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October 2008 Archives

October 1, 2008

KMI, the next Procter & Gamble? £700 to £61,000,000 in just over 15 years...

1993-4: Retail sales of KMI's brands: £705 ($1270). Employee (& Founder): 1
2007-8: Retail sales of KMI's brands: £61,000,000 ($110,000,000). Employees: 50

Not bad, not bad at all....
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The story to date...

Founded in 1993, KMI (short for Knowledge & Merchandising Inc. Ltd.) has evolved into the UK's largest owner or licensor of premium mass FMCG toiletries & fine fragrance brands, with retail sales of these brands expected to top £61m in 2008.

Run by Will King (Founder, CEO) and Herbie Dayal (Chairman), the company employs approximately 50 people, working from offices in Chesham and Teddington in the UK and New York in the USA. Andy Hill is the UK Managing Director, Tim Wright the Commercial Director and Stephanie Eddy heads up the American subsidiary.

The company's brands (in order of creation) are:

1993: King of Shaves (original shaving oil)
1998: Ted Baker Fine Fragrances
2001: Fish, Born in Soho London
2003: King of Shaves XCD
2005: Ted Baker Bodywear
2006: King of Shaves K2
2007: Angelfish, KOS.PRO
2008: King of Shaves Azor (hardware), Patently Obvious, Hed Kandi, Ted Baker Beauty

In addition, in April 2008 KMI acquired Floraroma Ltd. which owns or licenses brands including Beautifully Delicious, Good Works, Phil Smith, Little Me, Colorsport and Restoria.

KMI's key retail partners in the UK are Boots, Tesco, Sainsbury, Superdrug, Morrisons & Waitrose, and in the USA are CVS/pharmacy, Target, Walgreens and Duane Reade. KMI's products are also sold in Australia, New Zealand and Japan with South America, South Africa and Canada coming online in 2009.

Will describes the company as a "boutique P&G" and projects retail sales of £200m by 2012. It actively develops or license brands with potential 'from premium-niche to premium mass', and for more information on KMI, or if you have a brand idea that requires development, or IP that may be suitable for licensing, please contact the Directors using our contact form.

"Enthuse, Exceed, Enjoy!"
Will King & Herbie Dayal

Visit www.kmicorporate.com for more detail, coming soon.

October 2, 2008

3 v 50... 6 v 33. Guerilla v Gorilla, avoiding the Clunking Fist of "Wilkinette" as the Credit Crunch Bites.

azor3fusion50.jpgAfter dropping my son at school this morning, I dropped into Sainsbury to see how we were looking on shelf, and to enjoy a morning caffeine hit courtesy Starbucks (more of whom coming in a separate post on my BrandRoyalty blog

I think this picture tells it's own story. 3 Azor handles for sale (there had been 7 the previous day, so 4 smart people had chosen 'the King'), 50 Gillette Fusion handles. Fifty! Five Zero. As you can see, Gillette continue to pump them out. Interestingly, however, we got our montlhy slice of market share data yesterday, and the following figures jumped out at me..

In the 52 weeks to 6th September 2008, the volume of Gillette Fusion handles (manual & vibrational) sold per annum has slumped from 2,2m to 2m, total 'Gillette' handles sold has slumped nigh on 10% from 4.1m to 3.7m and, probably most worrying of all, just 281,000 Gillette handles were sold in the 4 weeks to 6th September.

It doesn't look much better for the other half of 'Wilkinette' either... And as for private label, well - cheap razors deliver a poor shave.

In just three months, and from just two retailers, we've sold just shy of 90,000 handles, and sales of our 8 packs of Endurium cartridges (just £9.49 for 8 versus £17.99 for 8 Fusion Power cartridges) continue to do exceedingly well.

The credit crunch is just about to bite, we're just about to deliver the 'King of Shaves without the ransom' from 4 more retailers, and will be using our first (ever) outdoor campaign to promote the Azor.

For us, it's all about YOU - the consumer, not US. Every day when I enjoy the pureplay King of Shaves I remember that. I hope you will too.

It's going to be an interesting run up to Christmas.

