BDI (Brand Development Index) Calculator
Use this tool to calculate the Brand Development Index (BDI) for a specific geographic market. BDI helps marketers compare how a brand performs in a local market relative to its performance across the entire nation (or total market).
Enter the required four inputs: Brand Sales Nationally, Population Nationally, Brand Sales in the Specific Market, and Population in the Specific Market.
Enter BDI Calculation Inputs
Understanding Brand Development Index (BDI) & Formula
What is BDI?
The Brand Development Index (BDI) is a measure of a brand's sales potential relative to its market share. It compares the rate of a brand's sales in a particular market segment with the rate of sales in the overall market. A BDI of 100 indicates that the brand's sales in the market segment are proportionate to the overall market's sales.
BDI Formula
The BDI is calculated using the following formula:
BDI = (Percentage of Brand's National Sales in the Market) / (Percentage of National Population in the Market) * 100
This can be broken down using the raw sales and population numbers:
BDI = [ (Market Brand Sales / National Brand Sales) / (Market Population / National Population) ] * 100
Or, rearranged for easier calculation:
BDI = (Market Brand Sales / Market Population) / (National Brand Sales / National Population) * 100
Interpreting BDI
- BDI > 100: The brand is performing *better* in this market relative to its national performance. Potential reasons could be strong local marketing, higher local brand loyalty, or demographic factors favoring the brand.
- BDI < 100: The brand is performing *worse* in this market relative to its national performance. This might indicate weak market penetration, strong competition, or unfavorable local demographics. It could represent an opportunity for growth if the market potential is high (consider CDI alongside BDI).
- BDI = 100: The brand's performance in this market is *proportionate* to its national performance. Sales align with the market's population share.
BDI is often used alongside CDI (Category Development Index) to inform marketing and advertising strategies, helping identify markets where a brand is strong or weak, and whether the category itself is strong or weak.
BDI Calculation Examples
Click on an example to see the step-by-step calculation and interpretation:
Example 1: Strong Market
Scenario: A brand wants to analyze its performance in Market A.
1. Known Values:
- National Brand Sales: $1,000,000
- National Population: 10,000,000
- Market A Brand Sales: $150,000
- Market A Population: 1,000,000
2. Formula: BDI = (Market Sales / Market Pop) / (National Sales / National Pop) * 100
3. Calculation:
- Market % of Sales = $150,000 / $1,000,000 = 0.15 (15%)
- Market % of Pop = 1,000,000 / 10,000,000 = 0.10 (10%)
- BDI = (0.15 / 0.10) * 100 = 1.5 * 100 = 150
4. Result: BDI = 150
Interpretation: A BDI of 150 is > 100. This suggests the brand is performing significantly better in Market A compared to its national average. It's a strong market for the brand.
Example 2: Weak Market
Scenario: Analyzing Brand performance in Market B.
1. Known Values:
- National Brand Sales: $1,000,000
- National Population: 10,000,000
- Market B Brand Sales: $50,000
- Market B Population: 1,000,000
2. Formula: BDI = (Market Sales / Market Pop) / (National Sales / National Pop) * 100
3. Calculation:
- Market % of Sales = $50,000 / $1,000,000 = 0.05 (5%)
- Market % of Pop = 1,000,000 / 10,000,000 = 0.10 (10%)
- BDI = (0.05 / 0.10) * 100 = 0.5 * 100 = 50
4. Result: BDI = 50
Interpretation: A BDI of 50 is < 100. This suggests the brand is performing worse in Market B relative to its national average. It's a weak market for the brand, potentially indicating an opportunity for targeted marketing or challenges to address.
Example 3: Proportionate Market
Scenario: Analyzing Brand performance in Market C.
1. Known Values:
- National Brand Sales: $1,000,000
- National Population: 10,000,000
- Market C Brand Sales: $100,000
- Market C Population: 1,000,000
2. Formula: BDI = (Market Sales / Market Pop) / (National Sales / National Pop) * 100
3. Calculation:
- Market % of Sales = $100,000 / $1,000,000 = 0.10 (10%)
- Market % of Pop = 1,000,000 / 10,000,000 = 0.10 (10%)
- BDI = (0.10 / 0.10) * 100 = 1 * 100 = 100
4. Result: BDI = 100
Interpretation: A BDI of 100 indicates the brand's performance in Market C is proportionate to its national performance. Sales align with the market's population share.
