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Philadelphia Milka Chocolate: Failing to account for the diversity of European consumers

  • December 2015
  • 15 pages
  • MarketLine
Report ID: 3701919

Summary

Table of Contents

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Introduction

In spring 2011, Mondelez International launched Philadelphia Milka, a variety of chocolate-flavored cream cheese, in Italy. Despite a successful performance in some other European countries, the product failed to gain traction, and was subsequently withdrawn from the Italian market in October 2014.

Features and benefits

- Learn about the Philadelphia-Milka product

- Understand the launch and marketing strategy for Philadelphia Milka in Italy.

- Analyze why the product ultimately failed in Italy but succeeded in the UK.

- Look at what could have been done differently to give the product a greater chance of success.

Highlights

- The co-branded marketing strategy between Mondelez's Philadelphia and Milka brands failed to establish a clear product positioning among the Italian audience. Mondelez underestimated the importance of European consumers' differing preferences and diversity of habits.

- Capitalizing on the heritage of Italian cheese, the manufacturer could have paired the chocolate with a dairy by-product with a sweeter flavor, such as ricotta. A country-customized strategy is needed to successfully position a product in the heterogeneous European markets, especially for those countries with a strong food heritage.

Your key questions answered

- What is Philadelphia Milka spread?

- How was the spread launched and marketed in Italy?

- Why was Philadelphia Milka eventually withdrawn from the Italian market?

- What strategies and approaches could Mondelez have adopted to give Philadelphia Milka a better chance of success?

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