Nautilus 2005 Annual Report Download - page 11

Table of Contents
proper exercise routines and equipment to be used including cardiovascular and strength training. We believe the Nautilus Institute will help
develop a body of knowledge that will lead us to the design of more effective and user-friendly products for our customers. The Nautilus
Institute website can be found at www.nautilusinstitute.org.
Trade Shows. There are several national and regional industry trade shows, such as the International Health, Racquet and Sportsclub
Association (“IHRSA”) and Club Industry, as well as many events that showcase our programs and products. Trade shows also provide
excellent opportunities to meet face-to-face with our customers and the media to obtain valuable feedback by being able to test marketing
messages, receive customer input on product designs, and evaluate the competition.
Internet. We currently maintain and direct consumers to our websites, which can be found at www.nautilus.com. These websites contain
Company and product information.
Retail and Specialty Retail Sales Channel and Marketing
In the retail sales channel, we market and sell a comprehensive line of consumer fitness equipment under the Nautilus, Bowflex, Schwinn
Fitness, StairMaster and Trimline brand names through a network of 2,800 locations consisting of sporting good dealers, distributors and
retailers. In the specialty retail sales channel, we market and sell a comprehensive line of consumer fitness equipment under the Nautilus,
Schwinn Fitness, StairMaster and Bowflex brand names through a network of specialty retailers and independent bike dealers. The specialty
retail channel represents a customer base comprised of high-end fitness enthusiasts who desire club quality equipment for the home.
In addition to products already offered through our retail and specialty retail sales channels, we intend to continue bringing products
previously sold exclusively through our direct sales channel to retail and specialty retail. By leveraging the advertising dollars spent on direct
marketing, we believe we can effectively sell our direct to consumer products through our retail sales channel where the majority of consumers
purchase fitness products. The direct advertising not only generates revenue through direct to consumer sales, but it also creates brand and
product awareness that lead to sales in our retail sales channel.
The main focus for marketing our retail products is two-fold: 1) fully support our network of customers, and 2) leverage our direct
marketing advertising dollars to market products through the retail sales channel that were previously only available to consumers through the
direct sales channel. Company sponsored marketing programs have been developed to ensure that our Nautilus, Schwinn, Bowflex, StairMaster
and Trimline brands remain prominent in the minds of customers and consumers and drive consumers to their local retailers.
In-Store Promotions. We have developed a branded “store within a store”
concept that allows the customer to buy the specific product for
their specific need and allows them to envision how the different innovative assortments of fitness equipment could be positioned in the home.
Internet. The Company currently maintains and directs customers to our websites, which can be found at www.nautilus.com. These
websites contain Company and product information.
International Sales Channel and Marketing
In 2005, our international sales channels included commercial, retail, specialty retail and direct. We market and sell Nautilus, Bowflex,
Schwinn Fitness, StairMaster and Trimline brands to geographic locations outside of the United States using a combination of direct-
marketing, our sales force, and a network of specialty and sporting goods dealers, distributors and retailers. 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:
10
• Asia/Pacific