An article in Fast Company (https://www.fastcompany.com/3063333/startup-report/the-untold-story-of-how-lip-balm-upstart-eos-outdid-chapstick) recently highlighted the steps that EOS took to emerge as a large player in the lip balm industry. Eos has experienced a great deal of success despite a limited history in the market and was able to capitalize on several different trends in the world to capture market share.
EOS lip balm noticed that customers were looking for an increasing amount of choice and quality in the products that they purchased, with the willingness to pay up for higher quality ingredients. Lip balm was no exception to this rule and due to the application of this substance on their skin, customers were looking for natural and organic options which differed from the products that were currently for sale on the market. Generally speaking, lip balm brands were made from petroleum jelly based products which were effective in controlling the damage done to lips from dry air and wind, but did not provide the lasting protection that all-natural alternatives did. Further, the flavor offerings of many lip balm products were limited in variety with the occasional cherry being included among mint and medicine flavored options.
EOS listened to the feedback they get on Facebook from customers of lip balm and understood the market trend and decided to create a product that was very different from the lip balms that were currently for sale. EOS offered lip balms that were made from higher quality bases like jojoba and coconut oil, and shea butter. While these products cost more to produce than the standard petroleum jelly based products (which is a derivative from refined oil), customers appreciated the higher quality ingredients and the longer lasting protection that it provided.
Eos then crated a wide range of flavors that captured the attention of customers and has since become a major player in Target and Walmart stores. Their success has allowed the brand to branch out in other ways and has turned into a company that is now emulated by the competition.