theknowledge CLEAN WITHOUT COMPROMISE

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1 19 theknowledge CLEAN WITHOUT COMPROMISE

2 Chairman s statement This is what we are about 2008 will see KMI bringing more new products to market in our core lines of business as well as our first launches in hand wash and surface cleansing under the Patently Obvious brand. Overall KMI will expand sales by over 33% in Winning On the King of Shaves front we are extremely proud of James Sheppard who won the P1 World Championship in great style, beating a very experienced field over the season. James has now won five championships for us and we congratulate him on his superb achievement over the last 10 years. Not content with the product line-up as it was, KMI has now restructured the entire King of Shaves range offering to enable users to easily identify their preferred shaving or skincare product and to provide customers with a wide choice of products appropriate for their skin type. Although the market for men s shaving and skincare has been growing at over 15%pa the choice customers have has not been increasing. Competitors are churning out the same old products (soapy shave foams, standard formulation moisturisers etc.) and this is doing their customers a disservice. Although product proliferation is costly for us, we still offer customers a wide choice of relevant shaving and skincare products for their particular needs. Innovative new products Angel Fish has been a huge hit from the day it was launched. Alongside the fast growing men s Fish range, Angel Fish has not only allowed women to buy into great styling and hair management products but also into an attractive, young and very cool 2008 has started explosively and is going to be our busiest ever year with key product launches in our core brands as well as expansion into new areas of business look and feel. The Fish range will expanded into a broader range of lifestyle products throughout Ted Baker has again had a fabulous season to finish The new X2O Eau de Toilettes were successfully launched at the fine fragrance counters in July last year and continue to build our serious fine fragrance offering. The Ted Baker Bodywear line of toiletries has been selling out in many of its product lines. The refreshed design for 2008 looks amazing and will be available for you to see (and buy!) nationwide from May. At this rate of growth, in the next year or two, Ted Baker will be the UK s largest fashion led toiletries brand. With permanence 2008 marks the 15th anniversary of the launch of the original King of Shaves Shaving Oil and the 10th anniversary of the launch of our first fragrance, Ted Baker Skinwear. Both these products are still on sale and still sell exceptionally well. Great products combined with loyal customers! The focus here at KMI is not on seasonal gimmicks, but on permanent products. There are many of you who work with us, buy our products and support our sales effort. Without your hard work and input we would not have such an exciting future for our company. Thank you and best wishes for a fabulous Hiten Dayal Chairman hiten.dayal@kingofshaves.com KING S COMMENTS BUILDING FOR KMI S FUTURE Late last year, I drew a skyscraper on Andy Hill s (KMI s Managing Director) whiteboard behind his desk. On it I marked a number of floors, and underneath drew the foundations for us to build on. The foundations are 15 years deep, and have got us to a position which is quite rare in today s landscape of mega-brands and global corporations. Over the past 15 years the team and I have been laying strong and resilient foundations that will allow us to build something extraordinary a range of complementary brands, all of which have multi-nationally owned competitors, differentiated by product performance and design innovation. We re about mass-personalistion and product is king. THE FUTURE Brands which, at the outset, look small or niche, but in fact develop into the future of how we do things. For example, Patently Obvious took nearly three years to develop, because it wasn t immediately obvious how we could put green and performance in the same sentence. It would be easy to put average gunk in nice looking packs, but it was patently obvious that would have been a recipe for disaster. Technical innovation continues Evolving the King of Shaves shaving software products through continuous technical innovation (rather than changing the colour of the aluminium container and the formulation by a fraction) takes great skill and out of the box thinking. The projects that we have lined up on the glide-path for later in have taken huge amounts of For the past 15 years at KMI we have been busy laying the foundations that will allow us to build a range of innovative and performance led brands time, effort, persistence, passion and a sense of never say die to bring to fruition. But hard work never harmed anyone. Returning to the skyscraper, I have no doubt we will build it over the next five years to be over 100m high, a great success story from a small Chesham-based company, which goes about things differently, living by its own rules, and making up its own path. As Andy remarked as I left his office, Best we start throwing the floors up, Will. Never a truer word was said, Andy pass me the hod! Will King Founder & CEO will.king@kingofshaves.com CHAIRMAN & FOUNDER STATEMENTS

