1. What is the Category Development Index?

The Category Development Index (CDI) measures how well a product category performs in a particular market segment compared to the population. It helps identify underdeveloped or overdeveloped markets for specific product categories.

2. How Does the Calculator Work?

The calculator uses the CDI formula:

Where:

• Category Sales Index — Sales of the category in the market segment
• Population Index — Population in the market segment

Interpretation:

• CDI < 100 indicates underdevelopment relative to population
• CDI = 100 indicates proportional development
• CDI > 100 indicates overdevelopment relative to population

3. Importance of CDI Calculation

Details: CDI helps marketers identify market potential, allocate resources efficiently, and develop targeted marketing strategies based on category performance relative to population size.

4. Using the Calculator

Tips: Enter the Category Sales Index and Population Index values. Both values must be positive numbers. The calculator will compute the CDI percentage.

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 population.

Q2: What is a good CDI value?
A: Values around 100 indicate balanced development. Values significantly above 100 may indicate market saturation, while values below may indicate growth potential.

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

Q4: Can CDI be used for service categories?
A: Yes, CDI can be applied to both product and service categories when appropriate sales and population data are available.

Q5: What are limitations of CDI?
A: CDI doesn't account for market saturation, competition intensity, or other qualitative factors that affect market potential.