For almost a century the lip balm industry did not significantly change. The products sold by brands a century ago we almost identical to the modern equivalents of these products. All of that changed with EOS entered the lip balm market under a decade ago and the major market players are still trying to adapt to the disruption in the industry caused by the entry of EOS.
When the co-founders of EOS examined the skincare industry they saw that the complacency on the part of the major players in the industry left room for a startup company like EOS to exploit this opportunity.
EOS surveyed lip balm customers who identified that:
– They did not feel strongly about their lip balm manufacturers
– Customers were looking for lip balms made with organic and all natural ingredients that were of higher quality than the current market offerings
– Flavors of lip balm were limited in flavor and many of the options tasted medicinal
– They were constantly losing their lip balms in their handbags due to the shape of the lip balm tube
– Customers preferred applicators that were sanitary as opposed to those that they would apply with their fingers
To address these factors, EOS lip balm decided to build a product that appealed to women, the largest market segment. A revolutionary applicator orb was designed by EOS that stood out with bright colors and a convenient but striking case that could be applied in a sanitary manner. EOS used all-natural and organic ingredients that had a premium cost, but were ultimately more in line with customer preferences. A variety of tasty flavors were used which appealed more to the tastes of customers.
The newly designed lip balm that EOS created proved to be a real hit with customers and allowed them to displace Chapstick and other major players in the industry who are now emulating the products that EOS is selling on Target and Walmart stores. By listening to the needs of their customers, EOS has been able to create a loyal following became a major player in the lip balm industry.