Berkeley Consultant Group

Nell
Stephen
Amy
Fevzi
Tuba
Hye Young
Hakan

Financial Consultant
Risk Consultant
Marketing Consultant
General Consultant
Marketing Consultant
Chief Consultant
Marketing Consultant

Content
Introduction
Dimensions
Decision
Marketing Strategy
Financial Analysis
Conclusion

Marketing BA 160

Company background
Content
Introduction
Company
Background

Privately owned biopharmaceutical firm

Potential products:

Problem
Recommendation
Dimensions
Decision

Hemopure

Oxyglobin

For Human usage

For animal usage

Awaiting approval
by FDA

Ready to launch

Marketing
strategy
Financial
Analysis
Conclusion

Marketing BA 160

Problem
Content
Introduction
Company
background
Problem
Recommendation
Dimensions

Should we launch Oxyglobin?

If we launch Oxyglobin, at what price?
How should we market Oxyglobin?

Decision
Marketing
strategy
Financial
Analysis
Conclusion

Marketing BA 160

Recommendation
Content
Introduction
Company
background
Problem
Recommendation

Launch Oxyglobin now !

Dimensions
Decision
Marketing
strategy

Retail priced at $200 !

Financial
Analysis
Conclusion

Marketing BA 160

Dimensions to consider
Content
Company
background
Problem
Dimensions
Decision
Marketing
strategy
Financial
Analysis
Conclusion

Product-analysis
Market-analysis
Consumer behaviour
Competitors

Marketing BA 160

Product-Analysis
Content
Company
background
Problem
Dimensions
ProductAnalysis
Market
Analysis
Consumer
Behavior
Competition
Analysis
Decision
Marketing
strategy
Financial
Analysis
Conclusion

Strengths

Weaknesses

-universal blood
substitute
- reliable and stable
suppliers
- free of contamination
- storable up to 2 years at
room temperature
- 100% efficient at
transporting oxygen

- short half-life
- potential for higher toxicity

Marketing BA 160

Market-Analysis
Content
Company
background
Problem
Dimensions
ProductAnalysis
Market
Analysis
Consumer
Behavior

Human
- 40% of the market is for individuals over 65
- 65 and over cohort is expected to double by 2030
- Risk of disease transmission discouraged rates of donation
Decreasing number of donors but increasing
number of recipients

Competition
Analysis
Decision
Marketing
strategy
Financial
Analysis
Conclusion

Animal
- 15,000 veterinary practices are present

- Approx. 350,000 units per year just for dogs

- alternatives priced $ 80 - $120 for primary care practices
- alterantives priced $130 - $ 170 for emergency care practices
- 84% of veterinarians are dissatisfied with the current process

Marketing BA 160

Consumer Behavior
Content
Company
background
Problem
Dimensions
ProductAnalysis
Market
Analysis
Consumer
Behavior
Competition
Analysis
Decision
Marketing
strategy
Financial
Analysis

High price sensitivity for animal

market
Low price sensitivity for human
market
Fear of contracting diseases
In critical cases, 85% of owners are
willing to pay $200/unit of Oxyglobin

Conclusion

Marketing BA 160

Competition Analysis
Content
Company
background
Problem
Dimensions
ProductAnalysis
Market
Analysis
Consumer
Behavior
Competition
Analysis
Decision
Marketing
strategy
Financial
Analysis
Conclusion

Human Market
Competitors
Baxter International
Northfield Labs
Cost advantage (raw material)
Independent from human blood
Does not require refrigeration
Animal Market
No competition in terms of blood substitutes

Marketing BA 160

Reasons to launch now

Content
Company
background
Problem
Dimensions
Decision
Reasons
Risks
Marketing
strategy
Financial
Analysis
Conclusion

Establish Biopure
Test out the
marketing strategy
Test out the manufacturing machines
Create revenue
Avoid negative press
Gain experiences with the blood
substitute market
Marketing BA 160

Risk: Price Difference

Content
Company
background
Problem
Dimensions
Decision

Unrealistic price expectations for

Hemopure

Reasons
Risks
Marketing
strategy
Financial
Analysis
Conclusion

Solution: Communicate the

difference between Oxyglobin and
Hemopure

Marketing BA 160

Risk: Product Failure

Content
Company
background
Problem

Oxyglobin fails

Dimensions
Decision
Reasons
Risks
Marketing
strategy
Financial
Analysis

Solution: The lack of competition

and sufficient demand minimizes the
risk of failure

Conclusion

Marketing BA 160

Risk: Image Stereotyped

Content
Company
background
Problem

Stereotyped as animal care supplier

Dimensions
Decision
Reasons
Risks
Marketing
strategy

Solution: Well tailored marketing

strategy

Financial
Analysis
Conclusion

Marketing BA 160

Marketing strategy overview

Content
Company
background
Problem

Image

Dimensions
Decision
Marketing
strategy

Mediums

Financial
Analysis
Conclusion

Distribution channel

Marketing BA 160

Image
Content
Company
background
Problem
Dimensions
Decision
Marketing
strategy
Image

Life saver, not just pet saver

Revolutionary practice of medicine
Innovative, first mover

Mediums
Distribution
Channel
Financial
Analysis
Conclusion

Marketing BA 160

Mediums
Content
Company
background
Problem
Dimensions
Decision
Marketing
strategy
Image
Mediums

Trade publications
Journals
Pamphlets
Web site

Distribution
Channel
Financial
Analysis
Conclusion

Marketing BA 160

Distribution channels
Content
Company
background
Problem

Distributors

Manufacturer direct

Dimensions
Decision
Marketing
strategy
Image
Medium
Distribution
Channel
Financial
Analysis
Conclusion

- 30% of price per

- $10 - $15 per unit +
unit
expenses for sales
- Settled distribution
force
system
- Better for well
- Experienced
established and high
- Economies of scale
volume products

Marketing BA 160

Financial Analysis
Content
Company
background

Price of $200

Problem
Dimensions
Decision
Marketing
strategy
Financial
Analysis
Conclusion

unit price
$100.00
unit variable cost
distributors $ 30.00
raw material $ 1.50
unit contribution
$ 68.50
Fixed cost
production $ 15 m
marketing budget $ 1 m
Marketing BA 160

Break-even
Content
Company
background
Problem
Dimensions
Decision
Marketing
strategy
Financial
Analysis
Break even
Conclusion
234,000

Marketing BA 160

Conclusion
Content
Company
background
Problem
Dimensions
Decision
Marketing
strategy
Financial
Analysis
Conclusion

Use Distributors
Marketing activities
Implementation of company sales
force, after products are established
Use profits from Oxyglobin to
expand capacity
Launch Oxyglobin, retail-priced at
$200
Marketing BA 160

Questions ?

Appendix
Calculation for dogs
14,250 (95% of 15,000 practices) x 17(units per practices) x 0.4
+ 750(5% of 15,000 practices) x 150(units per emergency
practice) x 0.85 = 192,525
192,525 x 4.5 / 2.5 = 346,545 units
Assumptions:
4.5 of acute blood loss get a transfusion (84% of veterinarians
are dissatisfied with current process)