meshtech · we will have mascots dressed up as products which can be bought from the website,...

MeshTech

OWNERS

Kiran Sahota 1084763

Mark Price 0824887

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Contents

Executive Summary

MeshTech Company Description

New business goals and objectives

MeshMates

Short-term goals (the first 12 months prior to launch date)

Long-term goals (after 12 months of the launch date)

Crowdfunding

Advertising

Foreseeable risks

Target Market

SWOT Analysis

Logo Simplification

Market Analysis

Competitor Analysis

Marketing and Advertising Plan

Opinion Leaders

OL 1 – Retailer Staff

OL 2 – Tech Journalists

OL 3 – Community

Experiential Marketing

Hello, our name is MeshTech.

Day Three

Advertising Channels

Social Media

Advertising and Marketing plan to recruit retailers

Advertising and Marketing plan to recruit technicians

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Financials

Year One – Recruiting Customers

Exclusive Offers

Advertising


Year Two – Website Launching

Crowdfunding

Advertising

Demonstration Videos

Year Three – Maintenance

Employee Recruitment

Exclusive Imported Products

Advertising

Appendix

References

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Executive Summary

This reports details the business plan for MeshTech, a price and product comparison website, specialising in smart devices within New Zealand. Globally and domestically, there is a market growth in smart device

purchases, particularly those devices which automat the home according to the homeowner’s lifestyle. It is projected that by the year 2020, there will be a 50% increase in smart technology adoption throughout New Zealand.

MeshTech’s business goals have been developed from the feasibility report. We are a reseller, not a retailer, who

educate our consumers about smart technology through 60 second demonstration videos, created by both consumers and affiliated retailers. We will be at the forefront of the adoption rate increase, as we will be offering

and selling devices which consumers want and need. New Zealand consumers are displaying interest in homes security and control devices, health monitoring devices, and data usage reports.

It was found that our target market (Millennials and Generation Z) respond more to experiential marketing and advertising methods than traditional methods. MeshTech will run a three-day experiential campaign on Queen

Street, Auckland. We will have mascots dressed up as products which can be bought from the website, creating a visual and physical link to the website. The mascots will actively engage with citizens on Queen Street, creating as much hype as possible prior to the launch of the business. Engaging with consumers on a personal level,

creates an emotional connection, evidently leading to consumer loyalty. MeshTech will also have an online presence through Facebook, Instagram, LinkedIn, Twitter, WeChat, and Snapchat to engage with our consumers.

Social media resonate with our target market more so than traditional media (TV, radio, and newspapers).

In order for MeshTech to reach the most consumer awareness and reachability, it is recommended we launch

around the same time as the Apple Worldwide Developers Conference (WWDC); Apple showcase their latest software and technology during the conference, which will create hype and want with our consumers. On 30

June, 2018, MeshTech goes live online.

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MeshTech Company Description

Smart devices are becoming more and more integrated within people's’ lives, making everyday actions easier, specifically with the integrated use of mobile devices. The New Zealand tech sector is the 3rd highest export

sector in the country, generating $2.7billion in GDP. However, smart technology adoption rate within New Zealand is still low, in comparison to other OECD nations. This is due to the following reasons:

● New Zealand consumers do not understand what smart technology actually is and how it integrates with

other smart devices to create a smart network. ● Consumers are unfamiliar and uncomfortable with using and adopting smart technology- generally, this

refers to the older generation of consumers. ● The New Zealand market does not stock smart devices consumers want and need.

With the ability for smart devices to interconnect and interact with other smart devices to create a smart network, New Zealand consumers will be able to control their homes from their smartphone or tablet; however, many

consumers are still not aware of how to create and utilise a smart network in environments such as the home. Advances in smart technology can now allow homeowners to turn lights on and off through an app on their mobile devices, as well as opening and closing automated blinds, check security system footage through live

feeds, and lock and unlock doors. Smart devices are not just for the home, either; wearables are a popular smart device worldwide, as they keep track of fitness information- heart rate, calories burned, distance travelled, steps

taken, and more.

MeshTech is a price and product comparison online website offering and selling smart devices to New Zealand consumers. A website is the most ideal platform as it offers our consumers the convenience to browse and shop for smart devices anywhere they may be. The website will categorise smart devices into: wearables, smart home,

medical, smartphone related, automotive, pets, gardening, music, and bundles. The bundles are a new feature developed for the MeshTech website. According to research, some consumers can become overwhelmed with the

number of smart devices products available; the bundles are designed for consumers to be able to make easy purchase decisions, whether it be for a special occasion, such as a birthday gift, or an investment for the home in the form of a hub system for beginners, so the consumer can be on their way to creating a smart home for

themselves.

PriceSpy- our closest direct competitor- is a price and product comparison website. Consumers do not purchase their products directly from PriceSpy, but instead are directed to the retailer’s website to make their purchase. When consumers purchase from MeshTech, the retailer will retain a majority of the sale percentage, with a small

percentage going to MeshTech. MeshTech’s smart devices will be imported from countries New Zealand has a Free Trade Agreement (FTA) with, such as: China, Singapore, and South Korea. New Zealand does not currently

have a FTA with Japan, but the two countries have strong trade relations, therefore, MeshTech will also import from Japan. These four countries, specialise in technological innovations and exports, and MeshTech will take advantage of that, so our consumers receive a wide variety of smart devices, some which may not be available in

New Zealand yet.

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New business goals and objectives

MeshTech new business goals and objectives have been developed since the feasibility report. We are no longer

just a retailer offering and selling smart devices: we are now a reseller, who educate our consumers about the benefits of smart technology. MeshTech will achieve this through 60 second demonstration videos created by retailers affiliated with MeshTech and consumers who have recently purchased from the website. The products

will be new arrivals in store, so as that the website stays relevant and keeps consumers up-to-date with the latest gadgets. As the current technology market is competitive for startup businesses, we will turn our competitors into

opportunities by offering them the chance to become members of MeShME, a service offered by MeshTech to retailers. For the first year of MeshTech’s inception, retailers will pay NZ$199.00 annually to be part of this service. They will receive a premium feature spot on the website with their logo and brand colours clearly

displayed, as well as a 30 second introduction video to the company. This video will stay uploaded to the

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MeshTech website for the duration of the retailer’s involvement with MeShME. The introduction videos will

benefit small-to-medium retailers who may not have the budget for a marketing and advertising campaign.

The videos will be conducted in an interview fashion, where a member of MeshTech will ask the retailer staff questions about the product. The questions will be centered around the benefits of new smart device, product’s

features and functions, how to get the most out of the device- i.e., which settings are most useful etc.-, which software the device is compatible with- i.e., iOS, Android, Windows etc.- and how to install and setup the device yourself- DIY technology- if the consumer is that way inclined. The price of the product will not be mentioned as

it can change between the time the video is uploaded to the time a consumer may purchase the product. For every video a retailer uploads, they will pay MeshTech NZ$99.00 to cover the cost of professional lighting and camera,

and other general expenses. Retailers have a choice whether or not to create videos upon the arrival of new technology to their stores- they are not obligated to do so. Retailers will offer the lowest possible comparable discount to be featured on the website.

There is also the risk of a business unable to create a demonstration video because another retailer has already

made a video. Some smaller retailers may only sell a particular brand of products, and if that specific brand of product has already been videoed, then MeshTech must have a fall back option. If this were to happen, MeshTech will reduce their membership cost by NZ$50.00 as a gesture of goodwill; these smaller businesses, as

well as larger retailers, may also offer services as well, such as repairs and maintenance of devices, and tech support. MeshTech will market their services under the Services tab on the website, and receive a 5% referral fee

if a consumer decides to use a retailer to install and setup their devices instead of the MeshTech technicians- this is another revenue stream for MeshTech. Consumers will only be able to use the live chat to inquire and book services- as well as inquire about products- for the following reasons:

● Our staff will be on hand to answer any and all inquiries about products and services within minutes. ● Any services will need to be booked- including services offered by MeshTech technicians-, post-

purchase, as technicians availability may change day-by-day. ● Live chat keeps records of every inquiry and booking for future reference, or can be used to settle any

disputes, if they arise.

If a consumer’s inquiry is not answered within 2-3 minutes- the staff member may be answering another inquiry,

or they may be using the bathroom etc.- they will be asked if they wish to schedule a call-back when a staff member is free. The consumer can choose to be called-back within 5 minutes, 10 minutes, or 15 minutes. Once

the consumer chooses a time, they will be reserving their position in the que. MeshTech staff will aim to answer any and all inquiries within 2 to 3 minutes, but in the event that they are unable to, the consumer has the option to reserve a position in the que and have their inquiry answered up to a maximum of 15 minutes later.

No contact details of the retailers will be listed or shared on the website, although general location, such as

suburb, will be provided. The have decided to do this because it may take consumer attention away from MeshTech; as stated above, any and all inquiries will be lodged through the live chat, where they will be resolved by staff. This also makes the process easier for consumers, as they will not have to make contact themselves with

the retailers, or go through multiple people to answer their inquiries; everything is done through MeshTech. The aim of this system is to reiterate our business philosophy of effortlessness and connectivity- with other retailers.

Loyalty will be stimulated the more consumers use the service and have positive experiences; if any negative experiences are brought to light, we will do our very best to fix the problem as soon as we are able.

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As with any industry, there are items which will create high demand. Technology is always changing, always innovating, so it is fair to say, retailers want consumers to purchase these high demand products from them. To

avoid conflict and competition, MeshTech will allow our retailers the opportunity to create a demonstration video for high demand smart devices, such as the Apple watch, for example. We will auction off this opportunity

to retailers with a minimum reserve of NZ$60.00. The retailer who wins the auction will be featured on the front of the website for 6 months, along with the demonstration video. We believe this strategy will engage fair competition avoid the same retailers doing the demonstration videos for every new high demand product.

