Market Research   Us Census Data Analysis
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Market Research Us Census Data Analysis

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  • Because of the inherent comprehensive nature of a census we do not need to deal with the statistical analysis of representative samples from an experimental standpoint. We can assume the measurements from the census are reliable and valid. However if we were to use the consumer profile of zip code 60616 in developing a marketing strategy on the national level, or vice-versa, we would find some statistically significant differences between the two populations. Examined in this presentation are some of the more salient trends to be considered.
  • The percentage of White people is one-third of the recorded national percentage. In addition, the African-American population is over 3x the national level and the Asian percentage nearly 10x larger. Considering the difference in sample size between these two populations, with the US at about 281 million and zip code 60616 at 47 thousand (60616 Census Report, 2000), there is a high likelihood that a sample as small as the latter will not be truly representative of the total population. The high number of combined minorities in proportion to the low number of white people is of important consequence to any strategic marketing efforts. Goods and services that are typically successful due to relative ubiquity of the White consumer at a national level will likely be unsuccessful in the area of 60616 as the target consumer profile should include African-American, Asian, & Whites in more even distribution of roughly one-third each. Also of note is that the Asian demographic in 60616 is almost entirely attributed to the Chinese population in particular; the Chinese account for 25.8% of the 29.3% Asian group (60616 Census Report, 2000). From a marketing perspective, an ideal business would be one that either appeals to a multi-ethnic consumer group, or effectively targets one of these three previously mentioned main subgroups.Data sets available from (U.S. Census Report, 2000) and (60616 Census Report, 2000).
  • The age groups between 25 and 54 years old account for the largest portions of the distribution. These three categories comprise over 40% of the entire population for both sample groups. In the 60616 group, however, there is a strong trend towards the younger end of this spectrum, ages 25-34, decreasing through the older groups in this subset. The U.S. data set shows a more even spread in this regard. From a marketing and business standpoint, this suggests that some of the stores in the proposed 5-store strip mall should be targeted toward young adults ranging between 25-34. Recent spending analyses have shown that this age group has the highest percentage of food expenditures on meals away from home, 46 percent, out of any other age group (U.S. Department of Labor, 2000). This suggests we should include at least one food service business in our strip mall. Integrating this data with the statistics in the previous slide, an ideal business would be one or two restaurants or cafes that would appeal to multiple ethnicities of this age group.Data sets available from (U.S. Census Report, 2000) and (60616 Census Report, 2000).
  • There is a very noticeable difference in the patterns of home-ownership and home-rental between the 60616 area and the U.S. population. In fact, the trends are almost reversed, with almost triple the amount of renters versus owners in the 60616 area code. This demographic is significantly different form the U.S. total, in which about two-thirds of the household population are home-owners. This information ties in with the information presented in the second graph above: There is almost twice the amount of enrolled college or graduate students in the 60616 area. The high-percentage of current enrollees when compared with the lower statistic of attained or completed education in this area (60616 Census Report, 2000) suggests that perhaps a high number of college students tend to rent residences because of a nearby college or university. It turns out that the Illinois Institute of Technology is in the 60616 zip code, as will be discussed in the following analysis slides. A marketing strategy for the strip mall should include a business that caters to students or facilitates studying such as an internet café or bookshop lounge. Integrating this idea with the previous slide involving age groups, we should target the social aspects of young, ethnically diverse, college or graduate students.Data sets available from (U.S. Census Report, 2000) and (60616 Census Report, 2000).
  • The percentage of both families and individuals in the 60616 group are nearly double that of the national population. This may be a result of high housing costs – the median value of a single-family home in 60616 is $171,700, which is 44% higher that the U.S. median (60616 Census Report, 2000). This may also perhaps be attributed to the large student population, many of whom are spending more than they are making during their college education. The reasons for this increased level of poverty could be many and would require extensive research beyond the scope of this presentation. For the purposes of our analysis, any marketing strategy or business plan would need to take into account the higher level of poverty and anticipate the implications in regard to consumer buying power.Data sets available from (U.S. Census Report, 2000) and (60616 Census Report, 2000).
  • With the total U.S. population comprising 75% Caucasians, the 25% observed in zip code 60616 effectively turns the latter into a majority minority sample. U.S. marketing strategies would need to be adapted to account for the lower frequency of Whites in addition to the increased frequency of African-Americans and Asians. In the 60616 area, the distribution is about one-third of each race. Almost all of the Asian population can be attributed to people of Chinese ancestry. Goods or services that appeal to a more multi-ethnic target market are needed in this zip code.The age distribution of both the U.S. total population and the 60616 zip code both roughly resemble a standard bell-curve. In the most populous age groups in the latter however, there is a pronounced shift toward the young-adult age range of 25-34. Sample size is of fundamental importance in statistics (Bazerman & Moore, 2009), and the relatively small sample size of the 60616 population when compared to that of the nation highlights the importance of this shift in the formulation of a market strategy. A strategy adopted from a national level may prove ineffective because it fails to account for this shifted target range.
