Lotus Apparel Inc. is a fitness apparel manufacturer and retailer, specializing in winter sports and fitness activities. The company has enjoyed retail store success in the provinces of Ontario and Quebec and is thinking of opening stores in Alberta in the upcoming year. At the moment, sales are largely achieved online in central and western Canada. Alberta has been identified as an emerging market with a growing health-conscious population in the middle of some of the harshest winter weather in the world. Many people may not be motivated enough to engage in outdoor fitness activities in such extremes, but a physical store presence and more aggressive marketing communication, Lotus hopes to tap the true potential of this market. Currently, the percentage of product category sales in Alberta is 19%, while the percentage of the total brand sales in Alberta is approximately 8.5%. Lotus has decided to pursue a bottom-up budgeting approach, primarily focusing on the objective and task method. Furthermore, the company has allocated a total of $1.5 million for the budget and there is a buffer of 10%, if required. Management has asked you as the marketing director to develop a budget for this Alberta campaign.

Q. Describe the current market potential seen in Alberta, by calculating the CDI and BDI and commenting on why the brand may not be doing well in the province at the moment. Support your comments with external research on the market trends, where appropriate.