Nautilus 2003 Annual Report Download - page 11

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Table of Contents
Public Relations.
In the retail market, public relations is a cost-effective way to promote our products in consumer publications. While
advertising in fitness industry publications is expensive, editorial and showcase articles that include our products are virtually free. Our public
relations strategy in the retail sector is to build awareness of the general benefits of fitness and specific contributions of our products to a
healthy and fit lifestyle.
Trade Shows. There are three national trade shows that are very important to the Company’s retail division: the Health & Fitness Business
Expo, the industry’s premier showcase for retail fitness products; Interbike, the bicycle industry’s premier gathering; and Supershow, the mega-
trade show representing retail products in virtually every category. Trade shows also provide excellent opportunities to meet face-to-face with
our customers and the press to obtain valuable feedback on marketing messages, product designs, and the competition.
Internet.
The Company currently maintains and directs customers to our Nautilus, Schwinn Fitness, Bowflex, StairMaster, and Trimline
websites, which can be found at www.nautilus.com, www.schwinnfitness.com, www.bowflex.com, www.stairmaster.com, and
www.hebbindustries.com. These websites contain Company and product information. None of the information on these websites is part of this
Form 10-K.
International Approach
Our international operations are headquartered in Switzerland. Currently, the amount of long-lived assets outside the U.S. is not material. We
have integrated all of our brands from an operational standpoint and are distributing our products through a network of over 90 distributors in
over 50 countries divided among three regions:
•
Asia/Pacific
•
Europe/Middle East/Africa
In each of these regions, we have responsible sales people and third party warehouses (except Central/South America which we support from
our United States distribution facilities) to deliver our products in a timely and cost effective manner. Communication amongst our business
partners within each region is essential to our strategy so we may support our products, develop innovative marketing activities, and achieve
global brand recognition.
In two of our largest international markets, the United Kingdom and Germany, we operate our own offices, which possess a team of sales
representatives that focus not only on selling to fitness clubs but also on selling to the government, hotel, and medical/paramedical markets. We
added a sales office in Italy in 2002, as Italy represents another market we perceive to be important. Canada is another significant market for
our business, but we do not maintain operations in Canada as product distribution is conveniently supported from our U.S. operations. We sell
products from our commercial/retail and direct segment product portfolios to dealers and retail stores within Canada.
We have alliances with distributors in most markets to sell commercial products from our Nautilus, Schwinn, and StairMaster brands. This
enables us to sell “package deals” to international fitness clubs, which may prefer to buy from one supplier that can offer the broadest array of
products at a competitive price. By
-
10
-
•
Central/South America