The Knowledge Issue 14 v2 - The King of Shaves Company Ltd

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CHAIRMAN’S STATEMENTWith the merger of Gillette into Procter & Gamble (and also the introduction ofmale ranges from L’Oreal, Hugo Boss and Hackett following closely on fromthe Clarins Men and Shisheido Men launches), there is definitely a wave ofactivity sweeping through the male health and beauty market.These relatively large investments ($57bn in the P&G case) areobviously being made with a view to making a profitable returndown the line. There is an expectation that the male market willprovide the profitable growth required by these corporations ata time when the female beauty business is literally ageing andmaturing and thus slowing down.All this is good news for KMI. Investment by the major corporationsis helping to grow awareness of male grooming products amongstconsumers and retailers alike. In this marketplace King of Shaveshas again grown its market share to record levels and enjoys thehighest growth rates of all brands in the sector. Later on in spring,King of Shaves samples will be introduced packaged in with thenew “The RZR” line of razors and blades. This range will be availablethrough Boots stores at first.In the fragrance market there are signs that it is maturing andgrowth is slowing down. High levels of new product introductions,price discounting and much media hype are required for salesmaintenance by all brands in the market. Ted Baker fragrances,which KMI has developed since 1998, are performing well and thenew introductions, Second Skin and Take 3 have had a gooduptake.range of deodorants will appear in spring to complement the line.The brand’s overall growth in 2005 will be over 20%.I hope you enjoy the various articles which give more detail on eachof KMI’s brands and also on the various geographic regions weoperate in. We are looking forward to another great year in 2005and would like to thank all our business partners, suppliers and customersfor their hard work in supporting us.After 14 issues of The Knowledge in this format we are going tobe taking a new direction with the next issue out in the summer.First of all there will be a substantial new look to the overall companybranding introduced in the next issue – the first major changeof corporate identity since 1997. Then there will be a change of formatand direction for The Knowledge itself. Both of these changesare highly exciting and will bring more life into an already highlydynamic newsletter! We look forward to bringing you this – sowatch this space!And before anybody asks…the answer is, “No, the new identity andbranding did not cost us £75m!”Continued innovation in product and packaging will remain the keyin this area and KMI is looking forward to coming to market in 2005with a raft of gift and value sets to enhance our Ted Baker consumeroffering alongside the launch of Ted’s new fragrance forwomen, Second Scent.There is further scope to grow the Fish range of hair styling andbody maintenance products. Three more styling products and aHITEN DAYAL | CHAIRMAN | HITEN@SHAVE.COM

KING’S COMMENTSShaving hit the headlines in February with the sale of Gillette for $57bn toProcter & Gamble. How does this affect King of Shaves?Well, for one thing, it identifies the value that companies areputting on shaving men and their various skincare needs. Thisis surely a good thing for King of Shaves, which is in the vanguardof ‘software development’ with our patented MagnaGelMME selling well; the re-launch of a multi-tasking King ofShaves Woman range, and in the near future, our revolutionary‘micro-ball-bearing’ enhanced AlphaGlide ALS.But this takeover also brings into sharp focus the importance of the‘hardware’ and the ‘R&B’ business. By R&B, I’m not talking Rhythmand Blues, but Razors & Blades! With nigh on 75% of Gillette’sannual profits coming from their R&B division, it is amply clear thatthis is a profitable market; one that I have been exploring over thepast two years. It is becoming ever clearer, that just as King ofShaves excels in shave software design, so it has a fantasticmarket