Amanda Meyer, Sophia Myers, Yelena Shapiro, Caroline Turnbull

So what is so interesting about SoulCycle?

Let’s get started…

• “Cult-like” following

• Really cool workout

• Exclusive

• Clothing

• High-end pricing

• Strong majority stakeholder: Equinox

Further considerations

• Filed for IPO (NASDAQ) in 2015 with a $100M valuation

• Expanded to same markets Equinox occupies

• Brick & mortar stores outside NYC, SF & LA not getting traction

• Needs a strategy for expansion and growth

Our recommendations Segment 1: Convenience Driven

Segment 2:Price Driven

Segment 3:Intensity Driven

Segment 4:Quality Driven

Segment 5: Experience Driven

Important Benefit Statement Less than 5 miles from home/work

- Classes cost less than $20- Will exercise outside if price is too high

- Hardest workout of my life- Burn over 500 calories per class

- Variety and quality of classes available- Clean facilities- High-quality amenities (e.g., shampoo, free gum)

- Trendy music- Enthusiastic instructors- Social atmosphere

Behavioral Characteristics Heavy user Medium user Heavy or medium user Medium or Light user Heavy user or occasion user

Demographic Characteristics Gen Y, Gen X, Baby Boomer; High-low income

Gen Y; Low-middle income Gen X, Gen Y; High-income or middle-class

Gen X, Baby Boomers; High-income

Gen Y; High-income (heavy user) or middle-class (occasion user)

Psychographic Characteristics (based on VALS Framework)

Achievers Thinkers Thinkers, innovators Innovators Experiencers

Geographic Characteristics Urban, suburban Urban, suburban or rural Urban, suburban or rural Urban Urban (heavy user) or suburban (occasion user)

And here’s why: the cost

• Appetite for differentiated pricing levels

• Survey: 53% were only willing to spend between $10-20 for an exercise class. Still 10% willingness to pay between $30-50 for a class

“It’s my favorite part of the week, but I can only afford to come once a week.”

Plus: convenience

• Proximity to home, price, and quality of class are the top three factors to picking a place to exercise

• Close to 75% of survey participants are not willing to travel more than 5 miles in order to get to an exercise class

• More than 30% of these would not travel more than a mile to their exercise class

What’s next?

Image resources

• Wallpaper: http://4.bp.blogspot.com/-gIdGqcT3G0s/UvGPLRXiuEI/AAAAAAAAAdE/2tGPqat-lmY/s1600/soulcycle.jpg

• White wheel: https://www.soul-cycle.com/assets/images/wheel_missing_image.png

• “What’s Next” image: https://www.yahoo.com/beauty/how-wellness-became-the-new-luxury-status-symbol-108665751463.html