A King of Shaves Fan Writes (warts and all - I love this feedback). We'll get you back with our oil!

I received this email from "Alan" and thought it well worth posting - so got his permission, and here it is (in it's entirety). Mr. G, thank you very much, and regarding deserting our original oil, we have plans afoot to reign (sic) you back in!

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Hi there Will

I thought I'd drop you a line about my experience with the new AZOR and general update on products etc:

Background - I've been a loyal customer for almost as long as you've been trading - certainly before 1995 - and I am an enthusiastic fan of the company and your products

Shaving preferences - since I first started using your shaving oil I have preferred to shave in the shower using the face scrub and oil, followed by the gel when complete. Periodically I've updated the products as you introduce new items

Recently I have "deserted" you on one product - the shaving oil. I like your Kinexium best but, to be honest, can't see much difference in quality with some of the cheaper alternatives - specifically Nuage Men and latterly, One Planet shaving oil from Asda - both are just over a pound.

In addition, their dispensers work more effectively - I've had a number of yours jam or cease working.

Apart from this disloyalty I use your Face scrub and this is the best I have found - certainly better than the MooseHead version which is much too granular.

Afterwards I use the K-GL Soother which is excellent.

If I'm using moisturiser I like the SPF8 or the K-24 SPF24

If I don't shave in the shower I think the Kinexium Serum is excellent and also like the K2 Shave Gel but I'm not sure if this is made now - if shaving out of the shower I use oil and then gel/serum on top.

Hardware - I have been using Gillette Mach 3 for years and have resisted all the fancy fusion, quattro and vibrating nonsense. Apart from anything else, how much of the fees of Tiger, Thierry and Rog are in their high prices?

As a Chelsea fan I am much happier with your sponsored representative JT. (If you ever have any complementary seats for Stamford Bridge that you can't use just let me know....)

Also - and quite importantly, I buy my Mach 3s at Costco in batches of 20 for a heavily reduced price so they represent pretty good value

I think the Mach 3 shave is generally very good - especially with your software in the shower. I figured how much better could any Fusion, Quattro or AZOR be. However, out of loyalty to KOS I tried the AZOR recently.

The AZOR shave is excellent and very comfortable - I like the flexibility of the shaving head which makes it feel smooth and comfortable as the shave goes. I think the rigid head of the Mach 3 is slightly better for the more precise movements like trimming the sideburns and at the turn of the chin etc

However, the most impressive thing has been how the blades have remained sharper for much longer. I usually only use the Mach 3s for 5 shaves and then they feel too blunt. (I think my skin is pretty sensitive so others may be able to get more shaves.) With the AZOR I have had 10 shaves already and think there's probably another 3 or 4 shaves left to go - clearly a real VFM benefit

All in all a really great debut - well done and I wish you all the best with this new product.

Kind regards

Alan

October 3, 2008

Wanna Be A Rock Star? Gotta Shave Like A King...with a King of Shaves Azor of course!

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Are YOU the King of Air Guitar? Prepare for our best game yet...

October 8, 2008

"Wanna be a rock star? Gotta shave like a King!" Jon Kane blogs about King of Air Guitar, Beanius (the band) and Azor (the brand)

Original blog posting here
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The King of Air Guitar

As an introduction to this post, I should provide some background. When I was down in London a few weeks back, I met with Will King, and the conversation that followed dovetailed nicely with some of the thinking I have been doing about the current state (and future) of the music industry (read these posts for a heads up: The Music Industry - An Introduction, and The New Music Industry - Part One). This blog post is the product of that conversation (and a couple of others). I hope it'll spark some conversation. I think it will.

It's official. The world is turning into a meritocracy - only the good will thrive. Within the next couple of years, Spencer's oft used quote will have to be updated. Rather than 'survival of the fittest', it becomes 'survival of the best'. With the emergence of Long Tail economics and people using the Internet to break down the barriers to creation and distribution of creative media, it's no longer a competition to see who can shout the loudest, or throw the most money at the problem. With more and more demanding the attention (and hard earned cash) of the masses, the buying public will no longer accept anything less than great, and it's becoming increasingly obvious that bigger isn't necessarily better. The challenge to bands (or, for that matter, any company that wants to sell something) is helping people find out that their product exists in the first place. Will King, the CEO of King of Shaves, has come up with an interesting way of trying to find an audience online - both for an unsigned band, and his new razor. If he succeeds, 20 million people will be exposed to his product, and an unknown band will have unprecedented exposure.

