Based on the information contained in the case, and using concepts from B100 Block 4, describe the marketing mix used by Pericles Caf and Bakes.

On the basis of your analysis in Question 2:

• Discuss whether the Pericles Caf and Bakes extended marketing mix (7Ps) is suitable for the purpose of attracting and keeping customers.
• Make recommendations about how Pericles Caf and Bakes could strengthen their current extended marketing mix.

Felicity Pounds and Mike Drummond run Pericles Caf and Bakes, a luxury artisan flapjack producer and retailer operating from their small caf premises in a coastal seaside town in the UK. The caf has been trading for ten years, offering morning coffees, light lunches, and afternoon teas. With only six tables and a seating capacity of 20 people inside, it is small, but it enjoys a regular clientele amongst residents and visiting tourists who enjoy the clean, modern, friendly and relaxed atmosphere. During the summer months, the caf uses the pavement at the front of the premises for additional tables and seating.

Given the physical constraints of the caf, Felicity and Mike have sought to expand their business by baking and selling flapjacks. They use only the finest quality local ingredients in their traybakes and they are proud of the varieties they have developed. In addition to the traditional flapjack, they offer 14 other regular flavours of flapjack, including their best-selling summer berries and yoghurt. Every second month a new flavour is added for a limited period. The full range of flapjacks are featured prominently on the counter of the caf and enjoy a listing on the cafs menu.

In addition to buying a flapjack to accompany their tea or coffee, customers can also buy a box of three of their favourite giant flapjacks as a treat to take away, or a selection gift box containing a variety of nine smaller flapjacks. The popularity of the flapjacks in the caf encouraged Felicity and Mike to rent a stall at the regional farmers market where they offer free samples to encourage customers to buy boxes of three flapjacks or gift boxes. The cost of renting the stall and employing staff to cover the caf operations whilst Mike and Felicity are away does not necessarily make the farmers market profitable for Pericles Caf and Bakes, however it did help build awareness of the flapjacks and the business. Following their presence at the farmers market, Felicity and Mike have been featured in the local business press and they have subsequently received awards for local enterprise.

In late 2019, Felicity and Mike commissioned a website designer to build an online presence for the sale of flapjacks to mainland UK-based customers. The flapjacks have a shelf life of approximately eight weeks. Visitors to the website can buy boxes of three flapjacks or gift boxes. They can also subscribe to receive regular discounted boxes at a frequency of their choosing. Delivery charges are dependent on the number of boxes purchased; however free delivery is offered for orders over 50. A box of three giant flapjacks starts at 14, with gift boxes which feature a personalised message, a jute bag and are wrapped in designer paper, starting from 17. Details on the full range of flapjacks available, the ingredients, allergy advice and customer ratings and reviews of each flavour of flapjack is provided on the website.

Between 2020 and Spring 2022, sales from the website far exceeded Felicity and Mikes expectations and they decided to employ a new member of staff to handle the website queries and to fulfil orders. They believe this initial surge in sales was largely due to the COVID-19 lockdown, a period when people were spending considerable time shopping online, looking to use their disposable money to buy treats. Following the lockdown period, the caf has fully reopened and is once again a popular spot for locals and tourists, but online sales of the flapjacks have declined by 15%.

Felicity and Mike feel that they need to do more to attract new customers and keep their existing customers. They have asked you to advise them on their marketing mix, their target markets, and their marketing communications strategy.