3 REDEFINING SHAVING THE FUTURE OF SHAVING DRAWS CLOSER WITH NEW PRODUCT INNOVATIONS & RANGE REVISIONS 2008 is already proving to be an exciting year for King of Shaves. From March the latest innovation in King of Shaves software technology will start hitting the shelves as we continue to evolve the range to remain one step ahead of the competition. As a brand with a strong history of delivering firsts to the marketplace (such as the revolutionary shaving oils and gels) this year sees the brand continue to push the boundaries with new Ultra Hybrid Shaving Oils and Kinexium Shaving Serums. These give a unique shaving experience combining all of the shaving and skincare benefits of our shaving oils yet they rinse off as easily as a gel. They are packaged in an enlarged version of the King of Shaves oil teardrop pack. KMI s dedication to removing synthetic ingredients such as SLS, SLES and parabens from all of its products means that the latest generation of King of Shaves has been developed using surfactant systems that are derived from natural sources. To help consumers choose the best shaving software for them, the King of Shaves range has now been re-positioned into three distinct platforms: Alpha Provides a superbly close, smooth and comfortable shave with our Dual Delivery System (DDS). The design has been refreshed using a lighter blue to help stand-out compared to our competitors. Ultra An enhanced offering with no parabens and featuring our improved mdds (micro Dual Delivery System) with increased moisturising and lubrication technology. The metallic red helps differentiate Ultra from the Alpha range. Kinexium Currently our most advanced formulations with v3 of our unique Skin Surface Enhancing technology, improved mdds and no parabens or artificial preservatives. The premium nature is reflected in the design which features a metallic royal blue with foil logo and chevron. The revised shaving range is starting to appear in-store now and will be followed shortly by a design revision to our skincare platforms to help standoff on-shelf and ensure the quality of our products is reflected in the packaging. BELOW: One of the new Ultra Hybrid Shaving Oils in its distinctive teardrop packing BE A KING OVER 11,000 TEAMS HAVE ENTERED OUR BE A KING COMPETITION HEADED UP BY JOHN TERRY HELPING INCREASE AWARENESS OF THE BRAND April 2008 sees the climax of the King of Shaves Be a King competition. The campaign, which has encompassed both on-line and offline communications, offers a lucky amateur football team the chance to be coached and mentored by Chelsea captain and King of Shaves brand ambassador John Terry. The competition was officially launched back in August 2007 when KMI hosted a 6-aside football match at Harlington (Chelsea s former training ground). Players made up of sports editors from the national press (including Tubes from SoccerAM along with journalists from The Sun, Mail, Times, Express, News of the World, Mirror, Independent, Star, Guardian and Nuts) played and were coached by John Terry. It is estimated that the impressive TV, print and online coverage reached over 100 million people. Since then the competition has gone from strength to strength generating a massive buzz in amateur football leagues up and down the UK cumulating in a staggering 10,000 plus entrants. As well offering the chance to enter the competition the Be a King website also gives football fans the chance to read John Terry s training tips, play KMI s King of Defenders game and watch some amazing football videos. This has helped the site generate nearly half a million unique visits in the first six months of the competition. The Be a King competition also saw KMI form successful partnerships with leading grassroots football site football.mitoo.co.uk and cutting edge on-line football magazine catflapmag.com. KING OF SHAVES FURTHER INFORMATION:

4 summer nights LIMITED EDITION EAU DE TOILETTE Watching the sun set on an afternoon picnic that s now become evening drinks, or driving home, with the roof down, after a day at the beach. Summer nights mean something different to all of us... TED BAKER FINE FRAGRANCES To celebrate these never ending evenings, Ted has introduced two new limited edition scents M&W Summer Nights that perfectly capture the feeling of this evocative time. FOR HER Limited Edition W The fragrance for women is a vibrant, light and fresh floral fragrance which combines rose with juicy raspberries. Rich chocolate mixes with bitter aldehydic undertones to create a fragrance that is sweet, balanced and sexy an exciting summer creation. No Ordinary Designer Fragrances FOR HIM Limited Edition M Perfectly refreshing after a hot day, the fragrance for men opens with citric notes of grapefruit and lemon seeds which lead to a heart of cool airy tones. The fragrance dries down with a base of sensual spices and warming Guaicwood for an alluring finish. The 75ml fragrances are packaged in the distinctive architectural bottles of the M&W family. The limited edition glass bottles have been delicately shaded in raspberry pink for the women s fragrance and cool airy blue for the men s and they fit neatly together side by side in perfect synergy. Priced at 20, each bottle is sold in a distinctive triangular carton complete with a swing tag to help on-shelf presence. To celebrate the launch of the fragrance, look out for the Summer Nights competitions launching in April in conjunction with key media partners offering consumers the chance to win their ultimate summer night be it VIP tickets to this season s must see concert or a personal shopping day at Ted Baker.

