Marketing / Theories of Leadership

We rolled open with odds n' ends. A random article on the ins and outs of tipping (our foreign students just don't get it -- are you supposed to tip if the service is bad? And what the deal with tip jars at Starbucks?) Slovack Ricky Martin went to Waverly Inn and was just shocked (Shocked! I say) that the food wasn't very good. Of course it wasn't, it's a an old village stalwart taken over by some pretentious literary scenester-types to turn into a snobby clubhouse, food is beside the point. An article appeared recently that a lot of illegal food carts have been popping up around the city due to the economy -- it's quite easy to get a license to sell food, it's just a test of one's knowledge of food safety, and the city issues an unlimited number of them. A permit, however, allows a person to actually sell food on the city streets, and is limited to 3000 only. The cops have been sweeping up carts with people holding licenses but no permits.

The class broke into groups by table and had us come up with three marketing plans for the fictional 'Juicy Rib' restaurant, based on the demographic and customer stats from the case study. Here are the three we came up with:

• Goal 1: Maximize lunch time profits. Objective: Raise soft drink sales in the lunch daypart by 20% within 3 months. Strategy: Deeper penetration of target market with core product. Tactic: Offer combo meal, hitching the soda with the popular BBQ sandwich and a side. Budget: Low, just a few new signs for in house promotion, maybe an ad in where ever. Evaluation: Success determined by sales figures generated in house.
• Goal 2: Increase market share in the underrepresented 20-35 year old segment. Objective: Introduce BBQ by the pound for delivery, particularly to the college market and sell at least 20% of deliveries to that market in 3 months. Strategy: Diversification and product development. Tactic: Late night delivery, advertise on college campuses, co-brand with a beer distributor. Budget: Delivery people, advertising, pay off the beer distributor, cost of keeping the kitchen open late. Evaluation: Keep database of where the new product is delivered. Demographic research will tell us the ages of the areas.
• Goal 3: Appeal more to women. Objective: Increase sales to mall shoppers by 20%. Strategy Market development. Tactic: a BBQ vending cart in the mall. Budget: High. Cart, permit, license, staff. Evaluation: Keep track of who is buying at the cart.

We spoke more of the definition of leadership. Formal authority is given by the title, the right to command. Real authority, however, must be earned from the subordinates. It's a bad situation when the one with formal authority and the real authority are two different people.

Theories of leadership, there are numerous. The old style boss was autocratic: all carrot & stick, reward and punishment, shut up and do your job as your told.

Theory X & Theory Y supposes that the old style assumes everyone hates work and just want the security of a paycheck -- employees must be ridden, while the new style supposes that work is the same as play or rest, and if a worker is motivated by commitment to a greater goal, work is not inherently despised.

Situational Leadership says it's all, well, situational, with a mix of directional behaviors (show ya how to do it) and supportive behaviors (care & support & praise.)

Transactional Leadership appeals to the worker's self-interest, but is a problem because whenever you ask the worker to do something, there must be a transaction to go with it. I understand why this may not work in the budget-conscious restaurant industry, but when I worked in an animation studio of a major network, whenever I was asked to stay late or do an extra project, it was strictly transactional and very satisfying emotionally and financially!

Finally, Transformational Leadership is all about always looking forward, communicating to in spite, challenge and lead by example. Hello, Steve Jobs and Bill Gates!