1. What is the Category Development Index?

The Category Development Index (CDI) measures how well a product category performs in a specific market compared to its performance in the total market. It helps identify strong and weak markets for a product category.

2. How Does the Calculator Work?

The calculator uses the CDI formula:

Where:

• Category Sales — Sales of the specific category in the market ($)
• Total Sales — Total sales of all categories in the market ($)
• Population — Population in the specific market
• Total Population — Total population in all markets

Explanation: The CDI compares the category's market share to the population share. A CDI of 100 means average development, above 100 means stronger than average, and below 100 means weaker than average.

3. Interpreting CDI Values

CDI Values:

• CDI > 120: High potential market
• CDI 80-120: Average market
• CDI < 80: Low potential market

4. Using the Calculator

Tips: Enter all values in consistent units (dollars for sales, numbers for population). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CDI and BDI?
A: CDI measures category performance while BDI (Brand Development Index) measures brand performance relative to the category.

Q2: What's a good CDI value?
A: Values above 100 indicate above-average category development. However, very high CDI might indicate a saturated market.

Q3: How often should CDI be calculated?
A: Typically calculated annually, but may be done quarterly for fast-moving categories.

Q4: Can CDI be over 100?
A: Yes, CDI can be any positive number. Values over 100 indicate the category performs better in this market than average.

Q5: What are limitations of CDI?
A: CDI doesn't account for market saturation, competition level, or pricing differences between markets.