When deciding what product to put on the market entrepreneurs Jonathan Teller and Sanjiv Mehra’s research showed that about 80% of the lip products that are sold are used by women. That the lip balm industry has been putting out gender-neutral products for the past century, therefore, didn’t make a whole lot of sense to them. Seeing their opening, they developed EOS Lip Balm which is directly targeted at women. It is now a global brand with adherents around the world.
EOS Lip Balm comes in a nice little round container. It comes in a variety of colors for two reasons. One, they look nice. Two, they’re easier to spot in a purse if the containers are colorful. Another advantage of this lip balm is that you don’t have to put a finger in the container in order to apply some to your lips. Just remove the lid, spread the lip balm on, and reseal the container. This brand of lip balm is now a household name.
Once Sanjiv and Jonathan started working on the concept of EOS Lip Balm they knew that they would need some help getting it on the market, especially when it came to financing. They were very confident that their product would find a market and instant success. Ramping up production to a large scale, though, requires some serious money. They pitched their idea to a number of private venture capitalists and found some of them to be very enthusiastic about what they had come up with. The venture capitalists also gave them some really good advice on how to proceed and get their products onto retailer’s store shelves. Word of EOS Lip Balm spread by word of mouth among consumers and before long these two entrepreneurs had a global hit on their hands.