Using music to market a new product isn't anything new. Advertisers have been using the power of music and bands to support their brands since the advent of mass media. For a lot of companies, however, getting a track from an established act is not only difficult, the cost makes it downright prohibitive. Will King is only too aware of the pitfalls of this kind of strategy:

"In 2006, we ran a regional TV campaign featuring John Terry that used the track 'Dirge' by Death in Vegas. It was the only track we wanted to use, and the whole campaign nearly faltered as it was a nightmare for our (then) ad agency to agree usage terms with the copyright owners, plus it cost literally tens of thousands of pounds. It was pretty stressful."

Looking to avoid these problems when launching his new Azor - his first foray into the razor market - he looked to try something different, and went to one of his employees, Matthew Bean, for help:

"When I knew we'd have a campaign bus to launch the Azor, and thought about using Guitar Hero on the Wii as an audience activator, I thought it would be good to involve a band. Matt (and his brother and drummer, Doug) were good musicians, and I simply asked Matt if he could arrange some music that sounded 'right' - and he did, writing the lyrics later."

Bean (a sales support executive by day) took up the challenge, pulling a band together (called Beanius), writing the track (called John Tracy) and playing a series of live sets for King of Shaves at various promotional events for the Azor. The initial impact of the track online is relatively minor - the band's video on youtube.com has had 459 views, and John Tracy has just over 2000 plays on Myspace - but King sees potential in the band, and isn't afraid to throw the considerable weight of his brand in with Beanius' lot:

"Using music appealed to me, but in a genuine way - not signing up an established band, but seeing if we can get an unsigned band signed. King of Shaves (the brand) is all about 'being the best you can be - being a king - winning' not 'already won, telling people about it'. We back challengers to titles, not defenders...I like music, and it's satisfying to be in a position to 'impart momentum' to a band that I think is good."

So the question was raised as to the best way to go about getting both Beanius and the Azor out to a wider audience. This is where Chris Kempt of Kempt comes in; a company that specialises in 'advergames', online flash-based games which advertise a product. As Chris himself puts it:

"Put simply, at Kempt we believe that the secret to a great ad campaign is to be engaging rather than interruptive, or rather that a campaign will be more successful if it somehow manages to be interesting and relevant to the consumer. If well executed Advergames are an excellent way of achieving this, they setup what I call a "fair value exchange". The game entertains the user and the user in return feels more positive towards the brand, it's human nature really. When this is done well the resulting trust built up translates into much higher than average click-throughs, long interaction times, huge numbers of registrations and simply immense levels of traffic."

With the involvement of Kempt came the introduction of King of Air Guitar, a Guitar Hero inspired game that gives prominence to King of Shaves, whilst shifting John Tracy to centre stage - literally - along with a mixture of unsigned and established acts (Eureka Machines, The Dead Petal, The Wildhearts and Electric Six). The thinking goes that if you can get the right 'advergame' with the right product and the right band, the effects could be startling. But the risks are there, as Kempt points out:

"It should do well, as it's a very good example of its genre, but with viral we're always at the whim of the internet. So it could be 20 million visits, but there's always a real danger that it'll flop, too - that's kinda what makes it exciting and rewarding, at the end of the day. Viral (in the strictest sense) is a meritocracy, you will only do well if what you're producing is genuinely good."

It's clear that the success of the venture will only be guaranteed if both the Azor and Beanius have the quality to interest the volume of traffic that they will soon be experiencing. King is philosophical about their chances.

"I believe they can build on John Tracy, but that, my friend, is down to them. They've got the makings of the band, but they've got to make it happen. I'm just providing the springboard."

Chris Kempt echoes the sentiment - it's all down to the quality of the music.

