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Throughout this edition of The Knowledge you will see the market shares, the new products and the marketing initiatives which describe the grow-ing impact of KMI brands in the marketplace.
King of Shaves continues to grow market share, both in the UK and the US. This is driven in part by new product developments (MagnaGel and AlphaGlide for example) but is mainly down to the continuing growth in the number of consumers switching over to King of Shaves shaving and skincare products.
Within the Ted Baker business KMI has designed a new line of toiletries entitled Bodywear, which is available exclusively from Boots now. These will be found on the self-select counters in store and will grow the overall visibility and awareness of the Ted
CHAIRMAN’S STATEMENT
Hiten Dayal | Chairman | [email protected]
Business is moving ahead on all fronts for KMI. 2005 is turning out to be another year of growth and development with all of our brands performing outstandingly well…
Baker brand. It is KMI’s intention that this development, together with the launch of Second Scent for women, will enhance the sales of the fine fragrance business throughout the market includ-ing the very successful business with Debenhams, Superdrug and The Perfume Shop.
The Fish brand is going from strength to strength. With new hair care and body care lines being well accepted by consumers, KMI envisages at least a 50% growth in 2005 and then a further 40% growth in 2006. Fish is fast becoming a very serious competitor to Brylcreem in the male market and is now being exported – in particular to the USA.
The press has been full of negative news about the state of retail industry in the UK throughout 2005. I am happy to say that much of our business is not effected by these trends – men have to shave everyday and so are buying a King of Shaves product every six seconds!
I hope you enjoy this new look issue of the knowledge. There is much information on the various different activities in our business. Please do let us know if you have any comments on the contents in this newsletter.
We have, as always, had a lot of support from suppliers, custom-ers and our business partners. During 13 years of developing KMI both Will and I have made a lot of friends amongst the business people we deal with. Many of them have helped us shape and develop our business through the years. We thank them for their continuing support.
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NTSI’m sitting writing this with the last of the summer
sun on my back, in the knowledge that our com-pany has traded very well since I last put finger to keypad. We have had some great brand and product successes, and not too (!) many failings.
I am particularly pleased with the performance of the latest King of Shaves ‘advanced shaving software’ launches – MagnaGel MME and AlphaGlide ALS. These products are based around ‘being the absolute best’ which has been King of Shaves brand value since the day we started, and will shortly be joined by a limited edition MagnaGlide ARB shaving gel, an official Olympic licensed product to celebrate our partnership with Kristan Bromley as he starts his training for Torino 2006, and enhanced versions of our shaving oil.
In addition, we are completely overhauling our men’s skincare offering for 2006. This will be featured in the first issue of The Knowledge next year making the best, better.
Our ‘hardware’ project research and development continues apace too – we have learnt a lot about what works, and what doesn’t in R&B (razors and blades) these past few months, and have a number of options available to us in terms of delivering the world’s best blade into the market. I hope to be able to report more on this project early next year too.
The US continues to develop ‘slowly but surely’ – like for like sales out of key US retailers such as CVS and Wal-Mart are increasing year on year, and we intend for the US business to break even in profit terms Will King | Founder & CEO | [email protected]
COMMENTS FROM WILLWe are trading ahead of budget in all our key brands, and are well placed to take advantage both of the continuing growth in the men’s skincare market and the continuing ‘upgrade’ into better performing products…
during fiscal 2006. Fish is launching in the US in November, and we have additional exciting and profitable opportunities too.
So, whether you are a shareholder, retailer, supply partner, or interested party, I hope you will be excited about our plans for the future, and pleased with the progress of KMI in what many cite as ‘difficult times’ for many product based companies. “Shaving’s a growth business” is one of my sayings, and we look forward to proving this in the coming months and years.
We’ll have a lot to report on in the next issue…
For the 14th consecutive quarter King of Shaves has outperformed the shaving prep market. King of Shaves further established itself as the number two male and female shave prep brand with value shares of 12% and 7.7% respectively.*
The overall market is stagnant in value but not in volume, due to the aggressive pricing strategy of the retailers. However King of Shaves enjoys double-digit growth in all of its key retailers.
