FYI May 2018

ON TARGET Meaningful marketing for measurable results

Have your say

Going the distance

Customer Focus

Council proposals and budgets Pg 7

Tips for entering overseas markets Pg 22

The true value of the customer experience Pg 31

MAY 2018 — MEMBER NEWS AND INFORMATION

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FROM THE CHAIR

From the Chair John Wanamaker, a department-store magnate, considered by many to be the pioneer of marketing, famously said “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”

John made that comment over 100 years ago and it still resonates as much today as it did then. In fact, with the development of technology the decision of where and how to market has become increasingly complex and fraught with difficulty.

This issue of FYI aims to provide you with some marketing tools and insights, from the basics of a marketing plan to how

emotions can be used in advertising, how masculine and feminine cues influence our perception of a brand and what colours “tell” us in advertising.

Our business success stories are both from the food industry, but very different angles: Durello, as they begin expanding into Asia via Singapore, and Edible Blooms, who’re celebrating 10 years and have some great views about digital strategy.

Marketing can never be a substitute for an amazing customer experience. Your marketing strategy needs to ensure that when your customers decide to part with

their money, it is consistent with what they experience at the time of purchase.

Finally, explore the new and developing marketing platforms as they could well dictate the future success of your business.

Peter Lamberton Chair, Business North Harbour

In this issue 4 6 7 8 10 11 12 14

In Brief Diary Dates, By the Numbers Advocacy Events Money Matters Business Success – Edible Blooms Business Success – Durello Social Responsibility – Inorganic and Food Waste Collection Updates

15 16 17 18 22 23

Crime Prevention Transport NZTA Update Cover Story – On Target Economic Views Professional Development – McVeagh Fleming 24 Professional Development – AM:PM Marketing

18

29 Community – New Zealand Riding for the Disabled 30 Asian Business Matters 31 Customer Focus 33 Property Matters 36 Government 37 Gold Sponsors

23

29

BUSINESS NORTH HARBOUR GOLD SPONSORS 2017-2018

Women in Business Event Series Sponsor

Contact FYI Magazine Business North Harbour General Manager Janine Brinsdon janine@businessnh.org.nz

Editor Lizzie Brandon lizzie@writesphere.co.nz

Advertising Shirner Dyson shirner@businessnh.org.nz

Design Cindy Hurst cindy@hurstmedia.nz

Printer PrintLounge printlounge.co.nz

Business North Harbour, 12 Parkway Drive, North Harbour, 0632. PO Box 303 126, North Harbour 0751 office 09 968 2222 web businessnh.org.nz The opinions expressed in this publication are not necessarily the views of the publishers.The publisher does not endorse any person, company or organisation that advertises in this publication.

MAY 2 0 1 8 F YI BUSINE SS N H. O RG. N Z

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IN B RIEF

Northern Busway’s 10th Birthday The Northern Busway has now reached double digits! Opened in 2008, it carries more than 5 million passengers every year, rising from 2.5 million just four years ago.

The city’s new double deckers are now in continual use, giving passengers an even better view across the Harbour Bridge.

Four plastics you can quit today Business.govt.nz – access blocked for older browsers In the interests of ongoing security, business.govt. nz’s hosting configuration was updated on 28 April.

This means it’s no longer compatible with some older browsers. If you’re having trouble accessing the site, you need to do one of the following: • Upgrade your browser to the latest version • Change your browser to Chrome • Update your browser’s configuration to enable TLS1.2 Instructions on how to do this, along with a full list of affected browsers (desktop and mobile) are on the Business North Harbour news page.

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MAY 20 1 8 F YI B US I N ES SNH. OR G. NZ

As the UK considers banning single-use plastic straws, Auckland Council have some advice on a few simple things everyone can do every day to reduce plastic’s far-reaching impact on the planet.

1 2

Stop using disposable takeaway coffee cups.

Instead: Get a reusable cup. There are lots to choose from; some cafés actually sell them.

Give up the bottle! Say “no” to plastic water bottles.

Instead: Drink filtered water from the tap.

Invest in a soda maker. Purchase a reusable bottle and refill this at home, at public water fountains, in cafés or at work.

3 4

Ditch the straws.

Instead: Use a biodegradable straw or buy a stainless steel reusable one.

Say “no” to plastic shopping bags. Kiwis use more than 600 million of these every year!

Instead: Get into the habit of keeping reusable bags in the car. A foldable bag doesn’t take up much space!

IN BRIEF

It’s true! Cheese really can give you vivid dreams Research conducted at the University of Adelaide has found that vitamin B6 can help people remember more of their dreams and in greater detail. Participants in the study took B6 supplements before bedtime for five consecutive nights. “My dreams were more real. I couldn’t wait to go to bed and dream!” said one volunteer.

Foods rich in B6 include avocados, bananas, spinach, potatoes – and cheese.

“The average person spends around six years of their lives dreaming,” says Denholm Aspy, co-author of the study.

“If we are able to become lucid and control our dreams, we can then use our dreaming time more productively.

Lucid dreaming, where you know that you are dreaming while the dream is still happening, has many potential benefits. For example, it may be possible to use lucid dreaming for overcoming nightmares, treating phobias, creative problem solving, refining motor skills and even helping with rehabilitation from physical trauma.”

For more information about any of our In Brief articles, please visit businessnh.org.nz – Keep Up To Date – Latest News.

Special Offer For Local Business!

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IN B RIEF

Diary Dates June 15 NSCPG – Hon Phil Twyford

Time: 11:00-11:30am Venue: Commonwealth Room, AUT Millennium, 17 Antares Place, Rosedale

May 17 Business After Five

Time: 5:00-7:00pm Venue: North Shore Golf Club, 51 Appleby Road, Albany The new British High Commissioner to New Zealand, Laura Clarke, will present an update on post-BREXIT and how it may affect your business.

If you’re an importer, exporter or looking for investment in/from the UK then this event would be ideal to attend.

Register: businessnh.org.nz/calendar

The Minister will attend a round-table discussion, hosted by The North Shore Commercial Property Group. He will be updating attendees about the future of Development and Investment in Auckland, and especially on the North Shore.

Price: Free.

Register: businessnh.org.nz/calendar

15 Presentation & Networking Lunch – Hon Phil Twyford Time: Presentation 11:45am-12:30pm, Lunch 12.30-1pm Venue: Finish Line Room, AUT Millennium, 17 Antares Place, Rosedale

The Minister will present information about the future of Transport and Infrastructure in Auckland, and specifically the North Shore.

The Regional Fuel Tax, any-time congestion, the light railway link, the continued development of Albany and Long Bay – how do you feel about these issues?

Take this opportunity to find out more detail and voice your concerns to the man behind many of the crucial decisions. Limited to 120 seats.

Register: businessnh.org.nz/calendar

21 Women in Business

Time: 10.30am-12pm Venue: North Shore Golf Club, 51 Appleby Road, Albany Kirsten Taylor, managing director and founder of highly successful Kiwi company SleepDrops is New Zealand’s leading naturopathic sleep specialist. She is also no stranger to managing growth. Having started SleepDrops with no seed funding or capital, every dollar made has been reinvested but making a product range that caters to a massive demand of nearly half our population has been a rollercoaster ride.

Event Category Sponsor: Eclipse Recruitment Register: businessnh.org.nz/calendar

36,404 10,317 5.5% 2.6% 965,030 2.9% 7.5% 7.4%

6

By the numbers

4 53

Kirsten Taylor

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MAY 20 1 8 F YI B US I N ES SNH. OR G. NZ

Migrants entering Auckland in 12 months to October 2017 (estimated net gain) New residential building consents issued in the 12 months to September 2017 (up 2.9% on the previous 12 months) Auckland employment rose in the September 2017 quarter compared to the September 2016 quarter Auckland GDP grew in the 12 months to September 2017 Total number of registered cars in Auckland as at December 2017 (up from 952,534 in December 2016) Fuel sales grew for the 12 months to November 2017 compared to the 12 months to November 2016 Number of cars first registered to an Auckland postcode increased for the 12 months to December 2017 compared to the 12 months to December 2016 Public transport boardings increased for the 12 months to December 2017 compared to the 12 months to December 2016 Source: “Insight Auckland” Transport Report (February 2018)

ADVOCACY

Make your voice heard If you feel that every time you receive an email from Business North Harbour we are asking for your opinion about some council plan, or policy – then you would be right.

April and May is the time when local and central government set out their shortmid-long term policies, ahead of the 1 July financial years. The good news for you is that, unless you are really interested in policies, you are spared the reading of thousands of pages of information. That is one area of support we offer you, our members. However, we do rely on your input of the summarised information; it is impossible for us to truly represent your interests if we are not clear as to what they are.

For clarity, figure 1. illustrates how the plans work together in Auckland.

In terms of transport, plans are built up across central and local government, and the key documents fit together in figure 2.

Figure 1. Auckland Council planning flow chart

So where are we now?

Figure 2. Linkages between land transport documents

This budget sets out how council intends to raise the revenue needed to drive growth across the region, while still supporting core council functions and the main activities of council-controlled organisations such as Auckland Transport and ATEED. We consulted with you over the 10-year budget in March 2018. A copy of our submission is available to read on our website.

There were several key themes to our submission. Namely – business and commercial property owners are seeking more transparency from council, especially on matters which affect their cost of operation and ability to function efficiently.

Therefore our focus was on the proposed Regional Fuel Tax, and the contestable additional targeted rates.

Proposed Regional Fuel Tax (RFT): Most Aucklanders would agree, more money needs to be spent on transport infrastructure to enable the city to function, and to provide genuine options for us all to contribute to the reduction of congestion. Living in a city which is growing faster than most other Australasian cities creates opportunities. But not if we spend hours stuck in traffic!

However back to the need for transparency, Business North Harbour raised concerns that our members were being asked to effectively support a user pay tax option based on

Consistent with

Annual Budget Adopted every year

Takes account of

Draft Auckland Council 10-year budget

Local Board Plans Adopted every 3 years

Auckland Council’s 10-year Budget Adopted every 3 years

Gives effect to

In May we will focus our attention on the draft Regional Land Transport Plan as that will outline the core transport investment projects for 2018-28. If the projects we want completed on the North Shore are not included in the detail of this plan, it becomes very difficult to bring forth funding.

Auckland Plan 30-year vision refreshed every 6 years

Government Policy Statement on Land Transport

Local Board Agreements Adopted every year

Funding

Strategic flow Regional Land Transport Plan

Fuel Excise Duty

Crown Appropriations

National Land Transport Fund Funding Local share (rates)

Funding Funding

Road User Charges

Motor Vehicle Registration

Strategic flow National Land Transport Programme

activity, without clarity around where the expected revenue ($150bn 2018-28) was to be spent. We stressed that, unlike other parts of Auckland, our members, their staff and trade/commercial visitors do not enjoy the luxury of having a substantial public transport/ rapid transit network in place. In the absence of alternative modes of transport, members reported back that their average annual cost of the additional $0.115/litre would exceed $200/year – per driver.

