Wahoo Fitness: Segmentation and Data Insights

16 Pages Posted: 8 Feb 2022

See all articles by Rajkumar Venkatesan

Rajkumar Venkatesan

University of Virginia - Darden School of Business

Henrique Lopes

Independent

Gerry Yemen

University of Virginia - Darden School of Business

Abstract

One month before businesses across the United States closed due to COVID-19 lockdowns, Wahoo Fitness (Wahoo) launched the Elemnt Rival GPS smartwatch, which catered specifically to triathletes. The team at Wahoo was excited about the potential of this new category. It was the entryway into a market valued at $19 billion in 2020 and projected to grow at a CAGR of 38.6% over the next six years.To decide on next steps, the company turned to its roots—data insights. Closs and the team started with qualitative data surveys to identify customer segments and extract insights into other market opportunities. The data uncovered potential sports activity customer segments—competitive, social, and leisure. The team wondered: Was now the time to engage with cycling hobbyists or leisure cyclists? Or did it make sense to expand on the initial success of the smartwatch and offer more products in the running segment? The option to leverage Wahoo's expertise in software and add more tracker features might also be attractive.This field-based case describes Wahoo's data-collection process, focusing especially on the customer survey it used to gain insights into its current and potential customers. Based on the survey results, customers can be segmented and profiled, enabling the company to tailor its product offerings and marketing strategy. The case includes a student spreadsheet with survey data.

Excerpt

UVA-M-1025

Feb. 2, 2022

The COVID-19 pandemic had a major impact on the personal fitness industry throughout 2020. “Indoor training had been slowly growing, but the shift indoors due to lockdowns really tipped the scale,” said John Closs, head of business insights at Wahoo Fitness (Wahoo) in Atlanta, Georgia. “It got more people into cycling.” As a result, Wahoo's sales skyrocketed; by spring 2021, it was still catching up on the backlog.

One month before the impact of the coronavirus closed businesses in the United States, Wahoo launched its first watch—the Elemnt Rival GPS smartwatch. The watch catered to triathletes and included specific features for them. For example, it was the first smartwatch to include touchless transition for triathletes. It was able to identify shifts between swimming, cycling, and running, and to automatically switch modes. In summer 2021, the Elemnt Rival watch was featured among the best men's cycling gear of the year.

Closs and the team at Wahoo were excited about the potential of this new category. It was the entryway into a market valued at $19billion in 2020 and projected to grow at a CAGR of 38.6% over the next six years.

. . .

Keywords: marketing analytics, segmentation, profiling, survey, personal fitness, COVID-19, smartwatch, competition, expansion, organic growth model, look-alike model

Suggested Citation

Venkatesan, Rajkumar and Lopes, Henrique and Yemen, Gerry, Wahoo Fitness: Segmentation and Data Insights. Darden Case No. UVA-M-1025, Available at SSRN: https://ssrn.com/abstract=4026897 or http://dx.doi.org/10.2139/ssrn.4026897

Rajkumar Venkatesan (Contact Author)

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Henrique Lopes

Independent

Gerry Yemen

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
145
PlumX Metrics