Brand and Category Development Index: What You Need To Know



It is vital to know how your product, goods, and services will do in a particular demographic or geographic location. You want to ensure you know where you are healthy or have a weakness with your segments. To assist in figuring this out, you need to know two keywords:

• CDI: Category Development Index • BDI: Brand Development Index


CDI stands for category development index, and it will indicate how well a category will perform within a given market segment, comparative to its performance in the market defined by a population.

For example, You might determine that in the Southern part of the United States, customers may purchase your product twice as many times as the rest of the country, versus customers on the west coast may buy your product less on a national average.


CDI will be useful for any marketer or business owner because it will determine which area you want to target for future growth.


BDI stands for brand development index, and it will indicate how your brand is performing within a specific group of consumers, compared to the average performance among all consumers.

For example, You have a brand that sells products to households with females. It is determined that 600 household purchases your product. However, you have 1000 households who buy the product from different brands.

Calculations

CDI: % of Category Sales / % of Population

BDI: % of Brand Sales / % of Populations

Let see how your market share is doing in Market 3. 





Use this chart to determine how well your brand is doing via BDI or CDI. 

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