Consumption Potential Index (CPI)

Household consumption in Brazil is not distributed evenly across the national territory. This reality represents a significant challenge for companies, as it directly affects sales force organization, advertising campaign planning, and distribution logistics.

The Consumption Potential Index (CPI) is used to help planning professionals understand the spatial distribution of consumer demand. Figure 1, for example, shows that 24% of the country’s cooking oil consumption occurs in the state of São Paulo. Based on each consumption range presented, sales, marketing, and logistics professionals can develop specific and differentiated strategies.

Figure 1 – CPI by State

CPI by State (Federative Units)

These indices can be used to support a variety of planning activities, including:

• Identifying where the consumption of a specific product or product segment is concentrated.
• Improving the balance and organization of sales territories.
• Calculating the company’s market share.
• Developing different marketing campaigns for each consumption range.
• Defining the optimal location of sales offices, representative offices, or branch locations.
• Adjusting and optimizing distribution logistics.

The calculation of the CPI is based on official data sources from the Brazilian Institute of Geography and Statistics (IBGE), including:

• Household Income Statistics
• Household Budget Survey (POF)
• National Household Sample Survey (PNAD)
• Gross Domestic Product (GDP)

The CPI can be provided for individual products, product categories, and different geographic levels, such as:

• States (Federative Units)
• Mesoregions
  Microregions
• Municipalities
• Districts
• Census Tracts

In Figure 2, the CPI is represented at the municipal level.

Figure 2 – CPI by Municipality

CPI by Municipality

For planning and market analysis purposes, municipal-level CPI data allows organizations to identify consumption patterns with greater geographic detail, supporting more effective sales, marketing, and logistics decisions.

Additional information about CPI

https://www.gismaps.com.br/en/indice-de-potencial-de-consumo-ipc/

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