Synopsis

The Bronzeville IPRO has been going on now for three semesters. During the first semester, the idea of a concept block/ business incubator, which would provide services and jobs to the community was proposed and investigated. During the second semester, the IPRO team spent most of their time researching and discussing the Overton Building (36^th and State) as a possible site for a business incubator. As for this current semester, the team decided to focus on marketing the community to businesses. In order to market the community, several aspects were investigated. First, the team learned about Bronzeville, including the history and the landmarks. The team went on tours and researched the history of Bronzeville. The hope was that the knowledge of the rich history and landmarks would allow us to better sell this region. Second, the IPRO group studied the GAP/ IIT community as an important economic subset of Bronzeville. Bronzeville is bounded by 26^th Street on the north, Lake Michigan on the east, Fifty-first Street on the south, and the Chicago, Rock Island, and Pacific Railroad tracks on the west and is made of different subset communities. The GAP is a region from 31^st to 35^th and bounded by State Street and King Drive. Surveys were taken of the IIT community and obtained from the GAP Community Organization to find out what businesses the residents want. Interviews of community residents outside the GAP were also taken. After compiling these results, a list of target businesses was generated. Several businesses were contacted to discover what these companies look for in choosing a future store location. Finally, we studied marketing, in particular Internet marketing, and a sample-marketing proposal and a brochure selling this area were also developed by the team.

This IPRO team concluded several things:

1. Need for walking (not just driving) tours of Bronzeville that highlight the rich history and landmarks

2. Need for business such as a discount outlet (Target type store) and family style restaurants

3. Need for a website that highlights the attractions to increase tourism in the area. Within the same website should be a section specifically targeting businesses listing the advantages/ benefits of the area

4. Need for a brochure that targets prospective tourists and businesses

Conclusion #1

The importance of emphasizing the Bronzeville tourist attractions helps to develop pride among residents as well as visitors. Many IIT students as well as people who live in the Chicagoland area (outside of Bronzeville) are unaware of these historical landmarks and treasures that the Bronzeville community has to offer. The emphasis of the tourist attractions could be a selling point of this area. For example, a group of individuals or even a private company should begin to offer walking tours. Currently, some of the people that offer tours include Harold Lucas of the Black Metropolis Convention and Tourism Council. However, those tours involve a charter bus. The tours that our IPRO is suggesting involve going on foot. Many of the attractions as well as the feel of the community can only be seen in person. By getting people into the community and doing tourism, they could also become more aware of the shops and the stores that are nearby. Or they could even notice, some things that Bronzeville is lacking and maybe someday lead a group to redevelop parts of Bronzeville.

Conclusion #2

Although there is a small group that would disagree with this conclusion, the team believes that efforts should be made to attract a discount retailer such as Wal-mart as well as a clothing retailer like a Banana Republic. Currently, most of the residents of the Bronzeville including the GAP must leave the area to buy bulk essentials such as soap and detergent at discount prices because the stores that sell lower priced items simply are not found in Bronzeville. According to Robert Jones, a resident who lives on 37^th and Cottage Grove, his family must go to Ford City to buy tissues and soap because those items are not available at a low cost in Bronzeville. Even now, the large chains have been lacking in their development of the inner city. Clearly, a discounter coming in would benefit both the business and the local residents. However, some of the mom and pop stores could be put out of business if such a large discounter were to come in. This problem is already visible with the newly remodeled 35^th Street shopping center. Many of the current mom/ pop stores nearby are being priced out of that location from the increased rental prices. Many in the community would like the large discounters; however, others would prefer that those chains stay out because of the risk of losing the identity of the community. But the IPRO team believes that the benefits of a large discounter would outweigh any of the drawbacks.

The number of jobs and services provided by a large discount retailer will easily surpass the revenue and jobs generated by a small mom/pop store. Another priority should be a family style restaurant; currently, Bronzeville is full of small grocers and fast-food chains, but dine in restaurants are still lacking. Much of the dining out still must be done outside of the community. The local residents of Bronzeville would benefit but people in the surrounding Bronzeville communities such as Chinatown, Bridgeport, and Hyde Park could also travel to this area because of the close proximity to their homes.

Conclusion #3

The marketing tools that we studied can be actively pursued in our IPRO project of trying to stimulate economic development in Bronzeville. We believe that by developing a web site highlighting the development opportunities in this area and targeting this site to potential businesses, the community can achieve a resurgence. Within the web site, there could be a listing of the resources Bronzeville has to offer such as an abundance of workers, excellent transportation, a rich history and fine architecture. The last commodity that needs to be addressed will be promotion. The Internet is one of the hottest promotion mechanisms available. Therefore, by using the aspects learned on how to effectively market a concept, how to market that concept via the Internet, and how to produce a web page, a model marketing campaign for the Bronzeville community could be launched. Currently, there are no comprehensive web sites of Bronzeville. The City of Chicago’s Department of Planning and Development used to have a one pager on Bronzeville, but now there is no City sponsored Bronzeville page. Therefore, the IPRO believes that the City with its large resources is a possibility as the group responsible for developing, maintaining, and paying for a new website. If the City’s page had a link to Bronzeville, the traffic to the Bronzeville website would be much greater than if the site had no affiliation with the city.

Conclusion #4

To go along with selling the tourist attractions, a brochure similar to the “Chicago Official Visitors Guide” published by the Chicago Convention and Tourism Bureau should be produced that highlights the rich history and attractions of Bronzeville. This brochure could be a marketing tool in bringing more people to the area. The Hyde Park Chamber of Commerce is in the process of producing a similar publication.

