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BIOPURE – STRATEGIC MARKETING PowerPoint PPT Presentation


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BIOPURE – STRATEGIC MARKETING. BA 160 – Marketing Berkeley, 07-17-2002 Lars Eiermann, Eric Hirschberger, Alexander Mantzsch, Carsten Müller, Kristian Radic, Malte von Reden. AGENDA. I. Introduction a.Product comparison b. Key issues II.Qualitative points of view a.SWOT analysis - PowerPoint PPT Presentation

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BIOPURE – STRATEGIC MARKETING

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Biopure strategic marketing l.jpg

BIOPURE – STRATEGIC MARKETING

BA 160 – Marketing

Berkeley, 07-17-2002

Lars Eiermann, Eric Hirschberger, Alexander Mantzsch, Carsten Müller, Kristian Radic, Malte von Reden


Agenda l.jpg

AGENDA

I. Introduction

a.Product comparison

b.Key issues

II.Qualitative points of view

a.SWOT analysis

b.Value benefit analysis

III.Quantitative points of view

a.Break even analysis

IV.Strategic recommendation

Biopure Marketing Strategy


Introduction l.jpg

INTRODUCTION

  • To February 1998 Biopure had spent over $ 200 million on developing Hemopure

  • During the development process Oxyglobin was discovered

  • Biopure has not brought a product to market yet

  • Funds are sufficient to operate for two more years

  • Hemopure will probably receive approval during 1999 while Oxyglobin is approved and ready to launch

Biopure Marketing Strategy


General benefits of blood substitutes l.jpg

GENERAL BENEFITS OF BLOOD SUBSTITUTES

  • Blood substitutes are universal

  • Free of threads like AIDS

  • Storable for up to 2 years

  • Immediately 100% efficient at transporting oxygen

  • Further benefits due to smaller molecules

Biopure Marketing Strategy


Product comparison hemopure l.jpg

Criterion

REGULAR BLOOD

BAXTER

HemAssist

NORTHFIELD

PolyHeme

BIOPURE

Hemopure

storage temperature

2 - 4° C

< 4° C

2 - 30° C

< 4° C

Origin

human blood

Outdated human blood

Outdated human blood

cattle blood

potential bottlenecks

Seasonal variations

Outdated blood containers

Outdated blood containers

None

procurement costs of basis

medium

medium

high

low

Price

$ 125 - 425

$ 600 - 800

$ 600 - 800

$ 600 - 800

PRODUCT COMPARISON - HEMOPURE

Biopure Marketing Strategy


Product comparison oxyglobin l.jpg

PRODUCT COMPARISON - OXYGLOBIN

  • Many advantages of Oxyglobin compared to regular blood

  • Oxyglobin is ready to launch

Biopure Marketing Strategy


Key issues i l.jpg

Conclusion

KEY ISSUES I

  • Should BIOPURE introduce Oxyglobin at all?

Reasons for the introduction of products in general

Ability to

spread risk

Opportunities

in market

Revenues

Experience /

Best practice

Oxyglobin should be introduced!

Biopure Marketing Strategy


Key issues ii l.jpg

late1999

February 1998

KEY ISSUES II

  • When would be the best point of time to introduce Oxyglobin?

Biopure Marketing Strategy


Agenda9 l.jpg

AGENDA

I. Introduction

a.Product comparison

b.Key issues

II.Qualitative points of view

a.SWOT analysis

b.Value benefit analysis

III.Quantitative points of view

a.Break even analysis

IV.Strategic recommendation

Biopure Marketing Strategy


Swot analysis biopure l.jpg

SWOT ANALYSIS - BIOPURE

Strengths

Weaknesses

Opportunities

Threads

Biopure Marketing Strategy


Strengths l.jpg

  • Time & development advantage on animal market

  • Both products are nearly identical in terms of production processes

  • Funds are sufficient for 2 years

S

W

O

T

STRENGTHS

Biopure Marketing Strategy


Weaknesses l.jpg

  • Dissension within BIOPURE’ s top management

  • No distribution network

  • No experience in going to market

  • Stockholders with high expectations

  • Enlargement of production plant needed for expansion

S

W

O

T

WEAKNESSES

Biopure Marketing Strategy


Opportunities l.jpg

S

W

O

T

  • Innovative product

  • Demand on blood that cannot be satisfied due to periodic shortage and anemia

  • High benefits for autologous donators

OPPORTUNITIES

Biopure Marketing Strategy


Threads l.jpg

S

W

O

T

  • Uncertain market price

  • Hemopure’s market entry depends on the FDA approval process

  • Competitor with production capacity three times larger, established distribution network and additional products in other markets

THREADS

Biopure Marketing Strategy


Value benefit analysis l.jpg

Criterion

Rating

Oxyglobin

ASAP

Oxyglobin

later

Gain of experience

26

2 x 26 = 52

1 x 26 = 26

Generate revenues / profit

25

50

25

Pricing of Hemopure

25

25

50

Position in Market

8

16

8

Customer Awareness

8

16

8

Usage of production capacity

4

8

4

Flexibility of production plant & administrative effort

4

4

8

100

171

129

VALUE BENEFIT ANALYSIS

Biopure Marketing Strategy


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AGENDA

I. Introduction

a.Product comparison

b.Key issues

II.Qualitative points of view

a.SWOT analysis

  • Value of benefit

    III.Quantitative points of view

    a.Break even analysis

    IV.Strategic recommendation

Biopure Marketing Strategy


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BREAK EVEN POINTS FOR DIFFERENT PRICES

Assumption : Marketing costs = 5% of max. revenue

Biopure Marketing Strategy


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„BREAK-EVEN PERCENTAGE“

Biopure Marketing Strategy


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PRICING OF OXYGLOBIN

Oxyglobin should be introduced at a price of $ 200 per unit

  • Demand exceeds break-even point

  • Pet Owners are willing to pay even more

  • Price Range of Oxyglobin - Hemopure

  • Assuming maximum sales, profit turns out to be $ 37.050.000 p.a.

  • Influence of Oxyglobin’s price on Hemopure is questionable

Biopure Marketing Strategy


Agenda20 l.jpg

AGENDA

I. Introduction

a.Product comparison

b.Key issues

II.Qualitative points of view

a.SWOT analysis

b.Aspects of different options

III.Quantitative points of view

a.Break even analysis

b.Nutzwertanalyse

IV.Strategic recommendation

Biopure Marketing Strategy


Strategic recommendations l.jpg

STRATEGIC RECOMMENDATIONS

  • Introduce Oxyglobin as soon as possible at $ 200

  • Launch a market research to receive more detailed information on the Hemopure market

  • Marketing department should distinguish Oxyglobin and Hemopure as two independent products

  • Advertisement for Oxyglobin should consist of adds in veterinary journals and practices as well as of attendance at veterinary trade shows

Biopure Marketing Strategy


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DISCUSSION

KRISTIAN.RADIC@GMX.DE

Biopure Marketing Strategy