Management Summary
IntimidationT
IP2MGMT600.pptx
Big D Incorporated Market Analysis Report
Tenika Tassin
Colorado Technical University
MGMT600-2202A-03
03/13/2022
Hey everyone and welcome to my presentation. In this presentation, I will compare and contrast Chicago’s general summary, census trends, occupation and employment statistics and Chicago’s Income summary to that of the US. After that, I will briefly recommend how Big D incorporated can penetrate into that market and become competitively profitable. Let’s get started.
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General Summary: US vs Chicago
Leading Us Trends
Leading Chicago Trends
Understanding the educational backgrounds, race compositions, means of transport preferred in a region and the status of families in a potential market is crucial in determining whether to penetrate the market and how to do so in a way that a business is guaranteed to enjoy success. Using the US data as the base standard to inform what to expect in Chicago or how to approach Chicago ensures that the unknown can be measured against the known thus informing key marketing strategies (Tien and Ngoc, 2019) The above data for instance allows us to compare the highest level of education in Chicago against that of US in general and understand the target audience of our products better. While in the US the highest share of populants of 28.6% only has a high school certificate and 21.05% only have some college education with no degree, Chicago is made up of 44.19% college graduates and 33.99% of graduate degree holders. This is impressive because if these values reflect in the population’s earnings, Big D stands a great chance of encountering robust growth in this region. One shocking statistic from this data however is that unlike in the overall US population where 75.7% of people prefer to drive alone to work, only 39.5% of people in Chicago drive alone. This value demands that Big D further investigate the spending patterns of Chicago residents before penetrating the market.
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Education
Race
Means of Transport
Family Status
Bachelor Degree 44.19%
Graduate Degree 33.99%
Not/Latino 94.6%
White 87.6%
39.5% drove alone
Married couple families 82.93%
Education
Highschool 28.6%
Race
Not/Latino 87.5%
White 75.1%
Some college, no degree 21.05%
Means of Transport
Drove alone 75.7%
Family Status
Married couples 75.9%
Census Trends: US vs Chicago
Three interesting findings are reflected on this slide.
Growth Trends of the US and Chicago specifically
Growth Trends in the individual earning in US vs Chicago
Housing Trends in US vs Chicago
1. Growth Trends of the US and Chicago specifically
Let’s take a look at the first graph. All compared trends grew in both the US and Chicago. The growth of the population in Chicago matching the overall growth in the US makes Chicago a potential market worthy of investment especially because of its promising growth rate. Most impressively, however, was that these three crucial areas grew even above US values further demonstrating the attractiveness of the Chicago market (Blundell et al. 2018).
The median household income
Average household income
Per capita income
In marketing, regions with higher household incomes are considered more attractive because empirical research proves that such areas can afford to pay more for the value they receive. For competitive businesses, these findings make Chicago highly attractive.
2. Growth Trends in the individual earning in US vs Chicago
Looking at the growth rate of the individual income earnings in Chicago, It was amazing to see how the growth rate of individuals earning over $100,000 was higher than those earning below the figure. Again, these values further emphasize the attractiveness of this market.
3, Housing Trends in US vs Chicago
That both the number of people owning homes and renting homes rose in Chicago points to the growing rates of the region and further the financial status of the residents of Chicago who are Big D’s target audience. That more people can afford homes points to the idea that more people are financially capable to spend more making the region attractive for business.