The report will go through the processes and steps that the team underwent to reach these conclusions.

Bronzeville

In order to market a community, it is essential to understand the history as well as the background of the community. The team learned that Douglas/ Grand Boulevard (aka Bronzeville) is one of the oldest and most historic neighborhoods in the city. This group also discovered that plentiful jobs within the community, thriving retail shops, a powerful local press, strong churches and clubs, and an incredibly rich cultural life were characteristic of Bronzeville from the 1900s until after World War II. Some famous people from Bronzeville have included: journalists Ida B. Wells, Ferdinand Barnett, and Robert Abbott; musicians Louis Armstrong, Thomas Dorsey, Lil Hardin, Earl Hines, and Lionel Hampton; writers Richard Wright and Gwendolyn Brooks; physicians George Cleveland Hall and T. K. Lawless; businessmen Jesse Binga and Anthony Overton. After learning about this tidbit, the team became even more excited about the project. As many people know, the long-term effects of deindustrialization, racial discrimination, and disinvestments have severely damaged this area. But Bronzeville is currently in an upswing, and today Bronzeville residents are trying to bring the community out of the ashes like a phoenix. Based on the neighborhoods rich tradition and legacy, community leaders, residents, and IIT students are all trying to revitalize and raise the quality of life for all in this neighborhood.

History

(Beginning with history, the team began investigating the past through interviews and books to obtain some background information. The following is a summary of what we learned.)

The Douglas area is one of Chicago’s earliest settlements and is named after Senator Stephen A. Douglas, who is buried at an ornate tomb at the end of 35^th street by the lake. Before 1850, this area was crossed by two old Indian trials, now Cottage Grove and Vincennes Avenue. Because Douglas was a land speculator and developer, in 1852 he purchased a substantial tract between 33^rd and 35^th streets. Later in 1856, he built his own estate and summer cottage there. During the Civil war, about 60 acres of Douglas’ land was used as prison camp for confederate soldiers. After the war, a horse-drawn line had been developed along Cottage Grove Avenue connecting 39^th street to the Loop, thus adding to the desirability of this area.

Because of the easy access to Chicago’s business district, many greystones and Victorian mansions were built and this community became a highly desirable residential area for upper class whites by the 1870s. So beautiful was this Grand Boulevard area, that Grand Boulevard became a preferred scenic route for the carriage-riding public. A large population of German Jews relocated here after their homes were destroyed in the Great Chicago Fire of 1871. The Michael Reese Hospital was constructed in 1880 near 29^th and Cottage Grove Avenues. At this time Cottage Grove Avenue was this area’s main commercial strip. And many Jewish families ran business along commercial strips like 35^th and 47^th streets.

By 1900, apartment buildings were constructed and the early residents began to move out. An Italian working class neighborhood developed in the Western part of Douglas and became known as the “Federal Street Slum.” Some Blacks started to move in, and as the residential makeup began changing, light industries were established from 26^th to 29^th streets along Indiana and Cottage Grove avenues, and a brewery was established between 26^th and 27^th streets from Cottage Grove to the Illinois Central tracks.

With the wartime demand for labor, more Blacks migrated from the south in search of work and many settled in Douglas/ Grand Boulevard. Because of increasing racial tension from the Race Riot of 1919 (an incident at the 29^th street beach touched off a race riot, the worst in Chicago’s history that resulted in 38 deaths.) and over the next decade, most of the Irish and Jewish inhabitants had moved out of this area. By 1920, the Douglas area had a population of 58,388 and was 74% Black. By 1930, the population had decreased to just over 50,000 and was now 89% Black. Because of socially restrictive housing covenants and intimidation, a racial barrier was drawn around the Douglas/ Grand Boulevard community.

However, during the 1920’s and 1940s, this area, which was the center of Black business and cultural life, became named Bronzeville or the Black Metropolis. Black entrepreneurs were thriving as well as the cultural scene—jazz, blues, gospel, literature, and the visual arts. The business and professional offices converged around the intersection of State and 31^st streets. By 1925, 47^th street was the most important retail trade and entertainment area for Black Chicagoans. It was the location of popular nightclubs and hotels. Live entertainment and famous black stars and writers such as Sarah Vaughn, Joe Williams, Nat Cole, and Richard Wright also developed their careers here. This community was also known as “the Harlem of Chicago” and the center of the performing arts area was the Regal theatre at 47^th and Grand Boulevard.

Between 1920 and 1950, this area experienced a surge in population. Since blacks were forced to settle in this area due to the restrictive covenants, overcrowding and the deterioration of living conditions became a problem. New housing had failed to keep up with the surging population and the World War II labor market increased the population to its historic high of 114,000 in 1950. The year 1950 marked the destruction of single-family homes and the construction of large public housing projects. The Federal Urban Renewal Program decimated Bronzeville and severely changed the fabric of the community. The 1960s saw 4,289 housing units constructed, most notably the Robert Taylor Homes. The housing projects that line State Street are the densest area of housing in the nation. Following World War II, some of the housing restrictions placed on African-American in Chicago were lifted, and many households left Bronzeville and moved further south. The result of this redevelopment activity was a substantial decline in the Mid-South population. For example, from 1950 to 1990, the combined populations of the Douglas and Grand Boulevard neighborhoods (two of the neighborhoods included in the study area) declined to just 66,000 from a population in excess of 100,000. As people began moving out, the economic base of the area disintegrated. Many factories and retailers closed. So shopping alternatives for the residents were severely reduced, and most social outlets boarded up their windows.