As the RFT will replace the existing Interim Transport Levy – which is a fixed property tax, (capped at $183/year per commercial property/$113/year per residential property) – Business North Harbour raised how important it is to advance light rail/rapid transit/ additional Waitemata Harbour Crossing to provide options for North Shore commuters, to mitigate the impact of the RFT. Targeted Rate Feedback: In our 10-year Budget submission we reported back members’ views on the proposed targeted rates.

Currently business is paying 32.4% of

SOURCE: THE GOVERNMENT POLICY STATEMENT ON LAND TRANSPORT 2018/19 – 2027/28

the total rates revenue, which is effectively 2.73 times more than residential ratepayers.

This business differential was to have been reduced to 25.8% by 2023/24, but this has been extended out to 2037/38. This is unacceptable and penalises those providing employment. We will continue to put pressure on Auckland Council to address the business differential with urgency.

Water quality targeted rate was considered fair, but without the additional business differential.

Feedback on the Natural Environment Targeted Rate – aimed at reducing kauri dieback and pest control – was that this was not a core function of business, and, rather than ask businesses to pay for something they would not directly benefit from, central government should make a higher contribution.

Space does not permit a full summary of our submission. We trust that the views raised reflect yours. We are here to be a collective voice for North Harbour. Please make sure you participate in the discussions.

MAY 2 0 1 8 F YI BUSINE SS N H. O RG. N Z

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EVENTS

Business Capability Workshop The Best Leaders Don’t Shout Bruce Cotterill, 28 February Bruce Cotterill took on his first leadership role – within a volunteer organisation – when he was 17. Over the years he’s learned numerous valuable lessons and made astute observations about the world of work. He generously shared many of these during a lively breakfast workshop (which even included group singing!)

Bruce reminded attendees about the huge amount of uncertainty in business and the world in general. For example, five years ago, if someone had predicted Brexit and a Trump presidency, they likely would’ve been laughed out of the room. That’s why it’s important to be really good at the stuff which we can control. One message that really seemed to resonate with the audience is that a business needs to get 20% better every year in order just to stand still.

Businesses that fail often do so because of poor finances or a lack of clarity and purpose. Indeed, Bruce reported that 85% of businesses don’t have a strategic plan and, of the 15% which do, only 27% tell their staff what it is. Clear and consistent communication that engages the whole team is therefore crucial. After all, your people can’t help your business achieve its goals if they don’t know what those goals are.

It was obvious from the conversations that continued after Bruce’s presentation that everyone left the event feeling invigorated – and with a list of tasks to work on!

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MAY 20 1 8 F YI B US I N ES SNH. OR G. NZ

EVENTS

Women in Business Hannah McQueen, 13 March Hannah McQueen is a gifted public speaker, renowned for her financial savvy, humour and thoroughly downto-earth manner. It was no surprise then that North Shore Golf Club was packed to the rafters for this midmorning event.

Attendees were treated to some astonishing statistics and insights (it’s believed that 40% of people lie to their partner about money), the happy significance of the rule of diminishing returns, and some straightforward practical advice about how to make positive financial progress.

Hannah’s approach is refreshing. It was made clear that being smart with your finances isn’t just about theory, but about truly understanding why you’re making those changes. Quite simply, we won’t do it if we don’t feel motivated to do so. And, it’s okay to have some non-negotiables too!

This was clearly a highly enjoyable session. There was much laughter, frequent nodding of heads and quite a few “Oh my goodness!” moments as the facts and ideas being shared struck home.

We certainly look forward to hearing more from Hannah on a regular basis in FYI magazine.

Business Lunch Vic Crone on Innovation, 11 April Gales and torrential rain failed to dampen the audience’s interest and enthusiasm for Vic Crone’s fascinating presentation about the “fourth industrial internet revolution”. It was a bold and fascinating session, which raised challenging concepts and questions, primarily focused on the fact that, with the dawn of artificial intelligence (AI) and automation, the change we experience over the next decade will likely dwarf anything we’ve seen before.

It’s clear that Kiwi businesses need to step up and embrace the opportunities that AI and automation offer or risk being left behind in the global marketplace.

Research shows that NZ currently remains focused on customer loyalty, customer satisfaction and cost out, whilst lagging behind the rest of AsiaPacific in areas such as earning online revenue, using social media for business and investing in technology which impacts profitability.

It would seem that age can affect a business’ growth and adoption of technology too, with employees under 40 far more likely to want to push ahead but potentially being met with resistance.

Vic’s advice? If you can’t make progress in this area within your current organisation, go and find one where you can! Help this country see what positive advancement with AI and automation can look like.

MAY 2 0 1 8 F YI BUSINE SS N H. O RG. N Z

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MONEY MATTERS

Hannah McQueen writes…

No amount of smashed avocado millennials forgo will change the fact the housing market is harder to get into than ever before.

Perhaps unsurprisingly, withdrawing from the “Bank of Mum and Dad” has become a key tool to combat that.

Brokers Mike Pero Mortgages report 60-70% of first home buyers had help from their parents, and among first home buyers under 30, it was closer to 80 or 90%.

The most common assistance is parents using equity in their own home, while others may provide cash or a loan. Whichever way you do it, it’s worth being aware of the fishhooks.

The first thing you need to work out is whether your own retirement is sorted. If not, you may have to make some hard decisions about how much help you can afford to give. Or, one option might be to use equity in your own property and invest in your child’s, meaning you help them get a foot in the door, but also benefit from any capital gain to help fund your own future.

If you want to gift money to help your child and they’re in a relationship, the smart way to do this is advance the money as a loan to both partners, in a deed of acknowledgement

of debt that both partners sign. That deed would say that, in the event of the relationship ending, death, or the property being sold, the money needs to be repaid – even if you’re not expecting it back. That helps ring fence your assistance from the outcome of the relationship. If the bank insists the money be gifted, then your child should contract out of the Relationship Properties Act, specifying the money you gave is not relationship property.

If you choose to go guarantor, set up the loan to repay the portion you’re guaranteeing first, and ensure it doesn’t cover any future borrowings.

Helping your kids get into the property market is a great start for their financial journey, but make sure you can afford to help, make sure it’s well documented, wellstructured and protect that assistance from relationship failure.

Hannah McQueen, Founder and Managing Director of enableMe

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BUSINESS SUCCESS

More than 300,000 smiles!

Celebrating Edible Blooms’ decade of delivering delights Chocolate. Surely one of life’s most indulgent yet simple pleasures – and for one business in William Pickering Drive, the foundation of a blossoming online enterprise.

Sarah Bruce was involved with Edible Blooms even before it launched in this country. She was working with the Australia team and, when it was offered to her, embraced the opportunity to be the New Zealand franchisee. “I love the whole concept of giving as a core value, and I loved the idea of being a franchise owner,” she explains. “It’s now our tenth anniversary, and I still love it!”

The stuff that’s worked, and the stuff that hasn’t

Over the last decade, riding the wave of the e-commerce boom, Sarah’s employed a variety of marketing tactics and learned some valuable promotional lessons.

She had her car branded from day one.

She was doing all the deliveries back then and so was basically “a mobile billboard all over Auckland”.

She also hit the ground running with SEO (search engine optimisation), although she acknowledges a somewhat “spray and pray” approach. Whilst it generated business, it also wasted money by including unprofitable keywords.

Google Adwords remains a critical promotional channel for Edible Blooms, and Sarah has some strong advice. “You have to stay sharp with this stuff. Look at the data often, review it, and change what you need to.” She encourages business owners not to try and do it all themselves.

“Partner with someone who can demonstrate an understanding of your market and who’ll be accessible and accountable.

It quickly became clear that the vast majority of Edible Blooms’ customers are women, and promotional activities are therefore designed appropriately. “Women are the financial decision makers and tend to be in control of almost all the friends and family gift purchases. Men generally only buy for one (or two) of three people – their girlfriend, their wife or their mistress,” laughs Sarah.

Not every marketing ploy has worked brilliantly. Initially, Sarah was persuaded

by Yellow Pages to take a banner ad in

the Florist section. “This backfired,” she recalls. “At the time, the concept of chocolate bouquets was pretty much unheard of in New Zealand, and people thought we really were florists! We didn’t appreciate then that our customers had to catch up to the idea.”

Sarah has other words of wisdom and caution to share.

Figure out your critical promotional platforms

“Ours is a very visual product, and we found out radio doesn’t work well as a standalone channel. You have to put yourself in your customers’ shoes and make it easy for them to understand why they should buy from you.”

Beware of joint ventures that aren’t

“Cross-promotions have to be mutually beneficial. I used to say ‘yes’ to virtually everything but I’m much stronger now! Make sure that you get the type and level of crosspromotion you require in order to make it worthwhile. For example: we get approached by people organising all kinds and sizes of events, but also by random people making up events just to get something for free.

We’ve recognised that you can’t give to everyone, and have chosen non-profits that fit with our brand or have helped family and friends, like Ronald McDonald House and Dress for Success. We also give to events being organised by regular customers. They support us and we want to support them.”

You have to put yourself in your customers’ shoes and make it easy for them to understand why they should buy from you.

Be smart with social media, and recognise the potential value of an unhappy customer

“Facebook and Google Reviews definitely have value and add to a business’ credibility, but you have to keep on top of them. Check them every day, and respond where you need to. We don’t delete negative comments. Instead, we acknowledge them and try to explain the facts, politely but firmly. I feel this is really important; you’re often judged on how you perform when things are perceived to have gone wrong.”

What’s next?

Sarah is in no doubt where the biggest challenge lies: courier and delivery services, which she describes as “the bugbear of all businesses”.

“At the moment, the couriers’ growth is increasing every month, which puts extra pressure on the drivers already doing the job.

It doesn’t matter what courier company you use, small or large, it’s the same challenge.”

In order to try and manage customer expectations, Sarah has introduced a free delivery option which promises delivery during the week, but without guaranteeing a specific day. She hopes that this option will be viewed favourably, almost like a reward for customers who do not require their bouquet on a particular date or who take the time to plan ahead. “It’s not just about saving them from a hideous increase in delivery costs but about protecting Edible Blooms’ reputation too.”

Sarah’s also mindful that she’s operating in a fiercely competitive market. “Our competitors are international and local, major commercial enterprises and sole traders working from their front room. Our challenge is to remain relevant, keep up with changes in the gifting market and come up with fresh, innovative ideas – and to aim for at least another 300,000 smiling recipients by 2028!”

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BUSINESS SUCCESS

From Brazil to New Zealand to Singapore – an appetising journey The Durello story began in rural Brazil more than 50 years ago, when 14-year-old Neide Durello was learning to prepare simple but delicious food with an Italian flair that reflected her family’s origins.

Fast-forward to 2008. Her son, Marcelo Menoita, and his wife, Barbara Scholten, emigrate to Auckland from Brazil, wanting to share their mutual passion for food with the New Zealand market.

But where to start? “We quickly learned that Kiwis love to entertain,” says Marcelo. “To enjoy tasty snacks and good wine or beer with friends. So this seemed like the perfect opportunity to introduce them to the delights of Brazilian cheese bread!”

In January 2014, they transformed Neide’s family homecooking into a business reality. Starting out in a small commercial kitchen in central Auckland, Durello appetisers quickly proved so popular that they were winners at the NZ Food Awards that same year. “The judges were unanimous,” recalls Marcelo, “and Ray McVinnie told us, ‘it’s not just the quality that sells this product, it’s your family story – so keep telling it!’”

