BRAND AND CATERGORY DEVELOPMENT INDEX - BDI AND CDI

Brand Development Index

The brand development index (BDI) measures the sales strength of a brand in a particular area of India.

It is a numerical display showing the geographic areas or demographic segments of a brand’s relative strength and weakness. The relativity is gauged by the numeric distance from 100, where 100 represents the ‘average’ market or demographic. It is calculated by dividing the percentage of sales in a market by the percentage of population represented by that market.

BDI = Market A Brand sales as percentage of total universe sales x 100

           Market A population as a percentage of total universe

Category Development Index

It measures the sales potential of product category. Thus, it takes into account the potential of all competitors selling the same category.

 

CDI = Percentage of product category’s total all India sales x 100

           Percentage of total Indian Population in the market

BRAND AND CATEGORY ANALYSIS 

	High BDI	Low BDI
High CDI	The market usually represents good sales potential for both the product and the brand.	The product category shows high potential, but the brand isn’t doing well; the reason should be determined.
Low CDI	The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.	Both the product category and the brand are doing poorly; not likely to be a good place to advertise.

BDI and CDI are easy and effective tools for marketers to analyze local market sales.  Media and communications planners typically look at both when considering which markets or regions should receive heavier media weight.

Reference: Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; and David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (Second Edition). Upper Saddle River, New Jersey: Pearson Education, Inc.