The consolidation of the shave prep market into two top players (Gillette and King of Shaves) highlights that although a number of multinational brands have recently launched or relaunched their shave prep business, poor product will not sell despite of large amounts of support.
The King of Shaves Woman relaunch is exceeding expecta-tions with the latest four week ending data showing a value share of 10.1% up from just over 7%. King of Shaves Skincare continues to grow and in the latest IRI data, its value share grew by 21.6% to 7%.
King of Shaves has worked very hard with its key retail partners in the year to date and has seen con-siderable growth in its J.Sainsbury and Superdrug business. In Boots we ran our first ever FSDUs in April and August with cross-branded ‘3 for 2s’. We can expect to see a big increase in our shave prep business in Tesco and Asda in the lead up to Christmas, due to some significant distribution gains in our AlphaGel business.
KING OF SHAVES BUSINESS UPDATE
* Source: (IRI Infoscan major multiples 52 w/e 11 June 05)
NEW MAGNAGLIDEKing of Shaves is proud to announce another addition to its second generation shaving gels – MagnaGlide ARB. This is the brand’s most advanced shaving gel and combines the knowl-edge of all at KMI and Dr. Kristan Bromley.
MagnaGlide ARB (Anti Razor Burn) is also enhanced with MME, micro magnetically enhanced particles to deliver optimum lubricity between razor and skin. This revolutionary formulation has been preloaded with an advanced version of mDDS, micro capsules of skin nourishing Grape Seed Oil and Vitamin E. Other key ingredients include: Glycerol – for effective moisturising, Aloe Vera – to soothe and heal and finally Menthol – to give that ice-cooled freshness to skin post shave.
King of Shaves is the primary sponsor of Dr. Kristan Bromley, 2004 World Cup Series and European Champion, who is hoping to win gold for GB at the Turin Olympic Winter Games. King of Shaves will also be donating a percentage of sales from every MagnaGlide ARB to the BOA (British Olympic Association) for 12 months to help support other Team GB athletes in their quest for sporting glory.
MagnaGlide ARB Shaving Gel: 175ml, £4.99
Our first FSDU in Boots featured King of Shaves and Fish
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Following a successful targeted test campaign in the North East last year,
King of Shaves recently embarked on its first ever London Radio Campaign.
The story revolved around a series of six weekly commercials, which saw King of Shaves pitted
against a mythical, monolithic competitor named Big Bucks Shaving Inc. Entrenched in the traditions of canned shaving foam, Big Bucks’ boss is troubled by our hero, Will King, who is upsetting the status quo with his revolutionary shaving oils and gels. Each commercial unveils the latest humorous attempt to thwart Will’s mission to deliver a genuinely superior shaving experience.
The campaign was heard by over 1.2 million men aged 20-49 on Virgin Radio, XFM and Talksport AM in the London region.
RADIO CAMPAIGN
On the back of hundreds of consumer requests, KMI extended the successful XCD range by launching Camouflager into over 300 Boots stores in June 2005.
Nobody is perfect, so XCD has created the Camouflager Dual Ended Medicated Spot & Cover-Up Stick (RRP £9.99). This discreet double-ended stick hides blem-ishes and imperfections in a single stroke of genius. One end is a natural concealer and the other end contains an antibacterial
agent known for its high kill rate of bacte-ria commonly found in spots.
The launch of XCD Camouflager has helped further grow the brand by 109% on a 52 week rolling basis. Although XCD Camouflager was softly launched into the market, the product’s unique benefits have resulted in excellent coverage in the men’s monthlies.
Further info: www.xcdskn.com
XCD CAMOUFLAGER HITS THE SPOT
Competition in the USA continues to get more fierce with Gillette in particular taking a more aggressive stance in the software arena. King of Shaves has always been a ‘premium mass’ brand and we continue to maintain that position while promoting “The World’s Best” message.
We are working hard with leading retailers and we have recently added Wal-Mart (four skus) and Rite Aid (3300 stores with six new skus) to our listings.