“And we do! We always remember that our food is created by recipes that start in the heart.”

That said, Marcelo is a pragmatist who believes in working to nothing less than a five-year plan, and who accepts that some things have to be adapted to suit NZ consumers. “We trademarked Coxinha, the traditional Brazilian name for our Chicken Delights. But Portuguese isn’t widely spoken here, and so hardly anyone knew how to pronounce it!” he laughs.

Durello – who are now based in Rosedale – are embarking on the next stage of their culinary journey, as they expand into Asia via Singapore.

Assisting them with this exciting venture are Michael Fan and Rakel Liew of Mirakel Ltd. What attracted them to Durello? “They’re so passionate about the recipes,” explains Rakel. “That family spirit really gets them across the line; it’s an emotional engagement that goes way beyond ‘just’ a product. They have a great cultural identity, which is inclusive, but very much their own. This authentic combination gives the potential for longevity in the market, and should appeal to Singapore’s locals and visitors alike.”

Durello have been sure to work with 100% Pure New Zealand and Buy NZ Made.

Fonterra have been supportive too, which adds the extra credibility of NZ’s “reliable” dairy industry.

Recipe for success! The Durello team, from left to right: Michael Fan, Marcelo Menoita, Barbara Scholten, Rakel Liew, Felipe Ozorio and Sharon Kouch.

they’d figure it out – and they did!” In just two weeks, Durello created their Fish Delights, sourcing smooth dory from the South Island.

Strategic alignment with the right partners

Michael and Rakel are regularly approached by businesses who are keen to expand into Asia, but who are “not quite export-ready”.

“There’s no substitute for hard work upfront, to ensure a viable, long-term vision. This isn’t about quick wins; you’re going to have to pace yourself,” comments Michael. “Do your research and get your certification at the outset, otherwise you risk costly delays.”

There could be other risks too. Consider this scenario. An overseas distributor represents Brand A in a certain territory. They then seize the opportunity to take on a similar Brand B, so that they can effectively lock it out of that market.

“Choose partners who share your values, goals and motivation,” Michael stresses.

Marcelo agrees, “You’ll know when you find the right people, because there’ll be an immediate understanding. It has to be a mutual relationship, with both of you focused on ‘what can we do to help them?’ It’s about our dream, not just theirs or yours.”

Michael further advises to look at a longterm plan that includes product development, resources and capability, and aim to think of five-year outcomes in terms of: • Value – Will this go beyond selling the product? Working towards acquisition?

• Footprint • Sales volume.

Ray McVinnie told us, “It’s not just the quality that sells this product, it’s your family story – so keep telling it!”

What makes Singapore such an appealing market?

Geographically, Singapore is a compact area – roughly the same size as the Lake Taupo district – but with 5.5 million people. This makes it an excellent test market, as there are fewer logistical challenges and the risk of having to scale up too soon is mitigated. Michael describes Singapore as “cosmopolitan” (25% of the population are migrants) and a great showcase for SE Asia. “It’s a very open market where you’ll find buyers from Indonesia, Malaysia and the Middle East, all keen to try products before they commit to importing.”

Moreover, consumers have money to spend, so it’s possible to offer a quality product at a decent price. This not only helps with cash flow but also means there’s a certain amount of flexibility when it comes to design and market positioning.

There have been some challenges for Durello of course. Overseas industry regulations can be quite different to NZ’s. For example, the import of chicken products is highly regulated in Singapore. Rakel was impressed by Marcelo and Barbara’s “can do” attitude. “They told me 12

MAY 20 1 8 F YI B US I N ES SNH. OR G. NZ

Seeking to offer more than just food

Durello’s expansion plans are not limited to overseas exports, as Marcelo explains. “How do you monetise ‘spirit’ or ‘culture’? It’s about experience; it has to go beyond cheese bread! Everything has a value. The trick is finding that, but maintaining its integrity and authenticity whilst productising it. For us, in the first instance, that means a tapas bar in the City. For our customers to be able to feel Durello, and for that feeling to be moreish – to the point where it could even be franchised.”

Neide Durello should be proud.

SOCIAL RESPONSIBILITY

Inorganics Update Good for business and good for the environment! More than 95% of March’s Inorganic Collection has been reused or recycled.

The results of this project have been confirmed by Abilities Group, who conducted the collections. Any reusable items were delivered to our storage facility at Massey University for community groups to visit and “pick over” what they wanted and take it away for free. All non-reusable items were taken back to Abilities’ premises for sorting

into either scrap metal, plastic, paper and cardboard, glass or wood.

How it worked

The collections were scheduled for Thursday 15 and Friday 16 March.

All Business North Harbour members who registered for a collection were contacted in

the first instance to verify their details and answer any queries. Their details were then forwarded to Abilities Group who scheduled the collection roster, confirmed this with the members and discussed potentially “dangerous goods” items. Invoicing was based on a reduced cubic metre rate, specially negotiated by Business North Harbour for our members.

The results

3m3 Landfill

12m3 Community Groups

56m3 Abilities

26 companies registered for collections, and 24 actually received them.

Total amount collected 71m3 Amount taken by community groups 12m3 Amount recycled via Abilities 56m3 Amount going to landfill 3m3 Items collected broadly included e-waste, broken and reusable office chairs, filing cabinets, shelving, roll-away cupboards and desks.

The following groups contacted Business North Harbour and had their pick of the reusable items: Kaipatiki Environment Centre, Mairangi Bay Kindergarten, Forest Hill Milford United Football Club, Whanau Marama Parenting, Wairau Valley Special School, Pukapuka Community Group.

Business North Harbour’s next inorganic collection is planned for Thursday 20 and Friday 21 September. More details will follow in due course, so keep an eye on the website and our e-newsletters.

If you’re a community group who would like the chance to pick up some items from the next collection please e-mail david@businessnh.org.nz

Food Waste Collection News Dove Medical Press in Corinthian Drive were one of the first organisations to sign up for Business North Harbour’s food waste collection service in March.

The company have an established sustainability policy, and were the first publisher of medical and scientific research to be certified carboNZeroCertTM. Office manager, Breanna Baxter, says that the timing of the initiative’s launch was fortuitous. “We were already

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considering food waste collections and then, when we saw Business North Harbour’s advertisement, it prompted us to actually do something about it!”

Dove regard the food waste collection as “a great addition” to their environmental awareness, and affirm that the whole team are very pleased to see the difference it’s already making to their waste reduction.

Indeed, their previous five or six 60L bags of rubbish per week have now been reduced to just two bags. “When we move from council bags to the 140L wheelie bin, we’re hoping to only need fortnightly collections,” says Breanna.

Reclaim – one of the companies who

carry out the food waste collections – estimate that 1.3 tonnes every year will be diverted from landfill as a result of Dove’s actions.

CRIME PREVENTION

Sign written vehicles – how to try and avoid the wrong kind of attention Having vehicles sign written makes them easily identifiable, and a moving advertisement for your business.

Inscrutable people will target those vehicles as there could be the assumption that they are used by staff as a mobile office.

Make sure you do what you can to minimise the temptation!

Empty vehicles every day. Don’t leave valuable tools and promotional items in vehicles overnight. Even with secure lockboxes and cabinets in vehicles, thieves can cause damage when trying to gain access.

Vehicles used as mobile offices also encourage staff to leave personal items in the vehicle for their own ease. Paywave cards are frequently left in cars for a quick coffee while out and about. These have made life easier for offenders to commit a large number of small item purchases in a short space of time, prior to the cards being reported stolen.

Do not leave your vehicle insecure. Always lock it and take the keys away with you. If you have an immobiliser or alarm, ensure it is put on. A simple steering lock can also reduce the opportunity for the vehicle to be taken. If you have tools or other large items, engrave or mark them to make them identifiable and recoverable. Ensure you record these, consider taking photographs too, and inform police when making the complaint. This is proven to help police get recovered items back to their rightful owner.

When it is on the road, a sign written vehicle is specifically designed to stand out from the crowd – and this can be both positive and negative. It is important that the driver of the vehicle is obeying road rules, as this could have an adverse effect on how your company is viewed.

If the vehicle is used by staff as a mobile office, and the staff need to be easily available, ensure a hands-free kit is installed.

The Land Transport (Road User) Rule 2004 states drivers can’t use, while driving,

a hand-held mobile phone (including PDA or BlackBerry) to: • make, receive or terminate a telephone call • create, send or read a text message or email • create, send or view a video message • communicate in a similar or any other way.

Penalties are an $80 fine and 20 demerit points.

Safe travels, Kirsten.

A/S/Sergeant Kirsten Evans North Shore Policing Centre E: Kirsten.Evans@police.govt.nz MAY 2 0 1 8 F YI BUSINE SS N H. O RG. N Z

15

TRANSPORT

Public Transport New Pricing – Zone Overlap General rule: the zone overlaps belong to which ever zone results in the cheapest fare for the customer. It’s easiest to explain using examples (from Auckland Transport (AT)): • Pretend a customer wants to travel from Albany Station to Constellation Station. Albany Station is in the Upper North Shore zone. Constellation Station is in a zone overlap between Upper North Shore and Lower North Shore. Constellation Station will be treated as though it is part of the Upper North Shore zone, as that will mean the customer has to pay the lower, 1-zone only fare.

• Then pretend a customer wants to go from Constellation Station to Sunnynook Station. Sunnynook Station is in the Lower North Shore zone. This time Constellation Station will be treated as part of the Lower North Shore. The customer will only pay a 1-zone fare.

• If a customer wants to travel between two points within a single zone overlap, they will need to check the Journey Planner to confirm their fare. It will come down to the individual bus stops used, as each bus stop within a zone overlap is categorised into one of the two zones.

AT HOP Update Get in quick and grab your handy key tag!

From 22 May, AT HOP retailers and AT customer service centres will be selling a limited edition key tag version of the AT HOP card.

The key tags will cost $10, the same price as a regular AT HOP card. Please note that the purchase price is non-refundable and, unless you have bought a prepay card, cards must be topped up before use. Minimum top up is $5.

For more information visit at.govt.nz

T2 lane changes Operating hours for transit and bus lanes around Auckland have changed, affecting Albany Highway and Constellation Drive. The increased hours are: Albany Highway in both directions: 7.00 am until 10.00 am and 3.00 pm until 7.00 pm Constellation Drive southern side: 6.30 am until 10.00 am Constellation Drive northern side: 4.00 pm until 7.00 pm

Additional parking at the Park & Rides

As the Silverdale and Albany Busway stations are at the northern end of the Auckland area, AT have confirmed they will be investing in additional car parking for drivers coming from the north to access the Northern Express route.

For Albany, Stage 1 will have approximately 140 spaces. Stage 2 plans involve building up on the existing land. Business North Harbour have not been given dates for the completion of either stage.

Business North Harbour have been notified that there are no plans to increase parking at any other Northern Busway station (i.e.: Constellation, Sunnynook, Smales Farm and Akoranga.) AT’s aim is to encourage commuters to leave their cars at home by providing additional routes and services.

Your questions answered “On the far-left lane of the Northern Motorway going south between Oteha Valley and Constellation, there is a sign indicating buses can use the lane at certain times (peak times). Does this mean that all users can use the lane at other times?”

