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EOS Case Study

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by

Raquel Harrah

on 24 April 2013

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Transcript of EOS Case Study

EOS: A Case Study Print ads Marketing Tactics EOS: A Case Study Print ads Marketing Tactics Print ads The design and imagery attempted to place EOS Smooth Spheres in artistic situations with common, everyday objects, but in a sophisticated way to create stunning visual spectacle.

The stunning imagery was complimented by copy that expressed the functional benefits, which emphasized the main idea of the campaign-- functional beauty that was delightfully purposeful.

Because of the limited budget, the print campaign ran during key seasons of October through March 2009, 2010, 2011 in highly selected women’s magazines. Average annual GRPs were approximately 280 print GRP’s. EOS: A Case Study Marketing Tactics goal Put EOS in the top five lip balm brands in the marketplace. For perspective on the difficulty of this goal, the category had remained unchanged for years. EOS: A Case Study Marketing Strategy company In summary, the company’s small, independent structure allows differentiation from the larger brands in the lip balm category. One of its main strengths is the product itself, which alone stands out from other brands in the market. The product launch allows for a completely new, fresh campaign that can mold the brand and reshape the market. Its weaknesses reflect the small company, which provides a limited budget in a highly competitive category.

The company can benefit women with a highly targeted campaign combining luxury, beauty, and function. Soft lips don’t have to come with a price on beauty – the two can intertwine. EOS: A Case Study Situational Analysis weaknesses EOS is a small, independent start-up with a very minimal budget ($2-3 million spend) compared to the power brands backed by rich multinational companies
EOS has no previous consumers or brand loyalty as a new product EOS: A Case Study Situational Analysis By Raquel Harrah “The Underdog Gets the Bone” POS - Continue the clean, colorful, and beautiful imagery and design to the stores to help EOS breakthrough the cluttered stores and encourage more instinctive point of purchase purchasing decisions. EOS: A Case Study Marketing Tactics EOS: A Case Study Print ads Marketing Tactics EOS: A Case Study Print ads Marketing Tactics The creative idea Research showed that the average woman’s “To Do” was over 38 hours. - - After completing a task, many women replaced it with another functional task.
The creative idea was inspired by this consumer insight: For women, functional tasks trump pleasure. EOS: A Case Study Marketing Strategy Segmentation of customers Current women with an understanding of social media would help launch the campaign further, therefore not all ages were included in the target. Younger and older audiences are either not making purchasing decisions, not social savvy, or no longer interested in or influence the latest trends. EOS: A Case Study Target Market Trendy women in their 20’s and 30’s in the U.S intuitively drawn to what is stylish. Described as “curious and interested in being in-the-know” and always on the search for the next greatest thing. They also love sharing recent finds with their peer group as major brand advocators. EOS: A Case Study Target Market Entry head
Situational Analysis
Target market
Marketing strategy
Marketing tactics
Outcome EOS: A Case Study Case Study Outline EOS: A Case Study A small, independent company, EOS, had high hopes of breaking into the hyper-competitive lip balm category with the launch of its EOS Smooth Sphere lip balm. A true underdog, the brand was entering an industry where over 200 brands receive less than 1% market share and whose competitors were rich multinational companies. With only a $2-3 million budget, unique packaging and product, and hopes of breaking the 2% market share threshold after 6 months, EOS created a highly successful campaign based on a consumer insight that women prioritize function over pleasure. Beautiful and artistic print ads and POS, a social media initiative and PR efforts allowed EOS to communicate that function and pleasure could successfully be combined with 2.5% dollar share in the lip balm category after 6 months. EOS was listed among the 2013 Advertising Success Stories by the Institute of Communication Agencies. The band’s launch campaign put EOS on the map to become the bestselling lip balm shortly after in 2012. Abstract Social media EOS: A Case Study Marketing Tactics Social media EOS: A Case Study Marketing Tactics Social media EOS: A Case Study Marketing Tactics Social media Created “EOSphere Sampling Initiative
Social campaign to give away 50,000 Smooth Spheres in 30 days
Initiative invited women to receive a free EOS Smooth Sphere, and share the offer with a friend through social media (Facebook, Twitter, email)
Originally began with beauty editors and 1500 dedicated consumers who had written to EOS about how much they loved the product
The women could visit the website to show their “sphere of influence,” or how friends were connected and whether they received their Smooth Sphere through her
Invited women to engage with the EOS brand by completing the brand philosophy, “If the world was made for women…” and share through social media EOS: A Case Study Marketing Tactics Communication strategy Based on the target audience (trendy, social), EOS created a 4-pronged approach to raise awareness and engage the audience in the EOS brand:

Establish the EOS brand using sophisticated design-driven ads in U.S. fashion, beauty, lifestyle and celebrity magazines to capture consumers and fashion bloggers.
Extend the brand’s imagery into in-store POS to evoke a sense of delight continued through the point of purchase.
Use social media to invite the target audience to share as brand advocates by implementing a sampling program.
Harness the power of PR through beauty press and bloggers to market the product as a must-have. EOS: A Case Study Marketing Strategy Objectives EOS’s main objectives were to raise awareness, launch the brand, and increase market share
Brand launch/ awareness: Generate mass awareness for new EOS Smooth Sphere lip balm product
Market share:
Achieve 2% share by the end of the first 6 months (through category analysis, it was established that 2% would be significant enough to establish a position in the market
Double share to 4% in the first full calendar year
Achieve 50% growth in the second full calendar year EOS: A Case Study Marketing Strategy Positioning The targeted research spurred the creative idea- “Why does she feel she has to choose between function an pleasure? What if we intertwined them, so we delivered on both?”

