FITT skills – International Market Entry Strategies

Introduction

The Fitts skills of international business provide training to employees International Market Entry Strategies to enhance improved understanding of the knowledge and skills that the employees possess or improving them to support an organisation to execute international business plans. All FITTskills course training sessions are being provided to the employees under the guidance of the Ministry of Trade of that particular country developing an international business plan. It helps an organization to practice successful market entry strategies and initiatives to have successful market reach of the targeted international country space and network to fulfil international business expansion goals and objectives. The study discusses the crucial role of FITT skills implemented for the training of the employees of a Canadian dairy firm, Dairyland, to achieve better market entry strategies to the target market of the United States. The study focuses on Fitts kills training as well as Secondary research data gathered from the target market of the United States with a new product of Organic Milk by Dairyland through developing an international business plan.

Company details of the Dairyland

The Canadian based dairy firm, Dairyland manufactures lactose free milk, organic milk as well as micro-filtered milk and its multiple versions of by products such as butter, buttermilk, creamy butter, peanut butter, fat free yogurt, organic cream and cottage cheese. Dairyland was founded in 1992 which is located in Burnaby, British Columbia and it is owned by a parent company called Saputo Dairy Foods Canada originating from BC dairy farmers cooperatives (Dairyland.ca,2021).The dairy farm possesses an employee strength of 29 and earning revenues of 6 Million Dollars. The company is more than 100 years old having a historical record of selling quality and creamy milk and its by product meeting up the daily needs of nutrition for the Canadian people

Rationale for the Selection of Dairyland organization

The rationality approach for selecting Diary land is due to its ability to manufacture nutritious quality of multiple butter varieties which are sugarless and organic in nature, securing a time-tested tradition dealing with different by-products of butter.  Dairyland possesses a historical monopoly of Organic Milk sale saturation point in the Canadian Market due to its healthy ingredients and organic nature (Dairyland.ca,2021). Now Diary land aims to make its particular product of Organic Milk to penetrate the international market network of US who values organic as well as healthy quality of hygienic food items meeting the expectation of the consumers in US.

Secondary research for applying International Market Entry Strategies

The international market entry strategies of Canada focus to achieve new market opportunities in the international market space of the US with the new product of Organic Milk based on the statistical database and historical records of US market terms with Canada. Canada relishes a substantial trade surplus with the United States absorbing 80% of Canadian exports each year which will automatically promote the international consumption of Organic Milk in the US as the US values quality food value products (Startupoverseas.co.uk, 2021). The US business environment values quality product existence which will meet up the high degree of organic product demands which invariably motivate Diary land to launch its new product. According to the recent industry data in the US, organic products sales accounts for 4% of total US foods sales  and 20,000 natural food stores have been established for selling quality organic foods(Ers.usda.gov, 2021). The US market researchers continuous research has been executed to pinpoint the growing number of organic customers which has helped Diary land to focus on its international business plan of penetrating the US target market. The demand for quality organic products has been high in the US market having a high price tag that provokes the Canadian Diary land organisation to apply its international target market Strategy of US.

Legislation

The international trade law of the US faces some technical barriers to pursue trade with Canada due product characteristics, packaging, quality test and certification requirements creating burdensome experiences for Diary land. The World Trade Organization (WTO) Agreement on Technical Barriers to Trade (TBT) and Agreement of the United States-Mexico-Canada has eased up the trade barriers and set new rules that adds mobility with the US and Canada (Trade.gov, 2021). The comprehensive proposed regulations notified by the WTO in April 2018 has raised better cross border business consultants for exchanging new marketing strategies between Canada and US. In 2020, the international trade law of the US continues to monitor the Front-of-Package Labelling on Pre-packaged Foods inspecting the sugar as well as saturated fat content and seeks continuous upgradation of the FOP information based on sweetener used cursing health hazards. Diary land produces authentic organic products of Organic Milk which need to be introduced in the target market of the US having food value information as well as FOP symbol and nutrient content message. Diary land has used the new legal opportunities of the US to overcome the trade barriers and successfully executes its international market strategies in the US targeted market network through launching the Organic milk.

