Deals with the relative importance of each marketand prioritizing in the right order.

Basis of prioritization Market Size Current Sales Target Sales Market Potential Competitive Activity Understanding of certain indices of measurement

CDI BDI MOI

Pillar #2: The Target Markets

Category Development Index (CDI) : An index which measures the relative per capita consumption of a

category of product across a geographical area and is calculated by dividing the % category sales in a market by the % TG population in the same market.

Brand Development Index (BDI) : An index which measures the relative per capita consumption of a brand

across a geographical area and is calculated by dividing the % brand sales in a market by the % TG population in the same market.

Market Opportunity Index (MOI) : A measure of the potential provided for a brand by a specific

geographical market. Calculated as the ratio of CDI to BDI.

Indices of Measurement

Market Opportunity Index (MOI) Brand Development Index (BDI)

Ratio of brand consumption intensity to population intensity i.e . % local market brand sales

% local market population Category Development Index (CDI)

Ratio of category consumption intensity to population intensity

i.e. % local market category sales

% local market population

Market Opportunity Index (MOI)

Ratio of CDI to BDI

Using BDI, CDI & MOIStrategy

Key Priority Areas High BDI and high CDIStrong markets; invest in and build on them, minimising risk and maximising potential High BDI and low CDIMaintain current ad spend levels and react in line with competition High Potential Areas MOI > 1Opportunity areas, where category is strong, but brand is weak. Invest after looking at distribution, growth, media strengths

Category X

Markets Sales % Sales Users % Users CDIA 60 30 80 40 75B 60 30 40 20 150C 80 40 80 40 100

200 100 200 100

Markets MOIA 120B 120

Brand Y C 80

Markets Sales % Sales Users % Users BDIA 20 25 80 40 62.5B 20 25 40 20 125C 40 50 80 40 125

80 100 200 100

Example

Prioritizing Process

LH HH

LL HL

Low High

CDI

P1

P2

P3

P4

High

Low

BDI

Opportunity Mkts

Star Mkts

Maintainence Mkts

Dog Mkts