  • A U.S. national marketing strategy that targeted home-owners would probably be quite unsuccessful in the 60616 area. The trends are essentially opposite each other, with the U.S. home-ownership at 66.2% and the 60616 rental population at 77.3%. This information is directly relevant to the marketing of long-term investment products such as energy efficient appliances or home addition and renovation (Ozimek, 2010). However for the purposes of our analysis the important consequence is that high rental frequency is negatively related to residential tenure (American Housing Survey, 1999). This is supporting evidence for the notion that a profitable target market will potentially be students residing in the 60616 for the short duration of their education.At 40.3%, the percentage of people enrolled in school at a college or graduate level is almost double that of the national frequency, 22.8%. This is accounted for by the fact that the Illinois Institute of Technology is located in the 60616 zip code. A marketing strategy that targets young-adult aged college students will likely be successful in choosing which stores to include in the new strip-mall. However, this consumer market would not be generalizable to the national population, as indicated by the lower frequency.The data shows that in the 60616 area, 24.9% of families and 28.1% of individuals are below the poverty level. Both these frequencies are over double the observed national levels of 9.2% and 12.4%, respectively. Since higher poverty denotes less spending power, the impact of this from a marketing standpoint is on the spending habits associated with poverty. Indeed poor people tend to spend a large portion of their money on daily meals and daily non-food expenses (Doan, 2009). This would indicate that marketing goods or services related to long term investments of time or money would not be successful in the 60616 zip code.
  • Considering the target age group of 25-34 and the student population, a coffee shop such as a Starbucks or Coffee Bean would provide a social gathering point that is not particular to any one race. It will allow students to meet and interact with one another while re-fueling with some fancy caffeinated drinks. Glasgow University has found evidence for a link between intellect and coffee (Paul, 2009). Next door to the coffee shop will be a Chinese food restaurant to draw in hungry customers. This choice is not meant to marginalize the White or African-American population but to promote a sense of embracing multi-cultural ethnicity. These first two food and drink-related businesses also address the higher poverty levels in the area since everyone needs to eat and drink, whether or not we can ultimately attribute the poverty to students. A third store in the mall will be a clothing & apparel store of relatively eclectic nature, such as an Urban Outfitters or H&M outlet. This addresses the elements of clothing and style among the young-adult age group and students.Since the Illinois Institute of Technology is so close to our new strip mall, it will be useful to have a few more elements to draw in students and other potential customers. A bookstore such as a Barnes & Noble or Borders will provide an intellectually stimulating environment as well as an attractive and comfortable place to study. This bookstore and study lounge could perhaps even be integrated with the coffee shop, as is a popular trend today. This addition will serve to draw in the multi-cultured student demographic. Also, since our students are attending a technical school, we can assume they are quite tech-savvy. Alloy Marketing group has found that the average college student spends 12 hours every day using some form of media or gadget (Marketing Charts, 2009). A computer and electronics store such as an Apple store will be our fifth addition to the strip mall. This will attract the target customer by appealing to their technically-inclined hobbies and social habits.The new 5-store strip mall should include businesses that cater to all of the previously stated unique characteristics of the 60616 demographic. However the single most unifying characteristic of our target consumer profile is that of the college student. The format of the strip mall itself will be useful in the marketing and advertising of related goods and services within close proximity of each other. The aim will be to have overlapping aspects of appeal for our target consumers.
  • Analysis of the data sets form the 60616 zip code and the U.S. total show that there are several prominent frequency differences that limit the generalizability of a marketing strategy between the two. A broad strategy aimed at the national consumer characteristics would fail to capitalize on the unique characteristic of the 60616 population. The significant differences occur in the more even distribution of race among White, Chinese, and African-American people, the higher percentage of young adults ages 25-34, and the high frequency of college level education enrollment. The high level of renters versus home-owners and the higher fraction of the population under the poverty level in 60616 are also important marketing strategy considerations.To attract the maximum number of consumers in 60616 to our new strip mall, we desire to create an environment conducive to the congregation of ethnically diverse young adults and college students. The recommendation to include a coffee shop, bookstore/study lounge and Chinese restaurant accomplish this. These first three businesses also address the high poverty-level issue, since food, drink, and social interaction are of relative low cost. To add to this attraction factor for students and young adults, a computer/electronics store and clothing & apparel store will cater to the technological social habits of students and support the multi-cultural eclectic nature of the young-adult population. In combination, these five stores will serve to maximize market penetration for the described consumer profile.

Market Research   Us Census Data Analysis Market Research Us Census Data Analysis Presentation Transcript

  • ABSTRACTA comparison of the differences in populationcharacteristics between zip code 60616 and the U.S.total is performed from a strategic marketing viewpoint.Analysis of key demographic differences involving race,age, education, housing, and poverty are used in thecreation of a business proposal for 60616. The choice of5 stores proposed for a new strip mall is designed tomaximize market penetration and the rationale for eachis explained in detail.