Cultural Trends and Attitudes

The cultural trends and the attitudes of the American as well as the Canadian people are very much similar as both are neighbouring countries having friends as well as allies that always creates new business opportunities. Both the countries possess an undefended border and are economically connected due to daily crossover of workers across the border of two countries. The dual citizens of America as well as Canada share identical cultures and import as well as export of the same commodities. Both the countries share each other's cultures through watching Tv shows, listening to music, like each other’s identical sports styles and embracing behavioural patterns towards quality product selection and preferences. The US food culture highly acclaimed food categories that have healthy ingredients and organic in nature delivering health benefits to consumers and they opt for food products having upgraded sustainable health value.  It is quite obvious that the food category vulture of America will accept the new launching entry of the Organic Milk from Canada which is organic in nature. The American focuses on food criteria that can meet up the expectations of the changing tastes as well as demands of the American consumers satisfying the health targets.

The American attitudes as well as behavioural patterns on the basis of international trade with Canada is quite flexible as the young American generation ranging from 18 to 39 years of age gets influenced by the products of Canada which they gladly accept (Pewresearch.org, 2021). This provides a sheer opportunity for Organic Milk to experience a positive response from the American market of targeted customers making the international market entry strategies successful.

Barriers

The international market entry strategies of the Canadian Dairy Farm, Diary land can face the technical restraints of trade barriers (TBT) related to trade agreement non-compliance like standard as well as technical regulations like import licensing requirements, investment issues and government procurements. The strict tariff and non-tariff trade barriers imposed by the United States Department of Commerce’s Trade Agreements Compliance Program seek certain international criteria to cope with (Stopfakes.gov,2021).Diary land needs to provide certain documentation to access and overcome the trade barriers such as a translated copy of the technical rules, financial background information and product authenticity certification.

The Government of the United States interferes as well as tries to enforce its right on the intellectual property of Canada as the protection of the intellectual property rights in Canada is completely different from the US which is enforced under Canadian Local laws. The intervention of the US governments to the intellectual property of the desired organization like Diary land aiming to execute its international market strategy to penetrate the target market of the US can face major obstructions regarding intellectual property. Diary land has the private right to maintain as well as understand its organisational formation of intellectual property and can retain their right based on the instructions of the local advisors and local councils.

The increased competition in the demand of organic food items globally has created some competitive barriers for Diary land to penetrate the international target market of the US. The company in order to stay alive in the target market of the US with its Organic Milk has to invest in more expensive international marketing initiatives. As opined by Katsikeas, Leonidou, &Zeriti et al. (2019), the company also has to offer deep discounts to the international agents and distributors in order to make the product available for the international target market consumers. Diary land has to engage in flexible contract terms with the agents as well as distributors of the target market of US to offer after sales service to the end user of American consumers.

Selection of a market entry strategy and its implementation processes

Segment Marketing

The concept of Segment Marketing encourages a different approach of targeting desired market networks focusing on specific segments of target audiences who can yield maximum consumption for long term process. As per the views of Liu et al. (2017), the market entry strategy of Segments marketing will attract the attention of specific customer base depending on the product merit and quality which invariably promotes positive business returns for newlylaunched products. The process of segment marketing is quite expensive as it mainly focuses on international market fields and can be implemented uniquely for different target markets to achieve greater sales revenues.

The Canadian Dairy farm, Diary land will implement the Segment marketing strategy in the international network of US target markets withits newly launched organic food products called Organic milk.

Identify the Particular Target Market

It has been discussed earlier that the young generation of American citizens ranging from the age of 18 to 39 years of age is more inclined to consume foreign food products which are hygienic as well as possess healthy ingredients and are organic in nature. The growth of embracing a healthy lifestyle within the young American generation like the teenagers, students and office goers has drastically raised the demand of organic food products. Diary land through its unique market segmentation strategy will have to penetrate the young market networks of targeting Americanindividuals who prefer healthy breakfast as well as health drinks while on the move. Diary land will have to understand that common factor of enhancing its product demands in the target market of the US and capitalise on that to achieve a successful market entry strategy. As opined by Baker et al. (2020), it will promote better focus on meeting up the changing health drinks food categories taste and preferences of the desired target market consumer network. Diary land needs to gather information about both the taste and preferences of the young male as well as female target audience of the US to ascertain their criteria of healthy food drinks and how they consume it on a daily basis.

