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.
|Country:||Republic of Macedonia|
|Published (Last):||24 July 2016|
|PDF File Size:||4.32 Mb|
|ePub File Size:||16.52 Mb|
|Price:||Free* [*Free Regsitration Required]|
So the suppliers have more power to the sellers. As a result Biopure should launch itself into the market with Oxyglobin, not only because the market is small and still attractive, but studj can generate revenue and possibly profit for further investment. These two products need to prove themselves of their effectiveness in blood transfusion market.
In this case, the actual donor animals are pets.
Biopure Case | Case Study Template
While Oxyglobin, which is the only products for animal blood substitutes are produced from cattle blood. This approach would help firm to save 30 percent of distribution cost charged by distributors. Hence, the demand in animal blood transfusion is still high.
Besides, Biopure will set up a convincing justification of price differentiation between Oxyglobin and Hemopure for clinics, hospitals and insurance firms. Moreover, the company should ensure availability by supplying enough goods for the established customer.
Quite often, for new products that represent incremental variations or improvements over existing products, marketers do a pretty good job of understanding how that product will be adopted in the marketplace.
Company should affordably discount the price for long-term contracts, in order to create promising sales, especially in the first years, with uncertainties and fluctuations. Getting acceptance from leading veterinary schools, like the Harvard veterinary school, can create trust and confidence for the final consumer, as well as speed up product acceptance. Even though blood substitute provide more benefits than blood transfusion, its effects still be skeptical and unconvincing.
Help Center Find new research papers in: Currently under phase 3. Without having a real and wide use in animal, labs product cannot be proved of its effectiveness. Biopure can enjoy low level of competition and gain first mover advantages. In developing the right brand, enhancing good reputation, the company must competence itself towards the key success factors associated with the industry. The opportunity cost of not entering the market as a monopoly with Oxyglobin outweighed the risk of jeopardizing pricing opportunity when launching with Hemopure.
The sellers in this market also provide the products which are different by characteristics and sources. Finance General Management Marketing. Buyers are well informed about the quality, prices, and cost of sellers strong Doctors who directly use the products for the medical operations have specialized in this area. The competitors are as follows: He can only estimate these price points based on the market price.
At the same time, cannot risk mispricing by charging too high either, given that there is a close substitute like cas blood available in the market, charging at 80 to dollars per unit for noncritical, and to dollars for critical cases. According to five forces analysis of human and animal blood market [Exhibit 1], we have summarized key points of market attractiveness as follows: This can be one of the attack point Biopure may receive from rivalries and protagonists.
In conclusion, since the FDA approval for human blood substitute is still uncertain, Biopure should immediately launch Oxyglobin. Marketing Recommendation for Biopure In regarding to the decision of which product should Biopure launch first, there are two scenarios that Biopure could take: We can even achieve more revenue, if there are some critical cases in primary care practices.
The company can increase the usage by attacking this segment with promotion campaigns like, contract with veterinarians to promote the use of Oxyglobin. For example, the company can charge higher price along with launching many more products to fill the gap of needs.
Furthermore, once successfully identifying potential locations, the sgudy should attack both large customer distributorand small customer veterinary practices associated with our target areas. Since this is related to human lives, if there is any ibopure occur, not only the reputation of the doctors but also the reliability of firm will be destroyed and it will difficult for them to recall their trusts.
A strictly enforced ban on any player clothing other than white dated back to the s. Firstly, the substitute blood is free of infectious agents and contamination. Bio;ure Marketing Management Name: However, biopurr care practice mainly accepted only critical cases, which required a huge amount of blood. So the firm needs to develop a strategy as well as alliance to emerge its products to the market.
The company should posit itself as a provider of the best animal blood substitute quality and product differentiation. Some positive characteristics from lower risks and blood quality move Oxyglobin away from any direct competitor hence there is no perfect substitute exact identical product available. Besides, the bovine source can be skeptical for compatibility of usage in human and other animals.
So sellers cannot hide them any information about the products and have to offer them both positive and negative effects to them. For example, Biipure 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.
This process needs the strong financial condition to encourage all processes come through. Furthermore, how well the firm studg able to segment the market, target and tackle it, e. Longer shelf life is also an advantage for veterinary practices since donor animals are rare and blood unit expires in short period.
Once Oxyglobin achieves its purpose for animals and satisfies the veterinary doctors and pet owners, the success of this product bjopure help Biopure to easily launch Hemopure and attract the human market. 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.
Carl Rausch, the president and CEO of Biopure Corporation, has to decide if the release of Oxyglobin would be beneficial for the company without jeopardizing the potential of Hemopure. While the human blood substitutes or shudy blood substitutes are developed sstudy 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.
Moreover, allergy to blood substitute have to biopurf considered. But the needs of blood are very high over the available products. Thus, We considered that the animal blood substitute market should categorized into two segments, i.
Being the first mover in animal blood substitute imply that the firm has to take a risk on uninformed customer behavior. Conducting market surveys, studying customer reactions, attitudes, and behavior as well as predicting future trends are needed, in order to adapt and develop towards to right sstudy.