Persons seeking lip balm, in prior years, made use of the Retro-products. These products seem much more clinical and antiseptic-seeming in nature.
Within the recent time, orbs have made it on the shelves of retailers. The lip balm product of choice is referred to as EOS. Beauty editors, too, found the product alluring. The flavors of the lip balm made it a “must-have,” with flavors such as Grapefruit and Honeydew. The Evolution of Smooth products are on all of the premier beauty pages, inside of fashion magazines.
The founders, reveal their business strategy: within the content of this article. The strategy upstaged traditional product offerings. EOS is the second best-selling lip balm in the country. The company sells over one million units-weekly.
The company’s founder is Sanjiv Mehra. He is also its managing partner. The other partner is Craig Dubitsky.
Mehra, prior, spent his career, within the packaged goods industry. He joined forces with Craig Dubitsky who had spent time contemplating how to shake things up inside of the drugstore stetting; and on the health and beauty aisle.
The two enterprising entrepreneurs thought the lip balm area seemed like a reasonable area. The majority of products in the area were not all that distinctive. That particular market, at the time, seemed driven by cost-cutting measures, and price competitiveness.
Lip balm was ripe for the choosing—since it represented a product that was a good fit for either gender. However, the two entrepreneurs’ research revealed that the product was used by mostly women. The gentlemen used their own resources in establishing their packaging, product and brand.
The engagement of all five senses was an important packaging consideration. They thought round packaging was a smart choice. The price was set at a $3 price point. The ingredients were organic.
The enterprising lip balm entrepreneurs hired a sales rep. The drugstores viewed their clients as “creatures of habit,” and were not sure how to perceive the new product offering in the round packaging.
A buyer at a major retailer—who was female—thought the little spheres—in way of packaging were awesome. The first account, at this juncture, was created. Another high-end, modern retailer became next in line. The two men then put together a production facility that is basically automated from beginning to end.
The startup believed they had a ready market with regard to the Millennials. EOS advertised, in the same fashion, as older competitors. The established companies, advertised their products, by way of magazines and television advertising.
They became experts, as it pertains to “influencer” marketing. They made contact with beauty bloggers who provided product reviews. They worked in alignment with twenty-something celebrities, in order to get the word out about their product. The company worked diligently in creating a mass social media presence. EOS lip balm currently has 1.8 million followers on Instagram—for example, and seven million followers on Facebook. The brand became partners with other major players within the marketplace.
The brand has emerged from that of a small startup and is now a household name. Today the products are sold on the shelves of Target, Ulta and even Racked, EOS sells over one million lip balms, weekly. EOS, too, creates shaving creams and hand lotions.
The secret to EOS’s success? Mehra says that the best approach is to use the mind-set of an entrepreneur and the discipline of a large company. It is apparent, such an approach works.