Executive Summary

The main aim of this paper is to develop the business proposal for establishing new company in Australia as called Universal Social Media Solution. The company will offer the social media marketing services in the Australian market. It is found that the target market of the company will be Australian companies that are involving in this kind of marketing. In this, it is also identified that social medial marketing industry contains the moderate opportunities for the firm. Due to this, company will take the help of the marketing mix that will help to make awareness of the product in the market. At the same time, it is also found that $100,000 is starting budget of the company.  The company can face the issue of changing the marketing trend in the business environment.


The increasing the completion level in the current market has become a critical aspect for the companies to conduct the marketing. In the current business environment, all companies are serious about the new aspect of the marking. It provides the lots of opportunities and benefits in the context of increasing the customer base (Alihodzic, 2013). In the same concern of this, Universal Social Media Solution (USMS) as the social media consultancy will be developed to provide service in Australia. The main aim of the company is to provide the consultancy services to companies that are involving in the social media marketing. The company will provide assistance on the different channels and tools of the social media marketing. The company will also be aimed to get a significant market share and offer effective consultant service. In the current business environment, social media marking has become a significant part of the marketing strategy of a company. It helps the companies to maintain a positive, authentic, presence across its social channels (Aylward, 2014). The involvement in the social media marketing enables the companies to target a big market in the single time.


The mission statement of the company is below:

Spreading the Power of the Social Media Marketing

The mission statement of USMS states that company wants to provide the excellence customer service in the social media marketing. In this, it helps the client to conducting effective social medial marketing.

Service offering

USMS will provide a full range of service in the social media industry. The main services of the company will to provide assistance on the social media marketing. In this company will assist on the different popular topic such as social media marketing, digital marketing, content marketing, B2B social media, social media advisement, social media measurement, social media monitoring and social customer service (Cameron & Quinn, 2011).

Along with this, the company will also provide blog content creation service. In this, company will offer content services to its clines. For the each service, there will be different expert in the company. It will be helpful to achieve the level of the excellence.

Market analysis

Market analysis is a significant aspect of the business proposal because it helps the business owners to alternative its business strategies accoutring to need of business environment. Australia is a developed country that is one of the largest mixed markets economic in the world. The total GDP of Australia is AUD$1.69 trillion as of 2017. In the context of the income per capita, Australia is second country after Switzerland (Chapman, 2011). The business operation in Australia will provide lots of opportunity to USMS. The market of Australia can be understood by PEST analysis that is below:

The below are some opportunities that can be adopted by USMS:

  • High income per capita
  • Freedom of regulatory for the new business investment companies
  • Low rate of inflation in the recent years
  • Rapidly increasing the trend of the social media marketing
  • 61% contribution of the service industry in the Australian economic
  • Developed infrastructure
  • Resources and energy are developed at the great extent
  • Availability of the advanced technology

The above points determine that there are lots of business opportunities in Australia. By adopting these opportunities, USMS can get high profit in the Australian market. The above aspects also depicts that USMS has immense chance in the market of Australia for social media services provider and consultant (Ferrell, 2012).

Industry analysis

The social media marketing has become a leading industry in the current business environment. It main cause of is that now days, 60% participants use the social media marketing that shows the company can get good profit from this industry. In order to analyse the social media marketing industry, Porter’s five forces analysis is conducted (Gido Clements, 2014). It analyses the industry on the basis of five forces of industry which finding are discussed below.

Competitive Rivalry: The force in the analysis measure the number of the companies industry and find out the level of the competition in the industry. In the context of the social media marketing industry, it is found that there completion is increasing from moderate to high (Gorgenlnder, 2011). It means that companies are rapidly increasing in this field.

Supplier Power: This force in the analysis depicts how much easy for the supplier to increase their price. By analysing the social media industry, it is identified that the power of the supplier in this industry is low. The role of supplier is less in this industry that is why, they are not able to affect the industry.       

Buyer Power: In an industry, the power of buyer shows their strength to drive price in the market. In the reference of the social media marketing industry, it is found that power of the buyer is moderate because there are lots of companies that are providing social media marketing service (Jackson, et. al. 2011).

Threat of Substitution: Threat of substitution indicates to the different way of doing what you do. In this, it is found that there are lots of ways of doing marking such as advertisement, digital marketing, content marketing etc but the cost and effectiveness of these ways are not effective. Due to this, it can be said that threat of substitute is moderate (Pride, et al. 2013).    

Threat of New Entry: The threat of new entry shows the ability of companies in enter the market. In this context, it is analysed that threat of new entry is moderate because to make customer is base in this industry is not an easy task.

Social media marketing industry Intensity
Competitive RivalryModerate To High
Supplier PowerLow
Buyer PowerModerate
Threat of SubstitutionModerate
Threat of New EntryModerate

From the above analysis, it can be concluded that to do business in the social media marketing industry is not easy because completion and power of buyer is moderate.


There is high competition in the social media industry in the Australia due to several social media providers. The organization need to develop an effective social media for the public. The most powerful social media providers in Australia are Bruce Clay, Newpath WEB,  DGM Australia, etc. More than 60% of the population of the Australia is regularly using the social media. In the current scenario, most of the internet users are registered in different social media. The competitors are providing different facilities in the social media like communication, chatting, uploading pictures, videos and massages to the subscribers. The market shares of the competitors are high because of the past strategies (Ananda et al., 2014). The main strength of the competitors is providing fast speed data sending process but it consumes the high data. The company can focus on the low data for sending the message or images. Australian market for the social media is very good and the company can use the opportunity of providing new technology in social media. The social media service can be covered by providing the effective technology in social media application and website both. The above analysis provides the effectiveness in the service of the competitor.



