Folie 1

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Biopure
Berkeley Consultant Group
Nell Financial Consultant Stephen Risk
Consultant Amy Marketing Consultant Fevzi Genera
l Consultant Tuba Marketing Consultant Hye
Young Chief Consultant Hakan Marketing Consultant
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Content

• Introduction

• Dimensions

• Decision

• Marketing Strategy

• Financial Analysis

• Conclusion

Marketing BA 160
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Company background

• Privately owned biopharmaceutical firm
• Potential products

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Problem

• Should we launch Oxyglobin?
• If we launch Oxyglobin, at what price?
• How should we market Oxyglobin?

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Recommendation
Launch Oxyglobin now !
Retail priced at 200 !
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Dimensions to consider

• Product-analysis
• Market-analysis
• Consumer behaviour
• Competitors

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Product-Analysis
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Market-Analysis

• Human
• - 40 of the market is for individuals over 65
• - 65 and over cohort is expected to double by
  2030
• - Risk of disease transmission discouraged rates
  of donation

Decreasing number of donors but increasing number
of recipients

• Animal
• - 15,000 veterinary practices are present
• Approx. 350,000 units per year just for dogs
• alternatives priced 80 - 120 for primary care
  practices
• alterantives priced 130 - 170 for emergency
  care practices
• 84 of veterinarians are dissatisfied with the
  current process

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Consumer Behavior

• High price sensitivity for animal market
• Low price sensitivity for human market
• Fear of contracting diseases
• In critical cases, 85 of owners are willing to
  pay 200/unit of Oxyglobin

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Competition Analysis

• Human Market
• Competitors
• Baxter International
• Northfield Labs
• Cost advantage (raw material)
• Independent from human blood
• Does not require refrigeration
• Animal Market
• No competition in terms of blood substitutes

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Reasons to launch now

• Establish Biopure
• Test out the
• marketing strategy
• Test out the manufacturing machines
• Create revenue
• Avoid negative press
• Gain experiences with the blood substitute market

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Risk Price Difference

• Unrealistic price expectations for Hemopure
• Solution Communicate the difference between
  Oxyglobin and Hemopure

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Risk Product Failure

• Oxyglobin fails
• Solution The lack of competition and sufficient
  demand minimizes the risk of failure

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Risk Image Stereotyped

• Stereotyped as animal care supplier
• Solution Well tailored marketing strategy

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Marketing strategy overview

• Image
• Mediums
• Distribution channel

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Image

• Life saver, not just pet saver
• Revolutionary practice of medicine
• Innovative, first mover

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Mediums

• Trade publications
• Journals
• Pamphlets
• Web site

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Distribution channels

• 30 of price per unit
• Settled distribution system
• Experienced
• Economies of scale

• Distributors
• 30 of price per unit
• Settled distribution system
• Experienced
• Economies of scale

• Manufacturer direct
• 10 - 15 per unit expenses for sales force
• Better for well established and high volume
  products

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Financial Analysis

• Price of 200
• unit price 100.00
• unit variable cost
• distributors 30.00
• raw material 1.50
  unit contribution 68.50
• Fixed cost
• production 15 m
• marketing budget 1 m

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Break-even
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Conclusion

• Use Distributors
• Marketing activities
• Implementation of company sales force, after
  products are established
• Use profits from Oxyglobin to expand capacity
• Launch Oxyglobin, retail-priced at 200

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Questions ?
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Appendix
Calculation for dogs 14,250 (95 of 15,000
practices) x 17(units per practices) x 0.4
750(5 of 15,000 practices) x 150(units per
emergency practice) x 0.85 192,525 192,525 x
4.5 / 2.5 346,545 units Assumptions 4.5 of
acute blood loss get a transfusion (84 of
veterinarians are dissatisfied with current
process)