5 Available in natural fragrances including Raspberry & Pomegranate and Mint & Lime, the Patently Obvious range initially comprises of Hand Washes, Shower Gels, Hand Foamers and a Hand Sanitiser. A household cleaning range will follow shortly CLEAN & GREEN FORMULATED AND MADE IN THE UK, IT S PATENTLY OBVIOUS THAT WE SHOULDN T HAVE TO COMPROMISE ON CLEANING PERFORMANCE WHEN CHOOSING ENVIRONMENTALLY RESPONSIBLE PRODUCTS PATENTLY OBVIOUS KMI has always had green at the forefront of its thinking and 2008 sees another landmark in the company s history as Patently Obvious, a new range of eco-friendly personal performance cleaning products, hits the shelves. Patently Obvious has been in development for over three years now and is the long term vision of KMI s Managing Director Andy Hill a keen green advocate whose aim has always been to make KMI s products as environmentally friendly as possible. To Andy, it was patently obvious that there was a need to develop a product able to deliver exceptional cleaning performance whilst still being kind to the environment. KMI s primary research has shown that 74% of consumers wouldn t buy an environmentally friendly product if it didn t work as well as their usual choice and so performance has been at the heart of the products development. NOT JUST ANOTHER GREEN PRODUCT Andy comments The fact that Patently Obvious doesn t harm the environment is great and makes it stand out against other products but we re not launching as just a green product. We re proud of the fact that Patently Obvious works brilliantly, has a unique natural antibacterial action, is preservative free, ultra mild on the skin and that the packaging looks great. Made in the UK from a blend of natural and naturally derived ingredients, Patently Obvious uses a biodegradable formula with a proven antibacterial action. This allows the product to be tough on germs but yet mild on skin. Tests have shown Patently Obvious to be ten times milder than a leading baby shampoo making it suitable for use around the whole family. RECYCLED PLASTICS Patently Obvious packaging is made from 100% post consumer recycled plastic KMI has formed a strong focused relationship with a local company, M&H Plastics, to deliver this environmentally friendly packaging solution. Even the point-of sale displays are made from 100% recycled cardboard, 100% natural inks and do not even require glue. The communications strategy, predominately targeting eco-conscious women, will focus on quality print and online media, targeted PR as well as leveraging a partnership with a UK based environmental charity. Patently Obvious is available in Boots stores throughout the UK and online from shave.com/store now. FURTHER INFORMATION:

6 FISH & ANGEL FISH HAPPY BIRTHDAY TO FISH Fish Hairdressing Salon celebrated their 20 year anniversary last August with a rocking wig party at The Club, Bar and Dining in Soho hosted by celebrity hairdresser, Nicky Clark s look-a-like, Paul Burfoot! Staff and clients, past and present were there along with celeb friends of Fish including Lisa Tarbuck, wearing a grey mullet, who said I look like a prat, but this is a brilliant party! A good time was had by all especially when cones of real fish and chips were served! Not only did we see some hair-raising dancing but all the attendees walked out with a luxury goody bag filled with product from the new Fish Platinum range. HAIR RIDER The festival season saw a totally new request being put forward to Fish, as they were asked to be the hair rider for the B52s before their performance at London s hottest festival, The Lovebox Weekender. A crack team of Fish stylists turned up at their hotel hairspray and rollers in hand and made sure the band looked amazing for their whole performance including the famous Loveshack! FISH FESTIVAL More Fish festival presence was felt at T4 on the Beach in Western-super-Mare. A team of Fish friends including staff from KMI sampled Fishfingers to thousands of festival goers perfect to keep that style in check when partying all day. Not only were the public impressed but a whole host of celebs in the VIP area including stars from Hollyoaks and Eastenders couldn t get enough! 