1. What is the CDI Number?

The CDI (Category Development Index) measures how well a category performs in a particular market segment compared to the population. A CDI of 100 indicates average performance, above 100 indicates strong performance, and below 100 indicates weak performance.

2. How Does the Calculator Work?

The calculator uses the CDI equation:

Where:

• \( \text{Market Share} \) — The segment's share of total category sales (0-1)
• \( \text{Population Share} \) — The segment's share of total population (0-1)

Explanation: The equation compares a market segment's consumption of a product category to its proportion of the population.

3. Importance of CDI Calculation

Details: CDI helps marketers identify underdeveloped or overdeveloped markets for specific product categories, guiding marketing strategy and resource allocation.

4. Using the Calculator

Tips: Enter market share and population share as decimals between 0 and 1. Population share must be greater than 0.

5. Frequently Asked Questions (FAQ)

Q1: What does a CDI of 120 mean?
A: A CDI of 120 means the market segment consumes 20% more of the category than expected based on its population share.

Q2: How is CDI different from BDI (Brand Development Index)?
A: CDI measures category performance while BDI measures brand performance relative to population.

Q3: What are typical CDI ranges?
A: CDI below 85 is considered low, 85-115 is average, and above 115 is high development.

Q4: When should CDI be used?
A: CDI is most useful for evaluating geographic markets or demographic segments for category potential.

Q5: What are limitations of CDI?
A: CDI doesn't account for market saturation, competition, or other factors affecting category potential.