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MeshMates

One of MeshTech’s long-term goals is to create a community on the website called MeshMates. Consumers who

purchase from the MeshTech website will also have the opportunity to create and upload their very own 60 second review videos, or ‘vlogging’ - video-blogging. MeshTech will encourage consumers to create video with the incentive of having a maximum of $20.00 of their delivery fee refunded, but the review must be posted

within 7 days of the product’s delivery to the consumer. We allow for 7 days so the consumer has enough time to play around with the smart device and find any pros and cons. However, consumers have the ability to upload

videos at their whim, but if the videos are not uploaded within the 7-day period, they will not receive a refund. The videos will have to adhere to strict standards as stated by MeshTech. The standards will include:

● Quality lighting in the video.

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● The content must cover a balanced opinion- no outwardly negative responses such as ‘this device is

absolute rubbish, don’t purchase it’. We do not wish to risk negative associations with the product brand and with our MeshTech consumers.

● Appropriate language and gestures must be used- no expletives, rude gestures, enticing hatred etc. ● Clothing must be worn- no nudity

● The video must not exceed 60 seconds in length, or be shorter than 50 seconds.

● The product must be featured throughout the length of the video, along with specifications such as: brand name, model number, name of retailer it was purchased from, and its basic functions.

Each video will be screened and vetted before we will allow it to be posted. If one aspect of the standards is not

met, it will be rejected. The creator will then be directed back to the list of standards and they will have the opportunity to recreate the video, meeting all the standards. Another reason we will screen each video is to ensure that the content in each video is consist and informative. As per our goal, we want to educate our

consumers the best we can through the retailers- who have the first-hand knowledge- and other consumers, which creates a sense of community.

We aim to break down the perceptions and connotations that smart technology is only for the “rich”; one of MeshTech’s long-term goals is to bring down the overall prices of smart technology to make it affordable for the best possible quality. Even those who are comfortable with using technology- such as Millennials and Gen Zers-

may not perceive themselves are likely adopters. The videos are a tool for consumers to use, so they can see others who have purchased smart devices, and share in their opinions and experiences.

Once a consumer creates a video, they may upload it to their various social media pages, using #MeshMates. Consumers will also gain membership to the MeshMates club, where they will be treated as a VIP member; a benefit to being part of MeshMates is that consumers will be the first to receive alerts to exclusive sales from our

retailers. We will encourage every consumer to participate to create a video, in the hopes of reaching a variety of demographics.

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Short-term goals (the first 12 months prior to launch date)

0-3 months MeshTech will begin to spread the name and purpose of the brand across

various social media accounts, namely Facebook, as this is the most used social media platform by New Zealanders aged 25 to 34 years old- Millennials or Generation Y- followed by 18 to 24 year old- Generation Z. Facebook is

also a powerful platform for startup businesses in New Zealand, as up to 80% of users discover new brands through the platform (Pelea, 2015) with over 2

million New Zealanders using Facebook each day, MeshTech has the possibility to be viewed by approximately 1,600,000 potential consumers.

MeshTech will also create a LinkedIn profile to reach and establish

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relationships with other similar businesses, as well as keep an eye out for

potential areas of business expansion.

We will start recruiting retailers to contribute and join the MeshTech website

as they are the main source of income for MeshTech. Recruitment will be an ongoing process, as we aim to sign up as many retailers- including small-to-medium retailers- as possible, as early as possible.

3-6 months MeshTech will build relationships with small-to-medium smart tech suppliers to start edging our way into the market. As a startup business, it may be

difficult for us to find the right suppliers for the first initial year of business. By utilising other businesses and suppliers the same size as us, we will gain a better understanding of the market.

Continue to recruit retailers. Strengthen our online presence through our social media accounts by using

analytics and data measurements.

6-9 months As well as offering and selling smart devices through our recruited retailers,

MeshTech will also import devices from China, South Korea, Japan, and Singapore. We will establish business relationships with exporters in those countries as supplier for MeshTech.

9-12 months Once our retailers have been recruited, MeshTech will make and finalise negotiations and agreements with international suppliers. We expect this step

to take longer than 3 months and have adjusted other aspects of getting MeshTech off the ground into consideration.

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Long-term goals (after 12 months of the launch date)

1 year After the first year of business, we want the demonstration videos to be the

first reason consumers visit the MeshTech website. We expect the videos to be one of the biggest highlights of the website, as there are very few websites, who sell technology, which do this. These websites may update their

consumers with news articles and videos about the latest technology trend, but they do not create demonstration videos to show their consumers how it

works, how to get the most of it, and how to install and setup the device on your own.

3 years We aim to have established the lowest possible prices for smart devices within

New Zealand. We aim to achieve this through the influence and

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encouragement of competitiveness with other retailers and suppliers. Although

competition can be tough to navigate for businesses, healthy competition is beneficial to the consumer. Competition allows for: better quality products,

lower prices, more choices, and increase in innovation. Being established as the website with the lowest possible priced smart technology within New Zealand, MeshTech’s website traffic is expected to

increase as more and more consumers adopt smart technology to help with everyday situations.

5 years By 5 years, we want to have increased the adoption rate of smart devices throughout New Zealand. Through the combination of the demonstration videos and competition with other businesses, we believe New Zealand

consumers will recognise the benefits of smart devices in everyday life, prompting them to purchase and invest in smart devices for their homes,

offices, and vehicles. A smart network in any one of these environments, will significantly benefit consumers in the long term.

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Crowdfunding

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We have decided to launch MeshTech on 30 June,

2018. This will give us ample time to recruit retailers and importers to supply our website, as

well as organise our experiential marketing campaign, social media accounts, and finances. Currently, MeshTech has 2 crowdfunding

campaigns setup on Pledge Me and Facebook. Pledge Me is a New Zealand based crowdfunding

website, where every day Kiwis can pledge a project, equity stake for investment, or lend from the crowd and pay them back on a later date (with interest). MeshTech has been pledged as a project, with a target of

NZ$3,000, which will be used for website development and marketing costs. We have arranged 3 incentives to receive pledges from our fellow New Zealanders.

Pledging

$5.00+

Pledgers receive a free delivery voucher (track and trace delivery) for any

smart device (less than 1kg) from the MeshTech website.

Pledging $50.00+

Pledgers will receive a free gift from the MeshTech website (valued at $20 or more), including free delivery.

Pledging $200.00+

Pledgers will go in the draw to win a bundle from MeshTech. Each bundle includes a Hub (valued at $700.00), with 3 smart devices- the value will vary

as it depends on the package the pledger selects.

The Facebook crowdfunding page is to draw in shareholders. For as little as $20.00,

pledgers will receive a 0.5% stake in the MeshTech business, with over 50% of shares owned by the creators. Social media has become one of the key elements to

promoting a crowdfunding campaign; this is due to the number of people who now use social media platforms on a daily basis. Facebook is New Zealand’s most popular social media platform. We will post on our own social media accounts the link to the

Pledge Me campaign and the Facebook campaign, in the hopes that other social media users will be impressed with our business idea and give us a helping hand.

We chose to create crowdfunding campaigns because crowdfunding has now become one of the easiest ways to fund the initial startup for a business. It allows

entrepreneurs to launch their ideas, products, and services quickly through the use of the internet; they have the ability to build a consumer base through crowdfunding.

MeshTech is using a reward-based crowdfunding campaign on Pledge Me, where pledgers are incentivised to pledge money; this is the most popular form of crowdfunding, as it gives the pledger an item that has not been created yet, but when

it is, they are the first to receive it- the Hub system, for example, when pledging over $200.00. The Facebook crowdfunding campaign is equity crowdfunding; we are offering a stake in the business (0.5%) for every $20.00

pledged to MeshTech. This form is now fully regulated within New Zealand, therefore, businesses will need to

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provide documentation- business plan, financials up to the last 3 years, and projections for the next 3 years- as

well as background checks on all directors of the business (NZ Tech, 2016).

Advertising

In order to create hype about MeshTech prior to the launch, we have decided to engage in experiential marketing in Auckland, Queen Street. We chose Auckland is the most populated city in New Zealand, with approximately 1.4 million people, and over 404,000 people living in the CBD (Statistics New Zealand, 2013). Experiential

marketing directly engages with consumers and passers-by; it invites and encourages audience participation, and creates a sense of wonderment because it is something that is not experienced everyday- it is different and fun.

We plan for this marketing and advertising event to span over 3 days to maximum reachability and engagement- Friday, Saturday, and Sunday. We plan to dress actors in mascot costumes shaped as smart devices which can be bought from the MeshTech website- for example, one mascot will be a smart lightbulb, another a smart watch

etc. We are creating a direct, physical, and visual link to the website through the mascots- they will also have the company name and logo on the front and back of the costume.

To reach as many of our consumers as possible, and potential consumers, we will setup and regularly post

content on multiple social media platforms: Facebook, Instagram, LinkedIn, WeChat, Twitter, and Snap Chat. Our target market- Millennials and Gen Zers- are proficient in using social media on a daily basis. Prior to our launch date, we will regularly post videos and images of our mascots to create hype and awareness of our brand.

Foreseeable risks

MeshTech is ambitious that our business will flourish in the New Zealand market, by identifying a gap in the

market. However, as with every startup business, there are foreseeable risks we will do our best to overcome.

Initial startup capital

We have created 2 crowdfunding campaigns. One through Pledge Me, a New Zealand based crowdfunding website, and Facebook, the most popular and used social media platform in New Zealand. Our Pledge Me

campaign aims for a $3,000 target to help with initial startup costs. However, if we do not reach this target, we will fall short of expected startup costs, and may need to apply for a business loan from a bank.

