Jump to content
Sign in to follow this  
CakeCup

Cake in a mug premix - Will it take off in SA?

Recommended Posts

Posted (edited)

Hey guys

I have developed a few recipes for a "cake in a mug" premix that I want to package and sell it in retail stores in single servings. All you have to do is put the mix in a mug, add milk and microwave for 90 seconds.

While there are existing products out there I want to charge a bit less and have a wider variety. At the moment chocolate and vanilla are the most popular flavours and there are caramel and cappuccino. I want to take the concept further with flavours like blueberry, red velvet, Madeira etc.

At the moment they sell for around R35 for four (Moir's) and R55 for four (Woolworths) I can easily beat this pricing by supplying retailers at a much lower price.

Do you think this product will take off where it will be a sustainable single product business? Both Moir's and Woolworths sell a myriad or products but they will by my only product. 

Any input will be appreciated. 

P.S. Here are some example photos I found on Google

cakeinamug.jpg

Edited by CakeCup

Share this post


Link to post
Share on other sites

Hi @CakeCup, I am familiar with this product, Golden Cloud has a variety as well called "Cake in a Mug".

I don't think that this is a popular product in SA and I don't think it is doing too well sales-wise to sustain a single product company especially not one with existing, well established competition unless you have something really special.

I have seen a lot of these (as in pallets) end up in the clearance supermarkets that are not short-dated at far below retail price. I often monitor clearance channels (Giant Hyper et al) to see what products end up there and whether they are expired, short-dated, rejects or overproduced in order to gather information as part of broader market intelligence to guide my decision making in similar markets.

I think these products were overproduced as in orders did not match expectations and I also think it did not meet sales expectations on a retail level to be end up selling for what is essentially salvage value. You could get a "fresh" box of 4 for as low as R10 each then later I saw two boxes of short dated for R10. So basically R5 for a box of 2 (8 packets in total).  

I have seen Moir's at Giants and Golden Cloud at smaller stores selling goods from clearance channels, I don't think that bodes well for your ambitions. However let it be noted that my experience is anecdotal so I would suggest you do some market research on your target market. Tread carefully and don't bet the farm on this venture. Bear in mind any food retail venture requires some "R&D" investment into food consulting testing (safety, shelf life, labelling) as well as your design and branding, packaging, kitchen facilities etc.


Not "if", but "how".

Share this post


Link to post
Share on other sites

Thank you very much @Mesa Verde for taking the time to reply, it has been very helpful and it is important to get unbiased advice than what you get from friends and family.

Just to pick your brain, why do you think it is not very popular or hasn't really taken off?

Share this post


Link to post
Share on other sites
On 5/31/2020 at 3:34 PM, CakeCup said:

Thank you very much @Mesa Verde for taking the time to reply, it has been very helpful and it is important to get unbiased advice than what you get from friends and family.

Just to pick your brain, why do you think it is not very popular or hasn't really taken off?

My first thought was do we really need this product? This small cake in a mug that hardly feeds one person. Who is the target market and what problem does it solve? Its kind of a novelty product, muffin and cake cake premix I get, instant pudding I get, it's a cheap family dessert.

According to this page this product follows a "international trend for bite-size snacking" and quotes a Moir's press release:

Quote

The brand you have known and loved for years is shaking up the baking category with these easy, single-serve, baked desserts treats that can be eaten on the go and prepared almost anywhere – all you need is a mug and a microwave.

I don't watch television so I don't know if there has been a marketing campaign but I would love to see how it is being marketed. Is it aimed at professionals, busy parents or latchkey kids wanting to make a quick snack like they would 2 minute noodles.

I also think it's way too expensive, for what is essentially a cupcake, although a freshly baked one. I also think it's quite bland. 

But if you can produce a cheaper, tastier version that can be made with water, then maybe you can target it at lower-income buyers who make up the vast majority of South Africans. If you can produce it at a low cost, and get it into those channels, then you might have a chance.

You need to conduct some market research with your target audience (made up of strangers), gauge their reaction to taste, price-point and convenience (let them prepare it themselves).  


Not "if", but "how".

Share this post


Link to post
Share on other sites

I've tried the Moirs brand before, I don't think it is value for money. It produces a really small "cake" that takes up less than half the size of the mug its like the size of a muffin or cupcake. Yes, I know its a cake in a mug but I thought it would fill up the mug like on the box. You will need two packets to fill up a mug. Yes it is freshly baked but it is not worth what it sells for. It needs to be much cheaper, even R20 a box of 4 (R5 per cake) is steep and too much in my view. 

Share this post


Link to post
Share on other sites

Thank you for your insight @Mesa Verde it is definitely something to think about: how low I can bring down the cost of production / can I make it tastier / should I change strategy and focus on making whole cakes. Lots to think of.

7 hours ago, mr nobody said:

I've tried the Moirs brand before, I don't think it is value for money. It produces a really small "cake" that takes up less than half the size of the mug its like the size of a muffin or cupcake. Yes, I know its a cake in a mug but I thought it would fill up the mug like on the box. You will need two packets to fill up a mug. Yes it is freshly baked but it is not worth what it sells for. It needs to be much cheaper, even R20 a box of 4 (R5 per cake) is steep and too much in my view. 

A Moir's portion I believe is made for a 200ml size mug, which are those small tea cup sizes. A normal coffee mug is 250 - 350ml and up to 500ml and even bigger. So if you have a bigger mug it will look tiny in there.

How much would you be willing to pay per single portion/packet? And how much will you be willing to pay for a box? How many portions/packets do you think should be in a box?

Share this post


Link to post
Share on other sites
On 6/23/2020 at 7:22 PM, CakeCup said:

How much would you be willing to pay per single portion/packet? And how much will you be willing to pay for a box? How many portions/packets do you think should be in a box?

R10 for a box of 3 for the current Moirs type. So R3.33 each.

Share this post


Link to post
Share on other sites
Sign in to follow this  

×
×
  • Create New...