2008 CALENDARS THE RESULTS OF OUR LATEST TALENT SEARCH AND THREE (LONG) DAYS OF PHOTOGRAPHY ARE HELPING PROMOTE THE FISH AND ANGEL FISH BRANDS Last November we hosted a nationwide search for fresh new male and female talent to star in the Angelfish and Fish 2008 calendars and screensavers. The five winning guys featured in the calendar are Mark from Portsmouth, Nick and Sylvian from London, Richard from Manchester and Anthony from Lowestoft (who is also a King of Shaves Young Blade). Since featuring in the Fish calendar, boxer Anthony also appeared in the celebrity Big Brother Hijack House. The entire calendar featuring images of Anthony and all the Fish guys can be downloaded from The four winning ladies were Sarah, Scarlet, Laura (all from London) and Claire from Essex. Their sexy calendar can be downloaded from After entering the Fish model search and becoming the faces of Fish for 2008 we are delighted to announce that Richard and Scarlet have both been offered modelling contracts with Source models so keep an eye out for them both in Already over 60,000 screensavers and calendars have been downloaded this year so they are proving a big hit with our younger Fish and Angelfish consumers across the country. Think you or someone you know has what it takes to be a model for Fish? Then get ready for our 2008 model search and your chance to win a modelling contract and become the Face of Fish in 2009.

7 FOR HEALTHY, HEAVENLY HAIR FROM FISH HAIRDRESSING A NEW GROUND BREAKING PARTNERSHIP BETWEEN KMI AND MINISTRY OF SOUND 2008 sees KMI embark on another ground breaking partnership, this time in conjunction with Ministry of Sound, with the launch of Hed Kandi Beauty. With its stylish dress code, the cream of DJ talent and the very coolest venues in the UK (and around the world), every Hed Kandi club night attracts a seriously cool crowd. With 20 years of hairdressing experience, Fish salon owner Paul Burfoot and his team of stylists, enjoy cult status in the UK s capital city. Paul has styled hair for many top models including style icon Kate Moss who he has worked with on several occasions using his own products. The first offering from Hed Kandi Beauty to hit the shelves are six funky body fragrances. Taking inspriation from our favourite music releases, the scents are reminiscent of the best club nights and CDs so wherever the music takes you, there s a Hed Kandi scent to match your mood. Paul Burfoot remembers: Kate was a regular face around the Fish salon, skiving off school to smoke fags in our staff room! She once modelled as a mermaid for Fish at a Soho fashions Show I had to phone up her school to see if she could get the day off! Unique to the range is the Thermal Elastic Shield which contains MiruStyle X-HP, a new patented formulation which provides outstanding protection from heat damage whilst keeping hair in tip top condition. Whether it is a high energy burst of Twisted Disco featuring notes of Orange, Amber and Plum or a mellow spray of Nu Cool with its Vanilla and Patachouli scent the six fragrances allow the consumer to choose Professional Formulations Angel Fish has something for all hair types. To create big sexy hair try Puffer Fish Volumising Root Spray; heat appliance addicts will love Blow Fish Heat Protecting and Smoothing Cream, and if control is your thing Rock Fish Style Fixing Spray is a must. The range is exclusively available from Boots stores throughout the UK. The launch activity for the brand centred on the iconic Fish salon in Soho which was given an Angel Fish make over complete with neon sign in the window. Over 25 journalists had consultations with brand spokesperson and top Fish stylist Jacqui Weaver and since then Angel Fish has received over 60 pieces of editorial. EDITORIAL AND PROMOTION On-line media has been an important channel to reach our young, fashionable audience and all of the websites we targeted have featured news on the brand. A youth panel was set up on Facebook to kick-start word of mouth and help recruit other brand advocates as well as keeping KMI informed of key