magnolia marketing
TRANSCRIPT
STARKVILLEMISSISSIPPI’S COLLEGE TOWN
Report on Disposable Income and Shopping Preferences for
Starkville Residents
Spring 2016
MAGNOLIA MARKETINGOlivia ChathamAddison HarrisGraeme Lide
Chance RobertsJosh Polk
Dylan Alidor
April 25th, 2016
TABLE OF CONTENTS
2
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Introduction to Starkville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Method and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Student Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Student Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6Student Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Student Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Student Disposable Income and Credit . . . . . . . . . . . . . . . . . . . . . . . . . 11Student Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Student Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13Student Wish List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Magnolia Marketing April 25th, 2016
3
Starkville Area Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Resident Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Resident Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20Resident Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21Relevant Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26References and Supporting Documentation . . . . . . . . . . . . . . . . . . . . . .28
EXECUTIVE SUMMARY
The purpose of this study is to prove that Starkville’s consumer base
and disposable income can support the expansion of retail, dining, and
business establishments into our community. Our method of presenting this
study is by finding pertinent information that proves that the Greater
Starkville Area has a spending power that can allow larger business chains to Magnolia Marketing April 25th, 2016
4
expand and make a profit within our city. In addition, Dr. Mike Breazeale
conducted a survey in which we asked a wide variety of students a number
of questions regarding their consumer behavior habits. We have found that
many of our findings can really support the potential marketability of the
Greater Starkville market. Highlights of our findings include the amount of
money that students spend on rental apartments and temporary housing,
which is around $620 a month. This statistic proves that the income of
students and their parents can support a higher tier level of rent. Another
piece of important information is the high percentage of income that is
disposable (nearly 50%), and the average amount of disposable income that
each student has, which is $679 per month. In addition, we found that the
majority of students do not work during the school year, alluding to the fact
that many students have enough disposable income to where they do not
require a job. Moving into non-student residents of the community, according
to statistical websites such as City-Data and Census Factfinder, the City of
Starkville has a large percentage of residents who hold a bachelor’s degree
and higher, and we also have a large percentage of retirees. These two
demographics are known for their higher levels of disposable income. As we
progress further into the packet, we will uncover additional findings that
show Starkville’s ability to support additional business chain establishments.
INTRODUCTION TO STARKVILLE
Magnolia Marketing April 25th, 2016
5
Starkville, a city that prides itself in being a place where any
demographic group can comfortably call home. Starkville is the home of
Mississippi State University, which brings a large youthful and vibrant
population of 20,873 students into this dynamic small city. Starkville’s
young, friendly, active, and growing population is always looking for great
new places to shop, eat, and interact. With each new year, Mississippi State
University breaks enrollment records, causing a bubble of excitement arising
from our city’s growth. With each new student, family member, professor,
businessmen, retiree, and resident who moves into Starkville, there is a
constantly growing demand for additional retail and dining establishments.
As a forward thinking city, we greatly anticipate the opportunity for
corporations to expand into Starkville, Mississippi.
METHOD AND ANALYSIS
We gathered our data using a variety of outside sources including: our
student body survey, online data, and information gathered by personally Magnolia Marketing April 25th, 2016
6
contacting local businesses and facilities. It was with the help of our fellow
classmates that we were able to collect feedback from our survey, which
gave us a better insight into what they are currently looking for in new
businesses entering Starkville. It also gives a better understanding into how
much disposable income college students really have. With our survey
results we were able to generalize our results, as our sample accurately
represents our student population. Below you will find the data we believed
to be the most relevant to our study. Included throughout are overall campus
and city demographics, including statistics that prove that Starkville’s
population doubled during the academic school year.
STUDENT INFORMATION
Magnolia Marketing April 25th, 2016
7
As quoted from Mississippi State University’s website, Mississippi State
University is “The People’s University,” where more than is expected is
expected. We have over 20,000 students from every state and over 75
countries.”
