How you ever wonder how to measure the performance of your brand? How is your brand doing compare with your competitors? or how is your brand doing compare with other brands in other countries or globally?
Well, there are Key Performance Indicators (KPIs) that can help to measure this. One is called the Brand Development Index, and the other is the Category Development Index.
What is Brand Development Index (BDI)?
This KPI measures or evaluates how well or poorly your brand is performing in the market. For example, if the energy drink Red Bull has an AVG per capita of 15 cans per year in the South Florida Tri-County area (Miami-Dade, Broward, and Palm Beach) and the Red Bull AVG per capita in the State of Florida is the 6 cans. The BDI for Red Bull in Florida is 15 / 6 = 2.5 or 250%, and this number can tell us that the Brand Red Bull is doing pretty well in South Florida. But we need to check also the Category Brand Index.
What is Category Development Index (CDI)?
This KPI is pretty much the same as the BDI. The difference is the Category Development Index measures or evaluates the performance of a product or service sales in an area with the whole area in the same category. Following the example we have been using, if Red Bull has an AVG per capita of 15 cans per year in South Florida, and the Energy Drinks have an AVG per capita of 20 cans per year in South Florida, then the CDI for South Florida will be 15/20 = 0.75 or 75%.
Comparing BDI vs. CDI
Following the Red Bull sample I mentioned, BDI looks solid for South Florida with 250%. Still, comparing this number with the “Energy Drink Industry” in South Florida, it looks like Red Bull is not doing so great, with only 75%. So even though the brand looks strong, we might want to invest more in advertising or promotions to increase our market share.
These are just indicators that can help you make decisions when investing in brand awareness campaigns or promotions and can only be used by considering other factors like market share. A High BDI and high CDI will indicate a high market share and good market potential, but a low BDI and low CDI will also indicate a low market share and poor market potential.
