Fast Company released an article about EOS and the impact that they have had on the lip balm market since they debuted their product just seven years ago first in Walgreens and later expanding to Target, Walmart and Ulta.com online. Now EOS is widely distributed and available all over the place, becoming one of the makeup lip balm makers in the United States. Their origins, as elucidated in the Fast Company article, are much more humble though and a good business case study to follow.
The founders of EOS started off looking at an industry that had not changed in many ways from their product offerings of a hundred years prior. The ingredients and applicator was mostly the same and brands were trying to capture market share by lowering their prices. The EOS founders thought some solid effort could lead to them outpacing their competition and dominating the industry, which they started to design a plan to accomplish.
EOS lip balm plan was to attract women, by far the largest buyers of lip balm, to their brand by designing a product that appealed to their tastes. To date most lip balms were designed for a unisex market. EOS would create lip balms that had colorful orb containers, were applied in a luscious and smooth way, and had flavors like Honeydew and Berry combinations that attracted a purely female audience.
This strategy ended up paying off as EOS was able to attract these customers, broaden their distribution channels, and become a major player in the lip balm market in just a short seven year history. Many of the major brands are now emulating EOS’ products and trying to regain the advantage that they lost by being so complacent in the lip balm market. EOS has been anything but complacent and has continued to strengthen their brand and lip balms in recent years.