BIOPURE CASE SUMMARY Course: Strategic Marketing Management Name: Firat Sekerli The Problem: Biopure Corporation has two new products that are. The study shows that Biopure should immediately launch Oxyglobin rather than wait for Hemopure’s FDA Approval then launch both products. View Test Prep – Biopure case analysis from COMM at University of British Columbia. Biopurecaseanalysis SizingthemarketforHemopure Analysis Launch.
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On the contrary, Biopure utilizes the cattle blood as its source of hemoglobin. We will plan to overcome the high price issue of the products by: This approval process will spend long time at least 2 or 3 years.
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Enter the email address you signed up with and we’ll email you a reset link. But the needs of blood are very high over the available products. Set up sales representative team to educate the beneficial factors over conventional and stress the disadvantages of conventional blood donor, especially to big veterinary practices. Though it is true that there is not yet any direct competitive product any the moment, the market is still very attractive.
Andy Wright and his team can have a successful launch for Oxyglobin by implementing the followings: So sellers cannot hide them any information about the products and have to offer them both positive and negative effects to them. Without strong establishment of effective result of using blood substitute instead of blood transfusion, the firm cannot go for premium prices in these markets.
A virtually identical product for the human market, Hemopure, is in the final stages of testing by Biopure and is expected to gain approval within one to two years. However, more often than not, managers of incremental new products predict demand within the right order of magnitude. These two products need to prove themselves of their effectiveness in blood transfusion market.
Biopure Corp. – Case – Harvard Business School
Marketing Recommendation for Biopure In regarding to the decision of which product should Biopure launch first, there casse two scenarios that Biopure could take: I think that launching Oxyglobin has many benefits for the company. I disagree with Ted Jacobs because although the production processes and physical characteristics of these two products are identical, Oxyglobin is targeted for the biophre market whereas the target customer for Hemopure is the human market.
Branding — recommended order of branding activities after launching Oxyglobin, as below. To ensure that our product would be succeed, the company should create brand awareness of our product by launched Oxyglobin at the time that FDA approved.
For example, Baxter International and Northfield Laboratories relied on human blood as their source of hemoglobin by developing a new technology to extract raw hemoglobin from outdated human RBCs. The high demand of blood transfusion creates opportunities and higher chance of success for the Oxyglobin. The buyers must consider the qualities as their priority. Currently under phase 3.
At odds are those in charge of Oxyglobin, who want to see the animal product released immediately, and those biopurre charge of the Hemopure, who worry that an immediate release of Oxyglobin would create an unrealistically low price expectation for what they feel should be a very high-margin human product.
In response to the timing of approval for these two products, there has been a long-running debate within Biopure as how to proceed with Oxyglobin.
On the other hand, Andy Wright, vice president for Veterinary Products, believes that selling Oxyglobin has benefits for the company in terms of generating revenues for the use of launching Hemopure and learning how to market and make mistakes prior to the launch of Hemopure.
This is very important, as creating awareness is necessary to be the first activity of the list, because the customers distributor, vet.
I caee that this is a big opportunity for Biopure to enter the veterinary market because Oxyglobin has already passed an FDA — approval process specific to the veterinary market. However, emergencies care practice mainly accepted only critical cases, which required a huge amount of blood. The competitors are as follows: While the human blood substitutes or hemoglobin-based blood substitutes are developed by using the outdated human RBCs or cattle blood which give the longer shelf-life and also the universal blood substitutes that eliminate the need of blood typing and cross-matching.
Advertise product and develop brand — Once customer is casw of our product, and have accessibility to buy our product, Biopure must then increase the tendency to try out Oxyglobin by advertise, or promotion, at the same time start developing a well respectable veterinary brand.
Our recommendation is at least dollars per unit, because the company cannot effort any lower price, in order to recoup the investment cost eg.
Buyers In this case, we will analyze the buyers caae the intermediate buyers which mean to doctors and final buyers which mean the patients. Moreover, the strong finance condition is also needed to support research and development the product as well as the introductory advertising.
Specific regulations on medical products vary locally and the process also may take long. Company should promote the extra value of Oxyglobin to the users like the veterinarians by effectively communicate, educate, and illustrate of the usage. Though, donor blood is a close substitute for Oxyglobin, the products themselves is different. Once Oxyglobin achieves its purpose for animals and satisfies the veterinary doctors and pet owners, the success of this product will help Biopure to easily launch Hemopure and attract the human market.
The opportunity cost of not entering the market as a monopoly with Oxyglobin outweighed the risk of jeopardizing pricing opportunity when launching with Hemopure. Without ability to biopuee consistent customer satisfaction and all the hard work of creating awareness and stury to trial our product could all go to waste. Therefore, the studt bank and related organization have to give them some benefit or do some campaigns to motivate them to bring their dogs for donating bloods.
In regarding to the decision of which product should Biopure launch first, there are two scenarios that Biopure could take: But the demand of the product will decrease as a result. Biopure Corporation has two new products that are Oxyglobin and Hemopure. We see that it is crucial for Biopure to seize this opportunity immediately by launching Oxyglobin. Thus, We considered that the animal blood substitute market should categorized into two segments, i.
More people will know about and recognize the brand, the brand can be set to higher prices. Establish sales promotion especially for large batch order, for instance buy a batch of units will receive 10 extra units for free, and give sample to attract more customers.
They can replicate to make similar or even better product development. Buyers In this case, we will analyze the buyers as the intermediate buyers which mean to professor and final buyers which mean the patients. Especially in the emergency case, buyers have to accept the seller conditions. To do so, it must ensure efficient operations, which require effective process and engaging performing human resources. Household Pet Ownership, — as a percentage of total U.