Advertising and Public Relations · M2 · formulas

Brand and Category Development Indices

Media formulas and definitions

M2 and TEE · media measures

BDI/CDI concepts and four high/low interpretations are confirmed PYQ topics. The numerical values in the examples below are authored illustrations; the recovered questions do not supply data to calculate.

Formula

\operatorname{BDI}=\frac{\%\text{ of national brand sales in area}}{\%\text{ of national population in area}}\times100LaTeX: \operatorname{BDI}=\frac{\%\text{ of national brand sales in area}}{\%\text{ of national population in area}}\times100

Both inputs are percentage shares with the same geographic boundary and time basis. BDI concerns one brand; CDI uses the whole product category. An index of 100 is average representation, not 100% local penetration.

\operatorname{CDI}=\frac{\%\text{ of national category sales in area}}{\%\text{ of national population in area}}\times100LaTeX: \operatorname{CDI}=\frac{\%\text{ of national category sales in area}}{\%\text{ of national population in area}}\times100
BDICDIInterpretation
HighHighBrand and category over-represented: consider sustaining strength.
LowHighCategory strong, brand relatively weak: investigate distribution/positioning/competition.
HighLowStrong brand concentration in a weaker category: assess profitable maintenance.
LowLowBoth under-represented: investigate causes before committing or withdrawing.

An index of 100 is the average benchmark. These combinations are diagnostic clues, not guaranteed investment rules.

Complete worked solutions