Category Development Index or (CDI) measures the sales strength of a particular category of product, within a specific market (e.g. Soft drinks in 10 - 50 year old's). It is a trend analysis that indicates the pace of sales of a product category in an area.
To calculate the CDI:
A% / X% * 100
Simply divide product "A"'s total sales in the specific market, then divide it by the population in that specific market. Finally you multiply the result by one hundred to get an index number.
The CDI is useful in all marketing strategies when used with the Brand Development Index or BDI. The CDI can give vital data for marketers to allocate advertising to specific areas maximizing product category knowledge and profit.
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