King of Shaves looks to build £5m marketing “war-chest”
King of Shaves is looking to raise a £5m marketing “war chest” by issuing “shaving bonds”, as the brand looks to gain ground on rivals Gillette and Wilkinson Sword.
The shaving firm today (June 23) issued 5,000 shaving bonds at £1,000 pounds apiece with the aim of raising up to £5m to enable the firm to ramp up its marketing efforts.
Speaking to Marketing Week, King of Shaves founder Will King, says rather than seek funds from venture capital or private equity firms, he wants to create “up to 5,000 brand ambassadors”.
“It is about building a brand and marketing community as much as raising money”, he adds.
King says the brand will launch a further marketing push in the Autumn with further activity, including the firm’s first television advertising, planned next year as it looks to achieve sales of between £120m and £125m in the UK by the end of 2012.
The firm launched its first national campaign in April to push its Azor brand. King says the campaign, created by Hooper Galton is “going well” but “is only a fraction of what we intend to spend”.
“A lack of awareness is the biggest competitor to a brand”, he says.
The bonds, which have been approved by BDO Stoy Hayward and regulated by the Financial Services Authority, will pay an “interest coupon” of 6% over three years.
A press, online and e-marketing campaign to promote the bonds will launch on June 27.
