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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Uncertainty of market acceptance of blood substitute as they confront deeply rooted blood transfusion treatment, which is proved to be very effective. Because the company was a first provider of animal blood substitute, so we offer consumers the product that different from the one that existing in the market. 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.
It can be very challenging to the new comers to compete with the big other existing firms, not only due to their larger resource, but also from reputation and professional trust. Business and Environment Business History Entrepreneurship. The buyers must consider the qualities as their priority.
Besides, the bovine source can be skeptical for compatibility of usage in human and other animals. In response to the timing of approval for these two products, there has been a long-running debate stuvy Biopure as how to proceed with Oxyglobin. Pricing strategy is also essential to the success of products. I think that launching Oxyglobin has many benefits for the company.
Biopure Case Analysis | Firat Sekerli –
Furthermore, how well the firm is able to segment the market, target and tackle it, e. 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 Casd veterinary school, can create trust and confidence for the final consumer, as well as speed up product acceptance.
As a result Biopure should launch itself into the market with Oxyglobin, not only because the market is small and still attractive, but also can generate revenue and possibly profit for further investment. The high demand of blood transfusion creates opportunities and higher chance of success for the Oxyglobin.
Market plan for Oxyglobin: Provide consistency — Biopure must then be obligated to deliver customer satisfaction by not only provide consistent product quality, but also through reliable services. 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. The company must communicate effectively, educate veterinarians and possibly promote the use of the product.
So suppliers cannot charge the extra cost to the sellers because they can switch to buy from the other suppliers. 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 direction.
This is very important, as creating awareness is necessary to be the first activity of the list, because the customers distributor, vet. Since Biopure will be the first to penetrate the animal blood substitute market, Biopure owns the first mover-advantage. In this case, the actual donor animals are pets. The company can enjoy the high sales volume and established networks for geographic coverage from the large distributors, while being affluence with high contribution from low bargaining power customer like the veterinary practices.
Moreover, the strong finance cqse is also needed to support research tsudy development the product as well as the introductory advertising.
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. Cite View Details Educators Related. Thus, if any one supplier attempts to raise prices by more than the biopyre of switching, firms will change the supplier. And regulations are differing in each country, thus before expanding the distribution channels in any countries, firms have to ask the permissions every time.
Without having a real and wide use in animal, labs product cannot be proved of its effectiveness. Because the blood substitute is the standard product that have to be concurrent with FDA conditions and cannot be differentiated, so the company can sell this item to every customer at the same quality with the same price.
Biopure Case
The company must provide the supporting data to FDA to prove their product condition and stusy to ensure that their products can use as the blood for medical treatment and this process may take in cwse.
For example, the company can charge higher price along with launching many more products to fill the gap of needs. The reasons for people who not donating including the fear of needles, lack of time, and also the misconception about risk of disease transmission from donating.
But due to the low rate of donation and the relative short-life of RBCs, the experiences periodic shortages of RBCs for utilizing in medical facilities always happen during the winter and summer holidays.
Our recommendation is at least dollars per unit, because the company cannot effort any lower price, in order to recoup the investment cost eg. The limitation is from FDA approval process.
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. Advertise product and develop brand — Once stydy is aware of our product, and have accessibility to buy our product, Biopure must then increase the tendency to try out Oxyglobin by sudy, or promotion, at the same time start developing a well respectable veterinary brand.
Help Center Find new research papers in: Study and do market research —Every once in a while, marketing budget should go towards researching, studying the market. So the firm needs to develop a strategy as well as alliance to emerge its products to the market.
Biopure Corp.
The company can enjoy a period of being a monopoly in the market. The company can identify potential geographical regions with high demand, by following the population of veterinary clinics.
However, bounce back to a positive growth in the following years due to its differentiation over other conventional blood donor and blood banks. Specific regulations on medical products vary locally and the process also may take long. The length of time for approval processing may take more than 2 or 3 years.
By introducing this, Biopure bipoure reach breakeven point at year with net profit of positive 2.