Q.1 What are the reasons for and against immediately launching Oxyglobin?
For
Will build a brand for Bio pure which will be helpful when launching Hemopure.
They can learn from their mistakes during the launch of Oxyglobin
Will be good for Hemopure later on because people would already be comfortable with the idea of using a blood substitute (This concept can be reinforced via publicising in five journals and trade shows)
Will add value to IPO of company because they already have a working profitable product. This would help establishing brand equity thereby attracting investors.
Higher brand equity would help them reduce distribution costs (from 30% to 20%).
Get immediate revenue
Though right now there is no competition in the vet blood substitute market competition may crop up (As media has already publicized the development of Oxyglobin). If Biopure delays the launch of Oxyglobin for Hemopure some other player may develop a similar product which would make later entry into vet blood substitute very difficult.
a bag containing one unit of fresh frozen plasma
English: Blood Transfusion offices, Belfast The he...
Number of Employees at Biopure YoYLarge idle capacity
Already have a sales team.
There was already a press release from The Boston Glove in 2/5/98: Press has already been informed- anticipation is out there. This would adversely affect the IPO of the company. If people find out- they will be enraged that the launch was delayed (i.e. not be able to save lives of animals) for the sake of marketing.
Against
Pricing structure of Oxyglobin will make customers question Hemopure pricing structure later. The industry and the press will not accept the idea of paying 4-5 times the price for a product when the production process for the two are quite similar.
Hemopure's launch might suffer if there is any major shortcoming in Oxyglobin. People might become hesitant to try the same company's product again...