Businesses expanding export promotion activity with a strategic shift

Tier 3 EMDG applicants must show how they're expanding export promotion activity and making a strategic shift.


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This Export Market Development Grants (EMDG) definition is to help you know if you are eligible for tier 3. If you're not, you can refer to Types of grants to check if you are eligible for tier 1 or 2.

Requirements and examples

All tier 3 applicants’ plan to market must show how they are expanding their export promotion activity and making a strategic shift in the marketing of eligible products in a foreign country.

What is a strategic shift?

A strategic shift is a change in your business strategy that supports:

  • expanding your marketing or promotional activities to target a new export market in a new country, and/or
  • expanding your marketing or promotional activities to support a substantive change of product, to be exported to a new market in a new country, or an existing export market. A ‘substantive change of product’ is a new and separate eligible product or eligible service that is independent of and substantially different from any previous export product or service.

Read section 4.2.4 in the EMDG Guidelines for more information.

Examples of businesses expanding export promotion activity with a strategic shift

Example 1 – New export market

An Australian winery, Hatty’s Brook, has sold wine in the United States of America (USA) for the past 4 years. They paid an overseas representative $200,000 per year to promote to restaurants and liquor stores. 

The winery plans to target the United Kingdom (UK) market. This is after having established a good base in the USA. The winery has not directly promoted to the UK before. It has only made a few sales from online orders on their website.

In the next 2 years, Hatty’s Brook plans to continue spending $200,000 per year on the USA overseas representative. Over 2 years in the UK, they also plan to spend an extra:

  • $100,000 on an overseas representative
  • $80,000 on trade fairs 
  • $50,000 on social media advertising.

Example 2 – New product

An Australian business, MediTech, has developed an innovative way to test for different types of cancers. This technology represents an eligible intellectual property product. They marketed and sold the technology in Europe to pharmaceutical companies for 2 years. The applicant gets royalties based on the level of sales in a particular period.

The business had spent $750,000 over the past 3 years on marketing in Europe. This included:

  • $250,000 in the 2018–19 financial year
  • $250,000 in the 2019–20 financial year
  • $250,000 in the 2020–21 financial year.

MediTech has developed a new drug (eligible good) to treat Alzheimer’s disease to diversify and expand their business. They plan to market to pharmaceutical companies in Europe over the next 2 years. The new product is materially different from other products sold by the applicant.

MediTech’s plan to market outlines how:

  • they intend to spend $1 million over the next 2 years
  • they aim to increase their promotional activities to reach new customers
  • their marketing activities will materially change because of marketing for the new drug, so they will need to hire specialist consultants.

Example 3 – Does not meet the definition of strategic shift 

A Melbourne confectionary company, Sue’s Sweet Treats, has been exporting its confectionery to the UK for the last 4 years. They have recently developed some new flavours, peach and berry, which have been selling well in Australia for last six months.

They plan to start marketing the new flavoured confectionery in the UK within the next 12 months. This will include:  

  • a 50% increase in social media and Google Ad spending to promote the new and original confectionery products
  • partnering with selected confectionery shops to promote the new flavoured confectionery in store. 

In this case, this business would not be eligible for Tier 3 as adding new flavours or variations to an existing product range would not be considered a substantive change of product.  

However, they would likely be eligible for tier 2 as they are seeking to expand their promotion activities.  

If Sue’s Sweet Treats were to start making and exporting healthy snacks, for example, this would likely be a substantive change of product and therefore eligible for Tier 3. 

More information


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