The lip balm market offered small operators the ability to quickly expand and take advantage of the opportunities in the market. The lip balm market was ripe for opportunity with the major industry players neglecting the industry and trying to monetize their holdings rather than to simply innovate and provide what customers were looking for.
The biggest lip balm maker was Chapstick which was owned by Pfizer. Chapstick is just a small subsidiary of Pfizer and not one of its main business lines. As such, finding a way to profit and expand it was not its focus. They were instead using it as a cash cow.
Then, as is outlined in an article in Fast Money, EOS, a small start up at the time, was able to embrace the needs of their customers and came to be a major player in the lip balm market. Basically, EOS listened to the needs of their customers and decided to make a product that fits their tastes. EOS lip balm product was one with all natural ingredients that was designed to be enjoyable to the tastes of consumers with interesting flavors like Honeydew, and which provided for a lucious and smooth application hence the name “Evolution of Smooth” (EOS). They then went to work choosing an applicator that delivered the premium lip balm to their customers.
Their specially designed applicator orb stood out on shelves and even on Amazon, consumers snatched up the new colorful lip balm wherever it showed up in stores. This success led them to become a major player in the lip balm market and has made EOS a real success from their start as a small company into one with a quarter of a billion of sales each year. This all goes to show the success a company can have when they listen to the customers in their industry and design a product that meets their needs.