Brand Development Index (BDI)

Brand Development Index (BDI)

• 1.
  Amir NikKhah
• 2.
  1 Brand isthe name, term, design, symbol, or any other feature that identifies one seller's product distinct from those of other sellers. The outward expression of a brand, including its name, trademark, communications, and visual appearance is Brand Identity.
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  2 A StrongBrand should have following characteristics: 1) Symmetry 2) Appropriate Place 3) Tolerance 4) Credibility 5) Inspiration 6) Uniqueness 7) Attraction
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  BRANDING The processinvolved in creating a unique name and image for a product in the consumers' mind, mainly through advertising 3 campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.
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  4 Brand Development The process of improving a brand or improving customers' knowledge and opinions of a brand. The perception of your brand will ultimately determine the success of your company. Your brand isn’t what you say it is. It’s what your market says it is. Every exchange with your market is an opportunity to shape this perception, make a connection, build trust, and strengthen customer loyalty. A metric of marketing success that measures the number of sales within a specific market. The calculation is expressed as the number of unit sales per thousand people within a geographic area.
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  5 Brand DevelopmentIndex Brand Development Index or BDI quantifies how well a brand performs within a specific group of customers, compared with its average performance among all customers. It measures the relative sales strength of a brand within a specific market. The purpose of the BDI metric is to quantify the relative performance of a brand within specified customer groups. The Brand Development Index helps marketers identify strong and weak segments (usually demographic or geographic) for individual brands.
• 7.
  6 Brand DevelopmentIndex BDI = (Brand sales to group ÷ Households in group) ÷ (Total brand sales ÷ Total households) or BDI = (Brand sales to group ÷ Total brand sales) ÷ (Households in group ÷ Total households)
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  7 Category DevelopmentIndex CDI = (Category sales to group ÷ Households in group) ÷ (Total category sales ÷ Total households) or CDI = (Category sales to group ÷ Total Category sales) ÷ (Households in group ÷ Total households)
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  8 BDI &CDI High market share Good market potential Low CDI High CDI High BDI Low BDI Low market share Good market potential High market share Monitor for sales decline Low market share Poor market potential
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  9 BDI &CDI The market usually represents good sales potential for both the product and the brand. Low CDI High CDI High BDI Low BDI The product category shows high potential but the brand isn’t doing well; the reason should be determined. The category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales decline. Both the product category and the brand are doing poorly; not likely to be a good place to advertise.
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  10 EXAMPLE