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Corporation
Pricing and Marketing a High-Tech
Product
Biopure: Invested so
far: $200m
Sales to date: $0
Only 2 products
Blood substitutes from bovine blood
Oxyglobin
Hemopure
Veternary market
Human market
No small hemoglobin
molecules (otherwise
identical)
The dilemma
What to do with Oxyglobin
Launch now market is small and price
sensitive
Or
Wait till Hemopure (market is large and
price insensitive) is launched
Why the dilemma? Jacobs believes
Oxyglobin price will influence Hemopures
As an alternative in Select
Applications Only
Donated blood is
Well entrenched, widely
accepted
Readily available, wells-supplied
Relatively inexpensive, (between
$125-$225 unit)
Relatively safe
Trauma Cases
500 000 each year, in 90% transfusion is
delayed; this delay partly responsible for
30% fatality rate (p.4)
H is well suited for these:
Easy to use (no typing)
Easy storage (long shelf life no refrigeration)
Low price sensitivity of consumer (pay or die?)
Human Market
Description
$101.50
$150
$175
$300
$350
$600-$800
$$$
Target Markets
Comprehensive (whole vet market)
Or
Selective (those practices that perform the
greatest number of transfusions)
Distribution
Independent
Direct salesforce
O Pricing
Options:
Price low (e.g., $100) pros and cons
Price high (e.g. $200) target emergency
care
Price very high (e.g. $400)
Also look at consumers willingness to pay
(tables A & B) vets are more price
sensitive than pet owners
So..
Would you
launch
Oxyglobin?