KMI USA intends to keep growing sales and brand awareness through PR and innovative promotions (keep your eyes peeled for www.pimpmyshave.com which is coming soon) as well as expanding distribution of skus with our current accounts and exceeding consumer expectations!
Listen to the adverts: www.shave.com/radio
STOP PRESS! STOP PRESS! STOP PRESS! STOP PRESS! STOP PRESS!
King of Shaves MagnaGel MME has been crowned ‘Best Wet Shave’ at the 3rd Annual FHM (USA) Grooming Awards, held in New York City on 22nd September 2005.
KMI USA NEWS
STOP PRESS! STOP PRESS! STOP PRESS! STOP PRESS! STOP PRESS!
Further info: www.shave.com/usa
King of Shaves is the headline sponsor of WhiteAir 2005, an extreme sports festival held on the Isle of Wight on October 27th – 30th 2005.
King of Shaves WhiteAir 2005 is the UK’s premier Extreme Sports festival, which brings together the elite to compete in the championships of 14 awesome watersports and landsports from BMX and skateboarding to kayak racing, and surfing!
500 competitors will create intense action on land and sea throughout the festival duration. They will be backed up with the biggest parties of the season, the UK’s premier trade and demo displays as well as ‘Have A Go’ taster sessions!
Further info and online bookings: www.whiteair.com
KING OF SHAVES SPONSORSHIP UPDATE
GIPSY MOTH IVKing of Shaves announces its sponsorship of Gipsy Moth IV, which is embarking on a world voyage planned to commemorate the 40th anniversary of Sir Francis Chichester’s epic, solo circumnavigation, and Yachting Monthly’s centenary.
Gipsy Moth IV will circumnavigate the world via the trade winds route, stopping at 25 countries, taking 22 months to complete the voyage. Among other plans, she will be used on a variety of special youth projects including helping disadvantaged people learn to sail.
KING OF SHAVES WHITEAIR EXTREME SPORTS FESTIVAL 2005
YOUNG BLADES Congratulations to our King of Serves, Andrew Kennaugh, (top) for having made it to the Boys’ Doubles final at Wimbledon as well as winning the Stella Artois Junior Championship.
Congratulations must also go out to Christopher Hall (trampoline) bottom left, and Connor Maloney (tumbling) bottom right, who have both been selected to represent Great Britain in the World Championships in Holland – good luck to you both!
BOB SKELETON Kristan Bromley is now entering a crucial period in his build up to the Olympics and we wish him the best of luck. Quentin and The Communications Store will be leveraging King of Shaves sponsorship of Kristan by taking key journalists form Men’s Health, Men’s Fitness and Front to observe, feature and report on Kristan’s training in Lillehammer, Norway in October.
Further info: www.shave.com/kristan
MOTOR RACING Fingers crossed for Mike and Sean Peters who are racing in the MG Car Club Championship and to James Potter in the Kumho Clubman Rally Championship.
Further info: www.shave.com/motorsport
Further info: www.shave.com/youngblades
Complete-IT (since 2000)
With every passing year our reliance on our computer systems grows and grows, as does the complexity of the hardware and software required to make them all work. When IT is working no-one notices it, and when it doesn’t everyone does – enter Complete-IT (CIT). To us the CIT team are the equivalent of an in-house IT department (with resource for a business many, many times our size) at a fraction of the cost.
Over the past five years CIT have got to truly understand us, our business, and our current and future require-ments. This has allowed them to be much more proactive in working with us and our recent full system upgrade was a good case in point, where impact on staff and system down time was virtually nil, both in the UK and US offices.
PARTNER FOCUS
IFF (since 2000)
IFF has been working with us developing fragrances for our brands (Ted Baker, King of Shaves and Fish) for the last five years. Most recently they have helped develop fragrances for Ted Baker Second Scent and the new Bodywear range. Our deadlines are often very tight and our briefs challenging, but IFF have always turned around fantastic fragrances, on time and on budget.
This along with the complementary train-ing (hosted by our regular IFF contact Joanne Bowers) sessions offered to members of the KMI team has helped broaden the knowledge of fragrance throughout our business and reinforces our partnership.
