Nautilus 2006 Annual Report Download - page 9

Table of Contents
We manage our own customer service call center in Vancouver, Washington. It operates 18 to 23 hours per day to receive and
process the vast majority of all infomercial-generated and customer service-related inquiries.
We advertise in select trade publications, including publications that reach key industry stakeholders, as well as directly to
consumers. Specific placement is driven by marketing and product development events and ads are coded to assist us in measuring
the effectiveness of each individual ad with respect to our objectives of increasing brand awareness and sales leads. We also maintain
a database that includes contacts at thousands of commercial facilities and enables us to monitor responses to direct mail promotions.
All direct mail promotions are supplemented by a telemarketing effort to maximize customer response.
There are several national and regional industry trade shows, such as the International Health, Racquet and Sportsclub Association
and Club Industry, as well as many other events that showcase our programs and products. Trade shows 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.
The main focus for marketing our retail products is two-fold: 1) fully support our network of customers, and 2) to leverage our direct
marketing advertising programs 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
Fitness, Bowflex, and StairMaster brands remain prominent in the minds of customers and consumers and drive consumers to their
local retailers.
International Equipment Business
The international equipment business product line is marketed and sold through a diversified retail and commercial sales distribution
channel outside of the Americas through our own sales force and international distributors. By offering a complete line of strength and cardio
products, we now have greater ability to compete in the international marketplace where many commercial customers prefer to buy from one
supplier that can offer a broad array of products at a competitive price. We believe our brand names have strong recognition in the international
marketplace which has allowed us to compete more effectively.
To allow us to effectively manage our international sales channels, we operate our own offices in our largest international markets which
include Switzerland, the United Kingdom, Germany, Italy, and China. Each office possesses a team of sales representatives that focus on
selling to fitness clubs, governments and hotels. We have also started marketing directly to consumers in the Australian market.
Fitness Apparel Business
We market and sell our fitness apparel and footwear to geographic locations in the U.S. and internationally through consumer direct
emails, online marketing, advertisement and product placements in a number of sport specific publications that allow us to reach specific user
segments of cyclist, runners, and fitness professionals
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• In the commercial channel,
we market and sell our Nautilus, Schwinn Fitness, and StairMaster commercial fitness equipment through
an internal sales force and selected dealers to health clubs, government agencies, hotels, corporate fitness centers, colleges,
universities and assisted living facilities. Our commercial sales force is focused on expanding the market position of our existing
Nautilus, Schwinn Fitness, and StairMaster commercial product lines through joint marketing programs with clubs thus making
fitness inviting for guests, and utilizing our knowledge from the Nautilus Institute to improve our product offerings.
• In the retail channel , we market and sell a comprehensive line of consumer fitness equipment under the Nautilus, Bowflex, Schwinn
Fitness, and StairMaster brands through a network of more than 3,200 locations consisting of sporting goods, warehouse clubs,
department stores, governmental agencies, mass retailers, specialty retailers, and independent bike dealers.