BIOPURE – STRATEGIC MARKETING BIOPURE – STRATEGIC MARKETING BA 160 – Marketing BA 160 – Marketing Berkeley, 07-17-2002 Berkeley, 07-17-2002 Lars Eiermann, Eric Hirschberger, Lars Eiermann, Eric Hirschberger, Alexander Mantzsch, Alexander Mantzsch, Carsten Müller, Carsten Müller, Kristian Radic, Malte von Reden Kristian Radic, Malte von Reden
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Berkeley, 07-17-2002Berkeley, 07-17-2002 Lars Eiermann, Eric Hirschberger, Alexander Lars Eiermann, Eric Hirschberger, Alexander Mantzsch, Mantzsch, Carsten Müller, Kristian Radic, Carsten Müller, Kristian Radic,
Malte von RedenMalte von Reden
07-17-2002 2Biopure Marketing Strategy
AGENDAAGENDA
I. I. IntroductionIntroductiona.a. Product comparisonProduct comparison
b.b. Key issuesKey issues
II.II. Qualitative points of viewQualitative points of viewa.a. SWOT analysisSWOT analysis
b.b. Value benefit analysisValue benefit analysis
III.III. Quantitative points of viewQuantitative points of view
To February 1998 Biopure had spent over $ 200 million on To February 1998 Biopure had spent over $ 200 million on developing Hemopuredeveloping Hemopure
During the development process Oxyglobin was discoveredDuring the development process Oxyglobin was discovered
Biopure has not brought a product to market yetBiopure has not brought a product to market yet
Funds are sufficient to operate for two more yearsFunds are sufficient to operate for two more years
Hemopure will probably receive approval during 1999 Hemopure will probably receive approval during 1999 while Oxyglobin is approved and ready to launchwhile Oxyglobin is approved and ready to launch
07-17-2002 4Biopure Marketing Strategy
GENERAL BENEFITS OF BLOOD SUBSTITUTESGENERAL BENEFITS OF BLOOD SUBSTITUTES
Blood substitutes are universalBlood substitutes are universal
Free of threads like AIDSFree of threads like AIDS
Storable for up to 2 yearsStorable for up to 2 years
Immediately 100% efficient at transporting oxygenImmediately 100% efficient at transporting oxygen
Further benefits due to smaller moleculesFurther benefits due to smaller molecules
+ Time & Time & development development advantage on advantage on animal animal marketmarket+ Both products are Both products are
nearly nearly identical in identical in terms of terms of
production production processesprocesses+ Funds are Funds are sufficient for sufficient for 2 2 yearsyears
07-17-2002 12Biopure Marketing Strategy
S
TO
W
WEAKNESSESWEAKNESSES
-Dissension within Dissension within BIOPURE’ s top BIOPURE’ s top managementmanagement
-No distribution networkNo distribution network
-No experience in going No experience in going to to marketmarket
-Stockholders with high Stockholders with high expectationsexpectations
-Enlargement of Enlargement of production production plant plant needed for expansionneeded for expansion
07-17-2002 13Biopure Marketing Strategy
S
TO
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OPPORTUNITIESOPPORTUNITIES
+ Innovative productInnovative product+ Demand on blood Demand on blood that that cannot be cannot be satisfied due to satisfied due to
periodic shortage periodic shortage and and anemia anemia+ High benefits for High benefits for
autologous autologous donatorsdonators
07-17-2002 14Biopure Marketing Strategy
THREADSTHREADS
S
TO
W
- Uncertain market Uncertain market priceprice
- Hemopure’s market Hemopure’s market entry entry depends on the FDA depends on the FDA approval processapproval process
- Competitor with Competitor with production production capacity three times capacity three times larger, larger, established established distribution distribution network and additional network and additional
products in other products in other marketsmarkets
07-17-2002 15Biopure Marketing Strategy
VALUE BENEFIT ANALYSISVALUE BENEFIT ANALYSIS
129129
88
44
88
88
5050
2525
1 x 26 = 261 x 26 = 26
OxyglobinOxyglobin
laterlater
171171
44
88
1616
1616
2525
5050
2 x 26 = 522 x 26 = 52
OxyglobinOxyglobin
ASAPASAP
100100
44
44
88
88
2525
2525
2626
RatingRating
∑∑
Flexibility of production Flexibility of production plant & administrative effortplant & administrative effort
Usage of production capacityUsage of production capacity
Introduce Oxyglobin as soon as possible at $ 200Introduce Oxyglobin as soon as possible at $ 200
Launch a market research to receive more detailed Launch a market research to receive more detailed information on the Hemopure marketinformation on the Hemopure market
Marketing department should distinguish Oxyglobin and Marketing department should distinguish Oxyglobin and Hemopure as two independent productsHemopure as two independent products
Advertisement for Oxyglobin should consist of adds in Advertisement for Oxyglobin should consist of adds in veterinary journals and practices as well as of attendance veterinary journals and practices as well as of attendance at veterinary trade showsat veterinary trade shows