brand development index (BDI)

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Brand development index (BDI) is an index that’s calculated by taking the percentage of a brands total sales that occur in a given market area as compared to the percentage of the total population in the market.

Example of brand development index (BDI):

The brand development index, or BDI, helps marketers factor in the rate of product usage by region. By factoring the regional product usage by brand, marketers can make better promotion decisions for the brand.  Marketers and advertisers often use the category development index (CDI) along with the BDI to determine better the number of promotions they will use in a given market.

Brand development index (BDI) formula:

BDI= percentage of the brand to total sales in a region /  total population of market region x 100

Note: the total number of market region is the overall region, such as the U.S. or a specific state, or country.

 

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