Retailers

Recruiting retailers to become part of the MeShME membership is the biggest risk to MeshTech, because we

may not be able to:

● Recruit enough retailers to make a profit,

● Bring retailers together to create fair competition, ● Ensure that every retailer is given the same opportunity to compete,

The benefits of joining MeShME may not be enough of a reason for retailers to join MeshTech- particularly for

the larger, more well-established retailers. They have already deemed themselves as the leaders in the market- for

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example, Noel Leeming are the leaders in household electronics- and joining with MeshTech may not align with

their business goals and philosophies.

Consumer demonstration videos

The demonstration videos are a crucial element to MeshTech, as it is our long-term goal after the first year of

business to educate our consumers about smart devices. The immedia te risk with demonstration videos is consumer not creating and uploading a video to their social media account for the following various reasons:

● Consumers may not feel comfortable talking about a new product and do not wish to sound “dumb” in

front of their friends and, essentially, the entire internet population, as there are varying levels of product knowledge (Peter & Olson, 2010).

● Consumers may not be bothered to create videos, despite the incentive of a maximum of $20.00 of their delivery fee refunded back to them upon the creation of demonstration videos.

● Consumers may want to create videos in order to receive a maximum of $20.00 refunded, but they do not

create it within 7 days of delivery of the product, therefore, missing out on the refund opportunity. We are aiming for a majority of consumers to create and upload videos to entice a wide range of opinions and the

biggest risk with the videos is that the idea may not resonate with consumers. There may be a lack of consumer engagement.

Target Market

Auckland withholds about 35% of New Zealand’s GDP, is the most population dense, and is relatively central for

telecommunications. Best of all, the city centre is designed around a single main street, which means the experiential

marketing advertisement we plan to use in our introduction will be most effective. Auckland has the highest concentration

of the country’s financial and manufacturing facilities, boasts the best port, and has over 1.5 million people and is estimated

to reach 2.5 million by 2040 (NZTE, 2014). Auckland has more 15-39 year olds (36%) in proportion than the rest of the

country. Above this, IBM – the country’s largest server host – situates it’s three bases there. The youth are highly educated

where over half of all school leavers achieved university entrance, and almost 35% of the city are unemployed, leaving a

large percentage of potential employees (NZTE, 2014).

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Service blueprint

Analysing the service-scape of MeshTech and tracking the customer’s journey with the use of a Service Blueprint enables

us to identify potential pain-points the customer may face (Ruiz, Ross, & Samadzadeh, 2014). We can also use the

blueprint to identify previously unknown opportunities, as well as track what is visible by the customer, and acetate what

(if any) gaps of the service experience can be filled/improved. Services are process and experienced-based, relying on the

utilisation of human interaction, conjoint with technology, and allocates physical goods (BItner, Ostrom, & Morgan, 2007).

Fortunately, services are process focussed, and therefore able to be tracked in a linear/chain layout.

MeshTech’s service blueprint aims to capture

the potential emotional, cognitive, and

perceptual stages of the customer journey

from the initial interaction with the brand, to

post purchase services.

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Mapping the Journey

A customer will view a social media campaign (likely Facebook), and click on the advert. We estimate the time it takes

for a consumer to be distracted from their leisurely activities, notice the advert, and be motivated to act is

approximately 3-7 seconds. Motivation is the subjective desire which erect behaviours to drive individuals to

accomplish a goal; to act to fill a specific need (Solomon, Russell-Bennett, & Previte, 2012). They are currently in a

relaxed mood as they were previously browsing their feeds. The fact that they clicked on our advert meant the

consumer was either uninterested in the content they were viewing on their social media platform, had little other

activities of importance, or lastly – found the subject being displayed of interest to them. The action the customer took

could be due to a deficiency of need where they are motivated to act to satisfy this need (Au, Ngai, & Cheng, 2008).

Our advertisements which generate this behaviour will reflect to one of our core goals – to increase the overall adoption

of IoT technology. We present the unknown need in the advert with a call-to-action to stimulate an inner state of

arousal to influence the customer to investigate the advert (Hoyer & MacInnis, 2008).

The next stage of our customer’s journey is landing them onto MeshTech’s Homepage. We believe the dark colours on

the site will enhance products and provide a comfortable experience from the initial sighting. We avoided bright

colours, as too much stimulation may cause the consumer to repress away from the stimuli to reduce anxiety – the

customer would need to be exposed to a bright site

often for them to feel more comfortable with it more

frequently (Greenberg, Pyszczynski, & Solomon,

1986). Our main colours are bright blue, as discussed

in our feasibility report, but we don’t want to saturate

the main page with white and blue as it may be an

assault to the visual senses. The initial promotion they

will see is the top banner which features products the

customer may already be familiar with (such as Smart

Lights).

Due to the product’s familiarity, the customer takes

less time to consciously make the decision to explore

(Bera, 2016). Alternatively, the customer may choose a product category from the top of the website which better suits

their needs. When the customer clicks onto the link our website will store the IP address that the consumer is using.

This is due to tracking any multiple sales the customer may make whilst browsing through the website. The IP Address

is also stored in MeshTech’s database for measurements and analytics of social media campaigns. It is not illegal to

store IP Addresses of consumers as this is a non-identifiable entity. Once a category is chosen, a list of similar grouped

products will display. When the customer recognises a product, or decides of which product they wish to purchase, they

can click the product to be directed to a page listing all retailers and their ranked prices (and various other factors). If

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the customer wishes to learn more about a product, they can click a “Reviews” button below the product, in which case

a grey layer will fill the screen – and the videos created by brands and MeshMates community will appear. The

customer can then watch a video to reaffirm their purchase decision. Consumers are more likely to purchase when they

can see ‘common people’ which of whom the customer identifies as within their social equivalency, is interested in the

product. This is a form of ‘social proofing’ in which a consumer is more likely to engage in acts that fulfil hedonic

needs matching ideals of peers (Belk, 1988).

On regular websites, a customer is directed to a form to fill out, which is cumbersome and effortful. This goes against

the Effortless Experience we wish to fathom. A customer’s dissatisfaction can arise if their efforts (filling out forms)

outweigh the benefits of the investment itself (Berry, Seiders, & Grewal, 2002). We therefore will have an automatic

alert sent to a CSR, who can Live Chat to the customer, providing the customer a sense of exclusivity and establishes

rapport between the customer and MeshTech. If the customer is engaged with ‘a real human’ then the time it takes for

the sale to complete will feel easier to cope with as they are getting a higher than usual service level (Grove & Fisk,

1997). The purpose of the CSR is not only to make the experience better and more personable, but also can answer

questions or conclude doubts the customer may have about the product. A customer is much more likely to be involved

if they perceive the product to have personal relevance (Belk, 1988). To ensure operational efficiency, the CSR’s

interactions with the customer is measured internally, through various KPI indicators (hold time, wait time, length of

interaction, break times, etc.). the emotion of the consumer has gone from nervous to more comfortable as the CSR

informs the customer. This process will take approximately 1-3 minutes. One of the jobs of the CSR is to ensure the

customer creates an account with MeshTech – to join the MeshMates community. This is to encourage repeat

purchases, loyalty, and further educate the customer about the various benefits they will receive from being with us.

The customer’s information is registered into the database. Once the customer has gone through the sales process, their

payment details are stored (minus the CCV number) onto their account using 128bit SSL Encryption (provided by

HostPapa). Since the customer is registered, they can in future choose to purchase, without needing to talk to a

representative.

Once the payment is confirmed, the support processes automatically email the customer the Track & Trace number of

their shipment, and the relevant details are sent to the supplier and courier. The customer can track their order on their

account page. This process takes approximately 3-5 days. Once the customer receives their product, the courier signs

off the ticket, and MeshTech servers are notified of the completion of sale. A CSR then emails/SMS the customer

within 1-3 hours of completed delivery to let the customer know we have received confirmation, and enquire if they are

satisfied with their purchase. Identifying and establishing if the customer is satisfied is assessing the customer’s

cognitive response to being adequately or inadequately rewarded for the sacrifice they have undergone – essentially,

‘was it worth it?’ (Taylor & Gutman, 1974). They are provided with the Sale Reference, and sent a quick 3-question

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survey about their experience. They are also reminded about the delivery discount offering of creating a video blog and

advised our online live chat team can help them if they’re feeling anxious about it.

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SWOT Analysis

Strengths Weaknesses

Bundle packages

MeshTech will offer smart device bundle packages for consumers new to smart technology, or beginners, such as the older

generation who may not know a lot about smart technology.

● These bundles are created for easy gift purchases, as well as help consumers get started transforming their lives into one

that is simple and effortless. MeshTech is creating a need for consumers and

smart devices.

Education MeshTech will not just be an online store

offering and selling smart devices; we will educate our consumers about smart technology through 60 second demonstration and

promotional videos. ● These videos will demonstrate how to

install and setup devices without the need to call out one of our technicians, as well as showcasing the features that will make

consumers’ lives easier. ● Our aim is for every person who visits

our website to understand smart technology and the convenience that connected technology has on their lives.

Crowdfunding MeshTech has a several crowdfunding

campaigns currently receiving pledges. We wish to make MeshTech a reality.

● PledgeMe and Facebook

● Our launch date is set for 30 June 2018

New entrant

MeshTech is a new entrant into the New Zealand technology market. Established retailers, who have been in the industry for years, have built a reputation

with their consumers, as well as trust. ● MeshTech may not be trusted by our

consumers, as we are a new company, offering products which consumers are able to purchase from trusted retailers, such as

Noel Leeming, JB Hi-Fi, PB-Tech, and PriceSpy.

Avoiding leaving consumer inquiries unanswered Consumers using the MeshTech live chat system want their inquiries answered as soon as possible.

We will avoid leaving consumer inquiries unanswered, as this will leave a bad experience and impression with the consumer.