We look on our supply partners very much as an extension of the KMI team, so we put a lot of time and effort into finding the right ones. When we do, we look for long-term partnerships that will bring rewards to both parties.
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GONE FISHINGSince launching the three FreshFish Deodorants and the three new styling products (as outlined in the last issue), Fish continues to fly off the shelves. Incredible sales growth can be seen in sales which are up 85% on a 52 week rolling basis.
To further feed Fish’s exciting growth, look out for exciting news regarding on-pack promotions, games and viral ads in the next edition. For example, in order to reward customers and increase trial purchase we’ve teamed up with Fox Studios to help celebrate the release of the latest Family Guy DVD (a cult American satirical cartoon – think ‘The Simpsons’ meets ‘South Park’). We’re giving away plasma screen TVs, DVDs, Fish Salon haircuts and Fish Barnet Boxes which will increase the Fish brand’s awareness and help promote trial.
Right: some of the great PR generated for Fish
In September KMI launched Ted Baker Bodywear, a stylish and high performance range of head-to-toe bodycare products, designed for those who believe in the “body beautiful” and want to feel as good as they look. Infused with a humorous twist, this eye catching male and female collection is inspired by Ted’s brand values of attention-to-detail and quality of design.
Every Bodywear product can be distinguished by one of Ted’s signature vibrant colours over-laid on a contemporary brocade print. The Bodywear collection will look as good in your bathroom as it feels on your skin. If you love fashion and looking good, you’ll love Bodywear.
Ray (the man closest to Ted) and Craig from Ted Baker, Hiten and Quentin from KMI plus key Boots and TCS personnel introduced the Ted Baker Bodywear collection to 14 key journalists at the Immodesty Blaize & Walter Burlesque show at the Arts Theatre on the 5th July. The show was a perfect platform to launch a range of body beautiful products. On the following day the range was then presented to over 250 beauty journalists at the Boots’ press event at Il Bottaccio.
The Men’s collection is a line-up of nine smart, fuss-free and effective hair, face and body grooming products. Ted Baker Bodywear for Women is a classy collection of eight look good, smell good and work hard beauty products. Both the Men and Women’s collections are exclusive to Boots and can be found in over 800 stores.
In addition we have launched a range of four all year round gifts, as well as a bespoke capsule collection of ten Ted Baker Bodywear gift sets, which should be in-store at Boots now.
The launch of Ted Baker Bodywear represents a very exciting time for KMI, as it will further raise the profile of the overall brand in Boots, which will in turn raise the profile of our Fine Fragrance business. The premium positioning of the toiletries line up, alongside the innovative and fashionable packaging will reinforce the values of Ted Baker.
Boots will also be highlighting the availability of Ted Baker Fine Fragrance through additional in store POS (Point of Sale), as well as sampling the Fine Fragrance in three of the Christmas sets.
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Ted Baker Bodywear for Men:Hair & Body Wash: 250ml, £3.99
Pre-Shave Wash: 150ml, £4.69 Shaving Gel: 150ml, £4.19 Body Spray: 150ml, £3.99
Anti-Perspirant: 150ml, £3.99 Moisturiser: 100ml, £6.99 Styling Gel: 150ml, £4.99
Moulding Cream: 120ml, £6.49 Fixing Wax: 100ml, £6.49
Ted Baker Bodywear for Women:Body Scrub: 150ml, £4.49 Body Wash: 250ml, £3.99 Bath Soak: 250ml, £4.29
Body Shimmer: 150ml, £6.99 Lip Gloss: 15ml, £4.99
Body Butter: 300ml, £5.99 Body Lotion: 150ml, £4.49 Body Spray: 150ml, £3.99
During the summer KMI successfully launched its latest Ted Baker woman fragrance – Second Scent. The new fragrance was launched at the Covent Garden Flower Market, where ten heavyweight journalists from key target publications were invited to a 7am presentation.