NZTA state that the lane on the far side is an emergency stopping shoulder at all times. As there is no designated bus lane (and only if there is congestion on the motorway) buses have the right to use this lane, but only during the designated hours of 6.30 am-9.30 am and 3.00 pm-7.00 pm, Monday to Friday.

“If there are queues to turn left, am I allowed to drive along the angled lines in the middle of the road so that I can turn right at the bottom of the road?”

A “flush median” is a strip in the centre of the road that is marked with white diagonal lines within parallel lines. It provides a place for vehicles that are turning right, or vehicles that have turned right onto the road from a side road or driveway.

You can only drive onto the flush median to: • wait to move into a gap in the traffic flow after you have turned right (car A in the diagram to the right) • slow down and wait before turning right (car B in the diagram to the right).

Do you have a transport-related burning question that you’d like answered?

E-mail sarah@businessnh.org.nz and then keep an eye on our website and future issues of FYI.

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MAY 20 1 8 F YI B US I N ES SNH. OR G. NZ

NZTA UPDATE

Northern Corridor Improvements Construction underway After being granted consents and designations by a Board of Inquiry in December last year and carrying out night time preparation works, the Northern Corridor Improvements (NCI) project team kicked off its main works programme in April.

Night time work on SH1 complete

In order to minimise disruptions to motorists traveling during the day, the Northern Motorway was closed and detours were in place during the night to allow crews to resurface the motorway, paint new line markings, relocate the median barriers and install overhead gantry boards. This phase of night work took place between January and May and despite a few patches of bad weather, it was completed on schedule in preparation for the main construction work.

A snapshot of what is planned for the project

• Extra motorway lanes on SH1 in both directions between Upper Harbour Highway (Constellation) and Greville Rd. • Direct motorway to motorway connection between the Northern Motorway (SH1) and Upper Harbour Highway (SH18) for traffic heading north and west.

• The Northern Busway will be extended from Constellation Bus Station, further north to Albany Bus Station • 7km shared walking and cycling path alongside SH1 and SH18.

• New SH18 motorway lanes connecting to the existing SH18 motorway lanes at Albany Highway.

• New Paul Matthews Rd route, moving the current intersection further along SH18 to join the Caribbean Drive intersection.

Your community contacts for the project

To find out more or provide feedback about any of our work, please contact our Community Engagement Managers. Emma Cushnie and Trish Viall are responsible for being the key Emma Cushnie contact for all residents and business owners in our project zone.

Emma Cushnie Community Engagement Manager (SH1: A l b a n y, E a s t C o a s t B a y s , Rosedale) Trish Viall Tr i s h V i a l l C o m m u n i t y Engagement Manager (SH18: North Harbour Industrial Estate, Constellation Drive, Unsworth Heights)

World class sports facilities for North Harbour Avid sports fans in the North Harbour area are one step closer to having access to three new, world class facilities after construction started on all sites earlier this year.

North Harbour Hockey facility at Rosedale Park

The new site for North Harbour Hockey was blessed by mana whenua at a dawn ceremony to start work on what will be an international standard complex.

Some of the key features include four new hockey turfs (two of Global Elite standard and two of National level standard), a two-storey pavilion, covered seating for 450 spectators (with capacity for larger events when required), 370 carparks and a walkway to an existing turf.

For more info and to view an animated video of what the new facility will look like visit: www.nzta.govt.nz/harbour-hockey

Wainoni Park Pony Club at Greenhithe

Rosedale Pony Club, Greenhithe Pony Club and Whenuapai Pony Club have formed the Wainoni Park Pony Club and will share facilities with Greenhithe Riding for the Disabled once construction is completed later this year. With two all-weather arenas, new and upgraded clubrooms, more off-street parking to accommodate horse floats and grooming pens among some of the upgrades, riders will be provided with a modern and safe space to enjoy.

For more info and to view an animated video of what the new shared facilities will look like visit: www.nzta.govt.nz/wainoni-park

North Harbour BMX at Hooton Reserve

Work is on track at Hooton Reserve to construct the world class premiere facility for North Harbour BMX riders.

The facility will include a professional track with an 8m ramp and berm jump. This gives it the ability to host international events. An amateur track will also be built with a 5m ramp with rhythm section for aspiring BMX riders. The new track surface, floodlights, lockable gate and fencing will provide riders with more time to safely enjoy the facilities.

For more info and to view an animated video of what the facility will look like visit: www.nzta.govt.nz/north-harbour-bmx For more information on the NCI project visit www.nzta.govt.nz/ projects/the-western-ring-route/auckland-northern-corridor/

Have you registered to receive updates?

To receive regular e-newsletter updates or any general project info email northerncorridor@nzta.govt.nz or phone 0800 624 776 For more information on the NCI project visit www.nzta.govt.nz/projects/ the-western-ring-route/auckland-northern-corridor/

MAY 2 0 1 8 F YI BUSINE SS N H. O RG. N Z

17

COVER STORY

On Target This issue of FYI is the fourth and final part in our current series looking at business growth strategies, particularly for companies of $1m to $5m and $10 to $30m. This time the focus is on marketing.

In 2017 when Business North Harbour asked members what “business capability” advice and guidance they would find most helpful, marketing was by far the most popular response.

This is a vast topic, however for businesses seeking to achieve sustainable, longterm growth, there are certain immovable marketing principles. These are true for a single-unit café considering whether a shift to a free-range menu would be financially

Today’s global marketplace offers a literal world of both opportunities and challenges. What types of promotional techniques can cut through geographical and cultural boundaries and appeal to a broad range of customers?

Valentyna Melnyk is a Professor of Marketing and Consumer Research at Massey Business School. She has studied cross-cultural marketing, branding and advertising, as well as how emotions factor into these.

“There are no ‘Golden Rules’ when it comes to marketing across different locations and cultures. Disappointing perhaps, but not a surprise, especially when you consider the sheer volume of information available and the pace at which it comes.”

Now more than ever businesses need to understand who are their customers and talk in their language. “Having a vague idea of your target group or comforting yourself with the idea that your target group is broad simply isn’t good enough.”

Emotions provoke a stronger reaction than reason

Daniel Kahnerman won the 2002 Nobel prize

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for economic science. His book, “Thinking, Fast and Slow” discusses cognitive biases which, simply speaking, means there are two human brain systems running side-by-side.

System 1 is the quick, automatic response from intuition and gut feeling, and basic emotions, System 2 is the slower, logical mind of logic and reason.

Kahneman stated, “System 1 is…more influential…guiding…[and]…steering System 2 to a very large extent.”

Therefore, in terms of marketing, branding and advertising, appealing to customers’ emotions in the first instance may be a smart move. “It takes more effort for us to be convinced by a rational argument. You risk customers switching off due to fatigue or apathy if you only apply that approach.”

Relying on eliciting just “positive” or “negative” emotions isn’t good enough either.

“This approach has completely changed in the last 10 to 15 years. We know now that

advantageous or a $10m corporate seeking to exploit the potential opportunities of Brexit by targeting the French economy. The same rules apply – but it’s the scale and application that will be different.

Planning for success

Although data wasn’t readily available for New Zealand, research conducted in the USA in 2014 found that 34% of businesses did not have a documented marketing plan.

every emotion produces a very different reaction. Fear evokes a different response to disgust – just look at the evolution of cigarette packaging.”

Nor is it just about hitting a customer’s pain points. Pride, joy and happiness can also play a powerful role. “If you’re marketing a luxury item for high-end customers and want to underline status, you’re best to evoke pride rather than joy, as this generates that psychological distance. Whereas happiness could serve a business well if their product is linked to food or family.” Happiness as an emotion also makes people more open-minded and more willing to accept new products or brands, while for example, sadness makes people pay more attention to details.

Timing is everything

Studies have shown that emotions can actually have an effect on perceived physical temperature. Loneliness and fear lower perceived physical temperature, whilst love and joy raise it. Therefore, in the depths of winter showing images inducing love or happiness (e.g. by watching a romantic movie) will make the viewer feel genuinely warmer and enhance their liking of it. Using

COVER STORY

For businesses with fewer than 50 employees this figure rose to 44%. Organisations who did have a documented plan were almost twice as likely to stick to their strategy “all the time” or “most of the time”, and more than 77% were extremely satisfied with their marketing teams. It could be argued therefore that a defined marketing strategy is not only good for a business’ bottom line but for company culture and team morale.

2

this same imagery in summer could significantly lessen the impact.

“Somewhere like Germany, around Christmas time you’ll see road safety adverts centred on family. The image of a little girl standing in the snow, hoping that her daddy will not speed and will get home safe, evokes fear but also love.

And that feeling of warmth will ensure a greater resonance with the message.”

Personalise your marketing

“The use of apps and gamification as marketing tools has yet to become commonplace in New Zealand – but it’s coming, and smart businesses will get in on it.”

An app has far more potential than a mere loyalty card. It gives businesses the opportunity to provide customers with a fun and engaging experience at any time.

Organisations are also recognising gamification’s potential for screening would-be employees and training existing team members. “Recruiters can see how a candidate ‘plays the game’, monitoring their decisions and motivation to assess whether they’re compatible with company culture.”

4

MARKETING OPPORTUNITIES

PROMOTIONAL CHANNELS

5

1

Where to begin?

Let’s go right back to basics, and highlight the elements of an effective marketing strategy.

Organisations without a plan may wish to use this as a starting point, and those with a plan may choose to take the opportunity to reassess their goals, priorities and options.

Although every industry sector has its own nuances, what follows are the key elements that should apply to every business. At the core of any credible marketing plan are The Four Ps: • Product • Price • Placement • Promotion To be effective, The Four Ps should work together cohesively. In other words, if a product (or service) is promoted as high-end it needs to be placed and priced accordingly.

3

TARGETS

MONITOR, EVALUATE, ADAPT

RESEARCH & ANALYSIS

Five critical components of a marketing plan

1

Research & analysis

Be as specific as possible.

• Who are your customers? What do they need? Why? • Who are your competitors?

• What makes you distinct?

• Who can help you? Partners? Suppliers?

• Industry trends and benchmarks

2

Marketing opportunities

Incorporating the data you’ve already collated, conduct a detailed SWOT (strengths, weaknesses, opportunities, threats) analysis. Be sure to consider the implications of your marketing being too successful and the business being deluged with enquiries.

3

Targets

What do you need to achieve and in what time frame? Do you have the required budget and resources?

• Use the SMART system to determine your goals °° Specific °° Measurable °° Achievable °° Realistic /Relevant °° Timely

4

Promotional Channels

There are numerous methods of attracting and engaging customers. Some will be immediately essential, others less so. It is advisable not to rely solely on one channel.

A few of the options available are: • Online marketing °° Website °° Social media °° SEO (eg: Google Adwords) • E-mail marketing (assuming you have

• • • •

• •

a viable database of contacts who have agreed to receive communications from you) °° E-newsletters (eg: MailChimp) °° Nurture e-mails (eg: InfusionSoft) Public relations Face-to-face promotion °° Networking clubs or events °° Public speaking opportunities Exhibitions and events Sponsorship °° Business – awards or collaborations °° Community – supporting non-profits, local sports teams, schools Direct mail and leaflets and/or samples Advertising – print, radio, TV, cinema, online

Think about how the different channels can work together to support each other. For example, an e-newsletter should not be a standalone document, but contain hyperlinks directing readers back to your website.

