xfdfw FOXBUSINESS.COM-WEEKE-00
<Show: FOXBUSINESS.COM WEEKEND>
<Date: March 14, 2010>
<Time: 23:00:00>
<Tran: 031401cb.226>
<Type: Show>
<Head: How Marketing Works; Beauty Products Are a Huge Business -
Part 3>
<Sect: News; Financial>
<Byline: Tracy Byrnes, Chris Cotter>
<Guest: Neely Tamminga, T.J. Johnson, Heather Thomson, Jenny
Balding, Diana Schmidtke, Laura Reis, Christina Zilber, Ramsin Kassir, Nicholas Perricone,
Sue Phillips>
<Spec: Finance; Business; Economy; Marketing; Advertising>
BYRNES: I'm sorry, but it's unfortunate that they haven't adopted more preventative care, Dr. Perricone, because you'd be right there forefront, I'm sure, talking about how antiinflammatory - changing your lifestyle would make this whole better at the end of the day.PERRICONE: Yes, we have to move towards prevention and away from intervention because the system is going broke. That means just change of diet maybe nutritional supplements, moderate exercise can rapidly reduce the burden of health care dollars. But they're not looking at that and makes no sense whatsoever.
BYRNES: Thank you both for being with us.
COTTER: Thank you, gentlemen.
BYRNES: Dr. Perricone and Dr. Kassir, thank you both.
All right, well, all the makeup and styling, and plastic surgery in the world isn't worth (inaudible) just think. The right way we (inaudible) now can be the most alluring or better yet offending treats that we had.
The fragrance industry has made millions on making us smell good, and out next guest is capitalizing on that very desire. And you know, what so funny is I but smells and scents can take you back places.
COTTER: Well, you know, why that is? There is a scientific for that and that is your olfactory nerves are literally right next to the part of your brain that contains memories.
BYRNES: You're making my memory too scientific. I walk into the studio and somebody was just have there and he wore the same cologne that this kid I had a crush when I was 14 -
COTTER: Really, was it Polo?
BYRNES: No - it was not, no. Because my (inaudible) were Polo -
COTTER: I know.
BYRNES: Just - I can't, but it just took me back. It took me back, it was so nice. That's the beauty I suppose of wearing fabulous -
COTTER: That's the beauty in the science. See you learn the science too.
BYRNES: Science - well Sue Phillips is here. She is president of Scenterprices. Love the name. Sue, thanks for being with us.
COTTER: Sue knows that. Sue knew that, that's why she got into the scent business.
SUE PHILLIPS, SCENTERPRISES PRESIDENT: Absolutely, you're absolutely right.
COTTER: We've talked about it all day long, how do you - again, much like with cosmetics, how do you start a business when there's so much competition already out there? How do you breakthrough?
PHILLIPS: I think the first thing is to have passion.
COTTER: Yes.
PHILLIPS: I think you have to have passion for what you believe in and want to have a wonderful idea or have a niche that you know, yes, the cosmetics business is a very crowded, over crowded market. But I think there's always room for newness and there's always room for something that's compelling for consumers.
BYRNES: So what made you - when I wake up and say, I'm going to do this?
PHILLIPS: Well, it wasn't one day. I have actually been in the cosmetic and fragrance industry for 30 years, and have been in wonderful work with great companies, but I've always had a passion and love for fragrance.
And actually a year and a half, a sole niche in the custom perfume area. And I think also the economy has something to do with this as people are little bit nervous about standing, they want something to be compelling. They want their purchase to be - to (inaudible) with them, and the idea of creating your own perfume and creating a signature perfume is what appeal to me.
And it's actually more than just a perfume, it's an experience. We create the experiences for people say along spas, corporations, we do team building events, all around fragrance and the idea is we take them on a fragrance journey. We have 18 wonderful fragrance blends and people evaluate the blends and then they select which ones they want and that becomes their formula.
COTTER: Now you've seen this with Tupperware obviously over the years. You've seen it with gold buying parties. There are jewelry parties now where you have a sales rep for a jewelry company. It's working in these parties, in people homes, how are you spreading out your business in doing it that way?
PHILLIPS: That's a great question. We're actually looking at different initiatives. Certainly the perfume parties at home are very viable. We actually get people calling us all the time. Coming to our events, we have events every Tuesday night at our fragrance studio.
And people come in and we create a perfume party, but this is also beyond that. We actually are now working with events planners. We're working with (inaudible) companies. We're working with corporations actually who are also looking at the fragrance as the way of doing team building.
COTTER: Yes.
PHILLIPS: So we're doing corporate team building events, leadership events. It's also great initiative for spas and salons as Mrs. Jones might have just had a fabulous facial treatment, or body massage and then the massage therapist would say, Well, Mrs. Jones, would you like to a custom perfume?
What a great idea to create that signature perfume. So - and I think the other thing that's happened is people resonate with this because there are so many fragrances on the market now, with celebrities and designers and singers.
(Inaudible) going to do a fragrant, but they love fragrance but they don't want to really have something that everybody else has. So the idea is that they can actually create their own signature perfume.
BYRNES: It's an interesting model though. It's an interesting way to go as far as distribution channels.
PHILLIPS: Yes, and it's actually very interesting because our counterpart in the U.K. has started with the salons and spas. They've actually done a big business by contacting salons and spas, and the spas and salons are most often give gift certificates.
They've also just gone into (inaudible) in the U.K. going into retail and that's something that I would like consider certainly as we develop and build our model. And we have all these different initiatives and places, the salons and the spas, the corporate events, and the bridal market is also a big market.
COTTER: Yes.
PHILLIPS: We think that we can have a store in store if you will.
COTTER: All right, we got about 10 seconds, just describe real quickly, what environmental scenting is and how big of a market that is for you?
PHILLIPS: Environment scenting is where we go to hotel spas, casinos, resorts in retail and it's a way of scent branding their property. It is a - I think about $2 billion industry. It's growing certainly in Las Vegas where all the casinos and all the spas are looking to create a brand environment with scent. And so we're also looking at distribution showrooms, car showrooms -
COTTER: Yes, it's very interesting.
PHILLIPS: It's - we're trying to make the world smell great.
COTTER: Sue, thank you so much.
BYRNES: Thanks for being with us.
PHILLIPS: Thank you for having me.
COTTER: Sue Phillips, founder of Scenterprises. That's going to do it for us. We'll see you on Monday.
END
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