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Buying Power Indices

Buying Power Indices

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Buying Power Indices

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  1. Buying Power Indices BDI & CDI

  2. % Brand Sales in Market X 100 % Population in Market Brand Development Index • Measures brand sales in a market relative to population. • Represents sales potential for the brand. • Formula:

  3. % Category Sales in Market X 100 % Population in Market Category Development Index • Measures product category sales in a market relative to population. • Represents sales potential for the product category. • Formula:

  4. Use = Geographic Analysis • BDI = relative strengths / weaknesses for the brand • CDI = relative strengths / weaknesses for the product category • When possible, calculate for any market in which the brand is sold. • Four BDI / CDI relationships:

  5. BDI (High) 1 2 High BDI High CDI High BDI Low CDI CDI (High) CDI (Low) 3 4 Low BDI High CDI Low BDI Low CDI BDI (Low)