiving this statement from the

CEO, “ I want to be clear, Peloton made a mistake in our initial response to the consumer

Product Safety Commission's request that we recall the Tread”. The CEO was apologetic in that

he felt later swiffer action should have been taken in a situation of this caliber.
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How the organization could/should have handled the issue -

Peloton as an organization took the industry by storm creating a new alternative to gym

workouts during covid. Offering success during bad times. Like PRDaily mentioned in their

article “ Crises can offer opportunities for your organization to build trust” . This idea is one I

agree with completely. Consumers witness an event like this as an opportunity to see how this

company is run and the ethical code it may or may not follow. In the beginning the CEO did not

take advantage of the relationship growth he could have sparked as an upper level man in the

company. By developing your transparency and admitting to the mistakes and faults your

company has been at fault committing that allows for clients or customers to recognize the

human behind the door. They are given the opportunity to see both sides and grow with the

company by being emotionally attached, aiding in the make-up time forgiving when things can

be forgiven. If Peloton took the situation ahead quicker then they did and admit to the mistakes

made they could have taken advantage of the growth out of it, reconsidering or readjustng the

way safety measures are executed. Starting from corporate and trickling down the negative

mindsets could have been lifted.

How this case compares to others you have studied/discussed in your public relations

classes -

A case of this caliber finds its comparison in mant fields when compared to what we have

done in this class thus far. An example from class that can be related to this crisis would be

Harold Burson and his philosophies. Burson tackles the infamous tylenol case during his time as

a PR professional. Burson knew the way to take a situation and add his spin and technique to

building his clients reputation instead of tarnishing it. I think Foley could have taken notes from

Burson in this situation.Another example that can be drawn to find some similarity to this
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Peloton crisis would be the Southwest flight mishap. Although nobody lost their life in the

Southwest issue, many people lost crucial time in their lives. These kind of situations are on a

much bigger scale due to the fact of the pure attention and popularity these companies share.

Why is this case important for the study of Public Relations -

I think the sitation that came out with Peloton was a great scenario to teach the basic do’s

and dont’s of corporate PR. This case has taught the importance of honesty and how you should

own up to the mistake that was made and aim for the correction before trying to defend yourself.

This case has taught me that the development of a situation like this can have light at the end of

the tunnel if you take the propper steps in the start of it. Getting ahead of controversy with truth

and honesty will show your costumers the morals your company carries itself with. Showing the

comeback and resilience to competitors or potential customers would only increase success with

overall interactions on social media and the development of consumer habits.

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Works Cited:

Kitterman, Ted. “5 Top Crises from 2021-and the Warnings They Offer for the Year

Ahead.” PR Daily, 10 Dec. 2021,

https://www.prdaily.com/5-top-crises-from-2021-and-the-warnings-they-offer-for-the-year-

ahead/.

Mayorquin, Orlando. “Peloton Agrees to Pay $19 Million to Settle Case Involving

Recalled Treadmill That Caused Child's Death.” USA Today, Gannett Satellite Information

Network, 5 Jan. 2023,

https://www.usatoday.com/story/money/2023/01/05/peloton-settlement-treadmill-child-dea

th/10997903002/.

“Peloton Runs into PR Nightmare: Here's What It Needs to Do Next.” The Drum,

https://www.thedrum.com/news/2021/05/07/peloton-runs-pr-nightmare-here-s-what-it-need

s-do-next.

“Peloton®: Workouts Streamed Live & on-Demand.” Peloton® | Workouts Streamed

Live & On-Demand, https://www.onepeloton.com/.

Timmins, Beth. “Peloton Investigated over the Safety of Its Treadmills.” BBC News,

BBC, 27 Aug. 2021, https://www.bbc.com/news/business-58349632.