Attractions

After understanding what changed a once thriving community into the current state that we see today, we discovered that some of the vestiges of this area’s grand past were still visible. Although the 47th Street area has deteriorated and the Regal Theatre was torn down a decade ago, many monuments still exist.

There are several historical landmarks throughout the area, some of which are as follows:

1. Anthony Overton was a businessman who established the Douglas National Bank, which was in operation until the Market crash of 1930, the Overton Hygienic Building and the Chicago Bee. The Overton Building (36^th and State) was used for his cosmetics company as well as rental space for other services offered by Blacks. The Chicago Bee, founded in 1926, was one of Chicago’s African American newspapers. It lasted until the early 1940s. The three-story building is now a Chicago Public Library. The building features a richly ornamented facade exterior executed entirely in terra cotta.

2. Jesse Binga founded Binga Bank located adjacent to the Chicago Bee Building (36^th and State). It was the first Black owned and operated bank in the country.

3. The “Monument to the Great Northern Migration” is the name of the fifteen-foot statue on King Drive (intersection of 25^th and King). The statue is of a man standing on top a pile of worn out shoe soles; he faces north to indicate the direction of his journey. This statue commemorates the blacks that left the south to come to Chicago to work.

4. The “Walk of Fame” consists of plaques that name people who have lived in Bronzeville. The plaques are cast in bronze and line both sides of King Drive over a 1.5-mile distance.

5. The “Victory Monument “ (a.k.a. Doughboy Sculpture), located on 35^th and King Dr., is of a uniformed World War I soldier. It is the kick off point for the annual Bud Billiken Parade.

6. The Wabash Avenue YMCA is located at 3763 S. Wabash. After having opened in 1913, it was an important focus of neighborhood pride. It was a major center for both socializing and educating in the Bronzeville community.

7. The Quinn Chapel (31^st and King Drive) was built in Bronzeville in 1847 and was an Underground Railroad Safe house. Three times, in the history of this church, Quinn Chapel has been destroyed by fire. The first time was in the Great Chicago Fire of 1871, then in 1874 and finally in the early 1950’s. The church hosted the 1994 Chicago Benefit Concert of Grammy Award winner Wynton Marsalis. The church has also been used for the set of two movies: (1994) Losing Isaiah and (1991) There Are No Children Here.

8. The Griffin Funeral Home at 32^nd and Calumet is situated on the former site of the Civil War Camp Douglas, which held Confederate soldiers. Currently, the funeral home flies the confederate flag to honor the thousands of confederate soldiers who died at this camp.

9. Groveland Park (35^th Street and Cottage Grove) is the site of Senator Stephen Douglas’ tomb. Douglas debated Lincoln and helped set up the Douglas/ Grand Boulevard area before it became Bronzeville.

10. Pilgrim Baptist Church (33^rd and Michigan) was constructed in 1890 and attended by the Father of Gospel Music Thomas A Dorsey and the renowned gospel singer Mahalia Jackson

11. Unity Hall at 3140 S. Indiana was once the headquarters for black politics.

12. The Provident (500 East 51^st Street) is the nation’s oldest black hospital. It was founded in 1891 by Dr. Daniel Williams, the most prominent African American surgeon at that time.

13. Roloson House (3213-19 S. Calumet Avenue). These townhouses built in 1894 are the only townhouses designed by Frank Lloyd Wright that were ever constructed

14. The Victorian homes along Grand Boulevard are over 100 years old and provide a glimpse at the rich past of this neighborhood.

Significance

The importance of these attractions helps to develop pride among residents as well as visitors. Many IIT students as well as people who live in the Chicagoland area (outside of Bronzeville) are unaware of these historical landmarks and treasures that the Bronzeville community has to offer.

Conclusion #1

The emphasis of the tourist attractions could be a selling point of this area. For example, a group of individuals or even a private company should begin to offer walking tours. Currently, some of the people that offer tours include Harold Lucas of the Black Metropolis Convention and Tourism Council. However, those tours involve a charter bus. The tours that our IPRO is suggesting involve going on foot. Many of the attractions as well as the feel of the community can only be seen in person. By getting people into the community and doing tourism, they could also become more aware of the shops and the stores that are nearby. Or they could even notice, some things that Bronzeville is lacking and maybe someday lead a group to redevelop parts of Bronzeville.

Demographics:

Understanding a neighborhood’s rich past and traditions is absolutely necessary in marketing an area. But that is only one aspect of a marketing strategy; the other part involves understanding the changing demographics of the area and finding out what people in the community want.

In the past, the area was a center of economic development, but over time, it became economically depressed. According to the U.S. Labor Department, the unemployment rate in this area is roughly 39% based on the 1990 Census. As of the 1990 census, 98,535 people lived here; 97% of them were African American.

No new statistics are currently available. This data is rather misleading because much has changed in this community. Many of the housing projects have been torn down, and some of the people in the subsidized housing areas have relocated. The population in public housing has also decreased. In 1992, the “Parade of Homes” revived interest in this community. And new market rate town homes and apartments have been constructed after the census, thus changing the demographics of this area.

