Reaching middle class consumers in emerging markets: Unlocking market potential through urban-based analysis

•We propose and demonstrate a systematic approach to urban-based market potential analysis.•A more focused market potential analysis is superior to an aggregate, country-level market potential analysis.•The proposed method highlights specific market potential indicators, especially suitable for middle class analysis.•The study considers international market segmentation literature and the theory of institutional economics.•We demonstrate this new approach through a case study.

The international business landscape has transformed in dramatic ways over the past three decades. In particular, the importance of middle class households, concentrated especially in urban areas in emerging markets, is now well-recognized. We propose and demonstrate a systematic approach to urban-based market potential analysis. Based on international market segmentation literature, our key argument is that a more focused market potential analysis, based on middle class households, is superior to an aggregate, country-level market potential analysis. The proposed method highlights specific market potential indicators, especially suitable for middle class analysis. Further, we demonstrate this new approach through a case study. Finally, this manuscript positions itself as a managerial tool.