STUDENT DEMOGRAPHICS
According to Forbes, there are 20,873 students who attend Mississippi
State University per the current academic. We have an ethnically diverse
student body that can support multiple types of businesses. The student
population is 71.5% White, 21.2% African American, and 7.3% of other races
including Asians, Hispanics, and Native Americans. We have a fairly even
distribution of gender, with 52% of students being male, and 48% of
students being female. Due to this fact, businesses that cater to certain
genders can have a well represented consumer base from either gender.
STUDENT RESIDENCE
It is true that enrollment numbers increase every year at Mississippi
State. Just last year 20,873 students were enrolled, which proves an increase
of 735 students from the previous year (2014). With an increase in student
enrollment, the university and the city have to provide accommodations for
these students. For this reason, new residence halls, and off-campus housing
are currently being constructed, and are to be implemented for the 2016-
Magnolia Marketing April 25th, 2016
8
2017 school year. On average, students spend approximately 9.55 months of
the year living in Starkville. Below you will find statistics for the cost of living
on and off campus. With the rapid growth of our student body comes the
growth in demand for more business
On-Campus Student Residents
Magnolia Marketing April 25th, 2016
9
Residence Halls:● 2015- 2016 school year: 4,400 beds in 15 dorms● 2016- 2017 school year; 5,100 beds in 17 dorms
Magnolia Marketing April 25th, 2016
10
Off-Campus Student Residents
Magnolia Marketing April 25th, 2016
11
According to the MSU Student Body Survey that we conducted, the
average monthly rent or mortgage payment for off campus students is $620.
With residents who split payments with a roommate(s), the other person
pays an average of $541 monthly. Overall, this shows that the total cost of
students’ residents is an average of $1161.00 monthly.
94% students reported that either they (30%) or their
parents/guardians (64%) pay the rent or mortgage for their current Starkville
residence. This data shows that students and their parents do not rely on
loans or scholarships for resident expenses, but rather they have the
financial means to pay for such expenses.
STUDENT EMPLOYMENTMagnolia Marketing April 25th, 2016
12
According to the MSU Student Data Survey that we conducted, 55% of
students have either a full-time or part-time job on or off campus. They work
approximately 19.41 hours per week and make an average of $12.52 hourly.
This data shows that the majority of students are working and receiving an
income; therefore, students do have the financial means to support new
businesses in Starkville.
Magnolia Marketing April 25th, 2016
13
STUDENT DISPOSABLE INCOME AND CREDIT
According to the MSU Student Data Survey that we conducted, other
than income from working, 56% of students on average receive $100-$500
additional money per month, whether from allowance, scholarship, or
stipend. Also, 60% of students have credit cards available to them with an
average credit limit of $3,800. Overall, statistics show that the average
student has approximately $679 total disposable income. This additional
money and credit is not always represented in students’ spending power.
However, these statistics are of great significance, because such money can
go towards spending at additional dining, retail, and entertainment
establishments.Magnolia Marketing April 25th, 2016
14
STUDENT EXPENDITURES
The graph above shows that over 65% of students’ income goes
toward eating out, going out, and shopping for clothing. Therefore, over 65%
of students’ money is disposable and not being spent on essentials. In
addition, this information also correlates with students’ wishes of wanting
more options for restaurants, shopping, and entertainment.
Magnolia Marketing April 25th, 2016
15
STUDENT ACTIVITIES
According to the MSU Student Data Survey that we conducted, 34% of
students leave Starkville multiple times a month for their shopping and
entertainment needs. This is a significant percentage of students who are
leaving the city regularly. This is clear evidence that the City of Starkville is
in need of additional retail, dining and entertainment establishments. Based
on the results, we also found that each student is visited an average of
eleven times a semester by people from out of town. This sector of people is
a very important spending power that is not represented in the official
statistics of resident disposable income, as students want to take visitors to
the various dining, retail, and entertainment establishments that Starkville
currently has to offer.
