This paper analyzes possible scenarios of Biopure’s products launching and provides marketing plan of the recommended one. The study shows that Biopure should immediately launch Oxyglobin rather than wait for Hemopure's FDA Approval then launch both products simultaneously. The proposed price for Oxyglobin is $300 per unit with promotion campaign from time to time. With this set price of immediate launch, Biopure will reach breakeven point for Oxyglobin in year 2000 with the amount of 2.13 million USD. Targeting market for Oxyglobin is emergency care practices as a higher price of blood substitute is more acceptable amongst pet owners. Direct sales method to emergency care practices in big city area is preferable to maximize profit while emergency care practices in medium-to-small city area will be approached by distributors to increase sales.
The advantages and disadvantages of both scenarios are identified, along with barriers to success, and market attractiveness analyzed using Porter’s five-force model. SWOT analysis has been used with product offering attributes in order to suggest the appropriate strategy relating to the targeting market, which is introduced in the last section. The recommended market strategy is analyzed in accordance with the market objectives, financial objectives, and the 4Ps marketing mix.
2. Marketing Recommendation for Biopure
In regarding to the decision of which product should Biopure launch first, there are two scenarios that Biopure could take: first scenario is to immediately launch Oxyglobin follow by Hemopure whenever it has received its FDA approval and the second scenario is to wait for Hemopure's FDA approval then launch both product simultaneously. In order to evaluate and make a decision, we analyze the blood substitute markets along with the analysis of the two scenarios.
2.1 Market attractiveness analysis
According to five forces analysis of human and animal blood market [Exhibit 1], we...