Content Type:

Glossary

Brand Development Index (BDI) Definition

A measure of the relationship of a specific brand's sales relative to the population in a specific geographic area. The BDI can be derived by dividing an area's percent total US sales by that area's percent US population.

The Brand Development Index, or BDI, measures the performance of a brand's advertising and marketing efforts among specific markets, geographic areas and demographic categories. Its findings compare brand performance within a particular segment to average consumption or sales statistics. BDI helps businesses identify growth opportunities and target their marketing efforts by tabulating a brand’s penetration into a specific market compared to the market's potential. It's calculated using this formula: (brand sales in market /total market sales) × 100. A BDI value above 100 indicates that the brand is overperforming in that market segment.

Who relies on BDI?

BDI helps marketing researchers, advertisers and marketing researchers make informed decisions about advertising and promotional strategies. By analyzing BDI, companies can identify markets and demographics that have greater potential for growth. What’s more, they can adjust marketing efforts accordingly. 

Why should I care about BDI?

BDI provides insights on brand performance within different markets and demographic segments. If a brand’s BDI is high in a certain market, it indicates the brand is performing well with the audience there.. On the other hand, a low BDI might signal a need for adjustments in marketing strategies.