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• 1. [Article] Madécasse: Competing with a 4x Fairtrade Business Model

  Brett Beach and Tim McCollum, co-founders of Madécasse, spent two years as Peace Corps volunteers in Madagascar. During that time, they fell in love with the country and its people. Recognizing the need ...

  Citation × Citation Citation Abstract Copy Title: Madécasse: Competing with a 4x Fairtrade Business Model Author: Marshall, Scott, Brown, Darrell, Sakarias, Bex, Cai, Min Year: 2013 Brett Beach and Tim McCollum, co-founders of Madécasse, spent two years as Peace Corps volunteers in Madagascar. During that time, they fell in love with the country and its people. Recognizing the need of the Malagasy for stable jobs and fair wages and the connection between poverty and environmental destruction, Brett and Tim discussed possibilities for a social enterprise in the country. Madagascar presents a beautiful yet challenging place to operate a business. It has a wide range of flora and fauna, approximately 70% of which are found nowhere else on Earth and it produces coffee, vanilla, sugar, cotton, pepper, cinnamon, chili, cloves and high quality cocoa. However, it is also one of the least developed countries in the world. Seventy percent of the population is rural and 90% live on less than $2 a day. Madécasse, with its headquarters in Brooklyn, New York, partners with farmer cooperatives and a chocolate factory in Madagascar to make single-origin, tree-to-bar chocolates for sale in high-end groceries and chocolate boutiques internationally. The Madécasse model maximizes the amount of value added to the final product in Madagascar. It includes strong relationships with the cocoa farmers, partnership with a chocolate factory, sourcing ingredients and packaging from around Madagascar, and exporting the final, fully packaged products. It is through this holistic approach that Brett and Tim created a business model that offers more than four times the social and economic benefit to Madagascar when compared to the standard Fair Trade model. Madécasse competes with other specialty brands and numerous conventional brands. In order to catch consumers' attention, the founders obtained "Fair for Life" and Organic certifications. However, Madécasse is not unique in differentiating based on single origin, certified specialty chocolate. Survival depends on Madécasse ability to leverage its "4 X" impact. The case study asks students to look thoroughly at the value chain in Madagascar, understand Madécasse operations and the local impacts, and the methods used to communicate to final consumers. Students are challenged with fully comprehending the value proposition of Madécasse and how it can be aligned with and communicated to current and emerging customer needs. Title: Madécasse: Competing with a 4x Fairtrade Business Model Author: Marshall, Scott, Brown, Darrell, Sakarias, Bex, Cai, Min Year: 2013 Brett Beach and Tim McCollum, co-founders of Madécasse, spent two years as Peace Corps volunteers in Madagascar. During that time, they fell in love with the country and its people. Recognizing the need of the Malagasy for stable jobs and fair wages and the connection between poverty and environmental destruction, Brett and Tim discussed possibilities for a social enterprise in the country. Madagascar presents a beautiful yet challenging place to operate a business. It has a wide range of flora and fauna, approximately 70% of which are found nowhere else on Earth and it produces coffee, vanilla, sugar, cotton, pepper, cinnamon, chili, cloves and high quality cocoa. However, it is also one of the least developed countries in the world. Seventy percent of the population is rural and 90% live on less than $2 a day. Madécasse, with its headquarters in Brooklyn, New York, partners with farmer cooperatives and a chocolate factory in Madagascar to make single-origin, tree-to-bar chocolates for sale in high-end groceries and chocolate boutiques internationally. The Madécasse model maximizes the amount of value added to the final product in Madagascar. It includes strong relationships with the cocoa farmers, partnership with a chocolate factory, sourcing ingredients and packaging from around Madagascar, and exporting the final, fully packaged products. It is through this holistic approach that Brett and Tim created a business model that offers more than four times the social and economic benefit to Madagascar when compared to the standard Fair Trade model. Madécasse competes with other specialty brands and numerous conventional brands. In order to catch consumers' attention, the founders obtained "Fair for Life" and Organic certifications. However, Madécasse is not unique in differentiating based on single origin, certified specialty chocolate. Survival depends on Madécasse ability to leverage its "4 X" impact. The case study asks students to look thoroughly at the value chain in Madagascar, understand Madécasse operations and the local impacts, and the methods used to communicate to final consumers. Students are challenged with fully comprehending the value proposition of Madécasse and how it can be aligned with and communicated to current and emerging customer needs. Close

• 2. [Article] Competitive Pricing using Data Envelopment Analysis - Pricing for Oscilloscopes

  The research in this paper proposes a new technique for pricing products in competitive markets taking into account the features and prices of competing product offerings. This technique is based on a ...