● Any staff member accepting a live chat inquiry is expected to have that inquiry

solved within several minutes. Consumers who wait beyond that time limit, may experience negative emotions towards

MeshTech, which can affect sales and consumer loyalty

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Opportunities Threats

Apple HomeKit MeshTech has the opportunity to utilise the launch of Apple Homekit in New Zealand to

push our brand. ● Apple HomeKit allows the user to

securely and remotely control all HomeKit accessories, from iOS devices, around the home, such as, turning the

lights off, controlling the TV. ● There are over 50 brands worldwide who

are compatible with HomeKit, such as Philips Hue, GE, Koogeek, and many others.

● The products available and compatible with HomeKit are: lights, locks,

doorbells, thermostats, window shades, security, cameras, air purifiers, air conditioners, sensors, garage doors,

humidifiers, fans, and outlets (Apple, 2016).

MeshTech is a website specialising in smart devices, we aim for the launch of HomeKit to boost our brand and the awareness of smart

devices throughout New Zealand.

NZ Free Trade Agreements (FTA)

FTAs encourage trade between countries through efficiency, as agreements are usually made to reduce or eliminate tariffs and barriers to entry.

MeshTech will utilise the FTA with nations who specialise in smart devices, such as:

● China ● Singapore ● South Korea

● Japan (New Zealand Foreign Affairs & Trade, 2016)

Importing goods into New Zealand According to New Zealand Customs, there are certain prohibited items which cannot be imported

into New Zealand by law. These items include (New Zealand Customs Service, 2016):

● Dog tracking devices: certain trackers operate on the same radio frequencies as equipment used by people travelling and working in

rural areas (forestry workers). ● False or misleading goods: unsafe and/or

incorrectly detailed goods are prohibited to protect New Zealand consumers.

● Hazardous wastes: such as automotive

batteries, e-waste (computers, TVs, printers, and old electrical equipment), and waste oils.

● Goods containing ozone depleting substances: dehumidifiers, refrigerators, freezers, air conditioners, heat pumps, and

water coolers that contain CFCs The prohibition of the items above, means that

MeshTech will not offer these items.

Duty, good, and service tax Most goods imported into New Zealand are subject

to duty, goods, and service tax- unless there is a specific exemption (New Zealand Customs Service,

2016). This includes goods and service bought online. Shipping and handling fees will have to be added to MeshTech consumer’s orders, to ensure that

MeshTech abide by the NZ Customs laws and regulations, and our suppliers receive the correct

payment for their products. ● Imported goods are required to specify the

value on the import entry clearance.

Import entry transaction fee (IETF) Any and all IETF is NZ$29.26 (GST inclusive), and is payable on every import entry clearance and

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declaration for goods.

Logo Simplification Old Design

A B C D E

New Design

From the survey conducted in the feasibility report, our respondents noted that the ‘Complex House’ was too busy, didn’t

represent our business philosophy “Simple” enough, but was easy to identify. Following their responses, we decided that

the Kiwi and Simple House designs did not accurately represent what our brand sells, and therefore we decided to simplify our Complex House logo better.

a) We have kept the original text as it is easily readable, and have increased the brightness of the text, so that it is

more illuminating and softer on the eyes. We have also compressed the text horizontally so that it takes less time

for the consumer to read the text.

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b) The logo has been redesigned, firstly, with the removal of the horizontal line in our previous logo. We felt it

centralised our logo too much and took away the focus of the ‘circuit board’ designs.

c) We have also shrunken the lower half of the ‘house’ to make it look much more recognisable as a house. In

addition, we added a chimney, and a door to further this effect, as well as changing the colour to match the

MeshTech font.

d) We have simplified the vertical and horizontal lines, as well as increasing the circle sizes, and including less of

them. This was to make the logo appear easier to look at, moving away from the ‘circuit board’ design, and

transforming into an ‘everything connected’ design.

e) We have made the house portion of our logo the same height as the text to ensure the name of our brand is

reinforced and stands out, whilst still ensuring the integrity of the logo. The changes in our new logo resonates accurately with our business philosophies in mind: Bold, Simple, Effortless.

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Brand-Reflecting Elements of Website

The heading “Your special someone won’t know you got a special This Christmas” is a deliberate play on words to incept

the mindset of the consumer - whilst retaining fun elements of humour. The mention of “special someone” reinforces the

message of interconnectedness, love, and exclusivity that MeshTech embodies, and puts in mind a particular person which

is emotionally relevant to the consumer. This draws focus reiterating our specified Target Market of consumers from the

millennial generation; working couples, without children. The dual mention of the word “special” is a false equivalency in

order to come across as a tongue-in-cheek pun - pun humour usage is particularly popular with this generation. Their

education was mostly traditional, and thus, their language levels tend to diversify beyond Xers. The increased text size and

font colour change of “special someone” and “this christmas” captures attention against the predominantly blue

background. The highlighted idea of “this christmas” is to underscore the concept of gift-giving which is heavily

embroidered into the holiday. Highlighting the word “this” creates a sense of urgency - providing a perspective of a near

approaching time. The mentioning of “won’t know” adds an element of secrecy and discretion which is particularly

important with a couple who intend to purchase for each other.

The “Get each-other ready for the approaching Summer” subtitle supports the original heading by repeating the context of

togetherness, and the urgency of planning for a near-event. It also reflects back on MeshTech’s brand image of optimism in

that it instinctively sets a goal for the consumer to build a cooperative arrangement with their significant other to plan to get

in healthy shape/fitness goals, which subliminally appeals to the fitness-focussed consumer - health-focused consumers are

the largest consumers of smartwatches. The emphasis and capitalisation of the words “HUGE” and “SALE” are to imply an

element of extravagancy and reassures consumers that we have an excessive range, so that they will have less reservations

to explore their options. The emphasis on “SALE” also is deliberate to appeal to the price-contentious millennial consumer

who considers cost as their primary factor in their purchase-making decisions.

The button labelled “Check it out!” is a call-to-action, which is imperative to ensure the consumer engages with the sale.

The use of the word “check” is language which is relevant and common to the millennial consumer.

MeshTech’s ‘end-goal’ is to increase the adoption rate for IoT technology. For this reason, we decided it was imperative to

appeal to both consumer, and commercial customers. The messages displayed on the website are designed to fit the

psychographic of our Target Market, specifically.

The message “Home-Life getting busier?” is directly correlated to our specified target consumer. It exists as a question, to

catch the attention of the recipient, whilst enabling an internalisation of the consumer’s individual circumstances. They are

posited a question which requires a subjective response - piercing through attentions, and potentially lowering the issue of

decoding of our message. The question begins with the subject word “Home” with is deliberate to resonate across a variety

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of different people; where do they call home? What is ‘home’ to them? It generates a perspective of that location and as

they read through the rest of the sentence - they’re picturing themself/themselves in this location. The use of the adjective

“getting busier” retrieves a negative emotive response from the receptor, drawing on how they feel about their current

‘home’ situation.

The question in itself, is short and concise - requiring less effort on the receptor’s behalf to understand the core message

being emitted. Reinforcing our brand “MeshTech” creates a sense of belonging to the aforementioned stress-inducing scene

the question posited.

We are utilising the Terror-Management Theory, in that when consumers feel stress, they act in ways to reduce that stress

or anxiety. For this reason, the word “eases” was used as a smooth ‘it’s okay’ mood-setting word to erupt a calming

emotive response. The phrase “daily grind” is to remind consumers of their prior thought process, and use regular language

which is familiar to the Millennial generation, and assist them to remember that a day-to-day job makes their working week

almost routine and boring. The idea is to create stress, remove it, and aid direction for the future - use MeshTech.

The paragraph in white explains the question more in depth and gets the reader to think more critically about their current

situation. It then ends with a call-to-action to serve as a persuasive lead for the visitor of the website to act upon their own

curiosity or to seek answers and satisfaction to an undiscovered need. The links for “Residential” or “Commercial” direct

the consumer to a page which details various types of consumer profiles, demonstration videos (more introductory in

nature), and 3rd party links (such as TechRadar) to get the consumer to learn more about IoT technology. This page has

singular purpose: to expand what the consumer thought they knew about Smart Technology, and stimulate a vested interest

into the subject - it also introduces the consumer to our Community.

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Market Analysis

Global market analysis

Consumers are becoming more aware of how beneficial smart technology is to their everyday lives, through integration of a system connecting smart devices. Adoption and awareness rates have increased for a relatively

new market (Danova, 2014). Up until 2011, consumers wanting to invest in smart technology were still sceptical, mainly due to limited number of choices and connectivity between devices. Consumers who did purchase smart technology during this period, purchased simple smart products which gave them control over certain elements

and aspects of their home. Instead they should have created a smart home system with smart devices which have the ability to “talk” to each other (Pudwell, 2015).

With the increased growth in smart technology and the growing confidence of consumer using smart technology, more features, interactions, and connectivity between devices is at the forefront of consumers’ wants and

need. In 2015, 47 million connected devices are shipping globally, indicating a continual growth in the market for smart devices (Security Info Watch, 2016). By 2020, it is predicted that the trend in the smart technology

market will increase at an estimated compound annual growth rate (CAGR) of 60%, reaching an estimated 477 million devices (Security Info Watch, 2016).

The graph below shows the world market for connected home devices in terms of projected unit shipments between 2015 and 2020.

Consumer electronics will increase substantially, as consumers are willing and able to purchase devices which will make their everyday lives easier. According to Transparency Market Research (2016), it is predicted

that between 2014 and 2022, the global consumer electronics market will grow by 4.0% CAGR (Transparency Market Research, 2016). These consumer electronics include devices used for the office, entertainment, and communication. This growth may be attributed to 3 factors: 1) increase in disposable income, 2) improved

standard of living, and 3) reduced prices of consumer electronic devices (Transparency Market Research, 2016). Safety and security connected home devices will also steadily increase as consumers realise the benefits

of keeping an eye on family members, pets, and their property wherever they are, whenever they want, by accessing live feeds from mobile devices and tablets. These devices can also be easily self-installed. However, there are still a number of consumer who are concerned about privacy and security issues, such as their personal

information being leaked, or their devices being hacked because they are all connected. Between 2014 and 2019, it is predicted that safety and security devices will increase 77% per year on average (Danova, 2014). This increase may be due to fact that safety and security smart devices are simply upgraded versions of common

safety and security devices, therefore consumers are familiar with them already when they decide to upgrade. Lighting and controls are the third anticipated connected home devices. The main factor surrounding the

consumption of smart lighting is the opportunity for consumers to start saving money on electricity. Consumers will be able to adjust the brightness of smart lights through their connected smart devices, potentially decreasing electricity costs; smart lights can also compensate by adjusting to the intensity of natural light already in a room.

