As for the distribution, the company should choose the manufacturer direct as the way of selling the product. 3. Basic for recommendations: a) The potential market Pourer can win is “trauma in the field”, the demand of which is 2,124,370 units (see calculation 2 in next page). Reasons as followings: I. Human blood substitute is not suitable for chronic anemia market for its short half-life, potential for toxicity and high price. II. Hemostats and Polymer are both made from human blood, which is an advantage over Humphrey.
Baxter has already built up a brand image in the industry. Therefore, these two competitors will probably take the market of elective, emergency surgery market and borderline transfusion. Al. Humored has a competitive advantage of shelf life and storage temperature requirement, which is suitable for trauma application. B) The potential market for Humored is larger than Blouse’s annual capacity (1 50,000 units). To maximize the revenue, Pourer should enlarge Its capacity. However, the company currently has only $50 million for Its operation.
Therefore, the revenue generated from Globally can be Invested in constructing facilities to satisfy the market demand for Humored, which will lead to a better profit. C) Globally has no competitive products at least In he next 2 years (Other companies would take 2-5 years to bring a similar product to the market). Additionally, the potential demand for Globally Is 407,182 units when the product Is priced at $200 (see calculation 1 In next page), which Is over 30% higher than the company’s capacity (300,000 units).
Therefore, Blooper can price It at $200 per unit, which will maximize Its revenue. D) On the one hand, the Incidence of blood loss Is relatively concentrated (as stated In the article); the company should focus on the 10% – 15% mall veterinary practices that are handling a large portion of resurges or trauma cases. On the other hand, the distributor will take 30% of the total sales as commission, which means In every unit sold at $200, they will take $60. The direct sale method only takes $10 – 15 per unit, which Is much cheaper. ) By successful launching Globally, Blooper can build up Its brand Image In the Industry and obtain relative experience, which will definitely help the launch of Humphrey. Pourer Corporation By chaffing potential for toxicity and high price. It. Hemostats and Polymer are both made from market of elective, emergency surgery market and borderline transfusion. Ii. Humored is larger than Pourer’s annual capacity (1 50,000 units). To maximize the revenue, Pourer should enlarge its capacity.
However, the company currently has only $50 million for its operation. Therefore, the revenue generated from Globing can be invested in constructing facilities to satisfy the market demand for Humored, which will lead to a better profit. C) Globing has no competitive products at least in the market). Additionally, the potential demand for Globing is 407,182 units when the product is priced at $200 (see calculation 1 in next page), which is over 30% Geiger than the company’s capacity (300,000 units).
Therefore, Pourer can price it at $200 per unit, which will maximize its revenue. D) On the one hand, the incidence of blood loss is relatively concentrated (as stated in the article); the company should focus on the 10% – 15% main veterinary practices that are handling a large portion of total sales as commission, which means in every unit sold at $200, they will take $60. The direct sale method only takes $10 – 15 per unit, which is much cheaper. E) By successful launching Globing, Pourer can build up its brand image in the industry
