BIOPURE STRATEGIC

MARKETING
BA 160 Marketing
Berkeley, 07-17-2002
Lars Eiermann, Eric Hirschberger, Alexander
Mantzsch,
Carsten Mller, Kristian Radic,
Malte von Reden

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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Biopure Marketing Strateg

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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Biopure Marketing Strateg

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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Biopure Marketing Strateg

PRODUCT COMPARISON - HEMOPURE

Criterion

REGULAR
BLOOD

BAXTER
HemAssist

NORTHFIEL
D
PolyHeme

BIOPURE
Hemopure

storage
temperatur
e

2 - 4 C

< 4 C

< 4 C

2 - 30 C

Origin

human blood

Outdated
human blood

Outdated
human blood

cattle
blood

potential
bottlenecks

Seasonal
variations

Outdated blood Outdated blood

containers
containers

None

procuremen
t costs of
basis

medium

medium

high

low

Price

$ 125 - 425

$ 600 - 800

$ 600 - 800

$ 600 - 800

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Biopure Marketing Strateg

PRODUCT COMPARISON - OXYGLOBIN

Criterion

Regular Blood

Oxyglobin

Storage
temperature

2 - 4 C

2 - 30 C

Origin

Donator animals

Cattle blood

Price

$ 50 - 100

$ 100 - 200

Many advantages of Oxyglobin compared to

regular blood
Oxyglobin is ready to launch

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Biopure Marketing Strateg

KEY ISSUES I

Should BIOPURE introduce Oxyglobin at all?

Reasons for the introduction of

products in general

Opportunities
Revenues
Conclusion
in market

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Experience / Ability to
should
risk
BestOxyglobin
practice spread

Biopure Marketing Strateg

be introduc

KEY ISSUES II

When would be the best point of time to introduce

Oxyglobin?

February 1998

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late 1999

Biopure Marketing Strateg

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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Biopure Marketing Strateg

SWOT ANALYSIS - BIOPURE

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Strengths

Weaknesses

Opportunities

Threads

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STRENGTHS

+ Time &

development
advantage on
animal
market
+ Both products are
nearly
identical in
terms of
S W
production
O T
processes
+ Funds are
sufficient for
2
years
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WEAKNESSES

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

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OPPORTUNITIES

S W
O

+ Innovative product
+ Demand on blood
that
cannot be
satisfied due to
periodic shortage
and
anemia
+ High benefits for
autologous
donators

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THREADS

S W
O

T Uncertain market
price
Hemopures market
entry
depends on the FDA
approval process
Competitor with
production
capacity three times
larger, established
distribution
network and additional
products in other
markets

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VALUE BENEFIT ANALYSIS

Rating

Criterion

Oxyglobin
ASAP

Oxyglobin
later

2 x 26 = 52 1 x 26 = 26

Gain of experience

26

Generate revenues / profit

25

50

25

Pricing of Hemopure

25

25

50

Position in Market

16

Customer Awareness

16

Usage of production capacity

Flexibility of production
plant & administrative effort

100

171

129

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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
b.

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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@GMX.DE

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