Premium Essay

Market Size of Oxigoblin

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Submitted By rehan200723
Words 340
Pages 2
Total vets practices = 15000
Out of 15000 practices, primary care practice number = 95% *15000 =14250 Emergency care practice number = 5% *15000 = 750
Given, emergency care uses average 150 units of blood and primary care uses average 17 units of blood.
Total units of blood used last year = 14250 * 17 + 750 * 150 = 354750 units
Total expected market size = 354750 * 30 /2.5 = 4257000 units
Given that doubling rule, vets will charge twice the customer as they have to pay the company.
1. Assumption as per survey % willingness to use product within veterinarians and pet owners will remain same when product will be launched.
2. The vet will charge their customers double of price of the product.

Price to Veterinarian % of Veterinarians Who Would Trial Product Noncritical Cases Critical Cases
$50 per unit 95% 100%
$100per unit 70% 95%
$150per unit 25% 80%
$200per unit 5% 60%
Price to Pet Owner % of Pet Owners Who Would Trial Product Noncritical Cases Critical Cases
$100 per unit 60% 90%
$200per unit 40% 85%
$300per unit 35% 75%
$400per unit 30% 65%

The total potential demand at given price will depend on vet that they want to use the product or not at that price. If they decide to use it, then there is question the customer will buy it or not. So, we will try to calculate potential demand at given price as function of prices using above two tables.

As per company they will sell the product at $200, at this price point potential demand will be
= .05 * .3 *3902250 + .6 * .65 *354750
= 58533 +138352
= 196885 units (at given price of oxigoblin $200 per unit)

If our assumption survey % willingness will actually translate into sells figure, if the survey value does not match real time data, the potential demand figure will change .Currently Bipure have a production capacity 300000 units, so they can easily meet the demand .As

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