youth trends and feedback on new products. This summer Angel Fish will appear at events including Party in the Park, T4 and the Underage Festival. We are also proud to announce that Blow Fish has also been entered into the prestigious CEW Awards. FURTHER INFORMATION: their Kandi mood for today, tonight and tomorrow. The packs feature a high-fashion and distinctive metallic purple glitter finish and a simple to use click-to-open spray. Hed Kandi Body Fragrances are currently available in Superdrug and will launch into Boots stores nationwide during April. KMI will be working closely with Ministry of Sound to develop a marketing strategy to engage the glitzy Hed Kandi community using social networking sites and online media to generate a buzz around the launch as well as helping make the brand an aspirational purchase and attracting the younger generation of future Hed Kandi consumers who are heavy users of Bodysprays. FURTHER INFORMATION: ANGELFISH & HED KANDI BEAUTY ANGEL FISH HED KANDI BODY FRAGRANCES Hot on the heels of the award winning men s Fish haircare range, and responding to popular demand, here comes something for the girls! Angel Fish is a funky range of seven haircare and styling products created by the infamous Fish hairdressing salon in Soho, London.

8 SWEENEY TED S NEWS & USA UPDATE THE POWER OF PR IMPRESSIVE PRESS COVERAGE AND A STRONG LINE-UP HELPED TED BAKER BODYWEAR TO INCREASE SALES KMI IS EXCITED TO PARTNER TED BAKER IN THEIR NEW FASHION AND LIFESTYLE STORE IN THE CITY OF LONDON ABOVE LEFT: Diane Wood, latest recruit to the USA team. ABOVE RIGHT: Sampling King of Shaves on the streets of New York City USA UPDATE Growth continues for the USA business retail sales are up and brand recognition is increasing. We have been sampling extensively and King of Shaves has been at events across the country plus we ve had street teams pounding the pavement handing out samples and coupons throughout New York City. LUSCIOUS LEGS The work in the US is already being ramped up for 2008 with the hire of well established New York PR company Blue Sky Communications who will be working to raise awareness of the brand via print, broadcast and online coverage. WITH NEW KING OF SHAVES WOMAN March 2008 saw Ted Baker undertake an exciting, new development in fashion retailing and King of Shaves PRO is delighted to be a partner within the venture. Ted Baker & Friends opened this spring on bustling Cheapside within the City of London providing customers with a one-stop-shop for all their fashion and lifestyle needs. Obviously Ted s clothing and accessory collections form a major part of the 4,000 sq ft store, however when Ted decided to open a traditional barber s shop within the store they called upon long-term partner KMI to work with them to help create Ted s Grooming Room. Perfectly on trend for spring / summer 08, King of Shaves Woman has revitalised its range and is now dressed in fashionable floral. The Queen of Shaves Since we launched King of Shaves in the USA back in 2000, we ve been pleased to work with Paul Molé, the iconic men s barbershop in New York s prestigious Upper East Side owned by Adrian Wood. Adrian s daughter, Diane, is a talented 26 year old master barberess, famous in the USA as the one who removed David Letterman s beard on TV, which he grew throughout the duration of the Writer s Guild of America strike. Product formulations have been upgraded so they combine the unique King of Shaves advanced micro dual delivery system (mdds) along with distinctive ingredients including rose, lime and white lily, resulting in three new cutting edge shaving gels that pamper, energise and soothe providing the perfect platform for a close, smooth and supple shave. Sweeney Ted s, as the barbers is affectionately known in-house, offers coiffures and of course wet shaves using King of Shaves PRO products all undertaken by Mustafa Ismak s team of highly trained Turkish barbers. Customers are able to purchase products from the King of Shaves PRO range allowing them to continue the professional grooming experience at home. The new King of Shaves Woman shaving gels use milder preservatives