  Citation × Citation Citation Abstract Copy Title: Competitive Pricing using Data Envelopment Analysis - Pricing for Oscilloscopes Author: Wang, Bing, Perrenoud, Christophe, Castillejos, Ignacio, Rampali, Phaneendra, Tsai, Sheng-Te, Zehr, Wilson Year: 2012 The research in this paper proposes a new technique for pricing products in competitive markets taking into account the features and prices of competing product offerings. This technique is based on a methodology known as Data Envelopment Analysis (DEA) and is referred to as Competitive Pricing using Data Envelopment Analysis (CPDEA). The speed of innovation and new product development in competitive markets continues to accelerate at a rapid pace. In this environment, when new products are introduced they do not necessarily disappear, they often remain in the market at a price that decreases over time to reflects the market’s perception of reduced value – the latest and greatest products often command a price premium. Providers of products and services need to be able to price their products competitively: if they price too high then volume can drop to zero; price too low and money is left on the table. There are a number of analytical techniques that are used to determine optimal pricing. These include: Conjoint Analysis, Van Westendorp Price Sensitivity Meter, Gabor Granger, Brand vs. Price Trade-off, and Expert Session. However these techniques rely largely on direct customer survey research which is complicated and time consuming to setup; as well as subject to bias based on individual opinions. This bias can be reduced given a large sample size; however, this does not eliminate the gap that exists between buyer perception (what potential customers say they would do) and buyer behavior (what customers actually do). This bias can be removed by looking directly at the market. This study uses CPDEA to examine the actual prices and features currently available in the oscilloscope market and find those offerings that are state of the art (SOA). In addition, given the results of this analysis, and assuming an efficient market, it is also possible to adjust prices and create an efficient offering even when the “feature set” is not SOA. This provides one more analytical tool to assist with competitive pricing, especially for those offerings with complex feature sets. This, in turn, can boost profit margins for the most advanced and assure competitive pricing for older models. Title: Competitive Pricing using Data Envelopment Analysis - Pricing for Oscilloscopes Author: Wang, Bing, Perrenoud, Christophe, Castillejos, Ignacio, Rampali, Phaneendra, Tsai, Sheng-Te, Zehr, Wilson Year: 2012 The research in this paper proposes a new technique for pricing products in competitive markets taking into account the features and prices of competing product offerings. This technique is based on a methodology known as Data Envelopment Analysis (DEA) and is referred to as Competitive Pricing using Data Envelopment Analysis (CPDEA). The speed of innovation and new product development in competitive markets continues to accelerate at a rapid pace. In this environment, when new products are introduced they do not necessarily disappear, they often remain in the market at a price that decreases over time to reflects the market’s perception of reduced value – the latest and greatest products often command a price premium. Providers of products and services need to be able to price their products competitively: if they price too high then volume can drop to zero; price too low and money is left on the table. There are a number of analytical techniques that are used to determine optimal pricing. These include: Conjoint Analysis, Van Westendorp Price Sensitivity Meter, Gabor Granger, Brand vs. Price Trade-off, and Expert Session. However these techniques rely largely on direct customer survey research which is complicated and time consuming to setup; as well as subject to bias based on individual opinions. This bias can be reduced given a large sample size; however, this does not eliminate the gap that exists between buyer perception (what potential customers say they would do) and buyer behavior (what customers actually do). This bias can be removed by looking directly at the market. This study uses CPDEA to examine the actual prices and features currently available in the oscilloscope market and find those offerings that are state of the art (SOA). In addition, given the results of this analysis, and assuming an efficient market, it is also possible to adjust prices and create an efficient offering even when the “feature set” is not SOA. This provides one more analytical tool to assist with competitive pricing, especially for those offerings with complex feature sets. This, in turn, can boost profit margins for the most advanced and assure competitive pricing for older models. Close