1. What is the CDI?

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

2. How Does the Calculator Work?

The calculator uses the CDI equation:

Where:

• \( \text{Brand Sales} \) — Sales of the brand in the specific market
• \( \text{Category Sales} \) — Total sales of the product category in the specific market
• \( \text{Population} \) — Population of the specific market
• \( \text{Total Population} \) — Total population of all markets

Interpretation:

• CDI > 100 indicates the category performs better in this market than average
• CDI < 100 indicates the category performs worse in this market than average
• CDI = 100 means the category performs exactly at the average level

3. Importance of CDI Calculation

Details: CDI helps marketers understand market potential, allocate resources effectively, and identify growth opportunities. It's particularly useful for regional marketing strategies and retail planning.

4. Using the Calculator

Tips: Enter all values as positive numbers. Ensure consistent units for sales (e.g., all in dollars or all in units) and population figures.

5. Frequently Asked Questions (FAQ)

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

Q2: What is a good CDI value?
A: Values above 100 indicate strong category performance in that market. Values below 100 suggest weaker performance, but context matters - some categories naturally perform better in certain markets.

Q3: What time period should I use for sales data?
A: Typically use annual data for stable results, but you can analyze quarterly or monthly data for more granular insights.

Q4: Can CDI be used for service categories?
A: Yes, CDI can be adapted for services by using appropriate metrics like number of service transactions instead of product sales.

Q5: How often should CDI be calculated?
A: Regular calculation (e.g., quarterly or annually) helps track market trends and evaluate marketing effectiveness.