Melissa Butler and “The Lip Bar” – making beauty inclusive

Research methodology The case has been prepared from library sources. The research methods used include various sources of information like websites, published articles, research papers and book chapters from various secondary sources. Case overview/synopsis Melissa Butler (Butler), a Wall Street analyst, founded The Lip Bar as she was appalled by the lack of diversity in the beauty industry, the excessive use of chemicals, and expensive products. She started making vegan lipsticks for diverse skin tones from her kitchen in 2012, quit her job and sold lipsticks worth US$26,000 in the first year. For three years, Butler made all the products that she sold. She went to Shark Tank, pitching her products as the ones made, especially for women of color and dark skin tones. Undeterred by rejection from the Shark Tank judges, Butler continued developing lipsticks and other highly vibrant, environmentally friendly cosmetics . By 2022, her products were sold in over 750 Walmart Stores and 500 Target Stores across the USA and were used by celebrities like Taraji P. Henson and Michelle Obama. The Lip Bar was valued at US$7mn as of 2022. Butler also launched another brand, Thread Beauty, which targeted Gen Z and the BIPOC Community. Butler decided to expand The Lip Bar's product portfolio and launched products specifically for light-skinned customers. However, she faced a challenge with these new products coming from a black-owned company. She needed to break the stereotype that, as she was a woman of color, the products she made were meant only for dark-skinned women. Complexity academic level The case is suitable for postgraduate or executive education students in their entrepreneurship and business ownership courses. The case can be used to teach concepts related to diversity in entrepreneurship with a specific focus on making the beauty industry more inclusive. It addresses the issues that arise in new ventures, funding entrepreneurial ventures, finding mentors, strategies for continued growth and marketing. It also looks closely at entrepreneurship in the challenging milieu, starting a company in the highly competitive cosmetics market, where companies ranging from large multinationals to niche players compete.