This location fitted in perfectly with the new scent which is a floral-based fragrance containing a number of flower-based ingredients. To fully engage the press (which at such an early hour was crucial) and to lend valuable credibility to the launch, we employed the services of the Flowers & Plants Association – the industry authority of all things flower and plant related, as well as Jo Bowers from IFF. The launch was an unquestionable success with excellent coverage gained in all the major publications.
SECOND SCENT SUMMER LAUNCH FOR TED’S LATEST FRAGRANCE
What a great way to launch a new fragrance – I can’t believe no one has thought of it before.
“”Janine Phillipson, She
Exhilarating, intense and refreshingly modern, Ted Baker Second Scent embodies today’s contemporary woman. Expressing a new femininity but with a strong, individual style, Second Scent is a sophisticated fusion of floral top notes and heady musky base notes, giving a distinct yet alluringly sensual mantle.
‘Floriental’ and richly feminine, Second Scent opens with a blend of exhilarating top notes of aromatic Anis flower, Mugeut, Hawthorn and extreme feminine heart notes of Heliotrope and Jasmine, all combined with the wildly exotic Monoi-tiare flower from Tahiti.
Woody, earthy notes of Sandalwood, Musks and Vanilla form the base of this scent, evoking individuality and warmth.
Second Scent is dressed in an opaque lilac bottle with dusky mauve nubuck coat, with a delicately debossed flower wraparound motif reflecting Ted Baker’s fashion heritage.
Second Scent was launched exclusively at The Fragrance Shop with posters, showcards, cubes and samples in all store corners before being rolled out to Boots and department stores.
Ted Baker Second Scent:Eau de Toilette: 100ml, £30.00 Eau de Toilette: 60ml, £20.00 Body Lotion: 200ml, £17.00 Shower Gel: 200ml, £15.00
KING OF DEOS OFFERSNATURAL PROTECTION
DISTRIBUTION GAINS FOR TED BAKER FINE FRAGRANCES
KMI has just launched our first foray into the women’s deodorant category with King of Deos Woman. This is new range of three natural and safe roll-ons that are free of parabens, harmful preservatives and aluminium, yet provide all day long protection against odour.
Aluminium, which is commonplace in many other deos, is known to clog and block the skin as well as being responsible for those irritating white marks that can stain clothes. The secret to our preservative free formula is Nature Bak™, which is a patented blend of natural active ingredients. King of Deos Woman also contains Sensiva, a gentle antibacterial agent that inhibits the growth of odour causing bacteria and Aloe Vera, which nourishes and moisturises the skin.
The King of Deos range comprises of the lightly fragranced Cotton Fresh, Fragrance Free and Vanish Hair that includes Xyleine which naturally helps to reduce hair growth. The range was launched into over 500 Boots stores in September and have already received rave reviews in the national press.
At the end of May KMI were delighted to announce the launch of Ted Baker Fine Fragrance in over 400 Superdrug stores. Over the last few years the Superdrug management team has built one of the fastest growing perfumery chains with its in-store PS format.
PS carries all the major prestige fragrance houses. Quentin Higham says “We are delighted with Ted’s performance in Superdrug. Our fragrance lines have been performing well above expectation and our value sets have seen some of their best performing summer lines.”
During this time KMI successfully launched Ted Baker Fine Fragrance in 36 World Duty Free locations in Heathrow, Gatwick, Stanstead, Glasgow, Southampton, Edinburgh, Aberdeen and Eire.
