Biopure Case
Biopure Case
In 1995, the potential total demand for critical cases of Oxyglobin for dogs was 354,750 units of blood. The potential total demand for non-critical cases was 3,902,250. The probability that the consumer will try Oxyglobin is given in the following table below:
Price to Vet (per unit)
Price to Pet Owner
% of Pet Owners who will try (Noncritical Cases)
% of Pet Owners who will try (Critical Cases)
.95*.60 = .57
1*.90 = .90
.70*.40 = .28
.95*.85 = .81
.25*.35 = .09
.80*.75 = .60
.05*.30 = .02
.60*.65 = .40
From the total demand for non-critical and critical cases coupled with the probability the consumer will try Oxyglobin at a given price, potential total demand for each price series can be obtained:
Price to Vet (per unit)
Price to Pet Owner
Pet Owners who will try (Noncritical Cases)
Pet Owners who will try (Critical Cases)
3,902,250*.57 = 2,224,283
354,750*.90 = 319,275
3,902,250*.28 = 1,092,630
354,750 *.81 = 287,348
3,902,250*.09 = 351,203
354,750*.60 = 212,850
3,902,250*.02 = 78,045
354,750*.40 = 141,900
Thus, from the above tables and data potential revenues from Oxyglobin for each price series can be obtained as well:
Price to Vet (per unit)
Revenues from Noncritical Cases
Revenues from Critical Cases
Total Revenues
2,224,283*50 = $111,214,150
319,275*50 = $15,963,750
$127,177,900
1,092,630*100 = $109,263,000
287,348*100 = $28,734,800
$137,997,800
351,203*150 =$52,680,375
212,850*150 = $31,927,500
$84,607,875
78,045*200 = $15,609,000
141,900*200 = $28,380,000
$ 43,989,000
Distribution Options and Costs
National, Regional, and Local Distributors Cost
Manufacturing Selling Price (per unit)
Distribution Cost (30% of manufacturing selling