In iControl’s smart home report (2015), they estimated that between 34%-54% of consumers were likely to

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purchased smart lighting for their homes within the next 5 years (iControl Networks, 2015). This percentage is

expected to continue to increase, as more consumer begin to realise and understand the ease of remotely controlling the lights in their homes.

Lastly, climate control, such as controlling heat pumps and thermostats through mobile devices instead of using remotes. However, this market is still relatively small, compared to the other 4 devices. The benefits of smart climate control systems centres around reducing consumer’s bills, without sacrificing comfort (PWC,

2015). For smart climate control to become more sought after by consumers, the devices will need to learn the homeowner’s behaviours and habits, as well as receiving updates from online weather reports and adjusting the

temperature accordingly.

Energy and water control, or smart meters, although not depicted on the graph, is the fifth connected

home device expected to increase in demand within the next 5 years. Smart meters record energy and water

consumption at regular intervals and communicates this information back to the utility company for billing and monitoring purposes (Markets and Markets, 2016)

Consumers can save money on energy and water costs with smart meters; they will have more control over their energy and water usage through their mobile devices, such as setting timers and temperature according to their budget. According to Support’s 2016 smart home survey report (2016) 58% of potential homebuyers are

interested in smart energy and water controls (Support, 2016). A significant growth in smart meters is predicted between 2015 and 2022.

The main challenge in effectively and efficiently delivering these anticipated 5 categories is bringing them onto

one single platform, in which the devices connect and communicate effective in a network, rather than acting

through an autonomous process as isolated devices (Security Info Watch, 2016). It is also a concern that some

consumers may not be aware that the devices they already own can be connected with other devices. It is

MeshTech’s goal to educate our consumers about smart devices, so they become aware of the potential their

devices; once our consumers are educated, it is predicted their demand for smart devices will increase.

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New Zealand technology market analysis

New Zealand technology firms around the country have shown a continual growth

at an average rate of 44% over the 2015 financial year- an increase from 36% the previous year (Concentrate, 2015). This increase occurred because New Zealand

technology firms are investing more into the sales and marketing aspects of their business by digitising their selling process.

The technology market is growing nationwide. Auckland and Northland are the leaders of this growth making up 58.1% of the tech market’s total revenue.

Wellington and Lower North Island is second with 18.6% of the tech market’s total revenue. Christchurch and South Island is third with 14.8% of the tech market’s total revenue. Hamilton accounts for 6.0% of the tech market’s total revenue, and

The Central North Island accounts for 2.5% (Concentrate, 2015). Together, New

Zealand made up 27% of revenue in the technology

market, second to Australia, with 29% (Concentrate, 2015). Over time, the New Zealand technology market has steadily risen in revenue. However, growth

declined steeply after 2009 (revenue declined, as well), and started to recover in 2010; there was a sharp

increase in growth in 2011, once again declining in 2012, and then steadily increasing thereon after (Concentrate, 2015).

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According to Chorus’ research (2014) there is strong data to suggest that New Zealanders display strong levels of

interest in smart home devices in areas such as, home security and control, health monitoring, and data usage reports, and the understanding of services available to cater to smart homes, as well as upgradable technology

(Chorus, 2014). These 2 aspects of the New Zealand market are where MeshTech have the potential to seize a market

opportunity. We offer and sell smart devices for the home through our retailers, as well as services to install and

setup those devices for our consumers; they will receive a detailed guide on how to maintain their devices and utilising its full potential. The demonstration videos are an additional tool for consumers to utilise to understand

why and how smart devices can help consumers simplify everyday activities.

According to IDC statistics from an earlier survey, 2.8% of respondents already used their smartphones and

tablets to control a home security system (Chorus, 2014). Colmar and Brunton’s research indicate that home and security and control services appeal to 55% of the survey respondents (Chorus, 2014). It is estimated that, by

2018, New Zealand households will spend a minimum of NZ$20 million on smart home control hub technology, with the smart home market generating NZ$20.8 million by the end of the same year.

Between 2014 and 2020 (the early adopter period), it is estimated that adoption rates will increase between 5% and 20% (Chorus, 2014). This is due to consumer purchasing smart appliances to replace manual appliances and

additional services to connect them together via a network, in accordance to their lifestyle (Chorus, 2014). From the year 2020 onwards (the mainstream period), it is estimated that adoption rates will increase between 20% and

50%+; this correlates with MeshTech’s 5-year long-term goal, in which we aim to increase the overall adoption rate of smart devices throughout New Zealand. During this period, consumers are expected to install more sensors, with an increase in automation throughout the home.

Over the next 5 years, it is projected that New Zealand’s adoption rate for smart devices will increase. This is due to an increase in the familiarity with smart devices, more smart devices are becoming available within

the marketplace, and early adopters are setting the trend to automate their homes in tune with their lifestyles.

Competitor Analysis

Indirect competitors

Indirect competition refers to businesses, within the

same industry, who offer similar or slightly different products or services, but target the same consumer

market; these businesses aim to satisfy the same need. Michael Porter’s 5 forces model attempts to help businesses understand the structure of the industry they

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occupy, as well as trying to find more profitable position associated with the least amount of risk (Porter, 2008).

Using Porter’s model will help MeshTech to understand the competitive structure of the New Zealand technology market.

Porter’s 5 forces model:

The 5 forces examined are: 1) consumer bargaining power, 2) supplier bargaining power, 3) the threat of substitute products, 4) the threat of new entrants, and 5) intra-industry rivalry (Michaux, 2015).

Bargaining power of consumers

The first of Porter’s 5 forces refers to the pressure and power consumers can exercise on a business to, for

example, produce higher quality products, better customer service, and/or lower prices. Putting pressure on any one of these elements comes at the cost of the seller. A consumer with high bargaining power has the potential to make the New Zealand technology market more competitive, decreasing a seller’s potential to make a profit,

essentially making the market less attractive. Consumer bargaining power is high when there are a few buyers and many sellers in the market. MeshTech’s target market - predominantly Millennials and Gen Xers - are,

generally, well versed in using the internet and have a high to medium bargaining power. The internet allows consumers to compare products, prices, services, and reputation through numerous websites. PriceSpy is an example of a website with these capabilities; consumers are able to compare products according to a variety of

filters, including price, quality, and brand. As there are a number of sellers offering smart devices within the New Zealand market already, substitutes to purchasing from MeshTech are available to consumers, and, in the initial

beginnings of MeshTech, consumers may choose to purchase from MeshTech’s competitors because they are familiar with the retailer.

Bargaining power of suppliers

Similar to bargaining power of consumers, suppliers can have an impact on the profitability of a business.

Suppliers can apply pressure on businesses by raising the prices of the products they are selling, lowering the quality of their products, and/or reducing the number of products available at the cost of the business. Bargaining

power of suppliers is one of the main forces which shapes the structure of the market (Wilkinson, 2013). It affects the competitive environment for the business and consumers, influencing purchase decisions of the consumer and the business’ ability to generate a profit. MeshTech will use distributors and wholesalers as the

suppliers, as they purchase large quantities of products from different companies and on sell the product to retailers. Products purchased from distributors and wholesalers may be purchased at a higher price, it also allows

for small quantities of purchases available to MeshTech, which will ensure that MeshTech purchase in small quantities in the beginning stages of operation; MeshTech’s exclusive products will be purchased through distributors and wholesalers for this reason.

The bargaining power of suppliers in the New Zealand technology market is low to medium; there are many consumers who wish to purchase smart devices and, by utilising the FTAs with South Korea, Singapore, China, and Japan, there are many suppliers. There are also substitutes available within the market, further

lowering the bargaining power of suppliers.

The threat of substitute products

Substitute products refers to the availability of products, which consumers have the choice to purchase instead of

purchasing the market’s products; these products have the same, or similar, benefits (Wilkinson, 2013) than market products. Substitute products are a threat because they offer alternatives to the products for consumers.

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The threat of substitute products can affect the competitiveness of the market’s environment; it influences

consumers’ choices to purchase substitute products instead of those provided by the businesses within the market. This can lead to a decrease in profits and make it difficult for new entrant businesses to get a footing

within the market. MeshTech’s closest substitute would be Trade Me. Trade Me is an online platform where people can buy and sell items. Sellers simply list the item they wish to sell, specifying a starting price and a reserve price. Other

Trade Me members, if they are interested, will bid on the item. Once the reserve has been met, the item has been sold. Trade Me has 27 categories, including electronics. Although Trade Me is not part of the technology market

within New Zealand, consumers do have the option to purchase smart devices through Trade Me, even if the products are advertised as second hand items. As MeshTech will be a new business within the market, consumers may feel more comfortable using an online platform, such as Trade Me, to purchase smart devices. These smart

devices may be cheaper to purchase through Trade Me, but several issues may arise: the quality of the device may be poor, the device may not connect with other devices the buyer already owns for reasons such as: the

device may not operate in New Zealand- zone locked/region locked-, or the device may not recognise another owner.