5

Monitor, evaluate, adapt

Conduct regular reviews to reassess the market, your progress and identify the strategies that bring results.

• Ask customers where they found you and why they chose you • Track the numbers and check conversion rates Adjust your tactics as appropriate.

Please note: these are just the basics. This information alone should not be relied upon to provide an effective marketing strategy.

Reference sources and possible resources: marketo.com – Marketing Trend Watch 2014 business.govt.nz – Marketing Action Plan tool business.govt.nz – SWOT checker MAY 2 0 1 8 F YI BUSINE SS N H. O RG. N Z

19

COVER STORY

How gender cues can influence brand perception

donation to charity

donation to charity

The “warmth” of the circle had a better response from customers than just an unsupported CSR statement.

Just as emotions can play a strong role in branding and promotion, so do two key values. The immediate opinions that are formed of either a person or a brand are based on competence and warmth.

Dr Alex Hess is a senior lecturer at Massey’s School of Communication, Journalism and Marketing. She has co-authored two research projects looking at the influence of gender cues on brand perception.

Her teaching courses also discuss how different colours can influence customer behaviour.

“When judging people, the first value which comes into play is warmth. This is a basic survival instinct! Is this person friendly or will they attack? Once warmth has been established – and we feel it’s safe to stick around – we start to assess competence.”

With brands, the reverse is true.

Competence – the masculine gender cue – needs to be clearly demonstrated before warmer (feminine) cues can have any positive effect.

Typically this is where start-ups and non-profit organisations may slip up.

“They’re so keen to establish those touchy-feely, empathetic tones, they overlook a message of authority.”

Conversely, some companies focus only on appearing strong and powerful, but doubling up on competence doesn’t double the customer’s perception. “Competence is competence. Once it’s been established, that’s it. You absolutely need warmth.”

Interestingly, warmth is actually harder to instil, as it’s seen as potentially fake. “Smiles can appear too obvious and forced, and a declaration of ethical or social responsibility can be perceived as mere lip-service. There has to be real evidence of long-term commitment for it to have an impact on the customer.”

Competence plus warmth

“Masculine” product

How colours can influence brand perception and customer behaviour Vision is the most stimulated of the five senses. At least 80% of what customers perceive is through what they see.

20

RED

BLUE

YELLOW

Active and bold, can stimulate appetite, red backgrounds perform better when consumers have to remember details

Calm and trustworthy, products presented against a blue backdrop are liked better than products shown against red backgrounds

The happiest colour on the spectrum, energetic and friendly, often used by “bargain price” companies

MAY 20 1 8 F YI B US I N ES SNH. OR G. NZ

Warmth plus warmth

Masculine plus masculine

Masculine plus feminine

Feminine elements

Masculine elements

Factors to consider for cross-cultural marketing In Western culture, white is used to denote innocence.

In some African and Asian countries, white is associated with death.

In Western culture, red is a bold colour of desire and adventure.

In Asian countries, it symbolises luck, prosperity and marriage.

In most Western countries, purple is the colour of royalty, associated with wisdom and elegance.

In Brazil, purple is the colour of mourning and is representative of the balance of life and death.

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21

ECONOMIC VIEWS

Going the distance themself up for a couple of critical benefits.

“If you’re a manufacturer importing some components from, say, Germany, which form part of your finished product exported back to Germany, currency fluctuations could be somewhat mitigated. As one rises, the other falls. The supplier could also be a source of critical local knowledge, and help you produce new variations and possibly superior products to better suit that market’s consumers.”

Other methods of market entry

Overseas expansion doesn’t necessarily mean direct export. FDI could be an alternative option.

Businesses seeking to make their mark in overseas markets may wish to re-read the interview with Catherine Lye of ExportNZ on page 15 of FYI’s March issue.

Dirk Boehe is a Professor of International Business at Massey Business School whose research interests include international diversification (market entry, exit, restructuring), export strategies, and CSR (corporate social responsibility) in international business. He’s previously lived and worked in Europe, Australia, the USA and Latin America, advising on logistics, import/ export, and CSR in internationalisation.

He endorses much of the advice offered

by Catherine, and provides some valuable additional insights.

The first steps

The research and analysis phase of an overseas marketing and expansion plan will likely be more complex than one for domestic markets, due to the greater number of initially unknown factors.

“Start asking questions!” says Dirk. “You need to determine if, how and where you’re going to be internationally competitive in the long run. So do your homework and be realistic.” Even then, there are “200,000 things” that could disrupt plans.

Foreign Direct Investment (FDI) A company or individual in one country acquires controlling ownership of a business in another country.

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MAY 20 1 8 F YI B US I N ES SNH. OR G. NZ

The changing definition of a “dodgy economy”

This is no longer confined to countries with corrupt governments or imperious drug lords.

“Times have changed,” comments Dirk. “You only have to pick up a copy of The Economist or switch on the news to see that political and economic uncertainty haunts the likes of Britain and the USA. Trade agreements can be thrown out, turning a once stable market upside down.”

Partnership risks

A supply chain can be put in serious jeopardy if one partner bails out. Dirk recalls an instance when a Brazilian furniture maker was exporting to Europe, the currency market turned against him and his American partner jumped ship. “This happens more often than you would imagine,” he cautions.

Trying to mitigate risk

“I believe that strategic diversification is essential, especially for smaller businesses because they are more vulnerable to market turbulence,” reasons Dirk.

In his opinion, importing is an important part of a successful export strategy. Why? Dirk argues that an exporter who imports is achieving “the right balance” and opens

This potentially gives a business more leverage in a foreign market. For example, a New Zealand wine producer could choose to invest in a distribution depot in England in order to supply supermarkets and off-licences around the UK. “You have more say in what happens and when,” says Dirk. There could be

CSR (Corporate Social Responsibility) as a marketing tool Dirk’s experience with CSR would definitely seem to endorse the results of Alex Hess’ research. (See page 20). Namely, that CSR does have genuine value as a promotional strategy both domestically and internationally, but only when it is a genuine and demonstrable part of a business’ operations.

It is not enough to make a claim; this has to be a proven long-term commitment.

“Price shouldn’t necessarily be a barrier to a CSR policy of sustainability, but you need to clearly identify and target the appropriate market,” observes Dirk. “Focus on the customers who are prepared to pay more for a product or service – but be sure to justify what those extra dollars are for.

Share the message, and update it regularly.”

Adopting an environmentally-responsible policy can provide additional benefits. “If a manufacturer manages to redesign their processes to use less energy and produce less waste then, not only do they reduce their own utility bills, but their customers enjoy a feelgood factor which can potentially be passed along the supply chain Dirk Boehe to their customers too.”

currency advantages too. “Investing in the depot becomes cheaper when the Kiwi dollar rises against the pound,” he explains. “While this may not directly compensate for the lower export price competitiveness, it may provide other marketing-related advantages in addition to cutting out the middle man.”

PROFESSIONAL DEVELOPMENT

Intellectual Property – what it is, and how to protect yours Intellectual property, or IP, are legal rights that protect the expression of an idea in something that was made or created. IP is often a key asset in many businesses. The acquisition of most IP via formal registration, and constant monitoring for any potential breaches and attacks on the IP is critical in securing your competitive advantage in the marketplace.

It is important to know the types of IP out there in order to understand which legal rights automatically exist and which rights you should proactively register.

Once you have a trademark registered in NZ, it is possible to register it in other countries via the World Intellectual Property Organisation (WIPO). An application to register trademarks in other countries via WIPO is not cheap, but all the notifications of the overseas registries happen automatically.

However, be aware that just because you have a registered trademark in NZ, does not mean you take precedence over trademarks already registered in those countries. A trademark search by local lawyers may still be a good idea.

Zealand patents are formally registered at IPONZ through its own process.

1. Trademark

2. Copyright

You must budget your time appropriately for IP, typically sooner rather than later, to ensure that your business can grow and move to the next level with the adequate amount of protection. IP are also capable of being assigned, leased and on-sold for commercial gain, which can be made possible with the right legal assistance.

Whether or not you are sure about the existing IP needs for your business, it is wise to seek trustworthy legal advice before taking any steps.

Trademarks exist to distinguish your goods and services in the marketplace from the goods and services of your competitors.

Trademarks are typically words, logos, colours, shapes, sounds, smells or any combination of those things.

Locally, the Intellectual Property Office New Zealand (IPONZ) hosts and maintains a trademark register and processes new registrations or renewals. A separate trademark is usually required for each and every distinguishable class of goods and services set by IPONZ. The length it takes to register any trademark is a minimum six months, and would commonly secure the rights for a term of 10 years before it is open for renewal.

Registered trademarks are demonstrably easier to enforce, as IPONZ registry entries are definitive proof of exclusive ownership and the starting point to enforce your rights against any alleged breaches of your registered trademark. Anything not registered with IPONZ is either an unregistered trademark or an expired trademark.

Given that IPONZ registrations are on a “first come, first served basis”, any expired or unregistered trademarks may very likely risk being taken by another person purporting to register that trademark ahead of you, and be used against you.

Copyright exists to protect original works such as artwork, books, computer programmes, drawings, films, music, sound recordings, and any compilation work of the above. Copyrighted works are recognised automatically, without any formal registration process, and have international recognition.

We recommend, by way of best practice, that the author of copyrighted works incorporate the symbol © to identify that they are copyright. However, copyrighted works do not need the © symbol to create the copyright. We further recommend that you include a copyright clause in each employment agreement to recognise all works undertaken and authored by your employees during the course of employment as the IP of your business.

3. Patents

Patents relate to new inventions, and give the IP holder an exclusive right to stop other individuals/businesses from making, using, or commercialising a brand new invention.

Securing a patent allows you as the IP holder to exploit a new technology however you wish for a period of up to 20 years, but specifically within New Zealand.

Patents often require a specialist IP practitioner to articulate what it is that makes your invention unique. Like trademarks, New

4. Other IP Categories unique to New Zealand

There are four less common categories of IP that can also be registered through IPONZ: Design Rights, Plant Variety Rights, Geographical Indications and Maori IP. We recommend that you only explore these categories if your business specifically requires them.

What can I do to get started?

Leo Huang

Ben Lenihan

Contact Leo Huang, North Harbour Office Ph: (09) 415 4477 lhuang@mcveaghfleming.co.nz Contact Ben Lenihan, Auckland Office Ph: (09) 377 9966 blenihan@mcveaghfleming.co.nz

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PROFESSIONAL DEVELOPMENT

Recipe for Online Marketing Success Main Course Ingredients:

1 x website (fresh not frozen, and not past its sell-by date) 1 x 12-month strategy plan 1 x in-house supporter 1 x external specialist

Instructions:

You will need to start with an in-house supporter who believes that online marketing is here to stay and that the company needs to be available online.

Find a good No, find a great external specialist to put your ideas and objectives in to a (at the very least) 12-month strategy plan.

Break this down in to quarters (not the American kind) and produce a three-monthly action and marketing plan.

You are now ready to review your website. Is it FRESH enough?

