EOS lip balm has seen a lot of success, especially relating to what they are as a brand, how quickly they rose to such success, and the niche market that they entered. The three founders are men, and sell their products to a primarily female market. They sell their products for $3 a pop on Racked, but the products are marketed by beauty bloggers next to $50 makeup compacts and $300 face creams.
How did a products so simple but so genius in design create such reverence with it’s customers? The three founders Jonathan Teller, Craig Dubitsky, and Sanjiv Mehra had the right combination of experience to make their startup a success. They asked the women, “what do you like and dislike about using a lip care product?” They liked the all natural formulations of emerging lip balm pots, but found that dipping their fingers in the balm to apply it felt messy and unhygienic. Packaging maven Mehra put his skills to the test, repackaging that balm (http://www.ulta.com/smooth-sphere-lip-balm?productId=xlsImpprod3490245) into a sphere, so the shape of the balm fit the mouth. It could be applied like a chap stick, but it was not as easy to lose. It was a balm that could be applied like a stick, in an inventive new shape.
Teller, with his background in startups, knew that it would be wiser to invest in custom manufacturing equipment before getting down to marketing business. Their investment in automated machinery proved successful in meeting demand and offering new and different product choices. Only after this was in full swing did they market by approaching the niche in a very clever way. Beauty guru bloggers and YouTube stars were approached with product to promote to their audiences, EOS lip balm target customer. Their approach worked and today they sell over a million units per week, very impressive. Read the EOS history on fastcompany.com.