Understanding  Brand Development Index (BDI)

The success of a brand largely depends on its market positioning and customer perception. To understand how well a brand is doing in terms of awareness, positioning, equity, and other relevant factors, marketers use the Brand Development Index (BDI).

BDI is a metric used to evaluate the performance of a brand relative to its competition in a specific market.

What is BDI?

The Brand Development Index (BDI) is a measurement tool that helps assess the strength and potential of a brand in a particular market. BDI provides an analysis of how well-known the brand is, how successful it has been in positioning itself within that market, and how significant an impact it has on consumer behavior.

What are the key components of BDI?

The primary components that make up BDI include:

How is BDI measured?

To calculate BDI, you’ll need two pieces of information: First is your target audience's percentage within a particular region. Second is your brand's sales percentage within that same area. Then you divide the latter by the former to get your Brand Development Index.

BDI = (% sales of brand / % total target audience) x 100

Why should we use BDI?

There are several reasons why businesses should use BDI including:

  1. It helps identify potential markets for their products.
  2. It supports strategic decision making which can lead to better marketing outcomes.
  3. It allows businesses to measure their growth against competitors within specified markets.
  4. It identifies areas where improvement or adjustments may be necessary.
  5. It helps measure advertising effectiveness.

What can businesses do with their BDI score?

After calculating BDI score, businesses can leverage their scores for various purposes including:

  1. Identifying regions where they have strong performance compared to weaker regions based on the score proportionality method
  2. Adjusting their advertising efforts based on where they rank weakest
  3. Remodeling their products or services based on weak scores
  4. Comparing their score with other competitors' scores as part of competitive analysis
  5. Identifying trends that hint at shifts in consumer behaviours.

How Can Businesses Improve Their BDI Scores?

There are several strategies that businesses can implement to improve their BDI scores which include developing new products or enhancing current ones, promoting through different channels such as social media platforms or paid advertorials campaigns(through google ads), improving distribution channels by partnering with new retailers or exploring new territories, emphasizing customer satisfaction by aligning each internal process service steps along customer journey maps i.e ramp ups like pre-sales call greetings through after-sales service feedbacks and more).

So next time when considering new tactics for increasing business growth or revenue gains thoughtfully analyzing , measuring across various higher order profitability indicators at annually planned intervals along hard targets & constant scrutiny around Key Performance Indicators KPIs from online and offline sources(Big data etc) could lend useful insights for driving stronger results!


1.Marketing Research (7th Edition), Burns A.C., Bush R.F.(2017)
2.Marketing Metrics: The Manager's Guide, Farris P.W., Bendle N.T., Pfeiffer H.V., Reibstein D.J.(2010).
3.Breakthrough Advertising, Schwartz E.M.(2020)
4.Marketing Analytics Handbook: Marketing Analytics Principles And Techniques - Worked Out Cases And Examples For Marketing Analytics With R And SQL, Meinerding T.( 2021)
5.Building A Story Brand by Donald Miller

Copyright © 2023 Affstuff.com . All rights reserved.