Biopure Corporation Case Write-upPage 2Oxyglobin solves a serious deficiency in the veterinary blood market: the lack of an adequate blood supply. As such, I would recommend that Biopure immediately launch Oxyglobin to fill thisvoid and take advantage of this untapped opportunity, where Biopure will have 100% market share of the veterinary blood substitute market.
Target Market / Positioning.
Biopure should target emergency care veterinary practices and thelargest primary care veterinary practices with 3 or more doctors. I settled on the target market byfocusing on the segmentation criteria of practice demographics and usage behaviors. These twoclasses of vets have the highest average monthly caseload and the highest gross revenues (see Exhibit7). Thus, there are more potential patients to benefit from Oxyglobin and these vets are more likely to be able to afford the initial cost of purchasing the product (or if the product goes unused, they are better able to absorb the sunk cost). Additionally, these two groups are “high incident” practices thattend to handle most canine surgeries and canine trauma cases. Blood transfusions are more commonin these practices (for example, emergency practices conduct an average of 150 blood transfusions per year compared to 17 at a primary practice) and thus, they require more blood than other segments. Assuch, these segments are most likely to be in need of a veterinary blood supply, which is currentlyinadequate.Biopure should position Oxyglobin as the
life-saving veterinary blood substituteavailable, that offers more convenience in storage and administration than the real thing, for practicesthat handle many canine surgeries and traumas. This positioning statement clearly lays out the targetcustomer, the competitive framework (that there are no alternatives besides real blood), the benefit(advantages over real blood) and the reason to believe (it saves lives).
Communication Strategy / Promotion.
In order to educate vets and raise awareness of Oxyglobin,Biopure should utilize some or all of the trade journals, particularly those that tend to target or aresubscribed to by emergency care and the largest primary care vets, if possible. Additionally, Biopure
STEP 1: SITUATION ANALYSISSHELDON SUGDENSITUATION ANALYSIS CANVASCUSTOMERSCOMPETITIONPRODUCT/MARKET STRATEGYMARKETING MIX ACTIVITIESMinimum Bundle of BenefitsCustomer Needs & Benefits SoughtPricingDistributionCompetitive AdvantageCompetitors❶❷Technologies/Resources AvailableProductPromotionProduct/Market Strategy❸❹Other ThreatsFINANCIAL ANALYSISVERTICAL ISSUESUnique Value OfferedPower of SuppliersProviding a substitute for blood supply to help meet demand. Power of BuyersAcceptance of product can create a breakthrough in the medical market.STEP 2: PROBLEM/DECISION STATEMENTSTEPS 3-5: IDENTIFICATION OF ALTERNATIVES & CRITICAL ISSUES AND ANALYSIS OF ALTERNATIVESMajor Problems/DecisionALTERNATIVESC R I T I C A L I S S U E S1.Customer reaction/relationsh2.Competitive advantage3.Financial risk/return4. Market growth Not best solutionYESYESNot best solutionYESMinor Problems/DecisionsNot best solutionYESCOMBINATIONNot as personal with customersCOMBINATIONCOMBINATIONSTEP 6: SOLUTION AND GAME PLANALTERNATIVES SELECTEDEXECUTION PLANSMEASURING PERFORMANCEUsable blood for animal and humans in need of tranfusions because of anemia, blood loss, or emergency situations. No cross checking of blood needed. No cross checking or testing of blood needed, longer shelf life of blood supply (2 yrs compared to 6 wks). Immideatly transports oxygen. No risk of disease or infectious agents. Does not need to be refrigirated.FDA regulations, ability of the market to buy, acceptance of the product by the market over regular blood donations.Offers a substitute for human and animal blood supply. No need for cross-checking or blood testing because it will work for any blood type. Immideately transports oxygen. Longer shelf life then regular blood supply. Does not to be refrigirated. OVERALL EVALUATION1.Launch Oxyglobin into the marketCustomer in vertinary market happy with product, but could affect customer segment for Hemoglobin based on price sensitivityFirst animal blood substitute to be FDA approved and successfully launch in the marketCould cause a financial risk by not allowing them to offer Hemoglobin at the price the want in the future, but profit could also be benefical for productionWould expand the market, because first ever product like this to ever make it to launch2.Shelf Oxyglobin until Hemoglobin has been FDA approvedCustomers unaware of Oxyglobin and therefore not as sensitive to Hemoglobins higher priceSuccessful imitation of human blood to help meet the demand in this market, while eliminating cross checking and blood testsHigher financial return than if launching Oxyglobin first because you could offer Hemoglobin at the higher priceHospitals, emergency rooms, doctors, nurses, insurance companies, etc.