New Product Proposal
Susan Rodgers
ECO\561 - Economics
March 31, 2014
David Mozinski
New Product Proposal
Proctor and Gamble is a leader in hair care products worldwide. This business proposal introduces a possible new product for the Pantene line of hair care products. In addition, the proposal discusses the way to develop a product to induce more profit for the company. Topics covered in the proposal are demand elasticity, techniques for maximizing profits, and market structures. Also included is a strategy for pricing and product differentiation to be considered by Proctor and Gamble.
History of Pantene
In 1945 the drug company Hoffman-LaRoche develops the Pantene hair care product. Pantene was only available in Europe until the 1960s. By developing the gold cap signature look of the Pantene products in 1975 set the products apart from competitors. Then in 1985 Proctor and Gamble bought the Pantene product line from Hoffman-LaRoche. After the purchase Proctor and Gamble developed Pantene’s first advertising slogan – “Don’t hate me because I’m beautiful”. However by the 1990s the advertising slogan changed to “Hair so healthy it shines”. (Pantene.com, 2014)
The Product
The newest development of customized temporary color shampoo and conditioner will revolutionize the industry. The product will be designed to customers’ hair structure and desires. The customer describes his or her hair, such as fine, medium, or thick, and if his or her hair is damaged, oily, or dry. Then the customer will decide which temporary hair color he or she desires, such as brown or red. For example, a customer has oily hair and wants to dye it light brown. The company offers a shampoo and conditioner with both the desired color and the oil control. Thus the customer has both desired aspects in his or her shampoo and conditioner.
Demand Elasticity
Due to the variety of hair care products by so many different companies Pantene hair care products are very elastic....