Magnolia Marketing

STARKVILLE
MISSISSIPPI’S COLLEGE TOWN
Report on Disposable Income and
Shopping Preferences for Starkville
Residents
Spring 2016
MAGNOLIA MARKETING
Olivia Chatham
Addison Harris
Graeme Lide
Chance Roberts
Josh Polk
Dylan Alidor

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Magnolia Marketing April 25th, 2016
April 25th, 2016
TABLE OF CONTENTS
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Introduction to Starkville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Method and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.5
Student Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.6
Student Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Student Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Student Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.10
Student Disposable Income and Credit . . . . . . . . . . . . . . . . . . . . . . . . . 11

3
Student Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Student Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.13
Student Wish List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Starkville Area Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Resident Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Resident Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Resident Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Relevant Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
References and Supporting Documentation . . . . . . . . . . . . . . . . . . . . . .28
EXECUTIVE SUMMARY

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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 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

5
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
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

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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 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

7
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

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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

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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 2016-2017 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

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Residence Halls:
● 2015- 2016 school year: 4,400 beds in 15 dorms
● 2016- 2017 school year; 5,100 beds in 17 dorms

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Off-Campus Student Residents

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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.

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STUDENT EMPLOYMENT
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;

14
therefore, students do have the financial means to support new businesses in
Starkville.
STUDENT DISPOSABLE INCOME AND CREDIT

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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.
STUDENT EXPENDITURES

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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.

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STUDENT ACTIVITIES
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

18
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.
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

19
supports the need for further retail, dining, and entertainment establishments within
the city.
STUDENT WISH LIST
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

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#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, or
Whole Foods
#9 Shoe Stores such as DSW
#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

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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 Percent
Males per 100
females
Both sexes Male Female Both sexes Male Female
Total population 23,888(r46172
)
11,82
4
12,06
4
100.0 100.
0
100.0 98.0
Under 5 years 1,500 779 721 6.3 6.6 6.0 108.0
5 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 4.4 101.5
15 to 19 years 1,403 697 706 5.9 5.9 5.9 98.7
20 to 24 years 5,998 3,128 2,870 25.1 26.5 23.8 109.0
25 to 29 years 2,561 1,395 1,166 10.7 11.8 9.7 119.6
30 to 34 years 1,504 750 754 6.3 6.3 6.3 99.5
35 to 39 years 1,192 596 596 5.0 5.0 4.9 100.0
40 to 44 years 992 476 516 4.2 4.0 4.3 92.2
45 to 49 years 1,111 506 605 4.7 4.3 5.0 83.6
50 to 54 years 1,145 511 634 4.8 4.3 5.3 80.6
55 to 59 years 1,073 505 568 4.5 4.3 4.7 88.9
60 to 64 years 797 360 437 3.3 3.0 3.6 82.4
65 to 69 years 657 297 360 2.8 2.5 3.0 82.5

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70 to 74 years 504 229 275 2.1 1.9 2.3 83.3
75 to 79 years 450 185 265 1.9 1.6 2.2 69.8
80 to 84 years 285 107 178 1.2 0.9 1.5 60.1
85 to 89 years 242 75 167 1.0 0.6 1.4 44.9
90 years and
over
106 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 Total
Total Population 23,888 100
White 14,246 59
Black or African American 8,274 34
Asian 894 3
Hispanic or Latino 429 1
Two or More Races 309 1
Some Other Races 104 Below 1%

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Comparison of Starkville and Hattiesburg: Real Estate & Housing

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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).
● Starkville: Real estate values
○ Households from 2007-2011: 11,567
○ Real estate values have increased by 28.5%
EducationalAttainmentof PopulationAged 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%

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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.
RESIDENT EMPLOYMENT

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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

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in various job sectors. With a high number of the 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

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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 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.

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● 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:
Spending Power

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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 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

31
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 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.

32
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

33
attended 18 games at Humphrey Coliseum, 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.

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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,

35
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 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

36
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.

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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.
"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/>.

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“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.

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