Another substitute product is those offered by Trust Smart Home, a privately owned New Zealand

company (Trust Smart Home, 2016). The concept of Trust Smart Home is to add value, comfort, convenience, security, and safety to the home. Trust allows consumers to create their own smart system for their home; the

consumer simply purchases a transmitter and a receiver, creating their own system. Trust also offer starter packs for consumers who may not be tech-savvy, or know which devices they should purchase. Trust are a substitute threat because they offer similar products to which MeshTech will offer - smart devices for the home. Trust

products are not only available through their website, but they are also stocked in Bunnings Warehouse, which is a major advantage over MeshTech.

As there are 2 close substitute to MeshTech, this makes New Zealand’s technology market less competitive and has the potential for profit generation. The threat of substitutes in New Zealand is low to medium; consumers may feel more comfortable purchasing from Trade Me and Trust because they are known

businesses. However, if the products sold through Trade Me and Trust are cheaper than MeshTech’s, then the threat of substitutes is raised; the also applies to products with equal or superior functions, attributes, or

performance.

The threat of new entrants

Predominately, new entrants reach unoccupied positions within a market- a niche market- by delivering greater value to new consumers (Michaux, 2015). New entrants enter a market proficient in generating profits. If entry

barriers are low, it is easier for new entrants to enter the market. With an increase in new entrants, the level of competition increases, decreasing the potential for businesses, already in the market, from generating a profit. The threat of new entrants, not only affects the competition environment, but can also influence consumers by

offering greater value for and/or with their product or service, potentially taking consumers away from other businesses.

The Technology Investment Network’s investor’s guide to the New Zealand technology sector (2016) states that New Zealand’s technology sector is the country’s 3rd largest export sector, generating $16.2 billion of national GDP, and employing over 98,000 workers (Technology Investment Network, 2016). These statistics will

attract new entrants into the market as technology is a product or service which can always be improved to target and meet the needs and wants of a niche market. The threat of new entrants is medium to high, as technology can

be adapted to a variety of target niche markets.

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Intra-industry rivalry

Intra-industry rivalry, or competition, is at the centre of Porter’s 5 forces, as its influence can be measured and

evaluated by the other factors of the model. Competition refers to the pressure put on other businesses within the market to limit their profit potential. The more competition there is within the market, the higher the likelihood

of profit generation decreasing.

MeshTech’s main intra-industry competitors, within New Zealand, are: Noel Leeming, JB Hi-Fi, PB Tech, and PriceSpy (refer to feasibility report, p. 47-57 for direct competitors); these four businesses all offer

smart devices, with aggressive pricing strategies. The New Zealand technology market is steadily growing every year, accounting for $16.2 billion of national GDP to the economy. Intra-industry rivalry is high for MeshTech as

a startup business. However, the main long-term business goal has changed from the feasibility report: MeshTech’s primary aim is to educate consumers about smart technology, increasing adoption rates, and lowering the cost of smart devices. MeshTech plan to build relationships with the competition, instead of

competing. For example, Noel Leeming is the current market leader in smart devices; to gain access to more consumers, Noel Leeming will present a 60 second promotional video showcasing a particular smart device. This

video will be featured on MeshTech’s website, available to be view by everyone on the internet; thus MeshTech will turn competition into business opportunities.

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Marketing and Advertising Plan

Opinion Leaders OL 1 – Retailer Staff

New Zealand is the second-best country in the world, to start and operate a business in (The

World Bank, 2016). Thus, the competitive environment has become saturated with small-medium sized businesses, specialising in various

niche products of IoT technology, desperately trying to capture a slice of the marketplace. For

this reason, by repositioning MeshTech, following the feasibility, as a reseller rather than a retailer – we turn threats into opportunities; competitors into customers. MeshTech will provide a platform for even small businesses to market themselves on our website and get recognised by consumers – regardless of their different

wants and needs. Reflecting back to our brand position, we lay as a source of authority in the field, with a core focus of interconnectedness and relationship building between intermediaries.

Retailers are offered the opportunity to join MeshTech under the commercial “MeShME” (Mesh + S.M.E.)

programme. This membership costs the business NZD$49.00 annually to join up too. As part of their membership, MeshTech will complementarily interview one of their staff members, with professional lighting and video cameras, as they demonstrate a product for the site. The retailer’s staff member is encouraged to wear

the full uniform and/or lanyard of the retailer. On the table, will be the logo of the retailer – but no contact information. The product demonstration video will consist of a one-minute video and will be conducted between the retailer staff member, and a MeshTech employee (wearing a MeshTech branded shirt). Apart from shop

entrances, promotional material, and any area where public will be taped without consent (common-sense dictates that there will be no objectively offensive material in sight on the video) retailers may be video-taped at

a location of their preference. This is to remove inhibition from the retailer, and ensure additional benefit is awarded to them for their investment of time. This is also to serve as a gamer for the retailer to choose how they are perceived by consumers (music, location, colours, etc.).

Retailers who advertise a product through demonstration videos, will be offering a unique special price (for an

allotted time) to prevent competition undercutting their efforts. The benefit the retailer receives from video creation is not only the opportunity to make a sale, but a connection on a personal level with the consumer,

which, - by creating a positive human experience – consumers are more likely to purchase from that company. One of the major benefits for retailers to create demonstration videos is providing their consumers an immersive experience, connecting with consumers, and enabling for smaller retailers to compete on the same level as larger

retailers. This reflects on the overall goals: (1) educating consumers benefits all retailers, and (2) competitive environments reduce the overall prices of products for consumers – making IoT products more attractive.

The demonstration video has strict criteria, such not allowing retailers to incite customers to come to their store, as the video is intended to exist on the site, for a longer term than the one-month introductory piece. The retailer’s logo will be presented permanently alongside the corresponding product video and will be featured on

the site for the length of time that the product is available.

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Only one retailer per product is permitted to provide a comparative advantage for that specific retailer who ‘gets in first’ to demonstrate the product. The most popular mainstream items (such as a flagship device, the Apple

Watch) will not be available for retailers/brands to use in the introduction demonstrator videos. However, the opportunity to demonstrate this product will be auctioned to the highest bidder, with the minimum reserve set at $199 – which is extremely affordable to be the first/leading opinion on a highly demanded product. Polar to

‘featured product’ sections where the lowest price gets displayed, the opportunity to demonstrate the mainstream products in high demand is primarily for the profit of MeshTech, proving a new line of revenue.

After the demonstration videos are created, we implore the retailers to share the smart technology onto their

social media sites, and tag their respective staff members into those posts (with the staff member’s permission). The incentive is for those retailers to improve their favourability amongst their own followers, as consumers resonate with brands who look after their employees (Jamal & Adelowore, 2008). This may also serve as a

hedonic motivation for that staff member to join MeshTech and contribute their own videos, as he may perceive him/herself as a minor celebrity. As part of a contractual arrangement, we would provide links for the retailer to

share the video online. When the video is ‘clicked’ on, the consumer is directed to the MeshTech site corresponding to that video. This is extremely important, as the website traffic generated by large items will add viability and reach to our brand.

Risks associated to using OL

Retailers who advertise on our site must be a registered New Zealand company, and comply with the relevant trading laws. A staff member may have been released from the company, and therefore no longer an employee of the company, and may decide to use MeshTech as a method to vent his/her discretions with that company. A

staff member of the retailer may be involved in a crime which has been published on the national newspapers. Their image will be associated with their workplace, and this association may remain on the site. The offending

person’s name may be searched in a search engine, and directs negative traffic towards MeshTech and how we associate with that person.

Also, the confidence or content of the staff members may not be compelling for consumers, who visit MeshTech,

to be motivated to purchase products (Baker & Oneal, 2001). This is an example of how they can be an anti-innovative influence to the adoption of IoT technology. If the consumer is not sold on the attractiveness of the product, they may spread their lack of desire (rejecters) to other peer groups, therefore adoption optimism is

neutralised (Leonard-Barton, 1985).

OL 2 – Tech Journalists

To reach a wider audience more effectively, we will use technology journalists, such as Sarah Harris from NZ

Herald, to spread awareness for the existence of our site. Millennial generations tend not to receive their news via television, but online and through social media (such as the NZ Herald, Newshub, 1-News Facebook pages) and through current-event specialist apps (in the iOS and Google Play stores, of the newspapers). An article which

mentions a brand new IoT website, supplied by a newspaper familiar with our audience, may provide incentive and motivation for readers to visit the site, out of morbid curiosity.

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Above this, we can utilise familiar tech journalists by having them review products, and then interviewing them.

The recognisable faces across multiple demographics would persuade our would-be consumers as it involved an aggregative level of trust. Though the consumer may not personally ‘know’ the journalist, they can see via the

journalist’s position and/or title, that they may associate this as possessing expertise opinion about the product being discussed.

By creating a professional relationship with the technology departments of media, we gain a comparative

advantage against PriceSpy. Our company can provide new and interesting content for the newspaper to share, and at the same time, we are leveraging off their reach. By adhering to a neutrality position as a reseller, we are not in direct competition with retailers, and therefore we provide a more objective point of view with the

products. Although it may entirely be within the decision of the editor, we endeavour to include our icon within each of the pictures, to be used in the articles produced. By cultivating and adhering to this relationship, MeshTech can increase the education and awareness of NZ consumers as a whole – which, other than to be profit

focussed, is the overall goal.


By choosing to use journalists to review MeshTech as a business, as well as the products we will offer and sell, they may not be perceived as an Opinion Leader in the realm of technology. They may not be known enough to

the Millennials and Gen Zers population to resonate with what they have to say; just because their journalists may be popular (Washington Post, n.d.) to the older generation, does not mean they are relevant to our target

market.

There is also the risk that the journalists we use may be biased towards a particular brand or product. It may be unconscious or conscious bias, either way it has the potential to impact on MeshTech and/or the brands that we represent. They may be a confident Apple iOS user and are asked to review a Windows product; they may not be

very fond of Windows, and this can be portrayed through facial expressions and the choice of language. Another risk is that the journalist does not understand the product and, therefore, misinterprets their research, misleading

our consumers and potential consumers.