Magnolia Marketing April 25th, 2016
16
Tying into this, it was shown in our findings that 49% of students “go
out”, or make visits to local dining and entertainment establishments, at
least three to four times a week. This statistic tells us that Starkville has a
population that is active and takes advantage of the business establishments
that currently call Starkville home. To conclude these findings, student and
visitor activity in Starkville is very high and supports the need for further
retail, dining, and entertainment establishments within the city.
STUDENT WISH LISTMagnolia Marketing April 25th, 2016
17
According to the MSU Student Data Survey that we conducted, 37% of
students responded that they would like to see “quite a few more”
entertainment options and 41% responded that they would like to see “a lot
of more”. With 78% of students wanting more entertainment options, there
is a considerable market for businesses in the entertainment industry to
thrive in Starkville.
When asked to rank entertainment options in the order they would like to have them in Starkville, students reported the following order:
#1 Live Entertainment Venue #6 Arts and Crafts
#2 Dancing #7 Dog-friendly Park
#3 Mini-Golf/Racing #8 Comedy Club
#4 Night Club #9 Arcade
#5 Spa #10 Hookah/Vape Bar
In addition, 26% of students responded that they would like to see
“quite a few more” shopping options and 51% responded that they would
like to see “a lot of more”. With 77% of students wanting more shopping
options, there is a considerable market for shopping retailers in Starkville.
When asked to rank shopping options in the order they would like to have them in Starkville, students reported the following order:
#1 Big Box stores such as Target #6 Specialty Clothing Stores - Fashion such as Polo, Gap, or Old Navy
#2 Clothing Stores – Men or Women #7 Electronics Stores such as Best Buy
#3 Department Stores such as Belk, Dillard’s, or Macy’s
#8 Home Stores such as Kirkland's, Pier One, or Bed, Bath & Beyond
#4 Grocery Store such as Trader Joe’s, Fresh Market, #9 Shoe Stores such as DSW
Magnolia Marketing April 25th, 2016
18
or Whole Foods
#5 Health and Beauty Stores such as Ulta, Bath & Body Works, or GNC
#10 Specialty Clothing Stores - Outdoor such as Bass Pro or Cabela’s
STARKVILLE AREA INFORMATION
In Starkville, one can expect to find a population that is divided fairly
equally between gender (percentage wise). Women make up 49.5% of the
population, while men are slightly greater at 50.5%. Close to 50% of the
population has graduated college with at least a Bachelor’s degree. As
current statistics state, Starkville’s population is reported being about 23,888
people. This count is not taking into consideration college students, who
almost double the population to well over 40,000. Below are data that show
current total population, age, race, real estate, and education statistics.
RESIDENT DEMOGRAPHICS
Age
Number PercentMales per 100
females
Both sexes Male Female Both sexes Male Female
Total population 23,888(r46172)
11,824
12,064
100.0 100.0
100.0 98.0
Under 5 years 1,500 779 721 6.3 6.6 6.0 108.05 to 9 years 1,292 656 636 5.4 5.5 5.3 103.1
10 to 14 years 1,076 542 534 4.5 4.6 4.4 101.515 to 19 years 1,403 697 706 5.9 5.9 5.9 98.720 to 24 years 5,998 3,128 2,870 25.1 26.5 23.8 109.025 to 29 years 2,561 1,395 1,166 10.7 11.8 9.7 119.630 to 34 years 1,504 750 754 6.3 6.3 6.3 99.535 to 39 years 1,192 596 596 5.0 5.0 4.9 100.040 to 44 years 992 476 516 4.2 4.0 4.3 92.245 to 49 years 1,111 506 605 4.7 4.3 5.0 83.650 to 54 years 1,145 511 634 4.8 4.3 5.3 80.655 to 59 years 1,073 505 568 4.5 4.3 4.7 88.960 to 64 years 797 360 437 3.3 3.0 3.6 82.4
Magnolia Marketing April 25th, 2016
19
65 to 69 years 657 297 360 2.8 2.5 3.0 82.570 to 74 years 504 229 275 2.1 1.9 2.3 83.375 to 79 years 450 185 265 1.9 1.6 2.2 69.880 to 84 years 285 107 178 1.2 0.9 1.5 60.185 to 89 years 242 75 167 1.0 0.6 1.4 44.990 years and
over106 30 76 0.4 0.3 0.6 39.5
The table above breaks down the age categories of Starkville
residents, as well as by gender. The largest age category is 20 to 24 years
old, which is also the average age of college students. This shows that
Mississippi State University students greatly contribute to Starkville’s
population. In addition, 4,114 residents are 55 years old or older; these
residents are either entering retirement soon or are already retired. Statistics
show that this age category tends to have a high amount of disposable
income.
