What Is the Brand Possible Index (BPI)?
The emblem attainable index (BPI) is a measure of the correlation between an emblem’s building index (BDI) and its market building index (MDI) for a decided on market or space.
The Brand Possible Index (BPI) takes the selection of exact and attainable customers within a market space and compares it to the percentage of consumers within a geographic space in a rustic who acquire a product. Then the BPI compares that amount to the percentage of all customers in all the nation who acquire the equivalent product.
The BPI is always calculated for a limited geographic space to give its consumers a better idea of how explicit areas components into its product sales and promoting planning and forecasts.
Key Takeaways
- The emblem attainable index (BPI) measures what selection of attainable customers an emblem would most likely achieve within a certain market or space.
- The BPI is used to measure the size of {the marketplace} proportion that may be available to them and to inform promoting and selling methodology.
- The BPI makes use of the logo building index and {the marketplace} building index, every of which is used broadly in promoting.
Working out the Brand Possible Index
The emblem attainable index is a tool that can be used to forecast long run product sales and be in agreement inside the budgeting process for selling allocations.
Using the logo attainable index can also be part of an organization’s arsenal to find a competitive receive advantages. The index, which is in a position to help resolve key drivers that have the most productive impact on emblem power, is in keeping with the rational, cognitive, emotional, and behavioral characteristics of trust.
Firms ranging from giants like crucial airlines to small and mid-sized firms use the BPI as part of their emblem regulate and building strategies.
Brand Possible Index Calculation
To resolve an emblem attainable index, the logo’s market building index and the logo building index will have to be implemented.
- A market building index (MDI) is used in trade building to resolve at what degree maximum market penetration will happen. It is expressed as a ratio between the true selection of customers vs. attainable customers in a decided on market.
- The emblem building index (BDI) is printed as a ratio that can be a comparison of the percentage of product sales earned in a decided on space or space to the percentage of all of the population of that space or space. Such wisdom can help corporations tailor their product sales, promoting, and selling efforts because it gives belief into where most of their customers live.
Particularly, the BPI is computed for the reason that ratio of the BDI divided by way of the MDI.
Brand Possible Index Example
Say {{that a}} emblem gets 5% of its product sales in an area that is also space to 15% of the rustic’s population; then that space’s emblem building index is the product of 5 x 100 / 15 or 33.33%.
If all of the selection of customers in that home is 10,000 while the selection of attainable customers is 100,000, then {the marketplace} building index will be the result of the ratio: 10,000 / 100,000 or 0.1.
The emblem attainable index would be the relationship between those two components, or 0.33 / 0.1 = 3.3.