opportunity to sell a hardware product that “Shaves asclose, lasts as long, but costs less per shave”. Not a disposable,nor a fancy multi-bladed vibrating razor either. Something that deliversthe King of Shaves, but not for a King’s ransom.I can’t really say more about this as we are at an advanced stageof negotiation with a variety of ‘hardware partners’, but later thisyear you will see our first steps to reduce the cost of shaving. Thiswill hopefully lead to us being recognised as a company as interestedin saving the shaver money, as giving him ‘The World’sBest’ shaving experience.Finally, we also have in hand a number of initiatives to ensure thatKMI continues to grow sales of its key King of Shaves, Ted Bakerand Fish brands – so watch this space!USA REPORTWhen americans speak, americanretailers have to listenThe US King of Shaves business is expanding on the men’sgrooming radar thanks to our guerrilla marketing tactics anda strong demographic of ‘loyal subjects.’ Customer emails andletters can attest to our quality and dedication. A company thatactually cares about its customers and upholds the integrityof the brand… we are a new species on the US landscape.Now we are gearing up for the arrival of our revamped King ofShaves Woman line. She’s new and blushes in pink, and is keento blow her competition out of the water. Women won’t be ableto keep their pants on, but rather opt for skirts to show offtheir perfectly smooth legs. Eight lovely ladies have alreadyproven this to us through our FHM ‘Queen of Shaves’ contest,where we searched for the girl with the smoothest act to follow.FHM readers were encouraged to vote for the ‘Queen’ who thengets to meet Jason Kidd, New Jersey Nets basketball superstarand King of Shaves spokesperson, at an exclusive event andbe featured in a future issue.We round out our media exposure with the 20th Century Fox FatAlbert movie radio promotion and screening. The nationwideradio promo gave callers the chance to win a gift pack teemingwith King of Shaves and XCD products; while a fun-filled day wascreated for 100 kids who got to watch an advance screening atPlanet Hollywood in New York City.The US business can be capricious, but perseveres. We are quietlymoulding the shaving and skincare market in our image andbefore long, competing brands won’t know where their shelfspace went!WILL KING | FOUNDER & CEO | WILL@SHAVE.COMFURTHER INFORMATION | PHIL@SHAVE.COM | WWW.SHAVE.COM/USA

KING OF SHAVES UPDATEKing of Shaves has had another fantastic quarter and continues to significantlyoutperform the market and Gillette with the introduction of new products andnew marketing activity…KING OF SHAVES MARKET PERFORMANCEKing of Shaves remains the fastest growing brand in UK shavingand skincare. Shaving highlights include:● King of Shaves remains the fastest growing brand in the UK witha +10.9% increase value sales and a +15.3% in volume. Its overall market share is 12.3%, up from 10.8% last year.● King of Shaves is now the number two shave prep brand aheadof Gillette Regular (12.2%) but behind Gillette Series whichhas a 42.4% share. Nivea’s share is 8.6%. With the exceptionof new launches, all other brands are in decline. WilkinsonSword, Original Source, Simple, Noxzema, Adidas and Clearasilall have around 1% or less market share.● King of Shaves has over 80% value share of the shaving oilcategory.● King of Shaves has five separate SKUs each one of which is individuallybigger than the whole of the Simple for Men, Noxzema,Lynx, Wilkinson Sword, Clearasil, Somerset or Cariad ranges.● King of Shaves Woman remains the second biggest women’sshave prep brand behind Gillette’s Satincare.Skincare highlights include:● The overall skincare market has grown by 15.9% to £26.2m, upfrom £22.6m. This growth has been driven by King of Shaves(+54.7%) and Nivea (+19.4%).● Nivea has 65.6% of the market, King of Shaves 7.4%, Gillette7.1%, Simple 5.3%, Adidas 1.9% and Clearasil 0.6%.