nellfinancial consultant stephenrisk consultant amymarketing consultant fevzigeneral consultant...
TRANSCRIPT
Nell Financial ConsultantStephen Risk ConsultantAmy Marketing ConsultantFevzi General ConsultantTuba Marketing ConsultantHye Young Chief ConsultantHakan Marketing Consultant
Berkeley Consultant Group
• Introduction
Marketing BA 160
Content
• Dimensions
• Decision
• Marketing Strategy
• Financial Analysis
• Conclusion
Company background
• Privately owned biopharmaceutical firm• Potential products:
Hemopure
For Human usage
Awaiting approval by FDA
Oxyglobin
For animal usage
Ready to launch
Marketing BA 160
Content
• Introduction
Company Background
Problem
Recommen- dation
• Dimensions
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
• Should we launch Oxyglobin?• If we launch Oxyglobin, at what price?• How should we market Oxyglobin?
Marketing BA 160
Content
• Introduction
Company background
Problem
Recommen- dation
• Dimensions
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
Problem
Recommendation
Marketing BA 160
Content
• Introduction
Company background
Problem
Recommen- dation
• Dimensions
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
Retail priced at $200 !
Launch Oxyglobin now !
• Product-analysis• Market-analysis• Consumer behaviour• Competitors
Marketing BA 160
Content
• Company background
• Problem
• Dimensions
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
Dimensions to consider
-„universal“ blood substitute
- reliable and stable suppliers
- free of contamination- storable up to 2 years at
room temperature- 100% efficient at
transporting oxygen
Strengths Weaknesses
- short half-life
- potential for higher toxicity
Marketing BA 160
Content
• Company background
• Problem
• Dimensions Product- Analysis
Market Analysis
Consumer Behavior
Competition Analysis
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
Product-Analysis
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
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
Content
• Company background
• Problem
• Dimensions Product- Analysis
Market Analysis
Consumer Behavior
Competition Analysis
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
Market-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
Marketing BA 160
Content
• Company background
• Problem
• Dimensions Product- Analysis
Market Analysis
Consumer Behavior
Competition Analysis
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
Consumer Behavior
• 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
Content
• Company background
• Problem
• Dimensions Product- Analysis
Market Analysis
Consumer Behavior
Competition Analysis
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
Competition Analysis
• 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
Content
• Company background
• Problem
• Dimensions
• Decision
Reasons
Risks
• Marketing strategy
• Financial Analysis
• Conclusion
Reasons to launch now
• Unrealistic price expectations for Hemopure
• Solution: Communicate the difference between Oxyglobin and Hemopure
Marketing BA 160
Content
• Company background
• Problem
• Dimensions
• Decision
Reasons
Risks
• Marketing strategy
• Financial Analysis
• Conclusion
Risk: Price Difference
• Oxyglobin fails
• Solution: The lack of competition and sufficient demand minimizes the risk of failure
Marketing BA 160
Content
• Company background
• Problem
• Dimensions
• Decision
Reasons
Risks
• Marketing strategy
• Financial Analysis
• Conclusion
Risk: Product Failure
• Stereotyped as animal care supplier
• Solution: Well tailored marketing strategy
Marketing BA 160
Content
• Company background
• Problem
• Dimensions
• Decision
Reasons
Risks
• Marketing strategy
• Financial Analysis
• Conclusion
Risk: Image Stereotyped
Marketing BA 160
Content
• Company background
• Problem
• Dimensions
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
Marketing strategy overview
• Image
• Mediums
• Distribution channel
Image
• Life saver, not just pet saver
• Revolutionary practice of medicine
• Innovative, first mover
Marketing BA 160
Content
• Company background
• Problem
• Dimensions
• Decision
• Marketing strategy
Image
Mediums
Distribution Channel
• Financial Analysis
• Conclusion
• Trade publications• Journals• Pamphlets• Web site
Marketing BA 160
Content
• Company background
• Problem
• Dimensions
• Decision
• Marketing strategy
Image
Mediums
Distribution Channel
• Financial Analysis
• Conclusion
Mediums
- 30% of price per unit
- Settled distribution system
- Experienced- Economies of scale
Distributors
- 30% of price per unit
- Settled distribution system
- Experienced- Economies of scale
Marketing BA 160
Content
• Company background
• Problem
• Dimensions
• Decision
• Marketing strategy
Image
Medium
Distribution Channel
• Financial Analysis
• Conclusion
Distribution channels
Manufacturer direct
- $10 - $15 per unit + expenses for sales force
- Better for well established and high volume products
Financial Analysis
Price of $200
unit price $100.00 unit variable cost
distributors $ 30.00 raw material $ 1.50
unit contribution $ 68.50
Fixed costproduction $ 15 mmarketing budget $ 1 m
Marketing BA 160
Content
• Company background
• Problem
• Dimensions
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
0
10
20
30
40
0 100000 200000 300000
units sold
m $
revenues costs
Marketing BA 160
Content
• Company background
• Problem
• Dimensions
• Decision
• Marketing strategy
• Financial Analysis
Break even
• Conclusion
Break-even
234,000
• 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
ConclusionContent
• Company background
• Problem
• Dimensions
• Decision
• Marketing strategy
• Financial Analysis
• Conclusion
Questions ?
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 unitsAssumptions:4.5 of acute blood loss get a transfusion (84% of veterinarians are dissatisfied with current process)
Appendix