Porter’s Five Forces Model

• Bargaining power of buyers (high)

Buyers have the freedom to switch to sellers who offer cream cheese substitutes of the acceptable quality

• Threat of new entrants (insignificant)

The industry is very competitive, it will be difficult to make the buyer switch to a new and unknown brand if it appears in the market

• Intensity of rivalry (high)

Despite the high competition in the market Milka Philadelphia is able to attract many customers because of the well-known brand and loyalty among consumers

• Threat of substitutes (significant)

There is a wide range of substitutes of both Russian and foreign producers such as chocolate spreads, jam, honey, cream cheese

• Bargaining power of suppliers (low)

The company can choose from a wide variety of both local and international suppliers

7 reasons to enter Russia

Hi, guys! Maybe you are still wondering why we decided to enter Russian market. Well, let's figure it out!

1. B2B: growth of the small-business and medium-size bakeries all  around the country
2. B2C: Huge unsaturated market: low # of consumers
3. Low per capita consumption of the chocolate paste
4. A small  # of direct competitors (Nutella is the challenge) in the market
5. COO advantage: after the cancellation of GOST standards the quality of goods is under question
6. Popular brand enjoying strong growth in Russia
7. Customer perception of the chocolate as an “everyday guilty pleasure”.

What do you think of our analysis? We'll be excited to hear from you!

Delicious News

Now Philadelphia Cream Cheese has even more flavors! Just check it out - with strawberry, blueberry, vegetables and even salmon. That's worth trying.

    

Recipe of the Day: Fairy Cupcakes

Instructions

1
Step

To make the cakes, beat the low fat spread and caster sugar together until light and fluffy. Whisk in the eggs, one at a time then fold in the flour and cocoa. Fold in the milk.

2
Step

Line a 12 hole bun tin with paper cake cases. Spoon the mixture into the cases, filling about two thirds full. Bake at 180⁰C, gas mark 4 for about 15-18 minutes or until firm and risen. Leave to cool.

3
Step

When cooled spread some Philly as frosting over each of the fairy cakes.

More recipes on: 
https://www.philadelphia.co.uk/Recipes/

Interesting Facts: Cadbury vs. Milka

Did you know that Philadelphia Chocolate Cream Cheese has two variations depending on the region?

Philadelphia with Cadbury Chocolate is presented in US, while Philadelphia with Milka Chocolate is presented in Europe.

Does anybody know whether they taste the same or not?

Several reasons for you to eat chocolate!

Why is chocolate useful for our health? Enjoy our post and consider buying Philadelphia Cream Cheese ;)

1. It’s loaded with antioxidants

Dark chocolate contains hefty amounts of disease-fighting flavenoids, antioxidants also found in red wine and many fruits and vegetables. In fact, it appears to have more flavenoids than any other food.

2. It may lower cholesterol

A small study from the University of Illinois at Urbana-Champaign found that daily consumption of cocoa flavanol-containing dark chocolate lowered cholesterol and improved blood pressure.

While the reasearch was funded by chocolate manufacturer Mars, Inc., the study was double-blinded and peer reviewed.

3. It helps prevent heart disease
 A recent study shows that people who regularly consume 70% dark chocolate (about 20 g per day) show a marked improvement in blood flow, while no improvement is observed in those who eat “processed” chocolate, which contains very little cocoa paste. It seems that the positive effect of dark chocolate is linked to a property in its polyphenols that releases a chemical messenger, nitric oxide, which increases arterial dilatation, at the same time improving blood flow and reducing platelet aggregation.
However, it is important to note that previous studies have shown that milk prevents the absorption of dark chocolate’s polyphenols, thereby neutralizing its beneficial effects. Milk contains large amounts of casein, a protein that interacts with polyphenols and prevents them from being efficiently absorbed by the intestine. It is therefore always preferable to consume dark chocolate unaccompanied by milk.
- Richard Béliveau, Ph.D., and Denis Gingras, Ph.D., authors of Eating Well, Living Well
4. It may improve your skin
Researchers at Germany’s Heinrich Heine University exposed chocolate eaters to ultraviolet light and found that after six weeks, they had 15 percent less skin reddening than those who didn’t eat it. “We believe the compounds in chocolate act as UV filters,” says study leader Wilhelm Stahl. After 12 weeks, the chocolate eaters’ skin was 16 percent denser and 42 percent less scaly. 

5.  It may reduce pain

A recent study published in the Journal of Neuroscience found that rats don’t respond as quickly to pain while they’re eating chocolate. While this might explain why nothing in the world could drag you away from your Hershy’s Kisses, the study’s researchers say this pain-killing effect could be detrimental to humans as it could contribute to obesity. So remember to enjoy chocolate’s soothing properties in moderation. Also interesting to note: The study also found that drinking water also reduced pain.

6. It could help with chronic fatigue

A small study of 10 chronic fatigue patients carried out at Hull York Medical School, found that those given 45g of 85% cocoa chocolate daily reported less fatigue, anxiety and depression than those given placebo chocolate with low antioxidants.

The researchers say larger studies are needed to confirm the findings.

7.  It might help to keep you smart

A nice mug of cocoa might also help an ageing brain, a recent study in the journal Hypertension found. Elderly participants who received high flavonol chocolate drinks had improved mental performance after eight weeks.

Hope, you liked it! :)

Risk matrix or Should we enter the Russian market?

Dear readers, we would like to share with you our opinion concerning potential risks of entering the Russian market. Do you agree with us? How do you think, what other factors can be considered here?

Mondelez International gained independence!

As we have found out in 2012 Kraft Foods was divided into two independent businesses: Mondelez International and Kraft. Consequently, Milka became the part of the Mondelez International.

According to you, how did this division influence the Milka's market positioning?

We are eager to know your opinion!)

Recipe of the Day: Brandied Chocolate Cherry Dessert

Even if the weather outside is not so good, it is not a reason to get sad. Here is a recipe that would cheer you up in this this rainy/snowy day.

Instructions

1Step  Allow melted chocolate to cool a little then stir in the cherries.

2Step  Stir the brandy and the sugar into the Philly.

3Step  Swirl the two mixtures together to give a rippled effect.

4Step  Divide the mixture between small dessert glasses and chill for at least 1 hour before serving.

More information on the website:
https://www.philadelphia.co.uk/Recipes/

Interesting Facts about Chocolate

Eating Dark Chocolate everyday reduces the risk of heart disease by one third.

However, it only works with Dark Chocolate (containing more than 70% of cocoa beans) and 40 grams of chocolate a day is enough.