Oxyglobin
1. What are the reasons for and against launching Oxyglobin? Reasons FOR launching Oxyglobin | Reason AGAINST launching Oxyglobin | Setting the preferences for the customer, framing their perceptions of later entrants, becoming the standard | Risk of justifying price premium in human market vs. vet | Conduct pre-emptive positioning to raise the barriers to entry in to this market | Human market much larger and more lucrative than vet market | Develop relationships with customers and build brand loyalty | Move focus from human market and create complexity in a small company with limited resources | Opportunity to define the market in the veterinarian space | The vet space learning’s may not transfer to the human market | Reduce the
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Describe a Go-to-Market strategy for Oxyglobin. A) Considering that there is considerable risk in the FDA approval of Hemopure, and all the reasons stated in question #1, Biopure should launch Oxyglobin in the veterinary market. The initial target market for Oxyglobin should be the “high incident” practices. This is where the sales and marketing effort will get the largest return on investment. In addition current volume will expand in these centers to exceed Biopure’s manufacturing capacity of 300,000 units per year. B) The option of using a contract distribution method is not ideal. One 15 minute visit from a sales representative with hundreds of products to discuss is not ideal in this launch situation. Oxyglobin will get lost in the mix and for this reason Biopure should use a direct selling model to launch Oxyglobin. The sales pitch for Oxyglobin should come from a representative that is well trained on the products features and benefits and overcome the cost objections that might come up. The sales representative will need to highlight the drawbacks of the “donor animal” system and close the gap in benefits between purchasing the blood from an animal bank. The emergency care vet will be making less money on Oxyglobin if it is priced at $150.00 vs. the banked blood. The vet will either need to charge the pet owner more money or feel that the benefits outweigh the margin. The sales representative will play a key role in discussing these
Describe a Go-to-Market strategy for Oxyglobin. A) Considering that there is considerable risk in the FDA approval of Hemopure, and all the reasons stated in question #1, Biopure should launch Oxyglobin in the veterinary market. The initial target market for Oxyglobin should be the “high incident” practices. This is where the sales and marketing effort will get the largest return on investment. In addition current volume will expand in these centers to exceed Biopure’s manufacturing capacity of 300,000 units per year. B) The option of using a contract distribution method is not ideal. One 15 minute visit from a sales representative with hundreds of products to discuss is not ideal in this launch situation. Oxyglobin will get lost in the mix and for this reason Biopure should use a direct selling model to launch Oxyglobin. The sales pitch for Oxyglobin should come from a representative that is well trained on the products features and benefits and overcome the cost objections that might come up. The sales representative will need to highlight the drawbacks of the “donor animal” system and close the gap in benefits between purchasing the blood from an animal bank. The emergency care vet will be making less money on Oxyglobin if it is priced at $150.00 vs. the banked blood. The vet will either need to charge the pet owner more money or feel that the benefits outweigh the margin. The sales representative will play a key role in discussing these