Enter the percent of a brand’s total sales in a market and the percent of the total population in that market to determine the BDI (Brand Development Index).
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The following formula is used to calculate a brand development index:
BDI = MBS / MP * 100
- Where BDI is the brand development index
- MPS is the percentage of brand sales in a given market
- MP is the percentage of population in the market
To calculate a brand development index, divide the percentage of brand sales in the market by the percentage of population in the market.
What is BDI?
BDI, short for brand development index, is a measure of the relative strength of a brand in any given market relative to the percent of the population in that market.
For example, if a brand has a market share of 40% in a segment, and the total population that is in that market is 35%, then the brand has an above-average BDI since the market share is greater than the population in the market.
How to calcualte BDI?
The following example outlines the steps and information required to calculate a brand development index.
First, determine the brand’s market share in a given market. For this example, the brand owns 25% of the total sales in the market.
Next, determine the total population that is in that market. For this problem, we are looking at the US market, and this particular market segment makes up 20% of the total adult population.
Finally, calculate the brand development index using the formula and information from steps 1 and 2.
BDI = %MBS / %MP * 100
BDI = 25 / 20 * 100
BDI = 125
Anything over 100 is considered above average and anything below 100 is below average.