• Is it mobile friendly? (More than 60% of searches online are done on a smartphone!)

• Does it load in under three seconds? (People today just can’t wait; you know this!)

• Does the look and feel correspond with your current brand and service? (No excuse for it to be out-dated or just plain ugly) • Does it work? (Impressive enough to convert prospects into buyers?)

OK, let’s say your website meets the straightforward key elements above, now you need to convert your visitors or prospects into buying customers, either today or in the future. Did you know around 60% of your website visitors will buy the same or similar products or service in the next 12 months? It may as well be from you!

Add more SALES today

To convert your visitors into buyers, you need good, clear calls to action.

Call me or Email me or Buy now.

Seems simple, but you also need effective e-commerce processes that include things like “abandoned cart”, or “you want this how, about this as well?” and a very, very simple purchase process made easy.

A range of payment options, such as PayPal, is a must, particularly if you are selling to an overseas market.

What about those who are just BROWSING (not ready to buy today)?

For those visitors who don’t buy today, then you must at least capture their details so you can slowly build a trusting relationship with them. Therefore when they are ready to buy you’ll hopefully be their first choice – because they’ll remember you and have confidence in you.

How to CONVERT these prospects by using a lead magnet and email nurture series

What is a lead magnet and prospect nurture process?

Offer something irresistible that they would be crazy to refuse, in return for only their first name and e-mail address. Then send the lead magnet to them.

Once they receive their lead magnet (whitepaper, Top 10 tips, five questions we hate to be asked) then you can set an automated e-mail series so no-one has to remember to send the follow up e-mails.

Generally around four e-mails with a tone of GIVE, GIVE, GIVE, GET means at the end of the series you’ve provided such useful stuff that when you ask a closing question they are happy to provide key 24

MAY 20 1 8 F YI B US I N ES SNH. OR G. NZ

information, and you know where they are at and what you should do next to help them.

When you have completed your main course, it’s time to look at the dessert trolley.

Dessert Options We suggest a strong social media strategy and a team to help boost your brand and sales.

Paid advertising is not for the faint hearted! It’s crucial to know what you are doing in order to not waste money on clicks by people who were never going to buy from you.

Strategy, targeting, implementation and reporting.

In summary:

If you really believe the e-mail from the person in Turkbladistan who can build you a website (that works) for $500 or can get you on page one of Google tomorrow, then perhaps you need to do a bit more online research before making that decision.

On the other hand, if you are serious about getting more out of your online marketing, contact a respected, local company offering transparency and accountability.

Terry Ottow AMPM Marketing (09) 300 5131 021 932 330 terry@ampm.co.nz

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Carroll’s Logistics North Shore offers:

• MPI ATF Facility and HCCP

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Food Certified

• Container Unloading and

A ST

Cross Docking

• Warehousing - Storage • Outwards order processing.

‘Scan Pick’ plus ‘Scan Pack’

• Nationwide Distribution

-Courier plus Freight and Air

• Auckland Metro Transport

Albany-based Logistics Company Carroll’s Logistics provides Third Party Warehousing, along with ‘Pick + Pack’ order processing and Transport services Carroll’s Logistics helps North Shore businesses with hi tech warehousing, scanned Pick plus Pack order processing and the distribution of a wide range of products throughout New Zealand.

Established in 1969 and with their head office in Mangere Bridge, Carroll’s saw a market for Pick plus Pack Warehousing and Distribution on the North Shore and set out several years ago to fulfil that need. For any business out-sourcing, the physical handling of your products is a big step. Finding the right 3PL (Third Party Logistics) company with a proven record can be challenging. The advantages of an efficient operator in close proximity to your own business premises are obvious.

Carroll’s are not a big corporate and are agile, efficient and user friendly. Through economies of scale, sharing resources over many customers, along with an in-depth knowledge of the industry, Carroll’s are able to justify their investment in a hi tech operation, not practical or economical for a smaller user.

Features of the North Shore operation include the latest German technology using semi-automated VNA (Very Narrow Aisle) fork trucks and order pickers wirelessly linked to the Carroll’s Warehouse Management System, a first of this type in New Zealand.

This achieves the utmost efficiency in the management of the 4000m2, 12 metre high warehouse, without losing the ability to access or track the many 1000s of SKUs (Stock Keeping Units).

Established in 1969 a family business, Carroll’s good old fashioned service still is going strong today.

Full-time in-house IT support for the group sees advanced software development utilising features such as ‘Scan Pick’, where items are scanned from the warehouse racking then ‘Scan Packed’ into the final outer carton at the end of the assembly line. Options such as EDI (Electronic Data Interchange) sees data transferred direct from the customer’s software system to the Carroll’s Warehouse Management System, with no human intervention or data entry needed.

With online 24/7 live access to all accounts, stock inventory, current movements

and archived history, this leads to an incredibly accurate, efficient, well communicated solution for the client. There is a complete ‘bread crumb’ trail right down to high definition CCTV, so basically the Carroll’s warehouse becomes a virtual warehouse for the customers. It is all very seamless.

Carroll’s Logistics is conveniently located at 7 John Glenn Avenue, Rosedale, Albany.

Find out more by contacting: Carroll’s Logistics North Shore Manager, Paul Canavan, 09 444 0313, 021 901 933 or paul@carrolls.co.nz Managing Director Chris Carroll, 09 444 0313, 021 549 800 or chris@carrolls.co.nz www.carrolls.co.nz

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SHOWCASE

Rugby Legend delights Rosmini College Players Auckland’s Rosmini College students were wowed by the appearance of 2014 World Rugby Player of the Year, Brodie Retallick, at a lunchtime presentation ceremony on Wednesday 4 April.

Retallick was invited to share his insights and assist in the presentation of this season’s kit to 1st and 2nd XV players. His visit was co-ordinated by Dexion NZ, who are proud supporters of rugby at Rosmini College.

A question and answer session not only focused on training tips and what it takes to succeed in the game, but also touched on several more candid topics which prompted entertaining replies.

Retallick, who is famous for being one of New Zealand Rugby’s hardest working players, emphasised the value of mental attitude and commitment and shared many inspirational insights on achieving at the highest level.

One younger player asked how to respond

if you’re told you’re not good enough.

Retallick’s advice was to “bear in mind that’s only one person’s opinion – and it’s up to you who you listen to. Work ethic and mental attitude trump natural attributes.”

“It’s not how big or how fast you are, but how hard you’re prepared to work. If you’ve got the motivation to turn up to training, you might as well push yourself every time,” he said.

Sports bags containing this year’s rugby kit were then presented to each player by Derek

It’s not how big or how fast you are, but how hard you’re prepared to work. If you’ve got the motivation to turn up to training, you might as well push yourself every time.

Finnigan of Dexion’s new North Harbour Supply Centre. This was followed by the presentation of a personalised, signed rugby ball and a photo opportunity with Retallick.

Brodie Retallick with Nixon Cooper, Rosmini College principal 26

MAY 20 1 8 F YI B US I N ES SNH. OR G. NZ

“The college needed to update its rugby uniforms and we were just rapt to be in a position to step forward and support the college,” said Craig Landon, regional GM of Dexion NZ. “We were pleased that the scheduled timing of the presentation worked in well with Brodie and enabled us to make it such a special day for the boys.”

“Dexion’s own founder, Demetrius Comino, both through his foundation and in his everyday action was very much focused on creating a business platform that delivered innovation, excellence and integrity in outcome. Rosmini is a fine school and it’s fantastic that we can support a college that shares such similar values.”

College principal, Nixon Cooper, expressed his sincere appreciation to both Dexion and Retallick for their support and for bringing such a memorable event to Rosmini College.

And Retallick’s final words? “Work hard at training, listen to the coaches and do your homework around how they want you to prepare for the team you’re facing. Then put it into action on the pitch on Saturday, and have some fun.”

SHOWCASE

Left to right: Brodie Retallick takes Q + A from the floor. Rosmini College principal Nixon Cooper, Brodie Retallick and Dexion’s Derek Finnigan. Sam Aschebrock receives his bag and ball from Brodie Retallick.

EVERYTHING YOU NEED FOR STORAGE UNDER ONE ROOF. YOUR STORAGE SOLUTION EXPERTS ON THE SHORE. With the combined Precision commercial storage and shelving product portfolio and the Dexion Industrial product range, your Dexion Supply Centre can offer a selection of products and service that are second to none in the New Zealand market.

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NEED STORAGE? GET IN TOUCH. DEXION SUPPLY CENTRE NORTH HARBOUR Unit 3/33 Apollo Drive, Albany | 09 930 8568 | dscnorthharbour.co.nz

FOR ME, IT’S BEEN TRULY

TRANSFORMATIONAL.

I KNEW I DIDN’T HAVE ALL THE ANSWERS AROUND LEADERSHIP, BUT NOW I CAN SEE

THE POSITIVE IMPACT OF MY STUDIES.

JILL CLARK

Master of Advanced Leadership Practice student

Mastering the Art of Leadership Local Brown’s Bay resident Jill Clark is no stranger to education. She’s worked in the sector for 35 years and currently manages one of the Blind and Low Vision Education Network’s resource centres, helping to support young learners with visual impairment.

Jill was keen to broaden her skillset to open up future opportunities. She was after something transformational, not just a three-day course that would be quickly forgotten.

She says the Master of Advanced Leadership Practice offers a very supportive environment, including a coach for the first year, and a cohort that freely shares insights and ideas. The programme also includes international guest lecturers who are at the top of their fields.

Apply now:

massey.ac.nz/malp

COMMUNITY

New Zealand Riding for the Disabled – where horses change lives Riding for the Disabled (RDA) was introduced to New Zealand in 1962, with a core purpose of providing interaction with horses to develop increased ability, independence and self-worth for children and adults with physical, intellectual, emotional and social challenges.

There are currently 56 RDA groups across New Zealand (including seven around Auckland), and between them they provide a valuable service to more than 3,000 clients every year, including therapeutic riding and equine-assisted psychotherapy.

Greenhithe RDA is the group closest to Business North Harbour’s district, and it’s an exciting time there. They’re seeking to expand their operating days into the week so that they can make the most of Wainoni Park’s improved facilities, and incorporate school groups as well as individual riders.

“We currently cater for 15 riders during our Saturday sessions,” says Christine Broad, the group’s safety officer and duty coach, “but we have a waiting list of 50, which grows every week. That’s why extending our operating days is so important.”

Christine is quick to dismiss a common misunderstanding. “No, you don’t have to be

a horse expert to volunteer with us!”

“You don’t need to be a disability expert either,” she adds. “You just need to have a great attitude and be keen to help and learn.”

Indeed, volunteers can assist with a wide variety of activities.

• Helping to maintain the grounds and property • Administration • Fundraising and publicity • Grooming and preparing the horses • Leading the horses during the rides • Side-walking to assist the rider with their therapy.

“Training is offered on an ongoing basis,” reassures Christine. “We want our volunteers to feel confident and comfortable – and to have fun!”

There are a variety of reasons why people choose to volunteer their time, and Christine says that the “feel-good factor” is definitely one of them. “It’s the enjoyment of seeing the riders’ faces light up with excitement when they arrive. Then being part of a client’s therapy and seeing first-hand the improvements that riding has made, not just physically but for their confidence and independence too.”

