brand development index (bdi)

Amir NikKhah

1

Brand is the name, term, design, symbol, or any other feature that

identifies one seller's product distinct from those of other sellers.

The outward expression of a brand, including its name, trademark,

communications, and visual appearance is Brand Identity.

2

A Strong Brand should have following characteristics:

1) Symmetry2) Appropriate Place3) Tolerance4) Credibility5) Inspiration6) Uniqueness7) Attraction

3

The process involved in creating a unique name and image for a product in the

consumers' mind, mainly through advertising campaigns with a consistent theme.

BRANDING

Branding aims to establish a significant and differentiated presence in the market that

attracts and retains loyal customers.

4

Brand Development

The process of improving a brand or improving customers' knowledge and opinions of a brand.

The perception of your brand will ultimately determine the success of your company.

Your brand isn’t what you say it is. It’s what your market says it is.

Every exchange with your market is an opportunity to shape this perception, make

a connection, build trust, and strengthen customer loyalty.

A metric of marketing success that measures the number of sales within a specific market. The

calculation is expressed as the number of unit sales per thousand people within a geographic area.

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Brand Development Index

Brand Development Index or BDI quantifies how well a brand performs within a specific

group of customers, compared with its average performance among all customers.

It measures the relative sales strength of a brand within a specific market.

The purpose of the BDI metric is to quantify the relative performance of a brand within

specified customer groups.The Brand Development Index helps

marketers identify strong and weak segments (usually demographic or geographic) for

individual brands.

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Brand Development Index

BDI = (Brand sales to group ÷ Households in group) ÷ (Total brand sales ÷ Total households)

or

BDI = (Brand sales to group ÷ Total brand sales) ÷ (Households in group ÷ Total households)

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Category Development Index

CDI = (Category sales to group ÷ Households in group) ÷ (Total category sales ÷ Total households)

or

CDI = (Category sales to group ÷ Total Category sales) ÷ (Households in group ÷ Total households)

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BDI & CDI

High market share

Good market potential

Lo

w C

DI

Hig

h C

DI

High BDI

Low market share

Good market potential

Low BDI

High market share

Monitor for sales decline

Low market share

Poor market potential

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BDI & CDI

The market usually represents good sales potential for both the product and the brand.

Lo

w C

DI

Hig

h C

DI

High BDI

The product category shows high potential but the brand isn’t doing well; the reason should be determined.

Low BDI

The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline.

Both the product category and the brand are doing poorly; not likely to be a good place to advertise.

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EXAMPLE