Fast Company picked the brains of EOS founders to discover what strategies they utilized to grow their business from the ground up. EOS was founded by Jonathan Teller and Sanjiv Mehra. Teller had prior experience in startups and Mehra in the consumer goods industry. Their unique backgrounds equipped the founding with the knowledge needed to succeed in growing EOS lip balm.
Teller and Mehra specifically chose to venture into the lip balm market because of the opportunity they saw. The team understood that marketing a new and exciting product into an industry that had remained quite monotonous could yield excellent returns. What had been accepted as a unisex tool for decades, EOS decided to dedicate to women. They completely rethought the old, cylindrical design of traditional lip balm and replaced it with their trademark orb shape. This provided women with an appealing and enjoyable experience.
To market their new product, EOS approached several vendors and stores such as Walgreens, WalMart and more. Their first successful purchase came from an interested vendor at Walgreens. After EOS lip balm soared off of the shelves, several online stores like eBay became interested. Instead of outsourcing, EOS established their own manufacturing facility to ensure the quality of their products. This option also allows EOS to cut significant costs as the whole process is entirely automated.
Despite being a new company, EOS quickly became the most active advertisers in the lip balm industry. Their new lip balm was featured in countless magazines and television ads. EOS also took extra strides to get their product featured in music videos with celebrities by the likes of Britney Spears and Miley Cyrus. EOS (evolutionofsmooth.com) strategically catered their advertisements to the millennial generation. These efforts helped propel EOS to sell 1 million units per week. This once small startup has now grown into a $250 million company.