EOS was to be positioned as an elevated beauty item providing both pleasure and function. The juxtaposition of functional, everyday life with the beautiful, artistic situations of the print ads allowed for the creative idea to flourish.

Positioning- EOS is beautiful and delightful. Functional tasks don’t always have to trump pleasure. EOS can provide pleasure in the mundane. EOS: A Case Study Target Market Targeting Breaking from the traditional unisex offerings of lip balm, EOS targeted primarily women in the 20-30 age range.

The limited budget still allowed for a rich study of women’s insights. EOS knew that women usually don’t take time for themselves and usually put themselves last on a lengthy “To Do” list. Studies show that women prioritize what “must get done” (functionality) over doing things that give them pleasure. EOS: A Case Study Target Market Collaborators? Possible collaborators could be relationships with magazines and the entertainment businesses to market EOS and provide insightful scoops on new products that could benefit consumers. EOS: A Case Study Situational Analysis context In 2009, two trends dominated the lip balm industry – natural / organic ingredients and beauty appeal.

“Overall, lip balms (including cold sore medications) generated $401.6 million in dollar sales across food, drug and mass (minus Walmart) for the 52 weeks ended Oct. 4, according to Information Resources Inc. data, representing a slight growth of 0.3%.”

“ Within that, the growth catalysts include Beiersdorf’s Nivea Kiss of Moisture ($6.6 million, up 1,383.3%), Pfizer’s Chapstick True Shimmer ($4.4 million, up 1,577.6%) and Blistex Deep Renewal ($4.2 million, up 1,543.2%) — all positioned against that beauty proposition.”
 
Johnsen, M. (2009). Focus on beauty helps lip balms shimmer on shelf. Drug Store News, 31(14), 27-28. EOS: A Case Study Situational Analysis customers EOS was just entering the lip balm category in 2009 as part of its product launch; therefore, the company did not have customers at the start of the advertising/ communication effort. EOS: A Case Study Situational Analysis opportunities - The U.S. lip balm category is $400 million annually
- EOS is a small, independent brand among heavily advertised multinational brands, which can give it a local, organic appeal as the “underdog” or small business champion
- Has the opportunity to disrupt consumer indifference with innovative strategies due to its limited budget
- Other brands focus on functionality – EOS strives to be the covetable beauty item EOS: A Case Study Situational Analysis Strengths
Innovative and unique packaging that doesn’t get lost in women’s’ purses
Unique round shape allows for easy application for lips compared to a lip balm stick, but is more sanitary than lip balm jars
Product strengths
- 95% organic, 100% natural, and paraben and petrolatum free.
Long-lasting moisture
- Shea butter & vitamin E
- Packed with antioxidant-rich vitamin E, soothing shea butter and jojoba oil,
- Smoothes on clear
- Precisely glides on lips
- Twist-off top
- Gluten-free
- Paraben-free
- Petrolatum-free
- Phthalate-free
-0.25 oz
- Not tested on animals Situational Analysis EOS: A Case Study Company name - EOS Products LLC
Brand name- EOS (Smooth Spheres)

Country the marketing strategy was deployed – United States

Strategy name – EOS: Reinventing Lip Balm

Tactical approach utilized (print, web, broadcast, interactive, etc.) – print, PR, online sampling (via social media), in-store POS

Sector name- Toiletries and cosmetics market- Cosmetics industry- lip balm category

Date of campaign – Start of advertising/ communication effort: August 26, 2009; business results period (consecutive months): September 2009- June 2012 Entry Head PR Efforts EOS: A Case Study Marketing Tactics PR Efforts Approached beauty experts, media outlets and celebrity fans to write reviews and editorials about EOS Smooth Sphere EOS: A Case Study Marketing Tactics “EOS lip balm is all-natural, paraben-free and packed with shea butter and jojoba oil, so your lips stay moisturized, soft and smooth.” EOS: A Case Study Print ads Marketing Tactics “EOS is delightfully beautiful.” The big idea EOS: A Case Study Marketing Strategy competitors Top category brands- ChapStick, Blistex, Carmex
Brands skewed toward women – Nivea, Softlips
 
Competitors most likely would not feel too threatened by the small business that seeks to achieve only 2% dollar share. However, the 200+ other brands that failed to achieve 1% share in a much longer period of time would most likely feel threatened by the newcomer and increase advertising spending that could hurt the new product’s launch. EOS: A Case Study Situational Analysis threats Stores are stocked with well-established brands
Competing against powerful multinational brands
Hypercompetitive category of over 200 brands
Competitors have relatively high spending costs (Nivea spent $30 million to achieve a 6.3% dollar share)
The leading brands tend to be unisex offerings – EOS serves primarily women exclusively EOS: A Case Study Situational Analysis
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