Population By Races:
Race Population % of TotalTotal Population 23,888 100
White 14,246 59Black or African
American8,274 34
Asian 894 3Hispanic or Latino 429 1Two or More Races 309 1Some Other Races 104 Below 1%
Magnolia Marketing April 25th, 2016
20
Comparison of Starkville and Hattiesburg: Real Estate & Housing
The statistics above indicate that residents are willing to spend more
money to live in Starkville than Hattiesburg, which is the 4th largest city in
Mississippi (2010 census).
Magnolia Marketing April 25th, 2016
21
● Starkville: Real estate values○ Households from 2007-2011: 11,567○ Real estate values have increased by 28.5%
Educational Attainment of Population Aged 25 and Older in Starkville. 5-year Estimate (2009-2011)
Educational Attainment Estimate Percent
Less than 9th grade 475 4.0%
9th to 12th grade 806 6.7%
High school graduate (or equivalent) 2,021 16.9%
Some college, no degree 2,198 18.4%
Associate’s degree 796 6.7%
Bachelor’s degree 2,992 25.0%
Graduate or professional degree 2,662 22.3%
The table above shows that 72.4% of Starkville residents aged 25
years or older have attained some college education, while 54% have
received a college degree. Statistics show that those who have a college
education tend to make a higher income.
Magnolia Marketing April 25th, 2016
22
RESIDENT EMPLOYMENT
According to census.gov, 60% of the population 16 years or older was
in the civilian labor force from 2010-2014. Also, 55.4% of females 16 years or
older was in the civilian labor force from 2010-2014. From city-data.com,
local government employees on payroll totaled 276 for full-time employees
and nine for part-time employees in 2015.
According to TownCharts.com, the 2015 American Community Survey
shows in the graph above, that there are approximately 14,783 total
employees in Starkville in various job sectors. With a high number of the Magnolia Marketing April 25th, 2016
23
population employed, residents of Starkville are regularly earning an income
that can be used to make shopping purchases, eat out at restaurants, and
enjoy entertainment establishments.
RESIDENT INCOME
Oktibbeha County as reported by the U.S. Census Bureau has an
estimated median household income of $32,348. “TownCharts.com” cites
the 2015 American Community Survey for its reporting of statistics related to
income. The website reports that median earnings per worker in Oktibbeha
County are estimated at $35,790 which falls within $200 of the State
average. Median earnings as reported by Town Charts represent those 16
years of age and older who were employed full time and year round.
Earnings include regularly received salary, wages or net income from self
employment before any tax deductions.
The website breaks down an estimate of median income by age groups
reporting that the largest proportion is earned by those between 45 and 64
years of age with a median income of $50,994. Those between 25 and 44
years of age earn a median income of $37,377 and those 65 years of age
and older earn a median income of $36,891.
It would be fair to say that resident income is relative to a certain
area’s cost of living. The website cites the 2014 Bureau of Labor Statistics for
information regarding cost of living. Oktibbeha County is reported at 88.1%
of the overall cost index compared to the national average in the United Magnolia Marketing April 25th, 2016
24
States. In addition, Oktibbeha County is reported to have 72.3% of the Index
of housing costs in relation to the national average.
RELEVANT STATISTICS
Starkville compared to Mississippi state average:
● Median house value above state average.
● Unemployed percentage significantly below state average.
● Median age significantly below state average.
● Renting percentage above state average.
● Length of stay since moving in below state average.
