Catering in Slow Times – Marketing Plan B

Singapore caterer Purple Sage  was doing great during the boom times – selling to high-end special events and corporate clients.

Then, the recession hit and now they’re doing what they can to keep their 50 person company alive. Revenues are down 35%.

Before the recession, 80% of their business came from multinational corporations and banks.

According to the The Straits Times; “The biggest shock came during the week after Chinese New Year. ‘On the third day of Chinese New Year, there were zero events. And for the whole week, we had only one event a day,’ said Mr Seow. ‘That was quite a shocker which got us worried.”

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What Are They Doing About It?

What now? The corporate catering firm plans to fill the void by promoting itself to weddings and other social events. Would you switch markets?

Also, they’re tightening their belts – turning off lights, and cutting waste where they can.  That makes sense – of course we should always be looking for ways to cut waste, true?

Event staff is being redeployed as marketing and sales. They’re using their down time to cold call, follow up on leads and even handing out fliers. Would you have your waitstaff handing out coupons?

The firm is offering a lower priced menu for cash strapped clients. Would you see it as a step down or embracing change?

My Take

Seems like Purple Sage will make it through the slow time and be a stronger company if they don’t forget the lessons they learned.

• Diversify – Lack of diversification is always a risk to any business. Make sure that most of your revenues don’t come from a handful of clients. Diversify your vendor list too. Play favorites, but have your plan B vendors at the ready.
• Systems – create a system for everything your business does – including monitoring projected sales very closely.
• Speed - you must be able to react to market trends fast. The only constant in business is change. Always be ready for it.
• Scenario Planning – What if you lost your biggest client? What if you grew by 150% in the next 6 months? What if your key employee left? What if your biggest competitor left town? Plan for many different scenarios and you’ll be able to react faster and more intelligently.

What Are You Doing About It?

Are you pursuing new markets, new marketing channels and new ideas – or are you just hoping things will get better soon? I’d love to hear your ideas.

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