This raises an important point. Anyone unfamiliar with RDA may be surprised at the structure and processes behind a client’s riding programme. It’s not just about popping up onto the horse and walking round a field in a big circle. Every rider has their own specific set of challenges, and their programme is designed to address these. Regardless

of whether someone wants to strengthen their muscles, improve their balance, create meaningful, emotional bonds or encourage their self-esteem to flourish, their progress is carefully monitored to ensure they get the absolute most from their RDA experiences.

Greenhithe RDA’s new riding sessions will be on Wednesdays and Thursdays during term-time from 9.00 am until 1.00 pm, commencing Term 4. “We don’t expect you to come for the full four hours on either day, but we do ask that you make a regular weekly commitment,” comments Christine.

“That’s best for you and our riders. They get continuity and you get to make a real contribution to their development and success.”

TO FIND OUT MORE Greenhithe RDA Wainoni Park North Churchouse Road, Greenhithe, 0632 Ph: 021 102 2356 E-mail: greenhithe.rda@gmail.com GreenhitheRDA For information about other RDA groups around Auckland, visit www.rda.org.nz and click on RDA Groups

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ASIAN BUSINESS MATTERS

Terms and Conditions – Why your business needs T & C What are terms and conditions

Terms and Conditions (T & C) set out the conditions which the business owners (sellers or service providers) will do business under.

T & C is not a legal requirement, however it is designed to protect the rights of businesses.

Who needs it, and why?

Does your business supply goods and products? Does your business provide any specific service? If your answer is yes to either question, then T & C is essential for your business.

The purpose of T & C is to clarify the rights and obligations of all parties, and clients like to know upfront the seller or service provider’s terms. Having T & C in place helps to reduce any misunderstanding between parties and can also avoid disputes. It can also be used to limit potential liabilities and provide some degree of security for recovery of debt.

What should the terms include?

Irrespective of the size or nature of your business, what follow are some terms which could be addressed: • Price and payment terms - including payment dates and what will happen

when late payment occurs, eg: interest for late payment • Orders and acceptance - this covers method of placing orders, terms for quotes (if applicable) and a clause setting out clearly that by placing an order this constitutes the customer’s acceptance and understanding of the T & C and is therefore a binding contract between the parties.

• Security Register – the T & C should address when ownership passes to the customer particularly in the case where goods are delivered prior to payment being made. As the business owner, you need to ensure that ownership of the goods is retained until such time as payment is made in full.

• Risk and insurance • Intellectual property and copyright • Limited liability These are just the basic guidelines. Before drafting T & C, it’s advisable to have a thorough discussion with your lawyer so that they can gain a better understanding of how your business operates and any risks they may need to mitigate. This includes issues of intellectual property. Regular reviews are recommended so that your T & C is in line with current legislation.

For more information contact Turner Hopkins Lawyers Commercial Team – Mike Newdick, Partner, on (09) 486 2169 or email: mike@turnerhopkins.co.nz

Other common clauses include: • Definition • Personal guarantees

使用条款的重要性- 为什么 你的生意需要它 ? 无论你的生意是关于商品买卖还是给你的客户提供服务。是否常常遇到客户拖欠尾款， 或 者双方对交易规定有不同解析产生矛盾？甚至遇到客户公司倒闭，不知道 向谁所要欠款？ 使用条款也称作商家规定条款。这是个有效的法律文件， 是供货方或者是服务供应商的给其客户的一份使用条款， 里面会阐述所提供的货物或者服务范围 ，制定双方的权益 和相互的责任。 这些条款 可以放在你的订单背后，也可以 email给你客户。最重要的通过这个文件做到以你的条例来 经营生意， 减少不必要的与你的客户的误解以及避免之后的 争议。对于很多商家而言，清楚的制定这些条款可以帮你的 生意更好的管理，明确的相关条约也可以限制客户拖欠货款 行为，以及，当有拖欠款发生时，可以更快，更好的使用法 律权益维护你的权益 。 除了前面提多的付款条款外，其他常见的商家条款一般包括 以下几个条款： 1. 定价权和付款条例 2. 货物抵押权（商品客户）

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3. 商品风险和保险 4. 下单和货物接受 5. 付款人的担保 6. 违约责任及违约赔偿 7. 商家免责条款 8. 知识产权及隐私条款 可以加的 条款还有很多， 恕不能在此一一列举. 我们建议你 和你的律师联系详细讨论你的生意运作以及需求，这样他们 也可以帮你制定出适合你生意运作的条款，里面保护你的利 益。 如果你现在已经有一个使用条款，那么我们也建议你做 定期的更新从而确保里面的法律条款都是适用的， Turner Hopkins 北岸律所， 袁颖婧律师， 资深律师 email : Joy@turnerhopkins.co.nz

CUSTOMER FOCUS

The true value of the customer experience “On a scale of one to ten (where ten is the most likely) how likely is it that you would recommend us to a friend or colleague?”

He cites examples from one of his recent New Zealand customer experience studies:

As customer satisfaction levels drop, customer loyalty drops faster

“Real loyalty comes mainly from customers who would tick your ‘top box’. The study showed a 57 percentage point drop in loyalty between the ‘Very Satisfied’ customers and those who were only ‘Somewhat Satisfied’.”

This demonstrates a very important point.

“If you survey your customers, don’t be too quick to combine the ‘Very Satisfieds’ with the ‘Somewhat Satisfieds’. This could be a mistake, because it overlooks the huge drop in customer loyalty between these two groups,” explains Paul. “A similar drop in advocacy occurs too, meaning that far fewer customers will be willing to recommend you to others.” (See figure 1).

More customers experience problems than may be recognised

”Even though 31% of customers experienced a problem, fewer than a quarter (24%) of them registered a formal complaint with the company.” (See figure 2).

Problems drive customers away

“… and there was a 35 percentage point drop in loyalty when customers experienced a problem, with only 27% of them confirming that they would definitely continue to do business the company.” (See figure 3).

Finally, the study highlights a very important opportunity.

”When customers do complain, there is a huge opportunity to resolve their problem

1. More customers may experience problems than may be recognised

Percentage of customers who experience problems

Contact behaviour of customers who experience problems Experienced problems 31%

Did not experience problems 69%

Source: CTMA New Zealand Ltd

Typically, only a minority of problems get formally registered as complaints

24%

Formally complained to head office Mentioned it to

37% front line staff Didn’t tell

39% anyone at

the company

and make them more loyal to the company in the process.”

Paul urges businesses to look carefully at these numbers. “64% loyalty from customers who feel genuinely satisfied with the outcome of their complaint. That’s actually slightly higher than the loyalty of customers who’ve never experienced a problem. Not enough New Zealand businesses are capitalising on this. What if your business was exceptional in the way it handled customer complaints?

What could this mean in real terms for your profitability?”

Moreover, complainants left feeling dissatisfied by the way their problem is handled will likely tell twice as many people as those complainants who were satisfied with the outcome, and 13% also share their negative experience on social media.

“It’s not good enough to simply map your customers’ journey doing business with you,” Paul affirms. “You need to be guided by ongoing measurement of the voice of the customer to drive continuous improvement in your business.” (See figure 4).

This means:

1. Know when a problem happens 2. Fix the customer 3. Fix the product or service so that problem never happens again Paul makes three key recommendations to help achieve this: Firstly, consider all communication channels available to your customers: • Telephone • E-mail • Social media • Letter • Face-to-face

2. Problems drive customers away % of customers that would definitely continue to use the company

Regardless of size, industry or location, this one question is often at the heart of many companies’ customer satisfaction programmes and used as a benchmark for marketing success. Whilst low scores may reignite a business’ focus on better serving their customers, they alone do not reveal what problems a customer may have encountered, how these problems should be fixed, and the potential cost to the business of not fixing them.

Paul Linnell is the co-founder of cemNZ (customer experience management NZ), a community of professionals committed to improving the quality of customer experience in New Zealand, and thus helping its members be more successful. For more than 20 years, Paul has been working with clients around the world, helping them to turn the voice of their customers into practical management actions that have a tangible impact on the bottom line.

He firmly believes that businesses need to learn how to express customer satisfaction (or lack thereof) in financial terms. “There needs to be a shift from merely measuring customer satisfaction, to actively managing customer experience,” he says. “Our research shows that problems customers experience and the way many New Zealand businesses deal with their customer complaints can put up to 12% of their annual profits at risk.”

Referring to a decade’s worth of studies, Paul shares a few of what he calls The Economic Truths of Customer Experience: • As customer satisfaction levels drop, customer loyalty drops faster • More customers experience problems than may be recognised • Problems drive customers away • Build customer loyalty by putting things right.

Impact of problems on loyalty 60%

62% 40%

20%

0%

35 percentage point drop in loyalty when customers experience problems

27%

Did not experience problems Experienced problems Customer problem experience

Source: CTMA New Zealand Ltd

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CUSTOMER FOCUS

100% 80%

82%

57 point drop in loyalty between customers who are “Very Satisfied” and those who are only “Somewhat Satisfied”

60% 40%

25%

20% 0%

4. Build customer loyalty by putting things right

Relationship between customer satisfaction and loyalty

7% Very satisfied

Somewhat satisfied

Neither satisfied nor dissatisfied

0%

Somewhat dissatisfied

Customer satisfaction

Source: CTMA New Zealand Ltd

Make it easy for customers to do business with you and for them to make contact with you at every stage. Make it clear that you welcome their feedback at any time. Strive to respond promptly and appropriately via the customer’s preferred channel.

S e c o n d l y, e n s u r e t h a t y o u r t e a m i s adequately equipped to respond effectively to customers. Do they have the necessary skills? Do they understand what they’re permitted to do in order to put right a customer problem?

Thirdly, really study negative reviews and complaints and identify the things that are

2% Very dissatisfied

% of customers that would definitely continue to use the company

% of customers that would definitely continue to use the company

3. As satisfaction levels drop, customer loyalty drops faster

62%

64%

A well handled complaint can make customers even more loyal than those who haven’t experienced any problems 33%

No problems

Satisfied complainants

23%

21%

Mollified complainants

Dissatisfied complainants

Non-complainants

Source: CTMA New Zealand Ltd

broken. Fix them, incrementally. Inform customers what you’ve done, how and why.

Smaller companies may have a real advantage here because they probably do appreciate what their customers think.

They want them to feel taken care of. That’s harder for the large corporates who’re generally focused on just getting enough new customers through the funnel to make up for those who leave.”

Collaboration between marketing and operations will be key. The marketing team needs to measure the right things at the right level in order for the operations team to deliver this service. “My advice is always to measure things at the level at which you may

need to take remedial action,” observes Paul.

He offers this final thought.

“Don’t measure or reward marketing success purely on your business’ ability to acquire new customers. Rather than thinking, ‘Where should we advertise next?’ consider instead, ‘Are we investing enough in retaining the great customers we already have?’”

Paul Linnell customer experience management NZ cemnz.org.nz Ph: (09) 414 6212.

Commercial property update Have you noticed that there are fewer commercial real estate signs in the area? The vacancy level in the office and industrial market has dropped significantly during the last few years due to lack of speculative building by developers. Tenant demand for premises have meant rents have increased and many businesses have looked at purchasing their own premises rather than lease.

