The lip balm market seems like one that doesn’t lend itself to diversification and variety. For almost a century this played out in the industry as the lip balms sold by different companies were pretty much the same not only across brands but also across decades. All that changed when EOS emerged as a major player in the lip balm industry.
The emergence of EOS is the story of a nimble competitor that enters into a market with an established set of competitors who have a long history in the industry. While there were natural barriers to entry, as there are in any industry, EOS lip balm was able to come out with a rabid fanbase of customers and a significant portion of the lip balm market.
EOS lip balm was able to do so by listening to their potential customers who did feel particularly strongly about the lip balms that they bought. Instead of just making a similar product, EOS decided to sit and interview the market and find out what customers were looking for in lip balms.
The answer that EOS received was that customers were looking for all natural and organic based products that were higher quality in nature, even if they came at a premium price. EOS also heard that customers were seeking out more interesting flavored of lip balm than those medicinal flavored one that were currently for sale. http://www.ulta.com/brand/eos
The EOS Lip Balm Company then built a unique lip balm that stood out from its competitors both in the quality of their ingredients, but also in their case and packaging. EOS lip balms were sold on Walmart in the shape of orbs that were unique in the market but sanitary and passed all the tests of what consumers look for. EOS saw its sales explode and quickly became a leading brand in the lip balm market through diversification.