Example 4: Zero Sales in Market
Scenario: Brand has no sales in a smaller Market D.
1. Known Values:
- National Brand Sales: 5,000,000 Units
- National Population: 50,000,000
- Market D Brand Sales: 0 Units
- Market D Population: 500,000
2. Formula: BDI = (Market Sales / Market Pop) / (National Sales / National Pop) * 100
3. Calculation:
- Market % of Sales = 0 / 5,000,000 = 0 (0%)
- Market % of Pop = 500,000 / 50,000,000 = 0.01 (1%)
- BDI = (0 / 0.01) * 100 = 0 * 100 = 0
4. Result: BDI = 0
Interpretation: A BDI of 0 means the brand has no presence or sales in Market D, despite it having a non-zero population share. This is a severely weak market.
Example 5: Very High Per Capita Sales in Market
Scenario: Brand performs exceptionally well per capita in Market E.
1. Known Values:
- National Brand Sales: $2,000,000
- National Population: 20,000,000
- Market E Brand Sales: $400,000
- Market E Population: 1,000,000
2. Formula: BDI = (Market Sales / Market Pop) / (National Sales / National Pop) * 100
3. Calculation:
- Market % of Sales = $400,000 / $2,000,000 = 0.20 (20%)
- Market % of Pop = 1,000,000 / 20,000,000 = 0.05 (5%)
- BDI = (0.20 / 0.05) * 100 = 4 * 100 = 400
4. Result: BDI = 400
Interpretation: A BDI of 400 is extremely high, indicating the brand's sales per capita in Market E are four times the national average. This market is a massive strength, potentially worth further investment or analysis to understand why it performs so well.
Example 6: Small Market, Avg Performance
Scenario: A small market performing proportionally to the national average.
1. Known Values:
- National Brand Sales: 500,000 Units
- National Population: 100,000,000
- Market F Brand Sales: 2,500 Units
- Market F Population: 500,000
2. Formula: BDI = (Market Sales / Market Pop) / (National Sales / National Pop) * 100
3. Calculation:
- Market % of Sales = 2,500 / 500,000 = 0.005 (0.5%)
- Market % of Pop = 500,000 / 100,000,000 = 0.005 (0.5%)
- BDI = (0.005 / 0.005) * 100 = 1 * 100 = 100
4. Result: BDI = 100
Interpretation: BDI is 100. Despite being a small market, its brand sales volume is perfectly proportional to its population share of the nation.
Example 7: Large Market, Slightly Weak
Scenario: A large, important market underperforming slightly.
1. Known Values:
- National Brand Sales: $10,000,000
- National Population: 50,000,000
- Market G Brand Sales: $1,500,000
- Market G Population: 10,000,000
2. Formula: BDI = (Market Sales / Market Pop) / (National Sales / National Pop) * 100
3. Calculation:
- Market % of Sales = $1,500,000 / $10,000,000 = 0.15 (15%)
- Market % of Pop = 10,000,000 / 50,000,000 = 0.20 (20%)
- BDI = (0.15 / 0.20) * 100 = 0.75 * 100 = 75
4. Result: BDI = 75
Interpretation: BDI is 75. Market G represents 20% of the national population but only 15% of national sales. This is a slightly weaker market for the brand relative to the national average. Given its size, improving performance here could have a significant positive impact nationally.
Example 8: Using Per Capita Sales Directly
Scenario: Calculate BDI by first finding per capita sales.
1. Known Values:
- National Brand Sales: $500,000
- National Population: 25,000,000
- Market H Brand Sales: $10,000
- Market H Population: 1,000,000
2. Calculation (Per Capita Sales):
- National Per Capita Sales = $500,000 / 25,000,000 = $0.02
- Market H Per Capita Sales = $10,000 / 1,000,000 = $0.01
3. Formula: BDI = (Market Per Capita Sales / National Per Capita Sales) * 100
4. Calculation: BDI = ($0.01 / $0.02) * 100 = 0.5 * 100 = 50
5. Result: BDI = 50
Interpretation: BDI is 50. The per capita sales in Market H are half the national average, indicating a weaker market.