"A piece of marketing can only ever be as effective as the product it promotes lets it be. So... would a viral game be a great way of promoting a relatively unknown band? If they are crap, no. If they are any good, then absolutely."

So how does Matthew Bean feel about the avalanche of traffic that could soon be coming his band's way?

"I believe this is going to be a really good thing for the band. Yes, in an ideal world we'd have more professionally recorded tracks. However, I'm a firm believer that if you turn down all the opportunities which come your way because they aren't perfect, then the perfect one will never come along... I feel confident about the band's future because KOS are bringing us lots of opportunities and Beanius have got the goods to back it up."

So if 20 million people play King of Air guitar, and 0.2% of them were to buy the track, it would be a number one hit. For frame of reference, according to the official chart company, in it's first week of sales last year, Kanye West's single 'Stronger' sold just under 37,000 units. If this experiment is a success, is this something that King of Shaves would look to repeat in the future? Definitely, according to King:

"We could sort of be an X Factory brand, a 'we want you to realise your dreams - convince us that you can, convince others you're worthy - and who knows'. I like the King of Shaves & New Music angle. It appeals to me. King of Shaves has always been about 'Important: Enjoy' and music is a great source of enjoyment for many."

Circumventing the traditional record company model of a band gaining exposure was always going to be a result of elimination of the barriers to creating and distributing music. Record companies say that they still have a part to play, even though the industry has moved from selling the tangible product, but if King of Air Guitar is successful, it could open the floodgates to the possibility of countless bands promoting and marketing themselves through partnership with businesses, rather than record executives. The labels used to be the tastemakers - filtering the vast volume of music available to the public so that only the best makes it through. The filters are now shifting away from the record companies, and it's down to the people to decide if Beanius and King of Air Guitar is worth their time.

If you're interested, here are King of Air Guitar, and Will King's blog.

October 9, 2008

Blades for Kings. And Blades for Billionaires. King of Shaves Azor v Gillette Fusion.

Blades for Kings...(8 for just £9.49). Shave without the ransom.
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Blades for Billionaires (4 for £9.96). Fees for Tiger Woods, Roger Federer & Thierry Henry inclusive.
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Do your face (and finances) a favour and switch to King of Shaves. King of Shaves Azor now available at Boots, Sainsbury, Tesco and Superdrug nationwide.

King of Shaves Azor - Customer Feedback... Thanks "P".

Finishing off the day's emails (I've been out most of today) I was delighted to receive the email below. Well done to our Azor team out and about in Boots stores, spreading the good word!

'P' writes:
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Enquiry Type: Message for Will King

Hi Will,

Just a bit of positive feedback in relation to your new Azor. I have always been a Gillette man until i went to Boots in Gateshead Metro Centre yesterday with a friend who was growing a 'tache for charity and was sponsored by King of Shaves.

After he had it shaved off by your promotions team I was given an Azor to try. Well i tried it today and i am converted! Definitely the closest shave i have ever had. Even my wife cant believe the results.

I never thought i would stray from Gillette but now i have. Just thought i would let you know.

Great product which i will be using from now on.

Cheers,

"P"
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King of Shaves Azor - Nice Display at Boots Flagship Store!

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October 10, 2008

King of Shaves Azor Tour at Boots Croydon

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October 31, 2008

King of Shaves Azor - the razor Apple would have designed...!

Azor Rari.jpgHi there, apologies to all of you who follow this blog and for the lack of posts these past two weeks, but I've been on a whirlwind round the world trip, arriving back this morning having taken in Japan, LA and NYC.

Phew! A busy trip, with too many time-zones in too short a time, but got a 'lot done'!

And i was delighted to read this post (and link to it) today, as this totally sums up our approach to the Azor. Many thanks!

PS - our new Azor Rari is now available at Boots and online at KMIshop.com

Will King

Will King, Founder, King of Shaves

Will King
Founder, King of Shaves

About October 2008

This page contains all entries posted to THE KING'S BLOG in October 2008. They are listed from oldest to newest.

September 2008 is the previous archive.

November 2008 is the next archive.

Many more can be found on the main index page or by looking through the archives.

King of Shaves

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