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How is BDI and CDI calculated?
The formulas are simple: BDI = (% Market Brand Sales / % Market Population) x 100. CDI = (% Market Category Sales / % Market Population) x 100.
What is a good brand development index number?
The brand development index (BDI) is a measurement used in marketing to determine how well sales are doing in a particular area or among a particular demographic. There is no standard good or bad brand development index number, because the tool is used primarily for marketing purposes.
What does a brand development index of 50 mean?
BDI in city A = (100/1000) x 100 / (10000/50000) = 50. So, the brand development index of Samsung laptops in city A is 50. Brand development index is an essential measure that can show you the performance of your company in different segments of customers.
What does a brand development index of 82 mean?
Know how to interpret a Brand Development Index – i.e. what does an index of 82 mean? It measures the relative sales strength of a brand within a specific market. Higher is better.
What is considered a low CDI?
4. Low CDI High CDI- When a brand as well as category both are not performing then in that case the brand should quickly move out of the business. For example, Spinz or Yardley has very less share of market in a non-performing category.
What is BDI CDI?
Brand Development Index (BDI) relates the percent of a brand’s sales in a market to the percent of the U.S. population in that same market. Category Development Index (CDI) relates the percent of a category’s sales in a market to the percent of the U.S. population in that same market.
How do I calculate CDI?
To calculate: “Divide the percent of product category A’s total U.S. sales in market X by the percent of total U.S. population in market X, then multiply the result by 100 to get the index number.”
What do you need to know about Brand Development Index?
BDI = (% of a Brand’ s total sales in a particular market )/ (% of total population in a particular market ) x 100 The brand development index should be a whole number. A brand should internally assess it values, uniqueness and what the customer wants.
How to calculate the BDI of a brand?
The formula for BDI is as follows: BDI =[Brand sales to region / Population in region] / [Total brand sales ÷ Total population] or alternatively. BDI = [% of Brand sales in a particular region from total brand sales in a country] x 100/ [% of Population of the region from total population of the country]
How to calculate the BDI for a region?
BDI = [Brand sales to region / Population in region] / [Total brand sales ÷ Total population] BDI = [% of Brand sales in a particular region from total brand sales in a country] x 100/ [% of Population of the region from total population of the country] Continuing the above example, Coke’s BDI for Atlanta region will be 71.42 (0.10 x 100/0.14).
What is the importance of the BDI index?
BDI can be used to gauge the presence of brand in a particular market. It goes well with the aggressive and defensive marketing strategies of a brand. For example: A brand employing aggressive marketing strategy will invest more in advertisements in areas having low BDI for its products.