eos: Reinventing Lip Balm
Section I — Basic information
Business Results Period (Consecutive Months): September 2009 - June 2012
Start of Advertising/Communication Effort: August 26, 2009
Base Period as a Benchmark: N/A - New Product Launch
Section II — Situation analysis
a) Overall Assessment
How do you break through as a challenger brand in an already over-invested women's beauty market, competing against rich multinationals within a product category that no one really cares about?
In the case of the EOS Smooth Sphere Lip Balm, we created an insight-driven brand platform that would radically alter consumer perceptions of what a lip balm could be – from something merely functional, to an item women would covet.
The U.S. lip balm category is $400 million annually, stocked with well-established brands that have the strength of multinational companies behind them. The top four brands have a combined 65% share and there are about 200 additional brands with less than 1% share each. Moreover, in the year prior to the EOS launch, Nivea entered the lip balm category, spending $30 million to achieve a 6.3% dollar share. EOS was entering a hypercompetitive category, with fewer skus and a $2-3 million spend, significantly lower than Nivea or the top brands.