Data from the 1990 census indicates that there are over 500 businesses in this area, but most of them are small retailers—mom and popshops. However, some of the retail outlets are under financed and do not fulfill the requirements of the residents in this community. The evidence is that many of the residents are leaving Bronzeville to buy basic items such as tissues and shampoo. That number is not many considering the near 100,000 population. Local businesses could come in due to the fact that there are few competitors within this area. Many of the needs of the residents and of the people working in the area (~30,000) could also be fulfilled here. Businesses still have not tapped into the huge consumer market created by IIT students as well as the new Central Police Headquarters. The new police headquarter will also improve the past perception of the Bronzeville area as being unsafe. The projected 1500 personnel further increase the purchasing power of the area. Despite having a median income of (16,150/ year), a population of over 98,000 makes this area prime for incoming business. (Again, the income level is from the 1990 census, and many higher income people have already begun to move in.)

The Incentives provided by the Federal, State and City governments can help alleviate the costs of moving in or expanding. Bronzeville is one of the few areas that offers the State Enterprise Zone Incentives, the Federal Empowerment Zone Incentives, and the Tax Increment Financing programs.

Property Tax Abatement:

This program provides financial assistance to attract new industry, stimulate expansion of existing industry and increase employment opportunities.

Federal Empowerment Zone Incentives

On December 21, 1994 Chicago was one of six urban areas awarded an Empowerment Zone by the federal government on the basis of a comprehensive strategic plan submitted by the City. Within Chicago, three regions are established as Empowerment Zone areas. One of those areas is the South Cluster Empowerment Zone, which includes the Bronzeville region. Each designated Empowerment Zone was awarded $100 million in EZ Social Service Block Grant (SSBG) funds to be used to implement the strategic plan. Designated EZs also receive priority consideration for federal programs and direct assistance from federal officials to facilitate implementation of the EZ Strategic Plan. In addition, special tax incentives designed to stimulate private investment and job creation in the zone are available to qualified businesses. These incentives, which average an estimated aggregate value of approximately $250 million over a 10-year period, include:

(a.) employer wage credit of up to $3,000 for wages and certain training expenses paid on behalf of a qualified zone resident are available to businesses located within the targeted area.

(b.) deduction (instead of depreciation) of up to $37,500 of the cost of certain qualified zone property in the year it is placed in service;

(c.) new tax-exempt facility bond financing;

(d.) priority consideration for other federal grants; and

(e.) consideration for waiver from federal regulations

Businesses who wish to learn more about the EZ program should contact Ray Adams, Director of Business Development, at (312) 744-9466.

Tax Increment Financing

The City of Chicago has set up TIF districts to help develop blighted areas, build and repair roads and infrastructure, clean up polluted land, and put vacant properties back to work for the people of Chicago. 41^st and King and 43^rd and Cottage Grove are two areas within Bronzeville that have been designated TIF zones. Over the 23-year lifetime of the program, tax increment financing is used for up front costs such as land acquisition, demolition, and rehabilitation. Once an areas has been designated a TIF, the tax is set at the baseline over a 23 year period, and as the area becomes revitalized, the increased taxes generated can be applied to pay for the initial upfront costs. There’s no reason to see why this program can also be applied here to Bronzeville.

According to the Mayor’s office, this program has already succeeded in many parts of the city including Goose Island. By the mid-eighties, Goose Island on the Near North Side was largely vacant and blighted. To turn this once thriving industrial district around, the City created the Goose Island TIF in 1986. Today, Goose Island is once again a booming industrial area. Industrial TIFs have helped the City to clean, clear and assemble land to make it available for industrial expansion and relocation. Companies such as Federal Express have built new facilities on Goose Island, creating and retaining hundreds of jobs. Goose Island TIF funds are also being used to train residents in the Cabrini Green area for permanent positions in these companies. So if TIF’s are already working elsewhere, they can also be applied in Bronzeville

State Enterprise Zone Incentives

Bronzeville is part of Enterprise Zone 2 and is eligible for Sales Tax Exemption, Property Tax Reduction, Finance Assistance, Real Estate Tax Exemption, Investment Tax Credit, State Jobs Creation Credit, Machinery and Equipment Sales Tax Exemption, Utility Tax Exemption. These areas are designated by the City and certified by the State of Illinois to receive various tax incentives and other benefits. The objectives of the City of Chicago Enterprise Zones are to stimulate economic activity and revitalize. Businesses seeking to move in or are seeking to expand in Bronzeville can take advantage of these incentives.

Profile and the needs

Because Bronzeville is not a homogenous community, each section of Bronzeville should be examined individually. So our team took a look at the IIT community, the GAP community, and the larger Bronzeville community to help us reach a decision of the needs of the area.

IIT community

A major consumer group in terms of numbers and captive audience within Bronzeville is the IIT population. This group consists of 1,278 full time undergraduates and 1,081 full time graduate students. In addition to the full time students, there are over 3,000 faculty and staff that work here at IIT, at IITRI, and the Illinois College of Optometry. Many of the IIT students are leaving this area completely or at a complete loss as to where they can satisfy their consumer needs. Based on an unscientific survey with a sample size of 60 conducted by our IPRO team, the IIT community’s needs are quite similar to the needs of the surrounding Gap area (31^st to 35, State to King). The types of businesses that most students felt would be most useful to them as consumers are: 1. Wal-Mart/ Kmart, 2. Produce Store, 3. Electronics store, like a Best Buy, 4. Department store, 5. Coffee House/ Night Club and 6. A bookstore.

The amount of money that the survey respondents spend on goods each week averaged $36 per week. Unfortunately, these students have been traveling an average of 15 to 30 minutes to satisfy their needs. They have been going downtown for food, clothing and entertainment, and leaving the community. If a business were to come in, over 88% of the respondents said that they would recommend the store to their friends.

