Regional Business Plan - Local Innovators - Nautilus, Inc. (NYSE:NLS)

Business name: Nautilus, Inc. (NYSE:NLS)

Website: www.nautilus.com

Owners/founders: Nautilus, Inc.

Years in business: 19 (founded 1986)

Product(s): With a brand portfolio that includes Nautilus(R), Bowflex(R), Schwinn(R)Fitness, StairMaster(R), Trimline(R) and Pearl iZUMi(R), Nautilus manufactures and markets a complete line of innovative health and fitness products through direct, commercial, retail, specialty and international channels.

Employees: 1,400 employees and operations in Washington, Oregon, Colorado, Oklahoma, Texas, Illinois, Virginia, Canada, Switzerland, Germany, United Kingdom, Italy, China, and other locations around the world.

Where are the markets (industries and/or businesses if B2B) for your products and how important are local customers for what you produce?

Nautilus, Inc. promotes our products through a variety of sales channels including direct marketing, retail, commercial, Internet, catalog and international distributors.

What does your company do to differentiate itself and its products from those of its competitors?

Nautilus, Inc. is a pure fitness company that provides tools and education necessary to help people achieve a fit and healthy lifestyle. We differentiate ourselves through strong brands, a fast pace of innovation, and a presence across all channels where people shop and exercise.

How has your business changed in the last 5 years (if it is even 5 years old)?

In a word: diversification. We have transformed our company from one that relies upon a single product in a single channel, into one that relies on multiple brands, multiple products, multiple models, and multiple sales channels. This is being achieved through innovation, marketing and acquisitions.

The last two years?

Most of our transformation has occurred in the past 2.5 years under the leadership of Gregg Hammann, chairman and CEO.

We now market a growing array of fitness products and accessories under five leading brands -- Nautilus®, Bowflex®, Schwinn® Fitness, StairMaster® and PEARL iZUMI®.

Key innovations in your company (products, processes, designs, ideas)?

Our company is focused upon innovation in everything we do through "never been done before thinking" that aligns with our strategic business platform.

Our innovation is most apparent in delivering new products, which account for about 30 percent of our net sales each year. Some examples:

The Bowflex® TreadClimber®: An innovative cardio machine that joins the ease of walking with the cardio results of running or stepping. Independent treadles help you burn twice the calories as a treadmill workout.
Nautilus® MyStrideT Elliptical: A unique variable stride feature enables elliptical users to change their stride length dynamically from 0-32 inches as they work out - all naturally without electronic controls.
Bowflex RevolutionT Home Gym: The next-generation home exercise gym accommodates hundreds of exercises including rowing, curls, shoulder press, chest press, leg curl, leg extension, leg press and more.
Bowflex® SelectTechT 552 Dumbbells: Combines 15 sets of weights into one that changes weight with the turn of a dial in a single space saving unit.

Key breakthrough or turning point in the business:

Moving from a single brand, product and channel, to multiple brands, products and channels.

What's the biggest challenge facing your business?

Educating more people on how they can achieve a fit and healthy lifestyle. We are facing a growing health crisis brought about by the consequences of inactivity. Getting and keeping fit needs to become a priority for everyone.

Can you describe how metro Portland works as a base from which to compete?

Vancouver, Wash., is home to our world headquarters. It is a great place to live and work, making it easy to attract and keep world-class talent. Portland, Ore., is home to our west coast distribution, where we move products made both domestically and internationally to customers throughout the western part of North America.