The cultural ethos of Kuwait, which promotes social gatherings around seasonal social events, makes it a particularly appealing market for the industry.
Cake sales and gift-giving parties are therefore still common, particularly around big occasions and holidays like birthdays and Mother's Day.
The cake market in Kuwait has been expanding more quickly over the past several years, with a focus on high-end goods such sweets and cakes for special occasions.
From our marketing research, we find that Mr Baker has become the market leader in the cakes industry. In this article, we examine what are the reasons for its success, and what can other brands learn from it.
Mr Baker has 22 retail outlets in the country, the highest among other brands. It also sells its products through Talabat and its website as two online distribution channels.
It manufactures and sells a wide variety of cakes, including Arabic candies, gelato, Italian ice cream, desserts, pastries, and chocolates. The brand also offers special cakes based on special custom requests.
Around 70% of the brand’s consumer base visits the store themselves, instead of ordering it online. Their main online orders come from Kuwaiti-populated areas such as Sabah Al Salem, Ardiya, Salmiya, etc.
In Kuwait, Mr Baker has a market share of 33%, thus becoming the market leader. Customers who make between 200-500 KWD as well as those who make more than 3,000 KWD buy from the brand. The brand thus serves the bulk of the market. 29% of the brand's customers are between the ages of 18-25.
Reason for Mr Baker’s success
Based on Poixel's market research of the cakes market, six key success factors have been identified that have made Mr Baker the market leader,
- Business location
The location of a bakery is important. The best places for bakeries to operate are malls, supermarkets and busy streets with a lot of foot traffic and plenty of parking, so that the business is easily accessible. A poor choice of site might have a negative impact on the firm. We gave a good score to Mr Baker as having the best locations in the region.
- Digital Marketing
Businesses must invest in digital marketing solutions to raise brand awareness, increase product credibility, and connect with the correct target audience.
Outdoor commercials are less effective in terms of providing a high return on investment (ROI). As a result, digital channels such as the website and social media platforms are critical to expanding the company's online presence. Mr Baker consistently produces content on their Instagram, which is effective since the majority of cake and gift purchasers are between the ages of 30-40. As a result, businesses should create focused marketing efforts to target them.
According to our research, 42% of the sample look at the cake's packaging while looking for options. As a result, packaging is critical in influencing consumer decisions and expediting the purchasing process. This becomes more important when consumers gift cakes to their loves ones. Retailers must produce unique and useful product packaging that not only looks good but also securely secures the goods.
According to Poixel's research, 75% consider cost when purchasing a cake for a particular occasion. We discovered that the optimal pricing range for a cake that people are willing to spend is between 10-20 KWD. To account for the current inflation in Kuwait, brands can add 10-15% margin to the cost. Hence, in order to succeed in garnering purchases from a bigger consumer base, firms must stay inside this range.
- Integrate cakes and gift
According to Poixel’s research of the gifts market in Kuwait, 88% of the sample purchases side gifts in addition to the cake. As a result, businesses must provide product choices that include both the cake and the presents in one bundle. Such product offerings are especially popular during special seasons such as Mother’s Day, New Year, Hala February and Graduation ceremonies.
Cake and flowers, cake and electronic messaging, and so forth are examples of possible combinations. Such solutions help the end user by saving their time and effort when organizing a gift, which is very important for Kuwaiti consumers.
- Product knowledge
Successful retailers must be knowledgeable about their products, ingredients, best-selling items, and emerging trends. To deliver new items to the market faster than rivals, business owners must be informed of emerging trends in the cake industry.
Get our full market research report on the cakes and gift market of Kuwait. Reach out to us at firstname.lastname@example.org to initiate a market research study for your business.