Identify expectations of Target Audience

Diary land through the implementation of its segmented marketing strategy needs to execute extensive market research in the US network of target markets through offering deep discounts to the international agents and distributors and getting into flexible contracts. As suggested by Hampel. Tracey & Weber et al. (2020), it will help the new product to be extensively available for the international target market consumers who prefer healthy and organic food value products having health benefits. The modern-day young generation of the millennials in America has become more health and beauty conscious doing a lot of physical activity who searches for products having nutritional values. The implementation of the segmented marketing strategy can be implemented by observing the changing needs of the targetaudiences who prefer less unsaturated fats and low-calorie health drinks having organic values (Jones-Jang, Mortensen& Liu et al. 2021). Diary land has a strong monopoly market for its product of Organic Milk in Canada and after identifying the needs of the target audiences in the US through the international agencies as well as distributors will circulate the product within the reach of its target audiences.

The marketer, distributor as well as the agency supply chain of Diary land operating in the US need to interact with the target customers to know about their internet and nature of demands based on their requirements of nutritious food quality. For instance, Kellogg’s K special was launched in the US and other countries for target audience who wants to cut down their daily calorie intake meeting up the expectation of a low-calorie diet.

Creating sub-groups

Diary land aiming to implement the segmented marketing strategy in its target market of US through the product launch of Organic Milk need to create sub groups of male as well as female and age categories to have better scope to meet up their needs. It is like the American young millennial crowd having age group from 18-39 years of age are more focuses on low sodium, low unsaturated fats and sweetener-based products. Dairyland needs to categorize the group of target customers who are more inclined to have daily breakfast and pursue a healthy lifestyle and are students, sportsman, fitness freak and office goers.

Reviewing the needs of the Target Audiences

Diary land needs to be proactive through its implementation of segmented market strategy to execute the unique approach of differentiated focuses on the desired target audience of the US through gathering feedback and reviewing the target customers.As opined by Booth et al. (2018), it will serve the company to gain adequate knowledge as well as information about the new needs and preferences that the target audiences seeks in the  food materials to have healthy ingredients. All the relevant market fluctuations and alternation need to be analysed through market research and prevailing demographic status and how the new distributors can reach the latest change of customer food preferences.

Naming the particular Market Segment

Diary land through its segmented market strategy needs to name each and every target markets of the US where the company intends to circulate its new product of Organic Milk. It will promote positive outcomes of the implementation of the segmented marketing strategy through greater target audience responses such as business men and women segments, celebrity segments, fitness professionals and many more (Paramei, Griber&Mylonas et al. 2018). Diary land needs to involve an internal marketing team as well as the international agencies engaging in different areas of US market space gathering information about customer choice and preferences. It will help in an improved decision-making approach as well as experience positive behavioural patterns creating product response in international market fields.

Brands Awareness Marketing Strategy

Diary land needs to use the technique of raising brand awareness through its domestic marketing strategy and the company has gained monopoly with its products in the Canadian market promoting brand promotion of the Organic Milk in each target segment. The Awareness stage tactics need to be implemented by the company to raise the effectiveness of the marketing strategies achieving international market prospects in the US target market. It will attract the attention of the remaining dairy farms in the US to collaborate with the Diary land of Canada to promote Organic Milk with the targeted segment audiences. A proper connection needs to be built up between the product and the target audiences through separate kinds of advertisement and promotion focusing on the separate gender of target audiences (Alexandra &Cerchiaet al. 2018).

Review the Behavioural Patterns of Target audience

The changing behavioural patterns of the target audiences need to be monitored as well as reviewed frequently to scope up the product standard and quality according to the sifting needs of the target audiences. As opined by Choi et al. (2020), a detailed segment of market research as well as observing the degree of change within the target audience need to be taken into consideration to have successful presences within target audiences. The segmented marketing strategies need to be altered spending on the changing taste and preferences of the US target audiences about the new product of Diary land as demands varies, perception changes and preferences alters.

