NEW FROM NPD
Global Reach
| Australia | Netherlands |
| Austria | New Zealand |
| Belgium | Poland |
| Canada | Portugal |
| China | Russia |
| France | Spain |
| Germany | Sweden |
| Italy | Taiwan |
| Japan | United Kingdom |
| Korea | United States |
| Mexico |
Insights Mission
HomeINFORMATION & INSIGHTS
Category Development Index:
A Tool to Help You Market Locally
By Sheri McKee
To help consumer technology product managers understand how the emerging netbook category is developing across the U.S., the Category Development Index (CDI) is a useful tool NPD is developing for the industries for which we offer Store Level information*.
The CDI metric analyzes category sales volume in a market (DMA) compared to its contribution in the total U.S. For this example we calculated the index by dividing the netbook market’s dollar sales (weighted by the population in the market) by netbooks’ total U.S. sales (weighted by the total U.S. population). The results are shown above in a simple view comparing all markets to the total U.S. benchmark. This helps companies understand in which geographies netbooks are well developed and those in which the category has not yet taken off.
In this example, CDI results under 90 indicate the category is not yet well developed; results of 90-110 indicate the category is within the total U.S. average of 100. Results of over 110 tell us the category is considered well developed. Netbook CDI is well over 125 in Miami and Orlando, but markets in Ohio are poorly developed in terms of netbook sales for the three-month period ending October 2009. In general, netbooks are well developed in the bigger metro areas and predominantly Hispanic areas of Southern Arizona, New Mexico, and Texas, suggesting these devices have found a niche with their price point given the economy in these areas.
— Elaine Noone, VP Consumer Technology
Consumer technology is an industry of constant change. Just as netbooks are in the spotlight now, surely there’s another category waiting in the wings for its big moment. As new products launch in categories such as TVs, computing, audio, digital media, and peripherals, surprising variances in category development appear. Marketers, brand/sales managers, and buyers will want to monitor and respond quickly to these changes. Leveraging market development insights from NPD’s Store Level capabilities can create opportunities for manufacturers and retailers to understand what causes these variances so they can make tactical, informed decisions and capitalize on consumer demand by local market.
To learn more about NPD’s Store Level capabilities, go here or contact Charles Camaroto at 866-444-1411 (contactnpd@npd.com).
* Store Level information represents store-based sales only, not Internet sales, among NPD's participating retailer panel only.