OL 3 – Community

We wish to show consumers of New Zealand that we are a socially responsible company. The goal is for our

company is to be perceived as a caring person. Engaging with consumers has been proven to increase demand and improve public relations. Getting the public to engage with us, generates motivation to participate in our messages, and leads to potentially more conversions (promotion to sales).

Regular contributors to the MeshMates club get their videos featured underneath products and product

categories. These videos are rated by MeshTech on various standards such as: quality, lighting, content covered, specific (i.e. removal of emotive language to the company; sticks discussion to the product), etc. Videos ratings

are essential to provide content creators a sense of hedonic motivation and improve self-valuation. Videos are also rated by other consumers on a scale of helpfulness and usefulness. Essentially we want to create a platform which provides a sense of competition. This strategy will appeal to the Y and Z generation mostly, due to their

high prevalence on social proofing and individualisation. Videos uploaded to various social networks will only need to use the ‘hashtag’ #MeshMates to have their video manually associated to their respective accounts, and

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be awarded the refund of the delivery fee. The customer may wish to have this refunded back to their bank

account, or to be stored on their MeshMates account, as a credit towards future purchases.

Images of product videos are blue circles (called ‘bubbles’), which illuminate over the product, when the consumer hovers their mouse over a product. The bubbles correlate the same image as the MeshTech logo. As a

MeshMates member develops more product review vlogs, posts videos with a 4 or 5-star rating, or posts videos with the highest community rating, their bubble becomes larger. To the consumers who see the product reviews:

the larger the bubble – the more relevant, better quality, and more popular that video is. Consumers will endeavour to create the most popular videos to increase their credibility and popularity (Smith, 2016).


As MeshTech has limited control on what the videos are about, what type of content is covered, and whether informal (or profane) language is used, we must moderate and control content published through a vetting and

screening process. Poor language surrounding the experiences from using a product, or inciting messages which could inflame negative press directed at the 3rd party brands (retailers listing on the site), could result in

companies removing their publishing relationship from MeshTech. Whilst a complexity of opinions is encouraged, and we do not wish to risk reducing creativity, it is vital to posit a list of ‘house rules’ or guidelines for content creators to follow. A bottom-up supportive structure stimulates this type of content – we can provide

a ‘How-To’ section, or guides, with lists of questions or points for the consumer to answer on their video. By providing positive reinforcement for the structure of content, we avoid consumers’ talking points going off-track.

If the video is not up to the standards specified, it will be rejected; the creator will be directed to the guidelines, specifically to the sections where their video was lacking, and they have the opportunity to create another video. We wish to allow consumers the chance to submit their video and have their delivery fee refunded, hence, the

reason we will allow them multiple opportunities to fix their videos and bring them up to standard.

As discussed in more detail on our feasibility, we will use Facebook to advertise on social media, as it is the primary social media platform used by millennials. Almost 85% of videos on Facebook are played without sound

and therefore we will need to add subtitles to the video (Johnson, 2016). To increase the respectability of our videos on consumers’ Facebook Timelines, MeshTech will initially edit each video before the content is published to the website. Manually editing each video requires time and human labour – both of which are

expensive. Initially, this task will be performed by MeshTech’s Founders (discussed further in financial plan), but as sales inflate, we will have the task covered by a Customer Service Representative (CSR).

In the long-term, when content is generated exponentially, we can allow MeshMates members to self-regulate the

forums and videos. That is, when a customer uploads a new video, current members can flag any videos which they find to be of poor taste. Only members who have a minimum of 5 videos uploaded will be trusted to

perform self-regulation of the community. Forms of editing will include: shortening videos which exceed the 1-minute time limit, to improve lighting conditions, lower video shaking, or to remove linguistic fillers, such as: um, err, ah, well, etc. (Hayashi & Yoon, 2010).

We do not want to inhibit creativity or free-speech, however the increasing demand from Millennials’ are to

restrict speech which goes against liberal values. That is, speech/art/expression considered as offensive language which relates to Human Rights (such as speech which may be offensive to racial groups). The highest proportion

of consumers who believe this new age ‘anti-free-speech’ tend to be female, between 18-34 years of age, belonging to a minority group, and from the Asian-Pacific region (Wike & Simmons, 2015). If we allow

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complete freedom of content to be generated, then we run a risk of offensive material to be presented, which will

reflect poorly on MeshTech as a content provider – and furthermore, on 3rd party brands using our site to promote their products.

Experiential Marketing Hello, our name is MeshTech.

In New Zealand, it is rare that brands provide the public with exciting and innovative forms of advertising. Reflecting back to our brand, we aim to be bold, fun, and quirky, to appeal to numerous consumers; specifically, Gen Y/Z consumers. One of the ‘stunts’ we are preparing to show everyone “we are here!” is the use of mascots

in Queen Street; unlike other companies (who use mascots to directly correlate to the brand), our mascots are products that are available for purchase on the site, and are about quantity – more chance of being seen.

Day One and Two

We aim to place around twenty mascots dressed as various Smart Technology products, with the MeshTech logo

on the front and back, to walk up and down Queen Street. They will do ‘everyday’ activities, such as enter various retailers such as supermarkets, use public buses, sit at the library/university and read a book, for two

days. They will not dance, shout, or try and deliberately gain attention – but if public wish to take photos with them, they may. The camera crew stealthily follows the mascots around and video their antics, and people’s reactions to them. These reactions are to be used in future short clips for social media usage. The reason we

chose to use two days of these mascots is to create hype and curiosity. The public will be pondering what these costumes are for, where they came from, and why they are on Queen Street. Seeing mascots in their daily lives

creates the ‘shock’ factor, which, increases the virality of the campaign by providing consumers with a desire to share their unique experiences with their peers (Khalid, 2016).

Day Three

On the third day, all the product mascots will line up on Queen Street at each intersection (as depicted in picture), evenly spread apart. They will freeze on the spot like a statue. Each of the mascots will each have a “MeshTech”

logo on top of their head, which flashes white, and ‘beeps.’ Further down, at 115 Queen Street, will be an inconspicuous stall, covered by a cloth, with two blue rings pointing out of the sides (these are the edges of the

MeshTech logo). There will be soft-deep music playing. This generates curiosity by anyone nearby, whilst respecting the members of public who are having lunch at nearby cafes and bars. The stall will beep, and the product-mascots will also beep (for 5-10 seconds) in sonar fashion. At the same time, they walk down towards

the stall. When their beep stops, they freeze on the spot, regardless of what is happening around them. Mascots are not permitted to cross the street midway through a ‘beep.’ Eventually the stall’s beep gets gradually faster,

requiring the mascots to move more frequently. This heightens anticipation from the audience as they will be wondering what the product-mascots are doing, and recognise the increase in tempo. Each time the mascots beep, they are to wave their rings around, to grab even more attention from bystanders.

When the mascots finally gather to the stall, they link arms, and pull the cloth off the stall. Fog erupts from under

the cloth, and cheerful celebratory music plays. The mascots place the blue rings they were holding onto the MeshTech logo. An LCD screen on the front of the stall plays, and advisors the gathered bystanders of the new

launch of MeshTech, who we are, what we stand for, and why we are important to them. The top of the stall

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displays numerous interactive models of the consumer’s life (kitchen, garden, automobile, etc.) to encourage

experimentation. The stall also has a QR code and social media information linked to MeshTech for people to view. During this time, six staff members dressed in bright blue and white uniforms carrying tablets with the

MeshTech website preloaded, walk around showing consumers what the website looks like, how easy it is to use, and attempts to sign up customers to get into MeshMates club via Facebook/Wechat. Photographers take photos and MeshTech staff interview customers, grasping their reactions and initial perceptions. The mascots pose with

bystanders and gain as much attention as they can from less engaged consumers, enticing them to visit the stall. It is important that this entire introductory event creates hype, excitement, and the interconnectedness of IoT

technology with MeshTech. We are merrily building awareness, reach, and hype – not selling anything.

After a month of social media adverts following the previous introduction to MeshTech, we want to remind consumers about who we are by using entertaining and fun antics involving our product-mascots. After the introductory event, we need to follow through with consistent messages, by reinforcing the core messages of

what MeshTech are about. We will send the product mascots around Auckland, doing outwardly silly antics – which will be videotaped, to use on the website and social media platforms.

Antics could include behaviours such as:

● Walking a dog

● Getting stuck in a playground slide and causing a scene

● Sliding down the Devonport Hills

● Milking a cow

● Driving around in cars dressed up

● Taking public transport using the AT Hop card

● Sunbathing at the beach

● Getting covered in puppies at SPCA

These videos will be shared on each of our social media pages, but more frequently on Facebook and Instagram –

due to our target market of millennials using these mediums more than any other platform (Lim & Yazdanifard, 2016). The videos which will be uploaded will be less than 30 seconds, without audio, and subtitled - due to the shortened attention span of millennials and Generation Zers. The mascots are providing a human interaction and

connection with the MeshTech brand, as well as providing a means of promotion. These products have the logo and website branded onto their fronts, and backs, and so when people take photos of them, and share these online

– their peers will see our logo. The mascots will entice members of public to take photos of them, holding a sign displaying the promotional hashtag “#MESHingAround.” This is a prequel to the summer competition explained below.

Campaign: Simplifying Summer

This competition runs from 26th December, as to not interfere with consumers’ holiday and cause regression. This campaign is designed to align with having ‘summer fun’ with their pets, children, and friends, but incorporating technology too. As aforementioned, mascots representing various IoT devices will take photos with

the public. These videos and photos form the foundation of the #MESHingAround campaign, in that consumers are asked to take silly/fun photos with their pets/children/friends with technology being used. Bonus points are

considered for creativity – for instance, if a dog is balancing an iPhone on its nose. The message advertised is ‘get together’ or ‘interconnectedness’ with smart technology.