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1. Growth Trends: US vs Chicago
US female male total household median h/h inc average h/h inc per capita income 0.125 0.13900000000000001 0.14699999999999999 0.40400000000000003 0.47299999999999998 0.47599999999999998 Chicago female male total household median h/h inc average h/h inc per capita income 3.3000000000000002E-2 7.1999999999999995E-2 3.3000000000000002E-2 0.68100000000000005 0.69499999999999995 0.65600000000000003
2. Individual Earnings: US vs Chicago
US
$75+ $75 - 99.999 $100+ $100-124.999 $125 - 149.999 $150+ 1.714 1.2909999999999999 2.2069999999999999 1.9910000000000001 2.4790000000000001 2.339 Chicago
$75+ $75 - 99.999 $100+ $100-124.999 $125 - 149.999 $150+ 0.91700000000000004 0.5 1.1080000000000001 0.60099999999999998 0.68799999999999994 1.627
3. Housing type: US vs Chicago
US Owner Housing Renter Housing 0.26800000000000002 -8.2000000000000003E-2 Chicago Owner Housing Renter Housing 0.183 8.3000000000000004E-2
Occupation and Employment: US vs Chicago
Other Interesting Findings:
Asian population in Chicago grew the most by 62%
Leading Industries in Chicago Growth rates:
Professional scientific and technical services 27.7%
Finance and Insurance 15.2%
Leading occupations in Chicago:
Management occupations except farmers 18.3%
Sales and related occupations 17.4%
Business operations and specialists 8%
Analyzing the occupation and employment data of Chicago is as vital as understanding the income of the region. Based on the findings of this analysis, Big D can determine areas they will cut HR costs by working with local talent and areas in which the brand will be forced to pay heftily to compensate HR that have to relocate to the region. For instance, given that the number of residents in labor decreased, there is probably a higher need for jobs in the area. Understanding the population that grew the largest is also crucial in informing how to approach targeting processes. Therefore, this data reveals that Big D can enjoy working with locals within their management, sales and business operations departments. Additionally, Big G can also outsource their scientific, technical, financial and insurance services to local firms which would further help the business minimize their costs of setting up and running (Xu et al. 2021).
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Occupation: US vs Chicago
US Not in Labor In Labour Employed Unemployed Armed Forces 1.4E-2 -1.4E-2 0.01 5.0000000000000001E-3 -1E-3 Chicago Not in Labor In Labour Employed Unemployed Armed Forces 4.0000 000000000001E-3 -4.0000000000000001E-3 -4.0000000000000001E-3 4.0000000000000001E-3 0
Income Summary: US vs Chicago
As afore mentioned, in marketing, regions with higher household incomes are considered more attractive because empirical research proves that such areas can afford to pay more for the value they receive. For competitive businesses, these income findings make the Chicago market highly attractive. Although the average income in Chicago is lower as compared to the average income earned across America, the high growth rates of Chicago’s median income and per capita income prove why Chicago is a great place to invest in. These two statistics inform Big D that as long as the region continues in its upward trend on these two areas, the market will not only continue growing but promises that consumers will remain capable pf spending more money to access the value they seek in high quality and competitive products (Blundell et al. 2018)
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US Average Income Median Income Per Capita Income 56643 42257 21587 Chicago Average Income Median Income Per Capita Income 14615 69311 64426
Recommendations and Conclusion
Recommendations
Study the competition and their influence
Investigate how the market is segmented
Conduct a thorough industrial analysis:
policies and government regulations
product demand
buyer behavior etc.
Conclusions
Chicago is definitely an optimal region to take one’s operations.
Big D should definitely continue to prepare an entry strategy to penetrate the Chicago market
Recommendations
Beyond analyzing the market also looking at the competition and their influence is important to ensuring success.
Investigating how the market is segmented is also vital in determining and predicting expectations and informing decisions
A thorough industrial analysis will also inform Big D about other environmental factors that would impact their success in the region such as policies and government regulations, product demand, buyer behavior etc.
Conclusions
Chicago is definitely an optimal region to take one’s operations.
Big D should definitely continue to prepare an entry strategy to penetrate the Chicago market
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References
Blundell, R., Joyce, R., Keiller, A. N., & Ziliak, J. P. (2018). Income inequality and the labour market in Britain and the US. Journal of Public Economics, 162, 48-62.
Tien, N. H., & Ngoc, N. M. (2019). Comparative Analysis of Advantages and Disadvantages of the Modes of Entrying the International Market. International journal of advanced research in engineering and management, 5(7), 29-36.
Xu, K., Hitt, M. A., Brock, D., Pisano, V., & Huang, L. S. (2021). Country institutional environments and international strategy: A review and analysis of the research. Journal of International Management, 27(1), 100811.
