BIOPURE
Biopure Case Study
Biopure Corporation
Case Analysis
Issues:
A. How do we best market Oxyglobin? (promotion)
Alternatives:
1. Go with an independent distributor with their own sales force
· Pos: infrastructure already in place (database contacts, etc)
· Neg: They also distribute for other manufacturers (what’s to stop them from distributing directly competitive product?
· Neg: 15 minute visit per salesperson- focus is divided among all the other products they sell
· Pos: They are able to set up a centralized training session for distributors (?? Time/money, etc)
· Pos: Experienced salespeople- if it’s a good product, they can/will want to sell them
2. Manufacturer sells products directly
· Control over sales practices
· Cost of maintaining the sales force
· Cost to physically distribute ($10-$15 more) per unit (should go under distribution?)
3. Use trade publications 4. Market Trade Shows (could be combined or separated)
· Taken seriously by attendees
· Only 5 publications, easy to advertise to
· Journals are effective vehicles to communicate the product
· Taken seriously by attendees (6 TS/year)
B. Whether and when do we launch Oxyglobin? (Product)
1. Launch Oxyglobin first
· Get immediate revenue
· Will add value to the public release of company because they already have a working profitable product
· There is currently a need for veterinary use (it will help save animals’ lives)
· Spent almost nothing to develop Oxyglobin
· Lower manuf cost, can make more for the same resources
· Large capacity
· Already have a C.S,, Tech team to support it
· Studies on $$ and
· No foreseable competition (2 years behind)
· They can learn from potential mistakes
· May find additional benefits
· Will be good for Hemopure later on because people would already be comfortable with the idea of using a substitute
· There was already a press release from The Boston Glove in 2/5/98
· Pricing structure of Oxyglobin will make customers question Hemopure pricing structure later
2. Launch Oxyglobin after Hemopure
· Won’t jeopardize Hemopure
· Need will still be there
· Low price will be explained [next page]