Profile of the Gap:

One of the areas within the Bronzeville community is the GAP area. The GAP community consists of (1.) 600 households and Vintage landmark homes, (2) two Universities (IIT and the Illinois College of Optometry) and (3.) a retirement complex. According to the GAP business development committee, over 75% of this region makes more than $45,000, over 76% own their own homes, and 84% own cars.

Based on the results from the survey given by the Community Gap Organization (for details contact Ralph Iovinelli), most of the residents are also leaving the area to satisfy their needs. For example, over 64% of the people go to the Loop, to Marshall Fields, to Carson’s or to Ford City Shopping Mall for their clothing needs. For books, most people go to the Border’s on Michigan Avenue. When people need office supplies, they go to the Office Depot (on 79^th and Cicero or on 55^th and Lake Park). Clearly, people are traveling out of the area to satisfy their consumer needs. Due to the lack of auto repair shops in this area, most of these residents are going to the suburbs and away from the Bronzeville area to have their cars serviced. As for entertainment needs, the GAP residents are leaving Bronzeville entirely to see films. Some are going downtown, 87^th and Dan Ryan, Lincoln Park, Hyde Park and River Oaks. The survey respondents are also leaving this area to dine out. Over 51% are going either downtown or to Hyde Park for their dining needs.

The GAP community would like a family style dine in restaurant, clothing stores, department stores, health/ nutrition stores, bakeries, bookstores, and movie theatres, but they do not want fast food places, liquor stores, street vendors, currency exchanges, and arcades.

Conclusion #2

From the survey, the IPRO team concluded that the IIT community and the GAP community both wanted similar things. Since those stores are lacking in this area, the lack of competition factor could be another incentive for new businesses. From our research, we have concluded that it is impossible to focus only on one part of Bronzeville. Instead, we looked at the IIT/GAP community separately from the rest of the community and then we looked at Bronzeville as a whole. One of the unique features of Bronzeville is the different income levels and backgrounds of its residents. Although there is a small group that would disagree with this conclusion, the team believes that efforts should be made to attract a discount retailer such as Wal-mart as well as a clothing retailer like a Banana Republic. Currently, most of the residents of the Bronzeville including the GAP must leave the area to buy bulk essentials such as soap and detergent at discount prices because the stores that sell lower priced items simply are not found in Bronzeville. Even now, the large chains have been lacking in their development of the inner city. The number of jobs and services provided by a large discount retailer will easily surpass the revenue and jobs generated by a small mom/pop store. Another priority should be a family style restaurant; currently, Bronzeville is full of small grocers and fast-food chains, but dine in restaurants are still lacking. Much of the dining out still must be done outside of the community. The local residents of Bronzeville would benefit but people in the surrounding Bronzeville communities such as Chinatown, Bridgeport, and Hyde Park could also travel to this area because of the close proximity to their homes.

Clearly, a discounter coming in would benefit both the business and the local residents. However, some of the mom and pop stores could be put out of business if such a large discounter were to come in. This problem is already visible with the newly remodeled 35^th Street shopping center. Many of the current mom/ pop stores nearby are being priced out of that location from the increased rental prices. Many in the community would like the large discounters; however, others would prefer that those chains stay out because of the risk of losing the identity of the community. But the IPRO team believes that the benefits of a large discounter would outweigh any of the drawbacks.

In a recent news article from the Chicago Tribune’s Business Section (Wednesday, Jan 20, 1999), inner city residents purchase clothes, electronics, and furniture more often than the average American household , according to a recently published study. Anne Habiby for the accounting and consulting firm PricewaterhouseCoopers said, “Everyone is chasing after retailing in places like Beverly Hills, [California], but very few are chasing places like the south side of Chicago.” Her remarks further confirm that the Bronzeville consumer market is largely an untapped potential. The study showed that inner-city shoppers spend nearly 11% more on clothing annually than the average U.S. household. African Americans buy the most, almost 30% more than the average American. When urban consumers shop, they have greater brand loyalty than the general population. The study also highlights the demand for better prices, especially for groceries and clothing. In Bronzeville, a large clothing retailer is lacking. Although there are stores such as Foot Locker, they carry chiefly shoes and some sports related clothing. However, if everyday attire is desired, Bronzeville people have to leave the region. The inner city market is still underserved and only a handful of stores such as Rite-Aid and Sears currently operate in the inner cities, but not in Bronzeville. According to the study, there is still much room for growth and the market is severely underserved, and large chains could benefit from locating in these urban areas. This survey conducted by PricewaterhouseCoopers further confirms the results of the GAP and the IIT survey, calling for large retailers to enter the market.

Assets of the Bronzeville area

The team also investigated assets of Bronzeville that could make this area highly favorable to businesses. Eight points were discovered and researched.

Easy access to Lake Shore Drive (Rt 41) and the Dan Ryan Expressway (I-94)
Close proximity to Lake Michigan, McCormick place, Illinois Institute of Technology, and Comiskey Park
Convenient access via 2 CTA commuter transit lines (red and green)
$100 Million IIT campus improvements scheduled, including a new student center, academic buildings
330 Unit Housing development at Lake Meadows
Newly redeveloped retail space at 35^th and King
$25 million expansion of De la Salle High School (private)
People willing to work and be trained and also willing to spend money
Availability of vacant land in some parts of Bronzeville, especially in the 3^rd Ward.

