Within a short span of seven years, Evolution of Smooth (EOS lip balm) successfully established itself as one of the market leaders in the lip balm business. With up to 1 million of units being sold weekly, the company’s value has grown exponentially turning it into an entity worth over $200 million. However, upstaging established brands in the industry and creating a popular brand did not come easy. It is a result of strategic market analysis, planning, and product designing and suave marketing. In addition, the founders of the company relied on their professional experience and deep commitment.
One of the strategic moves taken by at the onset of founding the company is carrying out a market research and analysis. The founders, Sanjiv Mehra, Jonathan Teller and Craig Dubitsky noticed that the existing brands of lip balm, sold in tubes, lacked an important component of conventional product creation: fun. The existing products made lip balm application a task rather than a fun activity that appealed to the five human senses. They therefore set out to develop a product that would transform the process. They radically changed the container: from a dull and mundane tube to a spherical orb. And once they established a constant stream of customers, they opted to manufacture their own products.
The founders, noting their size and relatively small brand awareness opt for a blue ocean strategy marked by creating demand rather than competing for the existing one. They therefore developed their lip balms using organic materials; a new idea in the industry. They created demand for organically made lip balms and beat their competitors by fairly pricing their products at $3 per unit on Wal-Mart and Target stores. However, their marketing mix extends beyond branding and fair pricing; the company took advantage of the e-commerce platform presented by social media to market to the millennial. Their conviction that millennials are fashion conscious and had developed a product that meet their demands has been vindicated.