Farmers Union Iced Coffee Australia

Memo

Farmers Union Iced Coffee is Australia's largest selling flavored milk. This memo is aimed at introducing the export market selection, which is an important step in formulating an international marketing strategy, to the managing director of Famers Union. In specific, it will emphasize on the market selection procedures and market selection strategies, which could help the managing director’s decision making and marketing selection before entering into the target foreign market.

Export market selection is the process of opportunity evaluation leading to the selection of foreign markets in which to compete. It requires an appraisal of the fit between a prospective market’s requirements and a company’s ability to meet those requirements. This process is very important for Farmers Union, especially in foreign market which provides potentials for identifying different segments, because it helps to identify the most attractive market segments that it can serve. For example, the manager will know better about customer needs and then could modify or differentiate their products to better match that group, which in turn allows firms to focus their resources more effectively and improve the firm’s competitiveness.

Market selection procedures

Generally speaking, there are two distinct market selection procedures which are expansive method and contractible method. Expansive method refers to the market selection based on similarities whereas contractible method involve a systematic screen of all markets leading to immediate elimination of least promising markets and to further investigation of those markets that are more promising. For Farmer Union, the expansive method will be a more cost effective way of entering the international market. The manager can use the nearest neighbor approach, which means clustering or grouping of markets based