Brand Development Index

Brand Development Index or (BDI) measures the relative sales strength of a brand within a specific market (e.g. Pepsi brand in 10 - 50 year olds). It is a measure of the relative sales strength of a given brand in a specific market area.

Brand Development Index or (BDI) is the index of brand sales to category sales.

Calculate

BDI is calculated by: Category Development (A%/X%) * 100

where A is the percentage of a brand's total sales in a specific market area, and X is the percentage of the total population in that market area.[1]

Uses

The BDI is especially useful in conjunction with the Category Development Index (CDI). It can be used in deciding the allocations in the media to which a specific brand is advertised. It can also be used to determine how much advertising, or promotion effort is, or should be put in that specific market.

References

  1. ^ Govoni, Norman A. Dictionary of Marketing Communications, SagePublications, Inc, 2004.

Philip Kotler et al. Marketing Management, 13th Edition, Prentice Hall, 2009