...Hemopure. | 2. Postpone launching Oxyglobin until Hemopure’s FDA approval. -Mixture of production of Oxyglobin and Hemopure. -No prior unfavorable price expectation. -Market research on Oxyglobin is available. Launching Oxyglobin without waiting for 2 years for Hemopure is the first alternative we came up with. As no other competitors are in the vet blood substitutes market, Biopure will definitely have the first-mover advantage as long as they launch it in a timely manner/fast enough. Also any other competitors won’t be able to jeopardize the Oxyglobin’s profitability as it takes about 2 to 5 years for them to obtain FDA-approval. Assuming that Biopure decides to launch it, they also have to consider how much they are gonna charge for the product. In the first option, the price will be set at a low rate, ranged from 80 to 100 because pet owners are price sensitive. The average cost that pet owners spend per visit to the vet is about $60, which is pretty low. Also, Vets double the price as they sell the product so it is necessary to keep the original price low. For instance, even if Biopure sells a product at $50, Vets will sell the product at $100 to make profits. Therefore, pet owners will still feel that the price is beyond their budget and would go with a cheaper alternative available. (in a heartbeat). However, other sales team members claimed that it should be launched at a higher price carrying $200 premium, which is the second option. In case of emergency, pet...
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...To: Carl Rausch, President and CEO, Biopure From: Team 1 Subject: Launch Strategies for Oxyglobin Team 1 strongly recommends the launch of Oxyglobin in the veterinary market as soon as possible. In order to make this launch as successful as possible, Team 1 recommends: * Launching Oxyglobin from a fully-owned subsidiary of Biopure * Establishing an initial launch price of $xxx * Focus the supply chain on Critical Care Veterinary services * Establish a direct to consumer advertising campaign The team feels that this launch strategy will provide substantial value to Biopure and set up for a strong introduction of Hemopure once approved by regulatory authorities. The successful launch of Oxyglobin will: * Create a path to get income for initial public offering to reduce risk associated with Hemopure * Give opportunity to learn how to position Hemopure within the human market * Define Biopure as a socially acceptable blood substitute company * Provide 5 year exclusivity in the veterinary market * Respond to the market demand While every launch presents risk, Team 1 feels that we are setting up Biopure for the best possible launch position. The move to a fully-owned subsidiary will allow the launch of Oxyglobin into the veterinary market while minimizing risk to the human market. Customers will be less likely to feel that they are being prescribed an “animal drug” once Hemopure is approved. Establish a price of $200 to veterinary...
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