1. BIOPURE – STRATEGIC MARKETING
BA 160 – Marketing
Berkeley,
Lars Eiermann, Eric Hirschberger, Alexander Mantzsch, Carsten Müller, Kristian Radic, Malte von Reden

2. Biopure Marketing Strategy
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

3. Biopure Marketing Strategy
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

4. 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

5. PRODUCT COMPARISON - HEMOPURE
REGULAR BLOOD
BIOPURE
Hemopure
NORTHFIELD
PolyHeme
BAXTER
HemAssist
Criterion
2 - 4° C
2 - 30° C
< 4° C
storage temperature
human blood
cattle blood
Outdated human blood
Origin
Seasonal variations
None
Outdated blood containers
potential bottlenecks
medium
low
high
procurement costs of basis $ $
Price
Biopure Marketing Strategy

6. PRODUCT COMPARISON - OXYGLOBIN
Criterion
Regular Blood
Oxyglobin
Storage temperature
2 - 4° C
2 - 30° C
Origin
Donator animals
Cattle blood
Price $ $
Many advantages of Oxyglobin compared to regular blood
Oxyglobin is ready to launch
Biopure Marketing Strategy

7. Biopure Marketing Strategy
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
Conclusion
Oxyglobin should be introduced!
Biopure Marketing Strategy

8. Biopure Marketing Strategy
KEY ISSUES II
When would be the best point of time to introduce Oxyglobin?
February 1998
late 1999
Biopure Marketing Strategy

9. Biopure Marketing Strategy
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

10. SWOT ANALYSIS - BIOPURE
Strengths
Weaknesses
Opportunities
Threads
Biopure Marketing Strategy

11. Biopure Marketing Strategy
STRENGTHS
Time & development advantage on animal market
Both products are nearly identical in terms of production processes
Funds are sufficient for 2 years S T O W
Biopure Marketing Strategy

12. Biopure Marketing Strategy
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 T O W
Biopure Marketing Strategy

13. Biopure Marketing Strategy
OPPORTUNITIES S T O W
Innovative product
Demand on blood that cannot be satisfied due to periodic shortage and anemia
High benefits for autologous donators
Biopure Marketing Strategy

14. Biopure Marketing Strategy
THREADS S T O W
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
Biopure Marketing Strategy

15. VALUE BENEFIT ANALYSIS
100 4 8 25 26
Rating ∑
Flexibility of production plant & administrative effort
Usage of production capacity
Customer Awareness
Position in Market
Pricing of Hemopure
Generate revenues / profit
Gain of experience
Criterion
171 4 8 16 25 50
2 x 26 = 52
Oxyglobin
ASAP
129 8 4 50 25
1 x 26 = 26
Oxyglobin
later
Biopure Marketing Strategy

16. Biopure Marketing Strategy
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

17. BREAK EVEN POINTS FOR DIFFERENT PRICES
Assumption : Marketing costs = 5% of max. revenue
Biopure Marketing Strategy

18. „BREAK-EVEN PERCENTAGE“
Biopure Marketing Strategy

19. Biopure Marketing Strategy
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 $ p.a.
Influence of Oxyglobin’s price on Hemopure is questionable
Biopure Marketing Strategy

20. Biopure Marketing Strategy
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

21. 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

22. Biopure Marketing Strategy
DISCUSSION
Biopure Marketing Strategy