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 have summarized key points of market attractiveness as follows: Positive| * Few rivalries - Since there are not many players in this market, it is still many opportunities for the company to capture large market share before more number of players may arise. * Profitability earning - As there are still few players competing in this market, the company possess higher chance to earn more profit from differentiated products offering, especially from the product breakthrough. * Higher demands than supplies - Because the demands of bloods are over the supplies, there are still many rooms of opportunities. For example, the company can charge higher price along with launching many more products to fill the gap of needs. | Negative| * Highly invest in research and development - In the pharmaceutical industry, the high technology and intense know-how are strongly required to establish a company and developing a product. It can be very challenging to the new comers to compete with the big other existing firms, not only due to their larger resource, but also from reputation and professional trust. * The FDA approval for the blood substitutes - The process of approval for medical is very complicated and time consuming. The company must provide the supporting data to FDA to prove their product condition and quality to ensure that their products can use as the blood for medical treatment and this process may take in years. * Limited access to international channels – Due to the need of approval process, it makes the inconvenience for the company to launch their products in any other country. Specific regulations on medical products vary locally and the process also may take long. |
2.2 Barriers to success in both in human blood market and animal blood market The first barriers to success of blood substitute is the products themselves as they have never been widely used, therefore the firm still lack of information about Oxyglobin’s and Hemopure’s real...