Determining the Size of the Target Market

Diary land aims to make an international entry in the US target audiences though its new product of Organic Milk needs to possess adequate information about the network size of its segmented target market. It can be done market research and getting into business contracts with the international distributors of US who will help to provide information about the size of the target market size. Diary land needs to collect data and insights from the desired target market  where the company is to penetrate through its international market entry strategies achieving improved international sales planning and predictive markers analysis for product alteration.

An International Business Plan For Dairyland for its target market through Evaluation Criteria

Criteria Categories Consideration

Environment and Market Analysis

Diary land will undergo detailed market research and analysis for conducting selection processes to make a successful entry to US target markets with its new organic food products of Organic Milk. The variables of GDP growth structure of the US need to be analysed to serve the endeavour to focus on the target market of the US as both countries share the largest trade relationship. The debt to GDP ratio for Canada was 89.7% compared to the United States which is 107.8%showcasing efficient foundation of international market conditions achieving economic competitiveness and trade returns prosperity (International.gc.ca, 2021). The strong bilateral relationship of Canada and Us will serve the international market penetration strategy of Diary land worth its new organic food products achieving greater international market share.

In addition, the environmental condition of the US market serves a long history of cooperation as they have no boundaries within them such as maintaining proper air quality, sustainable valued products and environmental protection. Dairyland already manufactures its food products from sustainable raw material resources that adds sustainable values to products having quality health ingredients serving the needs of the US target audiences. Canada has again re-jion the Paris agreement to share cross border sustainable international trade operations supporting successful performance of the Internal business plan in the US.

Team Contribution

The marketing team of the Diary land needs to have the required qualification of market research capability, interaction with target audience, seeking review as well as feedback from the target audiences about the launching product of Organic Milk. As suggested by Watson, McGowan & Cunningham et al.(2019), the marketing team needs to implement the business plan through getting collaborated with the supply chain agencies and the distributors of the international market space through signing contracts. The marketing team needs to be well-connected with the multiple market segments of the target audiences of US so that shifting of product demands can be tracked and DairyLand can execute necessary product alterations for its new launching product. The marketing team needs to relate the latest information and data about the changing taste of the target audiences as any wrong data will make the international business plan of Diary land unsuccessful facing major financial risk.

Marketing

The global competition regarding the consumption of healthy and organic food products has been rising and countries like the US provide utmost importance to fulfil the expectations of its consumers based on quality food product supply having nutritious ingredients. Dairyland through its international marketing strategies need to identify its existing as well as new entry market competitors. The business plan will act effectively to achieve successful implementation of proper marketing positioning strategy through using segmented marketing strategies in US target customer network. The marketing team needs to have adequate insights about the target market size in which Diary land will execute its launching of the Organic Milk serving the American Millennial target audiences.

Quality of Product

The quality of product of Diary land, which has been predicted and chosen to have a launching in the international market of the US target market, needs to serve the criteria of business plan according to demands of the US target customers. Dairyland needs to focus on penetrating the international market of US through quality products having sustainable values and healthy ingredients to meet up the present food consumption criteria of the US target markets. It will promote better opportunities to meet the expectations and change food value needs for the segmented target audiences of the international market executing efficient business plans (Su et al. 2019).

Recommendations

Research About Competitions

Diary land needs to execute extensive market research and evaluate the recent data about the demand of quality food items through taking feedbacks and sharing product information presently prevailing in the target market of the US. Diary land needs to identify the existing competitors through signing contracts with the local distributors of US and expose the new branded food product to the target audiences of US.

Build Awareness And Trust On Social Media

Diary land needs to utilise the digital social media platform to reach the larger base of the segmented target audiences of the US which will promote product information flow to the target audience. The company needs to raise brand awareness through contributing valuable content in the social media platform solidifying product credibility and establishing customer loyalty for the target audiences (Saloet al. 2017).

Conclusion

All FITTskills course training sessions are being provided to the employees under the guidance of the Ministry of Trade of that particular country developing an international business plan. The study is about the Canadian organisation, Diary land aiming to implement an international market entry strategy to its new expansion mode of target audience of the US by launching organic valued products of Organic Milk.  The study concludes about developing a business plan based on the evaluation criteria of environments, market analysis, product quality and contribution of the marketing team.

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