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Business Prop

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Submitted By fasrtlanes67
Words 270
Pages 2
This assignment will center around introducing a new product in an existing line of business and focus on how to develop the good to increase the revenue. I would be also touching upon the concepts of the elasticity of demand, market structure as well as profit maximization techniques which would be useful to further this good and also the barriers to entry. Pricing strategies and product differentiation will be the other important topics which will be discussed as well. I am choosing the shampoo company Pantene, founded in 1947, who was inspired by the ingredient panthenol, Pantene and was originally owned by Swiss drug company Hoffman-LaRoche.It made its debut as a premium hair care line across Europe, replete with glass bottles and prestige scents and then crossed over to the US. Pantene has just come up with the latest Custom Hair solutions which I will be focusing on.

Elasticity of Demand

Simply put, the demand for Pantene shampoo is highly elastic for the main reason that today there are so many substitutes available and so many other companies launching their shampoo products on a daily basis.

Market Structure

The market structure for the shampoo market is that of Monopolistic Competition. This is when a large number of sellers produce a product or service that is perceived by consumers as being different from that of a competitor but is actually quite similar. This perception of difference is the result of product differentiation, which is the key to success in a monopolistic industry. Products can be differentiated based on price, quality, image, or some other feature, depending on the

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