Because of Lake Shore Drive and I-94, people can easily access the Bronzeville area. They can drive here from downtown as well as the suburbs. People can get in and out of this area rather quickly because of the easy access to expressways and main thoroughfares. The public transportation system is another added benefit. People who do not want to drive can easily access this area from virtually anywhere the CTA goes. Being close to the Lake could also bring in tourists and suburbanites.. In addition, there are the employees and tourists from McCormick Place and Comisky Park. The idea of the walking tours could also increase tourism. And if the tourist attractions are better publicized, more people may become interested in this area, thus increasing traffic and people to businesses that choose to relocate here. It should also be noted that 35^th street is a destination point. Unlike the other streets such as 31^st, 35^th is only accessible by the Dan Ryan Expressway.

By having businesses that provide good service, these people would definitely make the short trip to Bronzeville. Of course, let’s not forget IIT. For example, 7-11 located off of 32^nd and State is one of the higher grossing businesses, and the costs of consumer products there are rather high. Despite the lack of service and high prices, students still continue to shop there. Therefore, this consumer base would be more than willing to take their business elsewhere.

From our research, businesses like to move to areas where there are many homeowners and homes nearby. After talking to many of the entrepreneurs in the new 47^th Street and Lake Park Shopping Center, many said that the reason they relocated to the new center was because of the new housing developments nearby, which would increase the consumer base and lead to more potential customers for their business. The new 330-unit housing complex at Lake Meadows and the new Michigan Place Condominiums are bringing a greater number of higher income families to this area. And with more people and more disposable income, this will lead to more spending and incoming businesses could reap the rewards of any new venture.

The new campus center and the De La Salle high School improvements may not directly impact this area. However, better high schools benefit people wanting to move to this area. So indirectly businesses would benefit. And the campus center would help improve the image of the area as well as IIT, therefore drawing more tourists as well as students to IIT. So the consumer base will increase.

Let’s not forget the people in this area. Despite having a high unemployment rate, businesses that rely on nearby/ local labor can tap into these human resources. And with more emphasis on welfare to work training programs, the population could change to a moderately to highly skilled worked force. People are looking for places to shop.

What Businesses Look For When Opening a new Location

After determining the needs of the community, the IPRO contacted a car-detailing place and two promising redeveloped shopping centers to determine what businesses are looking for before moving to a new location. One company that was contacted was Turtle Wax Inc. Two shopping centers were also researched. From our efforts, we concluded that business look primarily at the number of households, the number of homeowners, and the income of the surrounding community. The effect is almost cyclical. As a new shopping center is built, housing is built nearby. And as more people begin to move in, more stores then want to commit to the shopping center. Promising redevelopments especially at 35^th and King and 47^th and lake Park appear to be working. More and more people are moving back to residential housing near the shopping centers in centrally located communities near transportation.

Turtle Wax Inc. (708-563-3600)

We contacted this car wax and detail company to find out what businesses such as them look for in terms of deciding whether or not to set up a store in an area. According to Chip Wilson, their company has a computer model that factors several variables. The number of households in relation to natural barriers such as interstates is factored in. The program also looks at a 3-mile radius from the metro area and scopes out the competition. The population of the area must have a population between 40 and 50,000. There must be single-family houses and the majority of households should be homeowners not renters. And the biggest one is that the average household income must be in excess of $40,000. According to Boils, the services that their company provides are more wants rather than needs. So people with a greater disposable income are more likely to purchase their services. They also look at competition, preferably if there is no competition located within 1.5 miles, and land costs are taken into account. He said that there are other subjective factors that are weighed in on a case-by-case basis. This criterion helps to explain why there is no Turtle Wax in Bronzeville. We have the population but the overall Bronzeville income is too low. The GAP income is high enough but there is not enough land.

35^th and King Dr. Shopping Center

This new shopping center is nearly full and stocked by mostly small entrepreneurs, with the exception of the Bank One. Some of the shops that have opened up include a bookstore, a dentist, a medical doctor, a deli, and a Chinese takeout type of restaurant. Esther Barnett, head of the GAPPIE Development Corporation, the group that is in charge of the new shopping center said that they are still trying to attract an upscale clothing store as well as nightclub. She said that attracting new business has been challenging and that most of the businesses focused on traffic patterns, number of households, and households that own their homes. All of those factors were taken into account by the various business in deciding to relocate. Originally, they were hoping that the shopping center would generate 100 jobs, but because a family style restaurant never came in, realistically between 15 and 20 jobs have been created. The Federal Empowerment Zone grant helped start this project. When asked about a Wal-mart type store, she said that a large chain discounter could prove detrimental to the identity of the community.

Originally, the idea of a shopping center came up in May 1994, when Ester Barnett and fourteen others noticed the empty lot. She and her colleagues came together and asked the proprietor of the empty lot not to sell. So she and the other 14 people took out a 1.3 million loan from First Chicago. The fifteen people put up $200,000 of their own money, and since they were still short on money, the $300,000 awarded from the Federal Empowerment Zone grant allowed them to begin the project. By 1998, the center was completed and the first tenants began moving in. She said that most of the stores are small entrepreneurs with ties to the community, which was something they were looking for. Since the corporation that they founded GAPPIE Development Corporation is a for-profit organization, they are hoping to see a return on their investment within the next 5 years.

