Buying Power Indices BDI & CDI.

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Presentation transcript:

Buying Power Indices BDI & CDI

Brand Development Index Measures brand sales in a market relative to population. Represents sales potential for the brand. Formula: % Brand Sales in Market % Population in Market X 100

Category Development Index Measures product category sales in a market relative to population. Represents sales potential for the product category. Formula: % Category Sales in Market % Population in Market X 100

Use = Geographic Analysis BDI = relative strengths / weaknesses for the brand CDI = relative strengths / weaknesses for the product category When possible, calculate for any market in which the brand is sold. Four BDI / CDI relationships:

1 2 3 4 High BDI High CDI High BDI Low CDI Low BDI High CDI Low BDI