The brand development index or BDI quantifies how well a brand performs in a market, compared with its average performance among all markets.
[Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). ''Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.'' Upper Saddle River, New Jersey: Pearson Education, Inc. . The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of measures that appear in ''Marketing Metrics'' as part of its ongoin]
Common Language in Marketing Project
That is, it measures the relative sales strength of a brand within a specific market (e.g., the Pepsi brand among 10–50-year-olds).
[ American Marketing Association Dictionary. . Retrieved 2012-11-29. The Marketing Accountability Standards Board (MASB) endorses this definition as part of its ongoin]
Common Language: Marketing Activities and Metrics Project
.
Purpose
The purpose of the BDI metric is to quantify the relative performance of a brand within specified customer groups. The index helps marketers identify strong and weak segments (usually demographic or geographic) for individual brands.
The BDI is especially useful in conjunction with the
category development index (CDI). It can be used in deciding the allocations in the media to which a specific brand is advertised. It can also be used to determine how much advertising, or promotion effort is, or should be put in that specific market.
Construction
BDI: An index of how well a brand performs within a given market group, relative to its performance in the market as a whole.
::BDI (I) =
::
rand sales to group (#) ÷ Households in group (#)÷
::
otal brand sales (#) ÷ Total households (#)::
::''Note: Although defined here with respect to households, these indexes could also be calculated for customers, accounts, businesses, or other entities.''
For example, one might hypothesize that sales per capita of
Ben & Jerry's
Ben & Jerry's Homemade Holdings Inc., trading and commonly known as Ben & Jerry's, is an American company that manufactures ice cream, frozen yogurt, and sorbet. Founded in 1978 in Burlington, Vermont, the company went from a single ice cream ...
brand ice cream would be greater in the brand's home state, Vermont, than in the rest of the country. By calculating Ben & Jerry's BDIs for Vermont and for the rest of the country, marketers could test this hypothesis quantitatively.
Govoni also defined the BDI as the index of brand sales to category sales,
[Govoni, Norman A. ]
Dictionary of Marketing Communications
', Sage Publications, Inc, 2004. though this ratio is more commonly referred to as market share.
See also
*
Philip Kotler
Philip Kotler (born May 27, 1931) is an American marketing author, consultant, and professor emeritus; the S. C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management at Northwestern University ...
et al. ''Marketing Management,'' 13th Edition, Prentice Hall, 2009
References
{{reflist
Business indices
Brand management