Question

100 Million consumers in the national market

- National Category Sales of $300 Million

- National Brand Sales of $40 Million

Territory	Category Sales	# of Consumers	Brand Sales
Florida	$32 Million	12 Million	$9 Million
Texas	$24 Million	10 Million	$4 Million
California	$28 Million	10 Million	$5 Million
Arizona	$15 Million	8 Million	$6 Million

According to the data above for Tide's new stain remover brush, calculate the Category Development Index (CDI) and Brand Development Index (BDI), respectively, for the California territory.

Answer 1

BDI and CDI are indices comparing the relative strength of a market to overall sales. The Brand Development Index (BDI) is an index compared to overall brand sales. The Category Development Index (CDI) is an index compared to overall category sales. Like any index, a score of 100 is average. The formulas are simple:

1) BDI = (% Market Brand Sales / % Market Population) x 100

2) CDI = (% Market Category Sales / % Market Population) x 100

So, first estimate the %Market Brand Sales, %Market Category Sales, and %Market Population for each of the 4 markets.

Here, the Market is the territory as shown in the table in the question.

The market population refers to the # of Consumers in each territory.

So, for each market, estimate the %Market Brand Sales, %Market Category Sales, and %Market Population

For example % Market Brand Sales in Florida = (($9 Million)/($9 Million + $4 Million + $5 Million + $6 Million)), expressed as percentage

Similarly,%Market Category Sales in Florida = (($32 Million)/($32 Million + $24 Million + $28 Million + $15 Million)), expressed as percentage

For %Market Population estimation for Florida, estimate ((12 Million)/(12 Million + 10 Million + 10 Million + 8 Million)), expressed as percentage

Similarly, estimate the three % numbers for each territory (market)

The result is:

Territory (Market)	Category Sales	# of Consumers	Brand Sales	%Market Brand Sales	%Market Population	%Market Category Sales
Florida	$32 Million	12 Million	$9 Million	0.38	0.30	0.32
Texas	$24 Million	10 Million	$4 Million	0.17	0.25	0.24
California	$28 Million	10 Million	$5 Million	0.21	0.25	0.28
Arizona	$15 Million	8 Million	$6 Million	0.25	0.20	0.15

Now, calculate BDI as (% Market Brand Sales / % Market Population) x 100 for each of the 4 territories and CDI as  (% Market Category Sales / % Market Population) x 100 for each of the 4 territories

The result is:

Territory (Market)	Category Sales	# of Consumers	Brand Sales	%Market Brand Sales	%Market Population	%Market Category Sales	BDI (Brand Development Index)	CDI (Category Development index)
Florida	$32 Million	12 Million	$9 Million	0.38	0.30	0.32	11.25	9.70
Texas	$24 Million	10 Million	$4 Million	0.17	0.25	0.24	4.17	6.06
California	$28 Million	10 Million	$5 Million	0.21	0.25	0.28	5.21	7.07
Arizona	$15 Million	8 Million	$6 Million	0.25	0.20	0.15	5.00	3.03

Thus, BDI is 5.21 and CDI is 7.07 for California