  • DEMOGRAPHIC COMPARISON BETWEEN ZIP CODE 60616 AND U.S.: AGE DISTRIBUTION Age Distribution by Percentage: 60616 vs. US18 16 14 12 10% 8 6 4 2 0 <5 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60616 60-64 65-74 75-84 US >85 Age Group
  • DEMOGRAPHIC COMPARISON BETWEEN ZIP CODE 60616 AND U.S.: HOUSING & EDUCATION Housing Status Percentages Education Enrollment Percentages 91 43.987.4 60616 US 60616 US 40.3 73.3 32.8 66.2 22.8 21.4 33.8 15.6 26.7 12.6 5.8 6.5 5.5 5.4 9Occupied Owner-occupied Renter-occupied Vacant Nursery school, preschoolElementary school (grades 1-8) Kindergarten High school (grades 9-12) College or graduate school
  • DEMOGRAPHIC COMPARISON BETWEEN ZIPCODE 60616 AND U.S.: POVERTY Percentages Below Poverty Level: 60616 vs. U.S. 30 25 20 % 15 60616 US 10 5 0 Families below poverty level Individuals below poverty level Group
  • CENSUS DATA ANALYSISRacial differencesLow percentage in 60616 of Whites compared to national totalHigher percentage of Blacks & Asian in 60616Age distributionProportion of young adults 25-34 is higher than national total
  • CENSUS DATA ANALYSISHousing statusesMore renters than owners in 60616Education EnrollmentDouble the national average of college or graduate-level students in 60616Poverty LevelSignificantly higher poverty in 60616
  • BUSINESS RECOMMENDATIONS FOR NEWSTRIP MALL1. Coffee Shop2. Chinese Restaurant & Tea Bar3. Bookstore / Study lounge & Internet Cafe4. Computer & Electronics Store5. Clothing & Apparel Store
  • CONCLUSIONDifferent marketing strategies are called for between the U.S. and zip code 60616.There are significant differences in the frequencies involving race, age distribution, education, poverty, & housing status.The target consumer profile is that of the racially diverse college/graduate student between ages 25-34.The new strip mall should include businesses that appeal to characteristics of the defined consumer profile.
  • REFERENCESAlloy Media Marketing (2009). College Students Spend 12 Hours/Day with Media, Gadgets. Retrieved from http://www.marketingcharts.com/television/college-students-spend-12-hoursday-with-media-gadgets-11195/Bazerman, M. H., & Moore, D. A. (2009). Judgment in managerial decision making (7th ed.). Hoboken, NJ: Wiley.Doan, T. (2009). How do the poor spend their money? [Web log message]. Retrieved from http://psdblog.worldbank.org/psdblog /2007/02/how_the_poor_sp.htmlOzimek, A. (2010). Externalities: Homeowners vs Renters. Retrieved 1/22/2011 from http://modeledbehavior.com/2010/06/15/ externalities- homeowners-vs-renters/Paul, S. S. (2009). Coffee quotient: An intellectual’s elixir. The Times of India. Retrieved from http://timesofindia.indiatimes.com/ articleshow/4937519.cmsSekaran, U., & Bougie, R. (2009). Research methods for business: A skill building approach (5th ed.). Hoboken, NJ: Wiley.The importance of a good marketing strategy (n.d.). Retrieved from http://www.business-training-schools.com/a/good-marketing- strategy.htmlU.S. Bureau of Labor Statistics (2000). Issues in Labor Statistics: Summary. Retrieved 1/21/2011 from http://www.bls.gov/opub/ils /pdf/opbils41.pdfU.S. Census Bureau (1999). American Housing Survey for the United States. Retrieved from http://www.census.gov/hhes/www/ housing/ahs/ahs99/h150-99.pdfU.S. Census Bureau Reports (2000). Profile of General Demographic Characteristics: 60616 [Data file]. Retrieved 1/21/2011 from http://www.factfinder.census.gov/servlet/QTTable?geo_id=86000US60616&ds_name=DEC_2000_SF1_U&qr_name=DEC_2000_S F1_U_DP1&_lang=en&_sse=onU.S. Census Bureau Reports (2000). Profile of General Demographic Characteristics: United States [Data file]. Retrieved 1/21/2011 from http://www.factfinder.census.gov/servlet/QTTable?_bm=y&-geo_id=01000US&-qr_name=DEC_2000_ SF3_ U_DP2 &- ds_name=DEC_2000_SF3_U&-_lang=en&-redoLog=false&-_sse=onU.S. Census Bureau Reports (2000). Profile of Selected Social Characteristics: 60616 [Data file]. Retrieved 1/21/2011 from http://www.factfinder.census.gov/servlet/QTTable?_bm=y&-geo_id=86000US60616&-qr_name=DEC_2000_SF3_U_DP2&- ds_name=DEC_2000_SF3_U&-_lang=en&-redoLog=false&-_sse=onU.S. Census Bureau Reports (2000). Profile of Selected Social Characteristics: United States [Data file]. Retrieved 1/21/2011 from http://www.factfinder.census.gov/servlet/QTTable?_bm=y&-geo_id=01000US&-qr_name=DEC_2000_SF3_U_DP2&- ds_name=DEC_2000_SF3_U&-_lang=en&-redoLog=false&-_sse=on