Example 9: Very Low National Sales
Scenario: A niche brand with low national sales but strong performance in one market.
1. Known Values:
- National Brand Sales: $10,000
- National Population: 5,000,000
- Market I Brand Sales: $1,000
- Market I Population: 100,000
2. Formula: BDI = (Market Sales / Market Pop) / (National Sales / National Pop) * 100
3. Calculation:
- Market % of Sales = $1,000 / $10,000 = 0.10 (10%)
- Market % of Pop = 100,000 / 5,000,000 = 0.02 (2%)
- BDI = (0.10 / 0.02) * 100 = 5 * 100 = 500
4. Result: BDI = 500
Interpretation: BDI is 500. Market I, despite having only 2% of the national population, generates 10% of the brand's national sales. This is an extremely strong market, likely the core base for this niche brand.
Example 10: Market Sales > National Sales (Data Error)
Scenario: Input error where market sales exceed national sales.
1. Known Values:
- National Brand Sales: $1,000,000
- National Population: 10,000,000
- Market J Brand Sales: $1,200,000
- Market J Population: 1,000,000
2. Expected Outcome: The calculator should ideally detect this as an input error or produce an illogical BDI. (Calculation would yield BDI = 120, which is mathematically correct based on the formula, but physically implies an error in input data if "Market" is a subset of "National").
Interpretation: If the calculator returns BDI = 120, it means the market contributes a disproportionately high share (120%) of national sales relative to its population share (10%). While mathematically valid, Market Sales should never exceed National Sales if the market is truly a subset of the nation. A BDI > 100 is expected for strong markets, but a value suggesting market sales > national sales implies an input error or definition mismatch.
Additional Notes on BDI
BDI is a relative measure. It doesn't tell you if total sales are high or low, only if sales in a market are high or low compared to the population in that market, relative to the national average. Combining BDI with CDI (Category Development Index) provides a more complete picture of market potential and brand performance.
Frequently Asked Questions about BDI
1. What does BDI stand for?
BDI stands for Brand Development Index.
2. What does BDI measure?
BDI measures how well a brand is performing in a specific geographic market compared to its performance in the overall national market, relative to the population distribution.
3. What is the BDI formula?
BDI = [(Market Brand Sales / Market Population) / (National Brand Sales / National Population)] * 100. It can also be expressed as (Market % of National Brand Sales / Market % of National Population) * 100.
4. What does a BDI > 100 mean?
A BDI greater than 100 means the brand is performing better in that specific market compared to its national average, based on per capita sales or sales share vs. population share.
5. What does a BDI < 100 mean?
A BDI less than 100 means the brand is performing worse in that specific market compared to its national average.
6. Can BDI be zero?
Yes, if the brand has no sales in the specific market, the BDI will be 0, assuming national sales are non-zero.
7. Can BDI be greater than 100?
Yes, a BDI can be significantly higher than 100 if the brand's sales per capita in the market are much higher than the national average.
8. What happens if National Brand Sales or National Population is zero?
If National Population is zero, the calculation is impossible (division by zero). If National Brand Sales is zero, the calculation is also typically impossible (unless Market Sales is also zero). The calculator handles these as errors because a BDI calculation requires a non-zero national base for comparison.
9. What is the relationship between BDI and CDI?
CDI (Category Development Index) measures how well the entire product category is performing in a market relative to the national average for that category. BDI focuses specifically on your brand. Marketers use a matrix combining BDI and CDI to classify markets (e.g., High BDI/High CDI = strong market for brand and category, potential to maintain/grow; Low BDI/High CDI = brand underperforming in a strong category, opportunity; High BDI/Low CDI = brand strong in a weak category, potentially niche; Low BDI/Low CDI = weak market for brand and category, difficult market).
10. What units should I use for sales and population?
Use consistent units. Sales can be in currency ($) or units sold. Population is a count of people. The absolute units cancel out in the ratio, so the BDI value is a pure index number (a percentage relative to 100).
