What does the Category Development Index (CDI) measure?

The Category Development Index (CDI) is a metric used to assess the performance of a category relative to its performance in the overall market. Specifically, it compares the market share of a product category in a certain region or retailer against the average market share of that category in the national market or overall market. This indicates how well a category is performing in a specific context, guiding decisions related to marketing and inventory management.

By utilizing the CDI, businesses can identify high-potential markets for specific product categories, allowing them to allocate resources effectively and target promotions. For instance, if the CDI is high in a certain area, it suggests that the category is particularly strong there, signaling opportunities for increased inventory or tailored marketing strategies.

In contrast, the other options focus on different aspects of market analysis. Options related to brand popularity or sales percentages do not directly capture the relationship between a category's performance at a specific retailer and its overall performance in the market, which is the essence of what the CDI measures. The effectiveness of promotional strategies, while important, does not pertain to the performance measurement indicated by CDI but rather focuses on the outcomes of specific marketing actions.