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Further info: www.kingofdeos.com
King of Deos Women range:
Vanishhair: 50ml, £2.69 Fragrance Free: 50ml, £2.49 Cotton Fresh: 50ml, £2.49
KMI UK: ANDY HILL MANAGING DIRECTOR E [email protected] T 01494 770850
BILL OEHLMAN DESPATCH E [email protected] T 01494 770870
CHARLIE WONG FINANCIAL CONTROLLER E [email protected] T 01494 770872
HITEN DAYAL CHAIRMAN E [email protected] T 01494 783066
JANE GREENAWAY PRODUCTION MANAGER E [email protected] T 01494 770854
JANEY CAMPBELL OFFICE ADMINISTRATOR E [email protected] T 01494 770893
KAREN BROOKS PROJECTS AND DEVELOPMENT MANAGER E [email protected] T 01494 770858
LISA COULSTOCK NATIONAL ACCOUNTS MANAGER (TED BAKER & KOS) E [email protected] T 01494 770862
LOUISE LARCHÉ PRODUCTION CONTROLLER (TED BAKER FRAGRANCES & FISH) E [email protected] T 01494 770886
MARTIN PARK PROJECTS DIRECTOR E [email protected] T 01494 770882
MICHELLE TURNER DESIGN TEAM E [email protected] T 01494 770876
NICKY SPRINGLE CUSTOMER CARE MANAGER E [email protected] T 01494 770860
PATRICK NIELSEN NATIONAL ACCOUNTS MANAGER (KOS & TED BAKER) E [email protected] T 01494 770880
QUENTIN HIGHAM COMMERCIAL DIRECTOR E [email protected] T 01494 770884
RICHARD DARNELL ACCOUNTS RECEIVABLE MANAGER E [email protected] T 01494 770878
SIMON WATSON HEAD OF DESIGN E [email protected] T 01494 770874
SPENCER HARDING DESIGN TEAM E [email protected] T 01494 770888
TOM DAWES NATIONAL ACCOUNT EXECUTIVE (KOS, TED BAKER & FISH) E [email protected] T 01494 770856
VICKY GOLTZ ASSISTANT ACCOUNTANT E [email protected] T 01494 770864
WILL KING FOUNDER E [email protected] T 01494 783066
YASMIN SADIQ PRODUCTION CONTROLLER (KING OF SHAVES) E [email protected] T 01494 770896
ZOÉ TEMPLETON SALES ORDERS & LOGISTICS CONTROLLER E [email protected] T 01494 770868
KMI USA: CAMILLE MORGAN MARKETING COMMUNICATIONS & LOGISTICS COORDINATOR E [email protected] T +1 (212) 590 2412
PHIL WILLIAMS PRESIDENT OF SALES & MARKETING E [email protected] T +1 (212) 590 2401
STEPHANIE EDDY PRESIDENT OF OPERATIONS E [email protected] T +1 (212) 590 2471
At the end of July, Tom Dawes joined KMI as National Account Executive to help manage the Boots and Waitrose accounts. With experience in political news, comedy writing / production and managing nightclub events, Tom will also be assisting Quentin in the “swimming” of Fish and PR copy.
© KMI 1999-2005. ® AND TM DENOTE TRADEMARKS. KMI REF: K1288. E&OE
Knowledge and Merchandising Inc LtdUK: 17-19 Chiltern Court, Asheridge Road, Chesham, Bucks HP5 2PX T 01494 783066 | F 01494 783088 | E [email protected] | W www.shave.com
USA: 304 Park Avenue South, 11th Floor, New York, NY 10010 T (212) 590 2471 | F (212) 590 2472 | W www.shave.com/usa
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OPERATIONS CHANGEWe’ve recently re-jigged two of the roles within our Operations’ Team, so they are better able to support the business in terms of production, logistics and development. Jane Greenaway (Production Manager) has been with KMI since 1998 and now takes over formal responsibility for all our ongoing production, logistics and (business) systems. Reporting directly to Jane will be our Sales Orders and Logistics Controller Zoé Templeton and our production controllers, Louise Larché and Yasmin Sadiq.
Karen Brooks (Projects and Development Manager) has been with us since 1999 and will be managing all new projects through the business, focusing on new product development (NPD) for all brands. This will allow Karen to fully utilise the breadth of product know-how and project skills she’s acquired and gain new experience, therefore further increasing the depth and breadth of her knowledge.
Janey Campbell recently joined us in the role of Office Administrator. With a wealth of experience at Pelican Rouge and Perkinelmer, Janey is now responsible for the day-to-day smooth running of the KMI UK HQ and will also be helping the Sales & Marketing team on specific projects.
PLEASE NOTE: ALL KMI EMAIL ADDRESSES HAVE CHANGED. PLEASE UPDATE YOUR RECORDS.
