The Significance of Brand Development Index and Its Impact on Marketing

Thriving in competitive markets is a challenge many marketers face. Marketers must continually assess how a business or brand performs to explore opportunities, develop strategies, make product improvements to attain success, maximize results, and gain a competitive edge over its competitors.

Brand Development Index (BDI) is an essential tool that aids marketers to evaluate a brand’s performance because BDI measures how a brand’s sales are performing within a specific segment or particular market compared to its average brand’s sales in the market as a whole, usually on a per unit of population basis.  

Brand Development Index (BDI) Benefits

Identifying Specific Brand Segments:
Brand Development Index helps marketers assess a brand’s presence and its strength in a specific market. Marketers can help businesses identify strong and weak segments for particular brands.        

Maximize Allocating Marketing Budgets:
Brand Development Index enables marketers to allocate marketing budgets more efficiently and effectively. It helps marketers determine the appropriate promotional effort to dedicate to specific brands in a specified market.    

BDI aids marketers in obtaining optimal results by providing marketers with the insight necessary to focus their marketing efforts to have maximum impact reaching their targeted audience. For instance, marketers can allot more funds in areas where the BDI is higher for their products to sustain a competitive advantage over its competition. 

Marketers can improve their products’ performance and position with a low BDI by investing in advertisements for those products.

BDI can help businesses improve and increase the market share of their brand.  

For instance, in 2010, PepsiCo, the carbonated soft drink manufacturer of Pepsi, experienced a period of deterioration in its brand’s sales and a loss of its loyal customers to its competitors, which had been recurring for several years. Pepsi lost its footing in the carbonated drinks market against Coca-Cola, its largest rival.  According to staff reporter Charles Riley’s CNN article about Pepsi, Coca-Cola’s Diet Coke earned 9.9% market share in 2009 while Pepsi earned 9.5% market share and a 4.8% decrease in volume. 

Additionally, Kim Bhasin’s article on Business Insider reported that Coca-Cola generated more revenue in soft drink sales, approximately $28 billion compared to PepsiCo, which was $12 billion in 2010 even though Coca-Cola’s revenue was 38% lower than PepsiCo.

John Sicher, Editor, and Publisher of Beverage Digest, stated that Pepsi’s decline in market share resulted from the Pepsi Refresh Project marketing campaign – “…it didn’t give the Pepsi brand the justice it deserves.”

PepsiCo evaluated their BDI and determined that they needed to increase their marketing budget.  According to Real FiG Advertising + Marketing article about Pepsi, PepsiCo increased their marketing budget in 2012 to approximately $500 and $600 million more on soft drinks or sodas. Then, PepsiCo launched a global campaign to re-discover its brand’s identity and reposition the brand and appeal to younger consumers through music, which helped the brand regain its momentum. 

Brand Development Index (BDI) is an essential tool that enables marketers to gain insight into how a brand is performing in a specified market, identify strong and weak brands, develop strategies to leverage the brand, make product improvements, and maximize the allocation of their marketing budgets to maximize results. BDI helps businesses maximize profits, increase market share, gain a competitive advantage over their competition, and improve its reach with its target market efficiently and effectively.

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