LAGUNA HILLS, Calif., Oct. 4, 2016 /PRNewswire/ -- A case study of everything that can go wrong with a licensing deal just happened on an epic scale. Business students are tuning in to study what happened to this startup company in less than one year. While Suhein Beck, the CEO/Founder of ELAJ, LLC, a skincare company specializing in over the counter Eczema products, fought every step of the way to maintain the essence of brand, quality and intellectual property, but the licensees that took over world-wide marketing and distribution ultimately sabotaged their multi-million dollar investment and gave her just enough loopholes to terminate the contract early.
From a street faire in Palm Springs to major retailers like Wal-Mart and Bed, Bath & Beyond, this was to be the next overnight American Dream success story. The reality quickly evolved into a nightmare of corporate intimidation of the little organic grass-roots entrepreneur. The mass marketing and production instantly erased what made ELAJ products so popular originally. This deal was with a multi-million dollar Direct Response Marketing Company that supposedly knew better, and yet proved how intrinsically important brand management is with many lessons to learn about location, positioning and pricing strategies.
With their debut into mass retail and sales over $1,745,740 in first quarter 2016 success seemed inevitable, but the tough decision to terminate the "dream contract" early became unavoidable when customers kept calling requesting the original product back. What made this fiercely loyal customer base patient enough to wait out the storm? It was Suhein's transparency through it all.
"It was paralyzingly painful when my first generation of loyal customers were calling me from around the world wanting me and the original formula back, yet my hands were tied."
On August 29th, 2016, Suhein stormed ambush style into the office of her licensee and demanded they sign the termination agreement early. That only came after a 4 month brutal fight for all assets, such as customer lists, websites, etc. October 1, 2016 now marks "The Renaissance of ELAJ" re-launching the brand exclusively online in the United States and working with the U.S. Commercial Office and Department of Trade and Commerce developing a major export contract in the Middle East. Along with resuscitating ELAJ, LLC, Suhein has been lecturing future entrepreneurs how to avoid becoming a "Classic Business Case Study" like she did.
ELAJ, LLC was founded in 2008 by Suhein Beck, who inherited medicinal formulas from her grandfather who was a surgeon. The company has been helping educate people how to deal with intensive dry skin conditions such as Eczema, while avoiding potentially dangerous side effects of corticosteroids and topical steroid addiction. They are also launching a Topical Steroids Awareness Campaign. Customer testimonials can be viewed at www.elajnaturally.com or Youtube.com/elajnaturally.
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SOURCE ELAJ, LLC