● King of Shaves ‘niche’ XCD range, which is sold exclusively inBoots, is the same size as the mass distributed Adidas range!KING OF SHAVESMARKETING ACTIVITYXCD sales have grown by over100% since six advertorials weresuccessfully run in GQ, FHM,Maxim, Loaded Fashion,Esquire and Men’s Health(shown on left).King of Shaves has continued tobe featured extensively across thefashion and beauty press andgenerated a PEV (perceived editorialvalue) of over £700,000.Promotions have run in Men’s Fitness,Maxim and in Burton stores.Additional promotions are runninglater in the year with FHM, Zestand New Woman.FURTHER INFORMATION | WWW.XCDSKN.COMBelow: Loaded Fashionadvertorial (Dec 04)1412King ofShavesMARKET SHARE (%)10864Niveafor MenColgatePalmolive2WilkinsonSwordP&G01999 2000 2001 2002 2003 2004SOURCE: IRI DATA.KING OF SHAVES AND MAJOR UK COMPETITORS’ SALES 1ST JAN 1999 TO 27TH NOVEMBER 2004.NOTE: GILLETTE IS OMITTED FROM THIS GRAPH, THEIR TOTAL MARKET SHARE IS 56%.The King of Shaves Womanrange includes:Shave & MoisturiseShaving Oil: 15ml (£3.69)Shave & ScrubShaving Gel: 175ml (£3.99)Shave & MoisturiseShaving Gel: 175ml (£3.99)Shave & SmoothShaving Spritz: 125ml (£3.99)Even Out & FirmingMoisturiser: 200ml (£5.99)Moisturising HairMinimiser: 200ml (£6.99)KING OF SHAVES WOMAN RANGE RELAUNCHWill King presented the re-launch of the King of Shaves Womanrange to a packed Yauatcha in Broadwick Street, London on 24thFebruary.Over the last two years King of Shaves Woman has firmly establisheditself as the number two shave prep brand behind Gillette’sSatincare. However we have not been complacent and in responseto questionnaires and the input from 20,000 women (via theshave.com database), the range has now been upgraded utilisingnew performance technology with a new luxurious and more femininelook.Whilst retaining the core brand values of performance and efficaciousness,the new King of Shaves Woman range appeals towomen who want beautifully smooth, moisturised legs and beautifulpackaging.Quentin noted: “The re-launch has been incredibly well receivedby the trade and big distribution gains have been achieved inSuperdrug, Lloydspharmacy, Asda and Sainsbury’s. We expect thebrand’s value share to increase from 9% to 16% in the next 12months.”REVOLUTIONARY DRAG FREE SHAVING GELAs part of its commitment to push the boundaries of technicaladvancement in shaving software, King of Shaves is launchingthe second of its new generation shaving SKUs with King ofShaves AlphaGlide ALS Shaving Gel.AlphaGlide ALS (Advanced LubricationSystem) shaving gel isenhanced with LubriNyl-12. Frictionbetween razor blades andskin causes drag; this drag is oneof the primary causes of razorburn. LubriNyl-12 behaves like amicro-thin layer of ball bearings onthe skin which converts the highdrag sliding friction (seen in regularshave gels) into smooth rollingfriction that virtually eliminatesrazor drag and gives optimumrazor glide.KING OF SHAVES ALPHAGLIDEALS: 175ML, RRP £4.99FURTHER INFORMATION | QUENTIN@SHAVE.COM | WWW.SHAVE.COM

TED’S NOT STANDING STILLFollowing on from the launch of Second Skin, Ted Baker Fragrances haverecently introduced several extensions to the brand…SKINWEAR RANGE EXTENSIONWith all our other fragrances having their own 30ml size Eau de Toilette,we felt it was the right time to introduce one to the Skinwearfamily. This is an ever popular fragrance and the 30ml size (launchedlast December) will be eagerly snapped up.SKINWEAR EDT: 30ML, RRP £13.50SECOND SKIN VALUE SETEaster will see the launch of the first Second Skin value set whichincludes a Second Skin EDT (30ml), a deo spray (75ml) and a bodywash (100ml). It offers outstanding value to the consumer and givesgreat awareness to the Ted Baker no ordinary designer fragrancebrand within a very competitive market.SECOND SKIN VALUE SET: RRP £18.95SECOND SCENTThis year will see the introduction of a new female fragranceSecond Scent from Ted Baker in May. More on this in the next editionof The Knowledge.TED’S THREESOMEDecember also saw the launch of Take 3 exclusively in Boots,Debenhams and Ted Baker Stores. Take 3 is an ingenious productdelivering three fragrances (15ml each) in one stylish case.The men’s version comes in a semi-opaque smoky black case andfeatures: Skinwear – a citrus cologne for every day wear.Endurance – with its sexy fizzing top notes. M – for those more‘sophisticated’ moments.Ted Baker Take 3For women: 3x15mlFor men: 3x15ml (both £19.50)The women’s has a shocking pink case and includes: Woman –lemon, peach and rum are just some of the wonderfully fruitynotes making this fantastic cocktail have a lasting impression.Endurance – The perfect fragrance for any girl on the go. W – agentle fragrance for a modern sophisticate.FURTHER INFORMATION | LISA@SHAVE.COM | WWW.SHAVE.COM/TEDBAKER