so they contain no parabens. They are also free from sodium lauryl sulfate (SLS) and sodium laureth sulfate (SLES) the range has been re-formulated with surfactant systems that are derived from natural sources such as vegetable, coconut and sugar. Ted Baker & Friends also features an in-store tailoring service, a concierge service, a gadget lounge in association with the Carphone Warehouse plus Ted s Shine and Dandy an express shoe and bag shine service. No matter what your shaving preference; revitalising, soothing or intensely moisturising, King of Shaves Woman delivers! Available in Boots, Sainsbury s, Superdrug and Waitrose. The Ted Baker Bodywear range enjoyed a fantastic festive season with ever increasing sales and a wide range of press coverage during the all important run up to Christmas is also shaping up to be another big year for Bodywear with more exciting developments to come more of this in the next issue We are delighted to welcome Diane to join the King of Shaves team as a Marketing Executive based in our New York office. Diane also holds a degree in Communication from William Patterson University and she will be using her considerable talents to help drive growth of the brand via a mix of events and profile raising initiatives. Diane comments: Since meeting Will and some of the King of Shaves team I knew that I would be a good fit. The shaving oil is the best thing to happen since sliced bread within barbering! I m exciting to be joining the team and am eager to stand behind the brand. FURTHER INFORMATION:

9 NEW FACES & PARTNER FOCUS NEW FACES AT KMI THE LATEST ADDITIONS TO THE UK HQ TEAM Simon Vingoe has joined KMI as Marketing Communications Executive working across all brands and sponsorship initiatives. Simon previously worked with Betfair Ltd and the market intelligence group Mintel. William Lowe is the latest edition to KMI s product team working as a Production Controller William has six years experience in the supply chain arena working with greetings card producer Simon Elvin Ltd and home baking company Rank Hovis McDougall. Emma Spalding recently joined the KMI team to work in production team as a Projects and Packaging Development Controller. Emma previously worked at Boots the Chemist and Liz Earle Cosmetics. Samantha Danzine joins KMI as Supply Planner for King of Shaves and Fish. Having spent the last eight years within the food sector she brings with her a wealth of relevant experience. PARTNER FOCUS TPW PRINT TPW has been setting an extremely high standard of printing for KMI since Back then, Phil Mead (Director of TPW) shared the same building with Will, Herbie and Andy and they got chatting over a morning coffee in the tiny shared kitchen. Not only did TPW print KMI s first King of Shaves full colour product range brochure (or leaflet as it was known then), they were also good enough to let us use their photocopier for a very reasonable fee! Through the years TPW went on to produce a wide variety of marketing materials for KMI s brands including point of sale posters, leaflets, brochures, inserts, stationery as well as this fine example of print in your hand at the moment! Often the deadlines have been tight (though not as tight as the budgets) yet TPW has always gone that extra distance providing an exceptional level of service and delivering the goods on-time whilst constantly proving their printing expertise. We would like to thank TPW for their positive problem solving attitude and we aim to continue our healthy long-term business relationship for many more years to come as well as continuing our tradition of fine business lunches at The Queen s Head in Chesham! quick WEB DIRECTORY DOWNLOAD THE KNOWLEDGE: read our blogs: see our images: play our games: UK HEAD OFFICE: KNOWLEDGE AND MERCHANDISING INC LTD CHILTERN COURT, ASHERIDGE ROAD, CHESHAM, BUCKINGHAMSHIRE HP5 2PX T F E INFO@SHAVE.COM W USA HEAD OFFICE: KNOWLEDGE AND MERCHANDISING INC LTD 304 PARK AVENUE SOUTH, 11TH FLOOR, NEW YORK, NY T (212) F (212) W KMI and TM denote trademarks. ALL RIGHTS RESERVED. Printed on 50% recycled paper and is FSC Certificated. KMI REF: K2140. E&OE