Madecasse (2011)

General

1. If asked to clarify the goal of Madecasse, the interviewer should emphasize that the mission of Madecasse is to improve the economic welfare of people in Madagascar
2. Assume that Madecasse will be able to sell as many chocolate bars as it makes
3. Manufacturing will take place in the same location as the cocoa

Madagascar

1. Population of 22M; Literacy: 70%
2. GDP/capita: $900; GDP is 30% agriculture; Population below poverty line: 50%
3. Fairly stable government now, recent history of instability

Sourcing options

1. Labor costs are highest in Venezuela and lowest in Madagascar
2. Venezuela employs more technology and thus can harvest more rapidly
3. Fields yield more crops per hectare in Venezuela and least in Madagascar
4. Colombia has the most available land, Madagascar the least

US consumers

1. Growing taste for dark chocolate
2. Typically buy chocolate bars as impulse buys at grocery store of convenience stores
3. Generally willing to pay $2/bar
4. Top 25% of income earners willing to pay more for high-end bars
5. Growing tendency to pay more for items associated with a cause

Other bars/Distribution

1. 3 primary brands with multiple products
2. Typically have ingredients outside of chocolate (e.g. nuts, caramel)
3. Sold through grocery stores, convenience stores, and gas stations