Calculate CDI or BDI from sales and market population percentages, then compare both indexes to assess category and brand strength by market.
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CDI Formula
The following formula is used to calculate the category development index.
- Where CDI is the category development index
- %MCS is the market’s share of total category sales (in %)
- %MP is the market’s share of total population (in %)
To calculate the category development index, divide the percent of market category sales by the percent of the population in the market, then multiply by 100.
What is CDI?
Definition
CDI, short for category development index, is an index that compares a market’s share of category sales to that market’s share of the population (often scaled so 100 represents average performance).
Similar to BDI, CDI is used to measure sales performance, but instead of measuring the sales performance of a brand, it measures the sales performance of a category as a whole.
CDI vs BDI
For example, CDI could compare a market’s share of total computer category sales to that market’s share of the population, while BDI would compare that market’s share of a specific computer brand’s sales to its share of the population.
How to calculate category development index (CDI)?
The following example problem outlines the steps needed to calculate a category development index.
First, determine the market’s percent share of total sales for a category. For this example, the market’s share of category sales is 15%.
Next, determine the market’s percent share of the total population. In this case, the market’s share of the population is 13%.
Finally, calculate the CDI using the formula above:
CDI = (%MCS / %MP) * 100
CDI = (15 / 13) * 100
CDI = 115.38