CATCH OF THE DAYFish continues to outperform all expectations and grew by over 150% in 2004.Now straight from the ‘shop floor’ of Fish Hairdressing’s Soho salon, three newstyling products have been created…STRAIGHT OUT OF SOHOStonedFish is a matt texture styling clay, EmperorFish is a lightcrème style finisher and Duck’n’Dive is the ultimate wax and gelcombo. All three were launched at The Dining Plaice (an authenticfish and chip shop) in Soho, London on Thursday 24th February2005.The Fish crew demonstrated the application and benefits of the newproducts on willing models to an audience that included key journalists(enjoying a fish and chip supper of course) from the leadingmen’s titles such as Loaded, Maxim and FHM.STONEDFISH STYLING CLAY: 50ML, RRP £4.99EMPERORFISH STYLE FINISHER: 75ML, RRP £4.99DUCK’N’DIVE COMBO STYLER: 100ML, RRP £4.99FRESHFISH 24HR DEO BODYSPRAYIn response to demand in the Fish Shop in D’arblay Street, Sohoand from frequent customer requests, Fish has launched its firstlifestyle range – FreshFish 24 Hour Deo Body Sprays.Available in three sexy fragrances – Deep Sea, Tropical and Reef,FreshFish guarantees 24 hour deo protection from the shop floorto the dance floor!Quentin said: “This is an exciting time for the Fish range, FreshFishis a funky deodorant that will appeal to guys 16-25 and will give thedominant market player a swim for its money. The deodorantproposition is based around the brand’s cool, Soho styling heritageand will help guys of all ages in their sharking aspirations.”Fish Freshfish 24 HourDeo Body Spray Range:Tropical: 150ml, RRP £2.99Reef: 150ml, RRP £2.99Deepsea: 150ml, RRP £2.99FURTHER INFORMATION | QUENTIN@SHAVE.COM | WWW.SHAVE.COM/FISH

FURTHER INFORMATION | QUENTIN@SHAVE.COM | WWW.SHAVE.COMFURTHER INFORMATION | QUENTIN@SHAVE.COM | WWW.SHAVE.COM/FISHSUPPLIER RELATIONSHIPSKMI is a ‘virtually integrated’ company and assuch we rely heavily on our suppliers. This is whywe need quality supply partners, with “partners”being the operative word. When things aregoing well all relationships tend to work well,however the true test of any relationship is whenthe going gets tough, when there’s a problemand a deadline. Although rare, we are blessedwith some excellent partners...MEASOM FREERBack in 1993, Mark Freer was prepared tosell Will King just one box (1500 or so bottles)for his revolutionary new shaving product,whilst others had MOQs (min order quantities)of 10K+. That level of flexibility and willingnessto help has meant that since those early dayswe haven’t looked back. Now Measom Freersupply the majority of our entire shaving oilbottle demand and have developed severalcustom tools for the King of Shaves, TedBaker and Fish ranges.LAMBERT BROTHERS LTD.Since 1995 we have been pleased to work with RayLambert, Clive Watkins and their team. LambertBrothers have their own fleet of trucks plus extensivewarehousing with pick and pack facilities. Thus theyhave the flexibility and the infrastructure to handle ourbulk deliveries into the major UK multiple retailers,small pick and pack orders into the UK independentsand back hauling our finished goods from our manufacturingpartners. This one-stop warehousing anddistribution solution allows us to meet the high standardsrequired by our retail partners.FURTHER INFORMATION | ANDY@SHAVE.COM | WWW.MEASOMFREER.CO.UK | WWW.LAMBERTBROTHERS.CO.UKFHM WINNER (AT LAST!)After many years of ‘runnerup’ and ‘highlycommended’, King ofShaves has won a UKFHM Grooming Award!Winner of the ‘Best WetShave’ category was ourKing of Shaves AlphaGelNatural UnmentholatedShaving Gel.K-24|8 Daily Use SPF8Moisturiser was also a runnerup in its category.