She believes that without the Federal Empowerment Zone Grant, this project would not have been able to go forward. She believes that “at the current time, the program has been successful for this strip.” Slowly but steadily, jobs are being created and abandoned lots and buildings are being transformed through the hard work and dedication of entrepreneurs and people with vision.

47^th and Lake Park

Another retail shopping development, which just opened 2 months ago in Bronzeville was also made possible by the federal Empowerment Zone Grant. Before this development was built, the lot was empty, run down, and vacant. But today, this same area is showing much promise because some of the stores to open include a Co-Cp market, a Walgreen’s, a future Citibank, a Footlocker, an insurance company, a dry cleaners, and a record store.

One of the stores that we visited was Ivory Cleaners (773-451-0797). Ms. Kim, the owner, told us the primary reason she moved her store to this location was because the surrounding neighborhood was within a three-mile radius of her store and the nearby housing is undergoing a lot of changes. New luxury town homes are being built as well as single-family homes. To her, the infusion of higher income people will help her businesses. She says that her customers are mostly people who just moved into the community, into the new luxury town homes. To many business owners, the income as well as the housing of the surrounding area places a great factor in deciding whether or not to relocate to a given area.

After learning about the Bronzeville community and assessing the business needs, the IPRO team was ready to move to the final stage of the project: the marketing phase. Knowing about a community is one thing, but understanding marketing and the power of the Internet seemed crucial to marketing the area.

Marketing and Internet Marketing

The IPRO team believed one way to economically develop the Bronzeville area was through Internet marketing by way of a web page. The IPRO team didn’t have an extensive background in the area of Internet marketing as a whole. Therefore, we decided to research what comprised marketing in general, Internet marketing, and other advertising mediums that can be used. In addition to this, a speaker came to our class and discussed the aspects of how to effectively design a web page.

To fully understand Internet marketing it is worthwhile to also understand the underlying principles of marketing in general. There are four principles included in marketing strategies. The first principle is risk-reversal. This basically means that the business takes on all the risks and the prospects have nothing to lose by going with that marketing plan. For example, time can be used as leverage in this principle. One company said that they would meet for twenty minutes with a potential client and show them a way to save $2,500 in current taxes. And at the same time the company would pay them whatever they felt their time was worth for those twenty minutes. Neither party had anything to lose. The prospect will get paid for his/her time and this concept instills a tremendous amount of confidence in the prospect on the ability of the company to stand behind its services. The next principle is proof. Concepts are proved by facts and figures and from previous clients’ testimonials. Another related issue to proof is affinity. This concept is matching people by profession. For example, doctors often purchase items just because one of their colleagues bought it. By instituting this idea it can be beneficial to broadening the client base. The next principle is a unique selling proposition. This principle is out to answer the question, “ Why should the prospect go with your business as opposed to another?” A great example is with Domino’s Pizza’s guarantee that the pizza would be delivered fresh and hot in 30 minutes or less. This statement was specific and truthful. By focusing on these two ideals one can corner a piece of the market. The last marketing principle is to be a specialist. By working with a specific group of businesses or people the more targeted you become. This leads to dominating your own market and, thus, becoming more successful. By studying and applying the above four marketing principles one can develop a business profile to capture an audience.

The definition of Internet marketing was found to consist of many different points. The best definition that was found is the following: “ Internet marketing is utilizing the Internet as a tool to market or promote a product or service in the pursuit of a profit or to spread information to a very large populace in a short amount of time.” Marketing on the Internet offers several advantages. For example, it costs less than direct mail, it can reach a larger audience, and updating the information on one’s web site is less expensive than sending a letter stating the revisions. As was stated before, the strategies for marketing on the Internet are basically the same concepts that are used when marketing in newspapers, on the radio, and on the television. The first step is to have a precise goal that is well within sight and is able to determine the process one has to take in order to achieve that goal. It doesn’t matter what is being marketed. What does matter is that the marketer understands what the users’ needs and expectations are of the marketing plan. In order to learn what the user wants the marketer can conduct surveys. This will give them a direct link to the users that are interested in the plan. Also it is important to follow the behavior of the web site visitors. This includes the number of visitors, how often they return, and the number of pages that were viewed. By using this information the Internet marketer can improve the web page (for example, by making the page easier to use or more aesthetically appealing). Lastly, we found that to have a successful Internet marketing plan, strategic planning is a must. The Internet developer must have sufficient background in both traditional consumer marketing and this new field of Internet marketing. Without the framework of the above concepts Internet marketing will not be helpful in promoting one’s goals and ideas because the public will not be interested in a less than average web page.

Successful Case of Internet Marketing

The Dr. Pepper/7-Up Inc. is a great example of effectively using Internet marketing as a promotional tool. At first 7-Up had to be convinced that by using the Internet they could target their intended audience, the Generation X population. This was a complicated proposal. 7-Up realized that if they were to target this age group they couldn’t sell it short. They wanted to make sure that they focused on the concerns of the Generation X population, such as their politics, music, and careers when designing their site. To tap into this generation’s music 7-Up negotiated a deal to install an audio plug in so that visitors to the site could experiment with and remix sounds. This was incorporated into a contest called, Rhythms of the Road. The contest lasted eight weeks and a car was the grand prize. This promotion is considered a major reason why 7-Up.com has risen to more than 60,000 visitors. Therefore, by instituting the marketing principles into a web page, as shown by 7-Up, one can greatly achieve the goal of capturing the market.