DGM Australia

Newpath WEB                                        USES


low                                                                   high


Primary Target market

Company will target the market for the USMS services by segmenting and positioning of their services into the minds of customers. The market for the USMS services is segmented on the basis of the geographical and behavioural segmentation. Under the geographic segmentation, USMS services will focus on the Australian market for imparting their social networking services (Jung & Park, 2014). While, USMS in case of behavioural, it segments the Australia market on the basis of perceived value, benefit or advantage that consumer perceive from the services. Thus, through this segmentation, it becomes easy for the USMS services to identify their target clients under the country Australia. While USMS position their services through using the quality and features.

Segmentation StrategyUSMS segments the markets on the basis of Geographical and behavioural segmentation. 
Targeting Strategy It targets the Australia market through offering the Universal Social Media Solution (USMS) to the local clients of Australia (Pedersen et al., 2014).
Positioning strategy It position the services based on the quality and features of services.

It can be stated that the USMS targeted the Australia clients through providing them the quality services in the form of promoting the company effectively in the digital platform. For targeting the market, USMS could follow the undifferentiated targeting strategy in order to appeal and attract the Australian clients in order to avail their services. However, USMS focuses on the needs and requirements of the clients in order to make changes in the services accordingly. Thus, such practices help in perceiving the quality services by the clients (Ananda et al., 2014). Hence in regards to this, USMS to enter into the Australia market focused on the geographical and benefits strategy for segmenting the market of Australia.


  1. a) Product: USMS will offer wide range of service in the social media industry. The main service which consultancy provides to the company is the assistance on the social media marketing. It means that, consultancy could assist companies related to how to promote the particular company on the social sites and digital platform (Wymer et al., 2010). Likewise, consultancy offers multiple services under the USMS and these are the social media marketing, digital marketing, content marketing, B2B social media, social media advisement, social media measurement, social media monitoring and social customer service.
  2. b) Pricing: USMS adopt the competitor pricing strategy in which company provide best social media solution to the Australian clients at the competitors price. Under this, company for their services charge the price as per the competitors’ product price as it helps the clients to attract the maximum customers. The major benefit which achieve from this strategy is that company could achieve the larger customer base and able to retain them for longer time duration.
  3. c) Distribution: The distribution place of USMS will be the Australia market where ideal locations will select in order to open the consultancy office so that clients could easily find the place and avail the services. In order to attract the maximum clients, consultancy will use the effective distribution channel so that services could be providing in a reliable manner (Kim & Hyun 2011). Besides that, consultancy also focuses on the competitor’s distribution channel in order to bring the improvements in their own services delivery pattern.
  4. d) Promotion: Consultancy could promote their services through using the print and broadcast media in the Australia market. Consultancy will use the magazines, hoarding and television to promote their services to the target audiences (Gordon, 2012). At the same time, consultancy can use the digital platform for promoting their services to the larger audiences as the trend of digital sites are growing day by day. Thus, such promotion strategy will provide support to the consultancy to get the high recognition in the Australia market.

Financial plan

In any business proposal financial plan is an important activity that is associated with the financial with the financial objective of the company. The main objective of preparing the financial plan is to develop the understanding of the financial activities. Financial plan is also essential to know the availability of the cash on the different aspects. However, financial plan includes budget that determine that how much company will spend on the different element of the budget. It also determines the actual need of the capital that helps the business owner to manage the fund. It is also helpful to develop the financial policies for the company (Radwan & Pellegrini, 2010). USMS is going to start the business in the social media service sector so that company will need money for completion of the different tasks. Following tables shows the financial budget and balance sheet for USMS.

Start-up ExpensesCost (in AUD)
Office and furniture20000
Stationary Expenses1000
Promotion Equipments52000
Computers and IT equipments42000
Total Start-Up Expenses200000

Balance sheet
Particular1st year 2nd year
Current assets
Other current assets5000056000
Total current assets250000280000
Fixed assets0
Delivery vans3000033600
Furniture equipment13500001512000
Accumulated depreciation150000168000
Total Fixed assets65300007313600
Total assets67800007593600
Current liabilities200000224000
Current borrowing200000224000
Account payable2500028000
Total current Liabilities425000476000
Bank loan12000001344000
Total noncurrent liabilities25500002856000
Total liabilities41750004676000
Owner’s equity20000002240000
Retained earnings total equity605000677600
Total liabilities and equity 67800007593600

Critical risks

There are various critical risks that could arise in the successfully implementation of services in the Australia market. These can be the changing market trends as it influences the target market behaviour and attitudes towards the purchasing decision. Besides that, investing time, money and resources for the implementation of the services is also considered as a critical to the success. The risks which exist to the success of the company could be the customer, product design, development, promotion, sales and customer services (Mintz & Currim, 2013). Therefore, these are the key risk which will affect the consultancy to successfully deliver to the Australian clients. Other than that, ineffective distribution channel would also be the critical risk for the consultancy as inefficiency in any element of the marketing mix could have deep influences on the quality of services. Likewise, in case company did not have effective distribution channel then they didn’t provide the quality in their offering.


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