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Hard Market Entry

Madecasse (2011)

#Non-profit

Practice this advanced market entry case interview question in the Non-profit sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.

ProHub Comment

This case tests the critical distinction between profit maximization and impact maximization in non-profit business models. Candidates must resist the mathematical temptation to recommend Venezuela (highest profit at $331.5M) and instead recognize that Madagascar sourcing ($375M impact) best serves the mission of improving economic welfare, since all labor costs directly benefit the local population.

Estimated Time 36 minutes
Difficulty Hard
Source Columbia
27 / 100
Two entrepreneurs are launching a non-profit chocolate bar manufacturing company called Madecasse. The goal of Madecasse is to improve conditions for people in Madagascar by selling chocolate bars to consumers in the United States. Our firm is working with Madecasse on a pro-bono basis to determine two things: (1) where to source materials (Venezuela, Madagascar, Columbia) and (2) how to market the bars in the United States

Clarifying Information

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
Mock Interview
Interviewer

Two entrepreneurs are launching a non-profit chocolate bar manufacturing company called Madecasse. The goal of Madecasse is to improve conditions for people in Madagascar by selling chocolate bars to consumers in the United States. Our firm is working with Madecasse on a pro-bono basis to determine two things: (1) where to source materials (Venezuela, Madagascar, Columbia) and (2) how to market the bars in the United States

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
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Practice this case with AI Mock Interview

Madecasse, a non-profit chocolate company, must decide where to source cocoa (Madagascar, Colombia, or Venezuela) and how to market bars in the US. The key insight is that maximizing impact on Madagascar—not profit—should drive the sourcing decision, requiring Madagascar despite lower yields and higher per-unit costs.

Key Insights:

  1. Non-profit strategy requires optimizing for mission impact, not financial profit
  2. Sourcing decision must account for economic multiplier effects within the target community
  3. Premium positioning in wealthy US markets enables both higher prices and alignment with consumer values around charitable causes
  4. Trade-off analysis: Madagascar yields $375M impact vs. Venezuela’s $331.5M profit, illustrating the mission-profit tension

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