Biopure CorporationMarketing group 3

Varun Santosh Santa Sarat Sahil Shailesh Samson Sandeep Sanjeev Dhyanendra

The Verdict

Go ahead with the launch of Oxyglobin!

Launch Oxyglobin as it will help in building the brand value

Advantages Disadvantages• Certain revenue generation as against

uncertain Hemopure’s future.

• Efficient utilization of the production facility until the launch of Hemopure

• Build a strong brand image of Biopure that can be leveraged during Hemopure’s launch

• Experience of marketing and distributing Oxyglobin will bolster Hemopure’s launch later

• No competition for the untapped need in the near future

• Price comparison of Hemopure with Oxyglobin is a possibility

• Oxyglobin’s production will eat into the production capacity of Hemopure when Hemopure’s production becomes operational

Target market segment for Oxyglobin

Primary Care

Much lesser consumption rate when compared to emergency care

Atleast 3 doctor practices1. Average monthly load is higher when compared to “less than 3 doctor practices”2. Suitable target but less favorable than emergency care

Less than 3 doctor practices3. Average monthly case load is lower when compared to “less than 3 doctor practices”4. Possible target but with least preference

Emergency care

1. Very high consumption per facility2. The segment is less price sensitive as it has higher incidence of critical cases3. Most preferable target

Pricing Oxyglobin

• Optimum Price- – To veterinary-$100 per unit– To End consumer-$200/150 per unit Microsoft Office

Excel Worksheet

50 100 150 200

-$7,000,000

-$6,000,000

-$5,000,000

-$4,000,000

-$3,000,000

-$2,000,000

-$1,000,000

$0

1.5 times markup

Profi

t and

loss

($)

50 100 150 200

-$10,000,000

-$9,000,000

-$8,000,000

-$7,000,000

-$6,000,000

-$5,000,000

-$4,000,000

-$3,000,000

-$2,000,000

-$1,000,000

$0

2 times markup

Profi

t and

Loss

($)

Use independent distribution channels for distribution and promotion

Why independent distribution channels?

1. Permanent sales force should be avoided as Oxyglobin is expected to be phased out on introduction of Hemopure

2. The nature of distribution networks are different

Type % of total sales % sales force Preference to train

National 25 17 1

Regional 60 60 2

Local 15 23 3

Target market segment for Hemopure

Elective Surgery

Needs and CharacteristicsAnonymous Donations1. This segment has a supply of RBCs at a

much lower cost when compared to Hemopure

2. Not a suitable targetAutologous Donations3. This segment has a supply of RBCs at

higher cost when compared to anonymous donations

4. As people are generally reluctant to donate this segment can be targeted by artificial Blood substitutes

Chronic anemia

Needs and Characteristics1. This segment needs longevity of the substitute

as it is a recurring requirement2. Cannot be targeted

Trauma

Needs and Characteristics1. The main need for the demand is a substitute

which does not require refrigeration 2. Best segment for Hemopure as it is

the only product that doesn’t require refrigeration

Emergency Surgeries

Needs and Characteristics1. This segment has a supply of RBCs at a

much lower cost but needs a product that eliminates matching efforts

2. Can be targeted but not the best segment

Hemopure’s price justification

• The competitor’s pricing is around $600-800

• Oxyglobin and Hemopure target markets are completely different

• Demand > Supply based on our proposed target market

Trauma (in field administration) based on 1995 figures

% of demand met in this segment

Unmet demand

Maximum production capacity

2,00,000 10% 18,00,000 1,50,000