Nautilus 2009 Annual Report Download - page 8

Table of Contents
We differentiate the product lines offered in our direct and retail sales channels, as indicated in the table below:
While our marketing efforts are focused as indicated in the chart above, we offer our full product assortment to our direct customers through our
websites.
BUSINESS SEGMENTS
We conduct our business in two segments, Direct and Retail. For further information, see Note 15, Segment Information, in our consolidated
financial statements.
SALES AND MARKETING
Direct
In our direct business, we market and sell our products, principally Bowflex strength and cardiovascular products, directly to end-consumers.
Historically, almost all of our direct business sales were in strength-related products and accessories, including our Bowflex rod-based home
gyms and the Revolution home gym. We have been, and plan to continue to be, the largest direct marketer of strength products in the United
States. We have also taken measures to diversify our product mix by increasing advertising for the Bowflex TreadClimber , a unique cardio
fitness product, and by launching the Nautilus Mobia , a specialized cardio fitness machine.
Our marketing efforts are based on an integrated combination of media and direct consumer contact. We utilize television advertising, which
ranges in length from 30 seconds to as long as five minutes, in addition to extended 30-minute television infomercials; internet advertising;
product websites; inquiry response mailings; catalogs and inbound/outbound call centers. Marketing and media effectiveness is measured
continuously based on sales inquiries generated, cost per lead, conversion rates, return on investment and other key metrics. The majority of our
direct sales activity occurs through our call center and Internet websites.
4
•
Our
Schwinn
Fitness
brand is known for its popular line of indoor cycling equipment, exercise bikes, including the Airdyne
,
and ellipticals. In 2009, we introduced treadmills specifically designed for the retail business.
• Our
Universal
brand is one of the oldest and most recognized names in the fitness industry. In 2009, we introduced a limited
product line of kettlebell weights and benches.
Direct Channel
Retail Channel
Bowflex
Rod
-
based home gyms
X
X
Spiroflex home gyms
X
X
Specialized cardio
X
Treadmills
X
Selectorized dumbbells
X
X
Nautilus
Specialized cardio
X
Upright and recumbent exercise bikes
X
Ellipticals
X
Treadmills
X
Schwinn
Fitness
Upright and recumbent exercise bikes
X
Indoor cycling bikes
X
Ellipticals
X
Treadmills
X
Universal
Kettlebell weights and benches
X
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