How Is Bdi And Cdi Calculated?
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. Click to see full answer
What's the difference between a BDI and a CDI?
BDI and CDI are indices comparing the relative strength of a market to overall sales. The Brand Development Index (BDI) is an index compared to overall brand sales. The Category Development Index (CDI) is an index compared to overall category sales. Like any index, a score of 100 is average. The formulas are simple:
What is the formula for the BDI index?
The formula for BDI is as follows: 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]
How does Category Development Index ( CDI ) work?
The Category Development Index (CDI) is an index compared to overall category sales. Like any index, a score of 100 is average. The formulas are simple: In the following example, Market A represents 10% of the population, but 11% of category sales. Therefore, the CDI is above average.
What happens if the BDI of a market is low?
If the BDI of a particular market is high, marketers can reach more people. In other cases if the BDI of a particular region or a market is much lower than the national average, a brand may want to spend more dollars in that particular region/market and try to improve the BDI.
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