● Number of college students significantly above state average.
● Percentage of population with a bachelor's degree or higher
significantly above state average.
Economy Information:
Magnolia Marketing April 25th, 2016
25
Spending Power
The comparative analysis of selective information gathered from the
US Census Bureau and the FDIC for Oktibbeha County, Mississippi in relation
to Tuscaloosa County, Alabama shows that Oktibbeha County has
opportunity for economic growth.Tuscaloosa County was chosen for
comparison due to its relative location and nature. It is less than 90 miles
east and like Oktibbeha County, Mississippi it is home to a State University in
the Southeastern Conference. For the purpose of this analysis, bank deposits
are used to represent purchase power of the county and likewise the number
Magnolia Marketing April 25th, 2016
26
of employer establishments is used to represent opportunity for spending, all
in relation to population.
According to the US Census Bureau Oktibbeha county is 24.4% of the
population size of Tuscaloosa County, Alabama. Analysis of bank deposit
summaries obtained from the website for the FDIC shows that total yearly
bank deposits in Oktibbeha County represent 29.1% of those in Tuscaloosa.
There is nearly a 5% difference between the two counties in relation to
deposits and population. In addition further analysis of information provided
by the US Census Bureau shows that Employer Establishments in Oktibbeha
county represent 21.1% of those in Tuscaloosa which is nearly 4% less
relative to population difference. Thus, the analysis shows that Oktibbeha
County has more relative spending power and less relative opportunity to
spend. Therefore it shows that there is in fact material evidence to argue the
presence of opportunity for businesses to enter the market.
Migration related to events held in the area
Mississippi State hosts numerous events on campus that garners
hundreds of thousands of visitors to the area each year. The most notable
events held are in the athletic department including football, baseball, and
men's and women's basketball. Football events are held between August and
November bringing tens of thousands of visitors for home up to 7 home
Magnolia Marketing April 25th, 2016
27
game weekends. More than $100 million in football projects have been
initiated in the last few years. The latest addition of note was the expansion
of the north end zone completed in August 2014 which increased capacity of
Davis Wade Stadium to 61,337.
The facility has been host to average attendances in excess of 55,000
the last six seasons. During the 2014 season, the first in the new expansion,
MSU set attendance records for single-season total attendance (427,892),
single-game average attendance (61,127) and single-game attendance
(62,945).
MSU is second nationally in percentage of average attendance increase
in the last 10 years based on stadiums over 60,000 capacity. In 2004, State’s
average attendance was 43,792, while in 2014 it was 61,127, marking a
percentage increase of 39.6. MSU trails only Texas A&M, which saw a 41.1
percent increase from 2004-14. State ranked ninth among FBS teams in
largest average attendance increase from the previous year with a jump
from 55,695 in 2013 to 61,127 in 2014.
Men’s and women’s basketball host games in the area typically from
the month of November to the month of March with each team hosting an
average of 16 home games. The capacity of the Humphrey coliseum is
10,000. The women’s basketball team set the program record for the
second-straight year as 67,598 attended 18 games at Humphrey Coliseum,
Magnolia Marketing April 25th, 2016
28
an average of 3,755 per game. State wrapped the home slate with a win
against Ole Miss in front of a crowd of 7,326 that ranked as the largest ever
to watch a women’s college basketball game in the state. MSU’s average
attendance improved by 1,435 from the 2013-14 campaign, the fourth-
highest increase in the nation and second in the SEC.
The Mississippi State baseball team owns the NCAA’s on-campus, single-
game attendance record at 15,586. In fact, The Top-10 crowds in Dudy Noble Field
history are also the Top-10 on-campus crowds in NCAA history. The baseball team
has eclipsed the 200,000 mark in paid attendance at Dudy Noble Field in four
straight years for the second time in its 125-year history.
