Mansi's Blog

I believe “SUBARU” would get the most benefit from BDI and CDI-driven strategies because being an automobile industry, it stands out because of its diverse product range, for instance, SUVs, sedans, and other performance cars. This diversity of products makes the BDI/CDi-driven strategies more relevant for the brand. It is essential for every business to know how their products, goods, and services will do in a particular demographic or geographical location. Every business wants to know what are their weak and strong segments and this is where the two key metrics come into existence. 

The Brand Development Index (BDI) and the Category Development Index (CDI) are the two vital measures that are considered significant for the success of the business. They are quite an easy and effective tool to analyze the local market sales for marketers. 

As the name suggests, the Brand Development Index(BDI) measures the development of a brand in comparison to the entire market by measuring the percentage of sales of a product in a market versus the percentage of the US population in that market. 

Category Development Index (CDI) is used to determine the sales of a particular segment of goods or services compared to sales of a category in the entire market on a per-capita basis. This metric is significant for any business as it helps in determining and focusing on the area where a business wants to target its growth area for the future.

This chart helps in determining how well a brand is doing via BDI or CDI.

BELOW ARE THE REASONS HOW AND WHY SUBARU COULD BENEFIT FROM BDI/CDI-DRIVEN STRATEGIES:

• Diverse Product Portfolio Decision:
  The brand is known for providing a diverse range of products to its customers, so in this scenario, the strategies driven by the CDI model can influence Subaru’s decision on product development and portfolio. The diversity of products for Subaru will allow the company for strategic positioning in different market segments, which makes the BDI/CDI analysis important for market approach optimization for each category of product. Also, it will help the brand to consider introducing and emphasizing models that align with the taste and preferences of consumers of a region if there are certain regions or areas that show a high CDI for a specific product.
  
• Customizing Message:
  The BDI/CDI data can be used to reconcile the marketing message for specific regions.  For instance, if Subaru finds that some features of their vehicles are resonating more firmly in a certain area, then the brand can customize the advertising to attract that segment of society and can highlight those features in that particular area to gain traction with customers. This strategy establishes that marketing efforts are significantly relevant and are more appealing to the local consumer base.
  
• Strong Brand Identity:
  Subaru has successfully cultivated a well-defined brand image by focusing on and improving attributes like durability, commitment to safety, and versatility. BDI/CDI strategies can help the brand to strengthen and get benefits from the brand identity by ensuring the alignment of marketing efforts with customer preferences and perceptions in specific regions.
  

• Optimizing Media Planning:
  Subaru can obtain its media planning by combining the data derived from BDI/CDI models with other psychographic and demographic information. This will help the brand in choosing the right platforms, channels, and the correct timing of advertisements to communicate with its customers. For example, if a particular region has a high BDI for a younger demographic then the brand can easily focus on digital platforms and other popular social media channels among the youngsters to attract them.

• Competitive Landscape:
  The data derived from BDI/CDI can be used as a standard to measure success against the rivals. For instance, If the BDI of Subaru is higher than that of its competitors in a specific region then, it depicts a strong brand presence. Likewise, if Subaru’s CDI is higher for a particular category than its competitors, it would reveal that Subaru is flourishing in driving category growth.
  
• Identifying Growth Opportunities:
  CDI data will provide insights into how a product category is performing in different regions, similarly, Subaru can employ this CDI data to recognize regions where the overall market for the product category is impoverished. This insight from CDI data can direct Subaru to enlarge its market presence by focusing on regions with the highest potential.

References:

Brand development index (BDI) – CPG Dictionary – NielsenIQ

Understanding Your Market Share: BDI and CDI – Paulina Fonseca

How to Use BDI and CDI for Planning (Updated) | Brain Dispenser

Brand and Category Development Index: What You Need To Know

What is SUBARU? | Subaru Corporation

The Subaru Love Promise | More Than a Car Company

SUBARU’s Idea for a Digital Transformation Strategy

Subaru Advantages & Competitor Comparisons | Why Buy Subaru?

https://www.linkedin.com/pulse/here-six-reasons-why-subarus-marketing-strategy-little-agudo/

Subaru Advantages & Competitor Comparisons | Why Buy Subaru?