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

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a successful performance in some other European countries, the product failed to gain traction, and was subsequently withdrawn from the Italian market in October 2014.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- Why was Philadelphia Milka eventually withdrawn from the Italian market?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?

Table Of Contents

Philadelphia Milka Chocolate: Failing to account for the diversity of European consumers
OVERVIEW
Catalyst
Summary
HEALTHIER NUTELLA WITH MIXED PERFORMANCE IN EUROPE
Philadelphia Milka has performed variably in the European market
Philadelphia Milka seeks to offer a healthier alternative to Nutella
FAILURE CAUSED BY POOR FIT FOR ITALIAN BREAKFAST TRENDS
UK versus Italy: A clear positioning has driven a successful performance
Philadelphia Milka was a poor fit for Italian breakfast trends
A failure to develop effective targeting of snack occasions in Italy
COUNTRY-SPECIFIC APPROACH AND HEALTH FOCUS SUCCESSFUL INNOVATION STRATEGIES
Customizing an international product based on the specific European country's palate is a winning strategy
Explore opportunities in "high in protein" dairy by-products to position “better-for-you" alternatives
Experimental Italian consumers are an open target for further innovative launches
CONCLUSIONS
Philadelphia Milka failed as a result of poor local market understanding, but future for innovative launches exists
APPENDIX
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