What is a Category Development Index (CDI)?
Category Development Index (CDI) is a statistical measure that helps companies assess the potential for growth in a particular product or service category. It quantifies the size and growth of a category, and the performance of the category relative to a benchmark. CDIs are typically used by companies to inform strategic decisions, such as product development, marketing, and pricing.
How is a CDI Calculated?
CDIs are typically calculated using a variety of data sources, including market size and growth, share of category, sales trends, and consumer loyalty. The data is then analyzed to determine the potential for growth in the category and to compare the performance of the category to a benchmark.
Examples of CDIs
CDIs can be used to measure a variety of categories, including retail products, services, and even intangible products such as digital content. Some examples of CDIs include:
- Retail product CDIs: These measure the size and growth of a particular product or service category in a given market.
- Service CDIs: These measure the performance of services, such as customer service and customer satisfaction, relative to a benchmark.
- Content CDIs: These measure the performance of digital content, such as websites, apps, and videos, relative to a benchmark.
Conclusion
Category Development Index (CDI) is a powerful tool that helps companies assess the potential for growth in a particular product or service category. By analyzing data on market size and growth, share of category, sales trends, and consumer loyalty, companies can use CDIs to make informed strategic decisions.