As a business owner the attraction of owning rather than leasing is having control of the property, and monthly mortgage payments (if any) are not controlled by market rents or increases by the landlord.

However, if purchasing a property as an investor, the capital value of commercial property is largely dependent on its yield (or cap rate in commercial property terms). To calculate the net rental yield, subtract annual expenses from annual rent and divide this result by the total cost of the property. The result should be multiplied by 100 for the net rental yield percentage.

Considerations include the property

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being vacant or tenanted. If tenanted, the quality of the tenant, the stability of the lease, current rent and the likely cash flow generated in any year. If the property is vacant, how long will it take to rent, and market rents. An investor may be less concerned with the exact location of the

The vacancy level in the office and industrial market has dropped significantly during the last few years property and may also be prepared to look at different types of commercial properties.

A loan on a commercial property is across a shorter term than residential.

Usually between 10-15 years paying principle and interest, with a deposit of 30-40%. Note that rates are at commercial interest rates. Banks will look at the strength of the existing or future lease.

Talk to your bank manager or mortgage broker who will advise accordingly.

Given the events of recent years, commercial properties may need to have a seismic evaluation done. The initial report is an IEP report (Initial Evaluation Procedure) undertaken by a structural engineer and its purpose is to identify earthquake prone buildings. Earthquake prone buildings are defined as being less than 33% NBS (33% New Building Standard).

Getting a comprehensive building inspection will reduce the risk of finding any building defects or potential issues.

Whether a first time commercial purchaser or an experienced investor, ensure you have experts to hand who can advise you.

Janet Marshall is a Director and Commercial Manager at Colliers International Mob: 021 684 775 or janet.marshall@colliers.com

SECTION

Accelerating success.

Reach more people - better results faster.

colliers.co.nz MAY 2 0 1 8 F YI BUSINE SS N H. O RG. N Z

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PROPERTY MATTERS

Investing in Commercial Property the Maat Way

Delivering Biosecurity Training for Transitional Facilities and Accredited Persons New Zealand Biosecurity Academy (Albany based), is approved by the Ministry for Primary Industries to deliver Accredited Person and Transitional Facility Operator training.

We provide flexible, cost effective training in small classes that are delivered by experienced trainers to meet regulatory requirements for companies who are involved in the transport, delivery and devanning of imported shipping containers and imported goods.

Visit our website to find out more, or call us on 0800 382 436 to see how we can assist you.

20% off

for courses completed in May, June, July – T’s & C’s apply

Supporting North Shore Businesses

www.biosecurityacademy.nz FACILITATING TRADE + PROTECTING ENVIRONMENTS + ENABLING BIODIVERSITY + MAINTAINING HUMAN HEALTH

PROPERTY MATTERS

200 Investors have recently purchased 457 parcels of shares (at $50,000 per parcel) in a new company to own a commercial property in Cameron Road, Tauranga, for a purchase price of $41.5m. Maat completed the due diligence on this opportunity, offering it to the market as an equity investment.

A high proportion of the investors were experienced in this type of investment, but it is interesting to note what investors were looking for.

The first aspect that investors consider is the return. The projected return on this investment is 7.8% per annum (before tax), plus having the opportunity to participate in possible future increases in the value of the property over a period of time. Investors would compare this opportunity with similar offers of this type: the low returns from bank deposits, the share-market (accepting its volatility), the bond market (accepting its low yields), and countless other opportunities depending on the investor’s risk profile.

They also compare the risks of each type of investment.

Investors next concerned themselves with the quality of the tenants. The Tauranga City Council and the Inland Revenue Department together occupy 88% of the lettable area of the building. The other 12% is occupied by established commercial and retail

businesses. With a weighted average lease term (WALT) of a relatively long 7.2 years and with tenants having 103 carparks available, the tenancy profile was seen as strong by investors.

The final aspect which investors focussed on was the quality and locality of the property. Being first occupied in early 2017 and situated in Tauranga drew immediate attention from investors. (Tauranga is NZ’s fifth largest city and the second to fastest growing city).

Investors were provided with significant information to assess the merits of this type of investment, including a Product Disclosure Statement (which detailed the type of investment), the key aspects of the property, the tenants, the risks, and the profile of the Maat directors. A valuation report was distributed and more detailed information was made available in the Disclose Register on the Companies Office website. A series of seminars were held around the country to provide more personalised information.

Therefore, the investment process for investors offered clarity for them to make an informed decision.

Maat may be contacted on 09 414 6078 or email info@maat.co.nz to register interest in investing in commercial property, or to find out more about Maat’s commercial property management services.

Neil Tuffin Accountant, Authorised Financial Adviser Director, Maat Group

Insurance tips from Maat Group The Maat Group offer commercial property investment opportunities and a personal insurance brokering service.

We strive to achieve our goals every day, which includes helping our insurance clients achieve financial security.

This can be realised through our commitment to knowing our product and knowing our clients, built on personal relationships and trust.

Five key aspects need to be considered when preparing an insurance plan:

Plan to mitigate the risk

All risks are not equal. An effective insurance plan will recognise the risks in order of the “most likely” insurable events needing to be covered. This can be based on reference to statistics data or evidence of personal contacts who have suffered from such circumstances.

Affordability

The key to a long-term insurance plan is to make it feasible within a household or business budget. Abide by the thought that some insurance is better than none. Policy coverage and cost need to be reviewed regularly.

Financial security

The implementing of an effective insurance plan and future reviews for change of circumstances is a key attribute to obtaining financial security when (and if) an insurable event occurs.

Financial protection for dependants

This should be an accepted responsibility of all parents and businesses. The level of risk depends on the risk profile of each individual but risking the financial future of your dependants in total should not be an option.

Identify the risk

What are the risks if serious health issues occur?

The key to an effective insurance policy is knowing the risks which need to be covered.

Contact: Paul Tuffin Registered Financial Adviser/Risk Adviser Phone: 021 0844 2524 or 09 869 2568 Email: ptuffin@maat.co.nz Visit: www.maatfs.co.nz

GOVERNMENT

Summary of legislation changes

Management and removal of asbestos

On 4 April, the Health and Safety at Work (Asbestos) Regulations 2016 came fully into effect. Commercial property owners or occupiers were previously required to identify asbestos in the workplace. These new rules mean that these buildings must now have asbestos management plans in place. In other words, responsibility now rests with property owners or tenants to mitigate the risk of exposure to asbestos, and ensure that this is clearly documented.

Information and advice about Management and Removal of Asbestos is available at worksafe.govt.nz

Paid parental leave

Paid parental leave is being gradually increased from 18 to 26 weeks by 2020.

The key dates are as follows: before 1 July 2018 18 weeks from 1 July 2018 22 weeks from 1 July 2020 26 weeks business.govt.nz includes information about the criteria which have to be met in order to be eligible for paid parental leave, along with advice on other practicalities for both employees and employers. The site will be updated on 1 July to ensure content is in line with current legislation.

Payday reporting

The new rules for payday reporting are voluntary from 1 April 2018, and compulsory from 1 April 2019.

In order to incorporate a business’ tax requirements into the payroll process, businesses will be required to file payroll information every payday rather than monthly. business.govt.nz suggests that using compatible payroll software may make the new process easier, as it would allow payroll information (incl. salary, wages, PAYE, other deductions) to be sent automatically to the IRD at the same time as employees are paid.

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Anti-money laundering and countering financing of terrorism (AML /CFT)

Since 2013, financial institutions have been required to comply with AML /CFT legislation, and this is being gradually extended to cover many more New Zealand businesses. The key dates are as follows: 1 July 2018 Lawyers and conveyancers 1 October 2018 Accountants and bookkeepers 1 January 2019 Real estate agents As well as helping to detect and deter criminals who wish to launder money or finance terrorism through Kiwi businesses, these changes also ensure that New Zealand continues to meet international standards and be regarded as a reputable place to do business.

New hazardous substances regulations

From 1 June, the latest updates to the Health and Safety at Work (Hazardous Substances) Regulations 2017 come into force: • additional training requirements for hazardous substances • requirements for storing certain classes of hazardous substances outside a hazardous substances locations Changes have been steadily introduced since 1 December 2017, and further regulations will take effect in December 2018, June 2019 and December 2019.

For more detailed information and to check how these new regulations affect your business visit business.govt.nz and search Round-up of 2018 law changes

Draft strategy revealed for Health and Safety at Work

I a i n L e e s - G a l l o w a y, t h e M i n i s t e r f o r Workplace Relations has released the Government’s draft 10-year strategy for improving the health and safety of New Zealand’s workforce. Whilst acknowledging that good progress has been made in reducing the rate of serious injury, the Minister believes urgent work is still needed.

“I want to ensure that we are reducing all types of significant harm at work – this includes broadening the focus from acute harm to make sure we’re managing wider health risks, including mental health,” said Mr Lees-Galloway. “A key priority highlighted in the Strategy is ensuring better outcomes for Māori, and other workers at greater risk who are over represented in injury statistics and high-risk sectors, such as forestry and construction, or more likely to be engaged in temporary, geographically remote or precarious employment.”

Public consultation closes on 8 June.

For more information, including how to lodge a submission, visit mbie.govt.nz and search Health and Safety at Work Strategy 2018-2028

Treasury special topic: Forecasting Migration

On 30 April, the Treasury published its revised forecast of net migration. It anticipates that annual net migration will fall from 68,000 in the year to March to 25,000 in the year ending June 2022. This is 10,000 higher than in the Half Year Economic and Fiscal Update 2017 and is due to higher demand in the economy, resulting in increased investment in residential housing and businesses investing in and hiring more staff.

The full report is available at treasury.govt.nz, under Monthly Economic Indicators April 2018

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Spark NZ’s North Shore Business Hub is the smart choice, we know what business is like where you live, because we live there too.

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AccountabilityNet provide expert assistance for Xero including set-up and add-on implementation. They also offer add-on systems such as WorkflowMax, Tradify and Receiptbank for job, timesheet and expenses tracking. They help businesses seamlessly transfer from desktop to cloud-based systems ensuring that their finances are correctly managed and available 24/7.

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NAI Harcourts North Shore is a multidisciplined real estate services and business broking company that is part of an international group.

NAI Harcourts is the commercial division of the international Harcourts Group. Harcourts was founded in 1888 and the NAI Harcourts entity is a joint venture between NAI Global, a US-based commercial real estate services firm, and Harcourts International. Harcourts has an enviable position as one of New Zealand’s largest and most preferred property and business broking firms across commercial and residential.

The North Shore business is part of the Cooper & Co Real Estate company and has a commercial office based in Takapuna covering both the North Shore and further afield. We have a team of over 30 people across commercial property sales, leasing, property management and business sales. We pride ourselves on putting our clients first and take every care to understand their unique needs and provide expert advice to achieve them.

The office is managed by Andrew Bruce and Rob Meister. Feel free to make call in or make contact to see how we can help: Rob Meister, 128 Hurstmere Road, Takapuna.

Ph: 09-486 9260 Email: rob.meister@naiharcourts.co.nz shore.naiharcourts.co.nz 38

MAY 20 1 8 F YI B US I N ES SNH. OR G. NZ

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