Biopure - Marketing Case

Topics: Price, Blood, Pricing Pages: 3 (322 words) Published: September 17, 2011
Marketing Management – Assignment No. 2

Topic – Product Pricing (Biopure Case)

CASE ANALYSIS for Biopure with respect to Pricing of Oxyglobin

Our group analyzed the case and concluded that price of oxyglobin should be determined on perceived value approach. We calculated perceived value from case data and arrived at a price of $181.

We are planning to launch it at a price of $175 to Vet so that there is some customer incentive to purchase and at same time, there is minimum ‘money left on table’. Below is the explanation for calculation of price and its corresponding reasoning.

Perceived Value calculation for Oxyglobin:

| |Per Unit price of animal |Average price of per unit animal blood | | |blood | | |Primary care |$80 - $100 |Average $100 | |Emergency care |$130 - $170 |Average $150 | |Average charges |$125 |Average of primary and emergency care | | | | | | | | | | |Reference price |$125 |Average price of per unit animal blood from donor Animal | | | |Benefit and...
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