BIOPURE STRATEGIC MARKETING

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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

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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

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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

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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

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PRODUCT COMPARISON - HEMOPURE
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PRODUCT COMPARISON - OXYGLOBIN

• Many advantages of Oxyglobin compared to regular
  blood
• Oxyglobin is ready to launch

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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!
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KEY ISSUES II

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

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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

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SWOT ANALYSIS - BIOPURE
Strengths
Weaknesses
Opportunities
Threads
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STRENGTHS
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WEAKNESSES
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OPPORTUNITIES
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THREADS
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VALUE BENEFIT ANALYSIS
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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

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BREAK EVEN POINTS FOR DIFFERENT PRICES
Assumption Marketing costs 5 of max. revenue
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BREAK-EVEN PERCENTAGE
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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 Oxyglobins price on Hemopure is
  questionable

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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

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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

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DISCUSSION

• KRISTIAN.RADIC_at_GMX.DE