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Biopure Industries

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BIOPURE INDUSTRIES
A Marketing Analysis

By Veronica Stepanova

Executive Summary
• Many opportunities are available in the human blood market due to several disadvantages of the currently available alternatives. Even more opportunities exist in the animal blood market.
• Oxyglobin should be positioned as a high-quality product designed for middle- to upper-class budgets.
• The price for Oxyglobin should be about $200 for the consumer and around $100 for the supplier (animal hospital) to account for distribution markups and other carrying costs.
• Distribution should be oriented in the regional vicinity of the operation and implement larger clinics. In addition, only emergency clinics are to be targeted. Current opportunities are favorable for Oxyglobin’s launch

Situation Analysis
I. Human blood market.
• Patients with acute blood loss from trauma and surgery – 40% individuals aged 65+.
• Chronic anemia patients (any age) – 1.5 million for the year 1995.
• Blood loss, resulting from trauma (e.g. car accident) and exceeding 2-3 units (1 unit = 10% of total blood content of human body) needs immediate blood transfusion.
• Price is largely cost-based (storage, implementation) – blood donation is free.
Existing options.
• Red blood cells and their components (hemoglobin, platelets, and plasma) are collected via donations, organized by blood collection centers and then transfused into patients.
• Current options allow for storage for 6 weeks in refrigerated conditions, consequently disposed of if unused. Hemoglobin uses oxygen-carrying efficiency by 50% if not used within the first few weeks.
• Blood transfusion is subject to blood typing (A, B, AB, O, positive, negative) and reception/rejection by the body. Incorrect matching may be fatal for the patient.
• Infection risks slow down the process of testing blood prior to its use and are greater if…...

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