The graduate thesis describes the development of a new product, his challenges and way to success. It describes the marketing mix and the role of products in it. The product as an essential element of a marketing mix is divided into three levels in which the product first serves the product to satisfy the wishes and needs of customers.The process of developing a new product is not easy and much attention must be paid to him. To launch a new product on the market, the company must undergo certain risks and bear certain costs. In the market it is important to be creative, steady, and to be better than the competition to achieve success in your business. All phases of new product development, as well as the reasons for success and failure, are considered. The work is complemented by the example of the development of a new product produced by the Croatian company „Kuća magične trave“. It is about a melissaꞌs 2in1 soild shampoo with regenarator – whis is elaborated from the idea to the finished product launched on the market. Family Jakopović started his job from scratch and with his dedicated work, organization and good ideas, over time, came to success.