1. What is CDI (Category Development Index)?

CDI (Category Development Index) is a metric used to measure how well a product category is performing in a specific market compared to its potential performance. It helps identify underdeveloped or overdeveloped market categories.

2. How Does the Calculator Work?

The calculator uses the CDI equation:

Where:

• \( Actual \) — Current performance or sales of the category
• \( Potential \) — Maximum possible performance or market potential

Explanation: The CDI compares actual category performance against its potential, expressed as a percentage. A CDI of 100% indicates the category is performing at its full potential.

3. Importance of CDI Calculation

Details: CDI helps businesses identify market opportunities, allocate resources effectively, and develop strategies for category growth. It's particularly useful in market analysis and strategic planning.

4. Using the Calculator

Tips: Enter actual performance data and potential market data. Both values must be positive numbers, with potential greater than zero for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What does a CDI below 100% indicate?
A: A CDI below 100% suggests the category is underdeveloped and has growth potential in the market.

Q2: What does a CDI above 100% indicate?
A: A CDI above 100% indicates the category is overdeveloped and may be saturated or facing intense competition.

Q3: How often should CDI be calculated?
A: CDI should be calculated regularly (quarterly or annually) to track category development trends over time.

Q4: What factors can affect CDI?
A: Market conditions, consumer preferences, competition, economic factors, and marketing efforts can all influence CDI.

Q5: How can businesses use CDI data?
A: Businesses can use CDI to identify growth opportunities, allocate marketing resources, develop product strategies, and benchmark against competitors.