KMI CONTACTSKMI UK:ANDY HILL DIRECTORE andy@shave.com T 01494 770850 F 01494 770851BILL OEHLMAN DESPATCHE bill@shave.com T 01494 770870 F 01494 770871CHARLIE WONG FINANCIAL CONTROLLERE charlie@shave.com T 01494 770872 F 01494 770873HITEN DAYAL CHAIRMANE hiten@shave.com T 01494 783066 F 01494 783088JANE GREENAWAY PRODUCTION MANAGERE jane@shave.com T 01494 770854 F 01494 770855JODIE CARTER OFFICE ADMINISTRATORE jodie@shave.com T 01494 770893 F 01494 770898KAREN BROOKS PRODUCTION CONTROLLER (KOS & FISH)E karen@shave.com T 01494 770858 F 01494 770859KMI SPONSORSHIP 2005BALLS OF BRITISH STEELKing of Shaves announced its two year sponsorship of KristanBromley (aka Dr Ice), the reigning British, European and WorldCup Bob Skeleton Champion at a launch event at Bath Universityon 1st February. The sponsorship announcement has beencovered nationally by BBC, Sky, five, Channel 4, Sky Sports,Transworld and regionally by radio stations and local press.Skeleton is an extreme sport which involves the athlete racing downa man made ice track, adopting a face down, head first minimaldrag position, where speeds in excess of 90mph and forces of+5Gs are achieved. For the next twoyears Kristan will become the face ofKing of Shaves and will be used extensivelyin all elements of the marketingmix. The partnership is a neat fit, emphasisingKing of Shaves’ meticulousunderstanding of precision, glide, bladetechnology, speed and distinction.’FURTHER INFO | WWW.SHAVE.COM/KRISTANBACK ON TRACKKing of Shaves has extended its sponsorshipof Sean and Mike Peters in the2005 MG Car Club Championships andJames Potter in the 2005 Kumho Clubman’sRally Championship.FURTHER INFO | WWW.SHAVE.COM/MOTORSPORTNEW TO KMI...VICKY GOLTZASSISTANT ACCOUNTANTIt was a tough order to fill the void left by Mandywho moved on to pursue a change of career,however we are pleased to welcome aboard Vicky.With three years’ accounting and ledger experience,Vicky will be assisting Charlie and Richardin the smooth running of KMI’s account team.LISA COULSTOCKNATIONAL ACCOUNTS MANAGER (TED BAKER FRAGRANCES)E lisa@shave.com T 01494 770862 F 01494 770863LOUISE LIMBERTPRODUCTION CONTROLLER (TED BAKER FRAGRANCES)E louise@shave.com T 01494 770886 F 01494 770887MARTIN PARK PROJECTS DIRECTORE martin@shave.com T 01494 770882 F 01494 770883MICHELLE TURNER DESIGN TEAME michelle@shave.com T 01494 770876 F 01494 770877NICKY SPRINGLE CUSTOMER CAREE nicky@shave.com T 01494 770860 F 01494 770861PATRICK NIELSEN NATIONAL ACCOUNTS MANAGER (KOS & FISH)E patrick@shave.com T 01494 770880 F 01494 770881QUENTIN HIGHAM COMMERCIAL DIRECTORE quentin@shave.com T 01494 770884 F 01494 770885RICHARD DARNELL ACCOUNTS RECEIVABLE MANAGERE richard@shave.com T 01494 770878 F 01494 770879SIMON WATSON HEAD OF DESIGNE simon@shave.com T 01494 770874 F 01494 770875SPENCER HARDING DESIGN TEAME spencer@shave.com T 01494 770888 F 01494 770889VICKY GOLTZ ASSISTANT ACCOUNTANTE vicky@shave.com T 01494 770864 F 01494 770865WILL KING FOUNDERE will@shave.com T 01494 783066 F 01494 783088YASMIN SADIQ ASSISTANT PRODUCTION CONTROLLER (KOS & FISH)E yasmin@shave.com T 01494 770896 F 01494 770897ZOE BURGESS-BIGGERSTAFFSALES ORDERS & LOGISTICS CO-ORDINATORE zoe@shave.com T 01494 770868 F 01494 770869KMI USA:CAMILLE MORGANMARKETING COMMUNICATIONS AND LOGISTICS COORDINATORE camille@shave.com T +1 (212) 590 2412 F +1 (212) 590 2472PHIL WILLIAMS PRESIDENT OF SALES AND MARKETINGE phil@shave.com T +1 (212) 590 2401 F +1 (212) 590 2472STEPHANIE EDDY PRESIDENT OF OPERATIONSE stephanie@shave.com T +1 (212) 590 2471 F +1 (212) 590 2472Knowledge and Merchandising Inc LtdUK: 17-19 Chiltern Court, Asheridge Road, Chesham, Bucks HP5 2PXT 01494 783066 | F 01494 783088 | E info@shave.com | W www.shave.comUSA: 304 Park Avenue South, 11th Floor, New York, NY 10010T (212) 590 2471 | F (212) 590 2472 | W www.shave.com/usaPRINTED ON RECYCLED STOCK. © KMI 1999-2005. ® AND TM DENOTE TRADEMARKS. KMI REF: K1158. E&OE