Traditional Marketing

In addition to Internet marketing, the old fashioned strategies of marketing can still be utilized. These include television, newspapers, magazines, billboards, telephones, and radio. These mediums are more expensive than utilizing the Internet, so when dividing up your advertising dollar one has to be very selective in where the advertising dollar goes. For example, if one wanted to market Bronzeville to its residents the community newspaper, The Chicago Defender and the magazine, N’digo would be the proper locations to place advertising. It would be ill suited to use television or trade publications because they would not target that area as the publications distributed only in that area. Therefore, the basis in the advertising aspect of marketing is a healthy dose of common sense in knowing your audience.

Featured Speaker on Web pages

Ms. Sharilyn Avila, President of Avila Computer Services, was the speaker that came to our class and discussed the aspects of how to effectively design a web page in order to be an active member of the Internet marketing age. Within her presentation she listed fifteen rules in order to produce a web page. The first six rules dealt with the preparation before the web page was actually designed. One must first start by determining what type of web site is right for their information. For example, the web page should be catered toward other businesses, or the consumer, or to non-profit organizations. Also it is important to decide who will be visiting the web site and what the company/organization will be promoting. These two steps can only be completed by doing extensive research. Some research techniques are conducting surveys, collecting brochures and photos, and learning about the company/organizations history. Next, the domain name of one’s web page must be reserved. Ms. Avila explained to us that domain names are disappearing at a rate of 10,000 per day; therefore, this is a substantial step in first steps of web page design. One should also look through other web sites. By doing this one can actively see what works on web sites and what does not. This way as the site is being developed the client can be actively involved in the process and give their input to the web designer. This previous step is directly related to the concept that one’s web developer should be knowledgeable about the Internet and partial to any ideas that one has about their marketing strategy. The next six rules when it comes to having a good web page deal with the finished web site. Primarily the web site should have the basic structure of having a home page, general information, unique features, a page concerning frequently asked questions, and contact information. The home page of the site should lead the user to any other information that they are seeking. The home page like every other page in one’s site should load fairly quickly because people don’t want to have to wait very long for what they are looking for. Also, it should be well designed to impress visitors, so they will want to visit the site more. The site should be easy to use with navigation bars on every page. Also users like when a site is interactive. This can be done by including an address book, a way to ask questions, and by including forms that pertain to the site. Good sites ask for feedback from the visitors to the web page. A last aspect that helps in producing a great web page is having added-value features. An example of one of these features is other web sites that the user can refer to if they want more information on a related subject. The last three important aspects of a properly built web page deal with preparation right before the site goes online and once it is up and running. First off, a large list of keywords must be related to one’s web site. The more keywords related to the site, the more likely users would be able to see the site. Next, the site should be tested before it is put online. This is done just in case there are problems with the ease to navigate, the ease of loading, and even whether or not the links are properly connected within the web site. Finally, it is important to determine how the web site will be maintained. This aspect includes updating the site regularly and answering any questions, requests, or needs of the visitors to the web page. Thus, with these fifteen steps it is believed by Ms. Avila that an exemplary web page can be produced.

Conclusion #3

The above marketing tools that were mentioned can be actively pursued in our IPRO project of trying to stimulate economic development in Bronzeville. We believe that by developing a web page highlighting the development opportunities in this area and targeting this site to other businesses, the community can achieve resurgence. Within the web site there should be a listing of the resources Bronzeville has to offer, such as an abundance of workers, excellent transportation, a rich history and fine architecture. The last commodity that needs to be addressed will be promotion. Basically, promotion is communication and the Internet is one of the lowest priced promotions available. Therefore, by using the aspects learned on how to effectively market a concept, how to market that concept via the Internet, and how to produce a web page, a model marketing campaign for the Bronzeville community could be launched. Currently, there are no comprehensive web sites of Bronzeville. The City of Chicago’s Department of Planning and Development used to have a one pager on Bronzeville, but now there is no link to Bronzeville. Therefore, the City with its large resources is a possibility as the group responsible for developing, maintaining, and paying for a website.

Conclusion #4

Wrap-up

To reiterate, this semester’s IPRO team made four conclusions based on research done through field trips, interviews, books, and contacting business. 1) The tourism aspect of Bronzeville needs to be emphasized. Walking tours are preferable because they allow people to actually visit shops and feel the community. Touring by bus does not allow people to interact with the local business. 2.) The business that Bronzeville needs are a large discounter such as Target, a clothing retailer like a Banana Republic, and a family style dine in restaurant. Although the large discounter may put some of the smaller stores out of business, the team feels that the jobs created, the convenience to consumers, and the revenue collected will be more beneficial than the closings of the mom/ pop stores. Some mom and pop stores that are failing to respond to changes in the neighborhood clientele are already closing. The incentives described in the report are the key to attracting these businesses. 3.) A website and brochure that promotes Bronzeville to businesses would also increase the awareness of Bronzeville in the minds of people outside of Chicago. This awareness could help to stimulate more interest and redevelopment in the area. 4.) A website and brochure specifically aimed at tourists would also help to draw more people to the neighborhood. This semester’s IPRO also came up with a sample brochure and a sample-marketing plan that could be used to sell this area to businesses and to generate interest.

From the information that this semester’s team amassed, future IPROs should focus on actually getting a large chain as a Wal-Mart to come in. Another task could be talking to the City’s Bureau of Tourism to come out with a brochure for Bronzeville that could be used as a marketing tool. And the final task could be to work on a comprehensive website that highlights the rich history and landmarks of Bronzeville. Currently, all of the Bronzeville websites that the team found were incomplete and missing information.