Magnolia Marketing April 25th, 2016
29
CONCLUSIONS
As seen in this packet of graphs, statistics, and various information,
there are multiple reasons as to why Starkville should be on your choices of
new cities for expansion. Starkville, a diverse and educated city of 24,000,
has a consumer base that is more than meets the eye. In addition to the city
residents, Starkville is also the home to the rapidly growing Mississippi State
University, a school that has been breaking records in attendance, and has a
diverse student body population of an additional 21,000 that can be added
into the Starkville market. With Starkville’s diverse population of students
and residents, and with a very even distribution of gender represented at
MSU, Starkville can support a wide variety of businesses and services. With
that being said, there is large room for growth within our community, with
demand for more business as our community grows. According to our
survey, 34% of MSU students leave Starkville multiple times per month for
their shopping and entertainments needs. There is also a very large wish list
that students and residents have of businesses that they desire to see in our
city. To help curb these problems and keep students within our community
for their needs, we would like to ask you to consider the Starkville market as
a potential city of expansion. There is a considerable amount of disposable
income that is not represented in the city’s raw statistics. Our students alone
contribute quite a bit to the consumer base and business income of
Magnolia Marketing April 25th, 2016
30
Starkville. According to our survey, the majority of our students do not have
part-time or full-time jobs, meaning that that they have a steady enough
income for their spending wants and needs without needing a job. Of that
income, it was found that the majority goes into dining, shopping, and
entertaining. Tying into that, close to the majority of all students (49%), go
out to restaurants and entertainment facilities multiple times per week. So to
conclude our findings, we have a rapidly growing population that would
welcome new businesses with open arms. We are willing to spend enough
money to support growth in our town, so residents do not have to drive over
an hour away for their consumer needs. That being said, Starkville,
Mississippi can support your business, and we will look forward to doing
business with you.
Magnolia Marketing April 25th, 2016
31
REFERENCES AND SUPPORTING DOCUMENTATION“City of Starkville Project Data” MKT 4413 Greek Semester Expenses Collected 16 Apr. 2016
"Current Starkville, Mississippi Population, Demographics and Stats in 2016, 2015."
SuburbanStats.org. N.p., n.d. Web. 20 Apr. 2016.
"Local Business & Economic Development." Greater Starkville Development Partnership.
N.p., n.d. Web. 20 Apr. 2016.
"Mississippi State University." Forbes. Forbes Magazine, n.d. Web. 20 Apr. 2016.
"Mississippi State University Bulldogs Official Athletic Site - HailState.com." Mississippi
State University Bulldogs Official Athletic Site - HailState.com. N.p., n.d. Web.
20 Apr. 2016.
"Miss-state-ifc." Miss-state-ifc. N.p., n.d. Web. 20 Apr. 2016.
Magnolia Marketing April 25th, 2016
32
"Mississippi State University Bulldogs Official Athletic Site - HailState.com." Mississippi
State University Bulldogs Official Athletic Site - HailState.com. Mississippi State
University, n.d. Web. 20 Apr. 2016. <http://www.hailstate.com/>.
“MSU Student Data Reports” MKT 4413 Student Survey Collected 16 Apr. 2016.
"Residence Hall Costs." State Your Home. N.p., n.d. Web. 20 Apr. 2016.
"Population Estimates, July 1, 2015, (V2015)." UNITED STATES QuickFacts from the US
Census Bureau. United States Census Bureau, June 2015. Web. 20 Apr.
2016. <http://www.census.gov/quickfacts>.
"Starkville, Mississippi." (MS 39759) Profile: Population, Maps, Real Estate, Averages,
Homes, Statistics, Relocation, Travel, Jobs, Hospitals, Schools, Crime,
Moving, Houses, News, Sex Offenders. N.p., n.d. Web. 20 Apr. 2016.
"United States Demographics Data." United States and World Demographics Data
Census with Population, Density, Unwed. N.p., June-July 2015. Web. 20 Apr.
2016 <http://www.towncharts.com/United-States-Demographics-
data.html>.
"Your Geography Selections." American FactFinder. N.p., n.d. Web. 20 Apr. 2016.
Magnolia Marketing April 25th, 2016