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Biopure Marketing Analysis

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Biopure Marketing Analysis

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  • April 27, 2010
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Executive Summary
I recommend that Biopure launch Oxyglobin immediately at a manufacturer price of $125 and focus primarily on emergency care and “3+ doctor” veterinarian practices that perform nearly 100% of animal blood transfusions. Beginning production now will raise capital for future expansion of Hemopure, strengthen investor confidence for the impending IPO, as well as provide valuable brand equity for Biopure and insights into the future launch of the highly lucrative Hemopure in the human market. Demand for the incredible medical breakthroughs of Oxyglobin and Hemopure is expected to be immense, however, the challenge for Biopure lies in the firm’s ability to differentiate these products through product education geared toward veterinarians, doctors, and insurance companies which provide the medical recommendation and critical link to the end consumer. Product differentiation in functionality and intended use will be crucial to alleviate downward price pressure for the impending launch of Hemopure. I recommend launching Hemopure with an initial price of $700 per unit to moderate any price war expectations of low cost and production maximizing competitors such as Baxter. Recommended distribution and sales for both Oxyglobin and Hemopure is through the manufacturer direct distribution method because of the sophisticated sales pitch that is required and geared toward expert medical practitioners. Promotion for Oxyglobin and Hemopure will be critical in the short term. In the case of Hemopure, promotion over the long term will be less critical due to the perceived value (human life) that consumers obtain as a result of product application. Consequently, long term promotion will be geared toward brand building in the context of competing with capital rich and brand established competitors like Baxter. *HEMOPURE: P*roduct & Competitive Environment

The main competitors in the market of RBC’s and blood substitutes are Baxter, Northfield, and the current...