Market Potential Index

Market Potential Index for Emerging Markets - 1997

March 25, 1997

Global marketing is becoming more and more important along the years with the increasing trend in internationalization. Having too many choices, marketers face the challenge of determining which international markets to enter and the appropriate marketing strategies for those countries.

The focus of this study is ranking the market potential of countries identified as "Emerging Markets" by The Economist magazine. These emerging economies comprise more than half of the world's population, account for a large share of world output, and have very high growth rates; all indicators of enormous market potential.

This indexing study is conducted by MSU-CIBER to help companies compare the Emerging Markets with each other on several dimensions. Eight dimensions are chosen to represent the market potential of a country over a scale of 1 to 100. Each dimension is measured using various indicators, and are weighted in determining their contribution to the Overall Market Potential Index.

Notes:

1. You are currently viewing an old version of the MPI. The most recent version of the Market Potential Index can always be found on globalEDGE at: http://globalEDGE.msu.edu/resourceDesk/mpi/
2. The index for previous years can be reached through the MPI Archive table on the right column.
3. To sort by any dimension, click on the name of the dimension, its "Rank", or its "Index" heading.

MPI for 1997

Countries	Market Size		Market Growth Rate		Market Intensity		Market Consumption Capacity		Commercial Infrastructure		Economic Freedom		Market Receptivity		Country Risk		Overall Index
	Rank	Index	Rank	Index	Rank	Index	Rank	Index	Rank	Index	Rank	Index	Rank	Index	Rank	Index	Rank	Index
Singapore	23	1	5	50	6	74	10	65	4	52	2	98	1	100	-	-	1	100
China	1	100	1	100	23	1	7	78	9	34	23	1	10	34	-	-	2	79
Argentina	13	4	6	47	1	100	-	-	14	30	9	46	4	60	-	-	3	76
Hong Kong	21	1	-	-	15	47	9	72	2	61	1	100	3	61	-	-	4	74
Israel	22	1	-	-	3	87	1	100	8	35	10	40	8	37	-	-	5	61
Poland	12	4	13	13	13	53	2	99	11	31	17	26	2	79	-	-	6	58
Czech Rep.	18	2	-	-	10	55	4	90	3	57	3	69	15	29	-	-	7	55
Greece	17	2	16	1	2	92	-	-	5	50	13	38	11	33	-	-	8	46
Korea, South	10	4	8	37	14	52	6	83	12	31	6	53	13	30	-	-	9	45
India	2	76	11	23	18	43	8	77	21	6	22	5	21	12	-	-	10	43
Chile	16	2	7	44	9	65	17	21	19	17	4	61	7	41	-	-	11	43
Portugal	20	2	-	-	4	83	-	-	6	46	7	48	22	9	-	-	12	40
Malaysia	15	2	3	55	17	44	13	47	20	9	7	48	6	43	-	-	13	40
Mexico	6	8	12	19	7	70	15	43	10	31	18	18	5	44	-	-	14	39
Thailand	9	6	2	61	20	42	13	47	22	4	5	59	9	34	-	-	15	39
Hungary	19	2	16	1	8	70	3	98	13	30	15	36	16	29	-	-	16	37
Indonesia	3	17	3	55	21	39	5	84	23	1	13	38	19	17	-	-	17	35
Philippines	7	6	14	11	12	55	11	64	15	23	10	40	14	29	-	-	18	30
Turkey	8	6	9	28	11	55	-	-	17	19	10	40	18	20	-	-	19	28
Venezuela	14	3	10	27	5	77	16	32	16	20	20	9	17	22	-	-	20	25
Russia	5	13	-	-	22	23	12	51	1	100	21	7	23	1	-	-	21	20
Brazil	4	14	15	11	16	47	19	1	7	37	18	18	12	32	-	-	22	19
South Africa	11	4	18	1	19	42	18	13	18	18	16	32	20	13	-	-	23	1

Year to Year Comparison of MPI

Countries	2008	2007	2005	2004	2003	2002	2001	2000	1998	1997
	Rank	Rank	Rank	Rank	Rank	Rank	Rank	Rank	Rank	Rank
Singapore	3	3	2	2	2	2	1	1	1	1
China	2	1	3	4	5	5	5	6	5	2
Argentina	17	17	21	19	23	15	13	14	17	3
Hong Kong	1	2	1	1	1	1	3	2	2	4
Israel	9	5	5	5	4	4	8	4	4	5
Poland	10	10	8	9	8	8	9	9	12	6
Czech Rep.	6	7	7	7	7	7	7	7	7	7
Greece							6	5	9	8
Korea, South	5	6	4	3	3	3	2	10	3	9
India	11	9	9	8	9	10	11	8	10	10
Chile	15	16	14	10	11	9	16	13	14	11
Portugal							4	3	6	12
Malaysia	14	12	13	14	13	17	15	16	8	13
Mexico	8	14	10	11	10	11	14	15	22	14
Thailand	16	15	12	13	12	12	12	18	13	15
Hungary	7	8	6	6	6	6	10	11	11	16
Indonesia	19	21	19	17	16	22	21	23	16	17
Philippines	18	22	20	18	20	19	17	12	15	18
Turkey	13	11	15	15	14	14	20	17	18	19
Venezuela	27	26	23	24	22	23	23	20	23	20
Russia	12	13	11	12	15	13	19	19	19	21
Brazil	23	23	18	20	17	16	18	21	20	22
South Africa	22	24	22	22	21	20	22	22	21	23

Dimensions and Measures of Market Potential for 1997

Dimension	Weight	Measures Used
Market Size	4/20	International estimates of population(millions)-mid 1994s1
Market Growth Rate	3/20	Average annual growth rate(%)-between years 1990-19942
Market Intensity	3/20	Purchasing Power Parity (PPP) estimates of GNP per capita (US=100)-19942 Private consumption as a percentage of GDP(%)2
Market Consumption Capacity	2/20	Percentage share of middle-calss in consumption/income2 Note: Middle-class=second quantile+third quantile+fourth quantile
Commercial Infrastructure	2/20	Telephone mainlines (per 1000 habitants) - 19922 Electric production (kwh per person)-19922 Commerical vehicles in use(`000)-19931 Population per retail outlet - (latest year available)1 Percentages of homes with TV(%)1
Economic Freedom	2/20	Economic Freedom Index - 19973
Market Receptivity	4/20	Average annual growth rate of imports from US(%) between years 1990-19954 Per capita imports from US(US Dollars)-19955 Note: The 1995 imports figure is divided by the mid-1995's population figure.
Data used are those available for most recent year. 1 Source:Euromonitor, European Marketing Data and Statistics - 1997 and Euromonitor, International Marketing data and Statistics- 1996 2 Source: World Bank, World Development Report - 1996 3 Source: Johnson, B.T. and T.Sheehy, The Index of Economic Freedim, The Heritage Foundation - 1997 4 Source: IMF, Direction of Trade Statistics Yearbook - 1996 5 Source: IMF, Direction of Trade Statistics Yearbook - 1996 and CIA Wordl Fact Book

For More Information:

For the indexing methodology, please refer to:

"Measuring The Potential of Emerging Markets: An Indexing Approach" - S. Tamer Cavusgil,
Business Horizons, January-February 1997, Vol. 40 Number 1, 87-91.

For additional inquiries, please contact MSU-CIBER.

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