CDI vs BDI
Should I build my brand, or build the category?Have you ever heard the terms Category Development Index (CDI) or Brand Development Index (BDI)? These are two concepts that may change the way you look at your business and how you are communicating to your potential customers.
The concept we are looking at when doing a CDI vs BDI analysis is whether you should be putting your efforts into building your brand, or if the category itself is weak (causing low traffic) and you should focus on building the actual category first. As an example, when milk sales drop, it is generally not because someone decided they don’t like your brand (usually). It’s usually because the category as a whole has taken a hit. This could be for many reasons. Maybe people have decided on other drink options, maybe cereal has gotten a little more expensive and as a result has caused people to buy less milk because they are buying less cereal, or maybe the “happy cows” in California aren’t as happy as they used to be. Whatever the reason, if you as a milk company keep focusing on building your brand, your efforts will be in vain. Not because consumers don’t like your brand, but because they just aren’t drinking milk. This is why we occasionally see ads that are sponsored by the “Dairy Farmers of America” or for Idaho potatoes as a whole, rather than a specific company. Tip: If you are trying to build your category, try getting other businesses to help in the cause. As a team you can raise the category, so that there is more pie for everyone to have a bigger piece. After the category is thriving, then you can compete brand vs brand. |
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