According to Bilson Simamora Marketing and Research Center (BSMRC), ‘Brand Development Index is the comparison of a company’s sales per potential market in a certain region, with the sales per potential market as a whole.’
Based on personal experience, the advantages of measuring the Brand Development Index (BDI) are as follows:
- In a condition where the potential market is unknown, BDI has the capability to use the size of the population in a certain location as a substitute for potential market information.
- Acting as a basis for decision making, BDI has the ability to determine market performance using a geographical method. When a market in a certain region has a low BDI score, management can use a marketing strategy and determine whether it is necessary to increase the promotional budget or even pivot the market.
How to measure Brand Development Index (BDI):
- Known information:
- Sales of Producer A’s products in West Java 2020 totaled 862,653 units
- The population of West Java in 2020 according to BPS data was 49,935,858 people
- Sales of producer A’s products in Indonesia 2020 totaled 4,509,653 units
- The population of Indonesia in 2020 according to BPS data was 269,603,400 people
2. Measuring BDI:
- The BDI of sales in West Java is 1.03, which means that Producer A’s sales performance in West Java is 3% higher than sales nationally.
- The West Java regional promotional budget for 2021 can refer to the 2020 budget because the sales performance in West Java is 3% better than national sales. Budget may be increased if deemed necessary, with certain assumptions in mind.
- The evaluation of West Java’s BDI score can be compared to other regions, to find out how West Java ranks on a national scale.