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There are three prizes: 1st prize is a free product from the website worth $200.00, 2nd prize is $50.00, and 3rd

prize is three free deliveries.

As with the community videos – consumers are to upload their photos to social media with the corresponding hashtag: #MeshingAround, to get placed into the competition.

Advertising Channels

Social Media Our primary target markets are Millennials and Gen Zers. They are the ones who have grown up with technology and have experienced the rapid changes. Social media has become a large part of their lives, influencing their

behaviour, their purchase-decisions, and their attitudes towards goods and services. With the surge of social media and the growth and innovation of technology, the essence of advertising has had to adapt. Traditional

forms of advertising- TV, radio, and newspaper- are not as effective as social media when targeting Millennials and Gen Zers (Brown, 2016).

According to Research New Zealand (2015), 70% of adults throughout New Zealand own or have access to a smartphone, 51% own or have access to a tablet or iPad, and 72% own or have access to a laptop or notebook.

The majority of ownership is high among 18 to 34 year olds (Millennials), although 35 to 54 years old (Gen X) also have a high percentage of ownership or access to the same devices. The high percentage of devices

(mentioned above) which connect to the internet indicates that there is a higher chance of reaching our target markets, with particular focus on smartphones; they are the more frequently used device with 91% of smartphone users using their phone every day (Research New Zealand, 2015).

It was also found that smartphones were being used to access social media platforms, at 78% (Research New

Zealand, 2015). Facebook is the most popular social media platform in New Zealand, with an average of over 2 million users per day (Pelea, 2015), from those users 80% discover products and services on Facebook, with 56% remaining on Facebook when they discover a new product or service; 36% share and/or discuss businesses they

have discovered with their peers (Pelea, 2015). MeshTech will ensure we have a strong Facebook presence by regularly posting videos of our mascots (prior to and after the launch date), videos of the latest news in smart

technology, and the latest deals available on the website.

Experiential

The move and adaption towards the digital age, has led to the increase use of experiential marketing and

advertising. Traditional forms of advertising and marketing was based on the volume of target audience impressions, whereas experiential advertising and marketing is based on involving and engaging with consumers,

in order to make them feel a connection with the brand on an emotional level versus simply being exposed to the brand/product/service (Lawler, 2013). experiencing a brand/product/service is more impacting on consumers than traditional forms of advertising and marketing; it creates two-way communication between the business and

the consumer, strengthening loyalty and consumer retention.

MeshTech experiential campaign (Hello, our name is MeshTech) aims to interact and engage with consumers, to get them excited about the business. The antics of the mascots will create a sense of fun and wonderment as

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consumers try to figure out what is happening on Queen Street. With the digital age dominating on a global scale,

we aim for our experiential campaign to become viral online; this will help us reach our target market, as well as potential consumers. We will be blending live and digital elements (Lawler, 2013).

Advertising and Marketing plan to recruit retailers One of the biggest challenges for MeshTech will be recruiting retail businesses to become part of MeShME prior to the launch of MeshTech and in the initial startup stages. Why would established retailers, such as Noel

Leeming, JB Hi-Fi, and PB Tech, align themselves with MeshTech? What benefits are they receiving? We aim to build relationships with our competitors, turning them into opportunities. One way to attract retailers is to create a strong LinkedIn business profile. We will follow a 5 step process to attract and recruit retailers.

Step 1: establish our presence. As a start-up business, it is imperative we establish our presence not just on

LinkedIn, but on Facebook, Instagram, YouTube, WeChat, and Twitter. Across the 6 platforms, we will tell our brand story, what we specialise in, the industry we will be entering, how we are different, and emphasise that we

aim to bring together retailers for the betterment of the consumer. We will still, however, encourage competition, so consumers receive the best deal possible.

We will create a short, engaging video to explain and showcase the emergence of MeshTech (a link will be provided to our YouTube channel). Retailers will be exposed to: how MeshTech will become advantageous in

the New Zealand market, the MeshTech team, a quick snapshot of the website, the products we will offer, the MeShME program, and the idea behind the demonstration videos. Once retailers understand that MeshTech

operates in a similar fashion to PriceSpy- as in, retailers have equal opportunity to engage with consumers-, they may be more susceptible to considering doing business with MeshTech.

Step 2: attract followers. Once our presence has been established, we will begin to build relationships with

retailers. We will reach out to retailers, including small-to-medium tech businesses, and encourage them to view our LinkedIn profile and YouTube video. We will also post these links on our other social media platforms to reach as many consumers and retailers as possible.

Step 3: engage followers. As our follower base grows and more retailers are attracted to the idea of working with

MeshTech, we will send out Company Updates. These updates will entail retailers who have agreed to join MeShME- creating the need to belong-, importers we are ready to do business with- to show we are ready to

launch the business-, and a countdown to the launch of the business. We will add links to upcoming technology innovations and products we wish to offer to show we are keeping up to date with the current technology trends. We will start with weekly updates, as we do not expect surges in company activity to happen every day- that is

worth reporting-, but as we near the launch date of the business, we will begin to post updates every day to further put the reach of the business.

We do not want to only reach out to retailers, but consumers as well- to create hype and awareness. As

the business grows, we will target retailers with special offers and deals as they arise which consumers will not be aware of; this encourages competition, as well as an even playing field. Smaller tech businesses may not have the same reach, budget, and contacts as bigger businesses; MeshTech aims to ensure every retailer is on the same

level and given the same opportunities.

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Step 4: amplify through the network. We aim for our content on LinkedIn to be shared, liked, and commented on

by our connections. Each time our content is liked, shared, or commented on our business is being endorsed and reaching more potential retailers and consumers.

MeshTech will connect videos to our LinkedIn page regarding the latest advances in smart devices. We

will encourage and invite consumers and retailers to write reviews about the video, so we can gauge which products as most sought after, as well as how they are selling in store. We will respond to comments as quickly

as possible, asking questions to further our knowledge about our target market, potential target market, and retailers.

Step 5: analyse and refine. Using LinkedIn analytical tools, MeshTech will measure the performance of our content and use the data to optimise and strengthen future content. There are 2 types of measurements: measuring

engagement and measuring amplification.

Measuring engagement is the ratio of clicks, likes, comments, and shares to total impressions. This metric will help MeshTech understand how often our members and followers take action on our updates. Measuring

amplification is the ratio of likes, comments, and shared to total update impressions. This metric will help MeshTech understand how often our members and followers are sharing our content and what they find most interesting.

As a small startup business, MeshTech will gain an advantage from using LinkedIn regularly as it is a platform

targeted towards people who want to connect with each other for business purposes. Many businesses and members are openly engaging with each other, finding niche markets, and refining their target market through

LinkedIn.

Advertising and Marketing plan to recruit technicians In the initial stages of MeshTech’s startup, we will hire high school students as our technicians. We will only hire students who are sixteen or older, have a restricted or full driver’s license- with no prior history of driving

offenses or demerits (evidence is required with the application), and access to a vehicle-, must be available in the weekends- any service appointments will be scheduled for the weekend, so as not to interfere with schoolwork-,

they must conduct themselves in a professional manner, and have knowledge about installing and setting up smart devices- such as installing, connecting and setting up a smart home network, connecting various smart devices together, and troubleshooting.

We will do this is for the following reasons:

● MeshTech will not need full-time technicians to install and setup smart devices which are purchased through the website. We will save on labour costs as the high school students will be paid under the starting-out wage of NZ$12.20 per hour (Ministry of Business, Innovation & Employment, 2016).

● High school students interested and pursuing this line of work, may already actively keep up to date with the advances in smart technology- there will be training involved.

● Installing and setting up smart devices is not difficult. We expect that troubleshooting would be the most prevalent issue consumers will face.

o They will gather information about the issue and identify common causes. If they cannot find a

solution, MeshTech will contact the supply and fix the issue as soon as possible.

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MeshTech will recruit high school students through their schools and social media. We will communicate with

high schools across Auckland and put out an advertisement in their newsletters (physical copies and on their school website) for an hour presentation about MeshTech and what we do as a company. Students who are

interested will fill out and hand back an application form. If they meet the above criteria, we will take them into our employment.

We will advertise technician positions for high school students through our social media accounts- Facebook,

Instagram, LinkedIn, WeChat, Snap Chat, and Twitter. Generation Z (16 years and older) are spending 35%

more time online than any other group (Neilson, 2016); they are the ‘digital natives’, the generation who have

grown up with the Internet. They are also (along with Millennials) the early adopters and trendsetters of new

services, and interact with businesses through social media at a 16% rate (Neilson, 2016). Our social media

accounts will have a recruitment advertisement ready for high school students to watch to understand the

business. Studies have shown that Gen Z groups are more likely to recall digital advertising than traditional

advertising, making advertising through social media a viable recruitment strategy.

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Financials

Year One – Recruiting Customers

In the first year, our primary goal will be to recruit retailers. They are

the driving force behind MeshTech as our primary source of income,

as well as providing us the preliminary leverage to increase trust

amongst consumers of New Zealand. We are offering retailers (as

discussed in the Advertising Plan) a membership to “MeShME” for

$199 annually. We believe that the additional display of the retailer’s

brand logo, and customer relations management provides a superior

offering to the SME. By offering a low upfront investment, we can

attract smaller retailers and diversify the website. The initial cost is

minute in comparison to if the retailer were to market themselves out

and therefore is attractive as there is less risk for the SME. The membership must be renewed every 12 months

and the purchase of memberships are prepaid only. Retailers are offered the opportunity to have an introductory

video, at a cost of only $49. The videos are not mandatory, but will provide retailers a competitive advantage

compared to others on the site. The demonstration videos provide MeshTech additional revenue as each retailer

wishes to produce a new video for new products/staff members.

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Exclusive Offers

For the months leading up to Christmas (September through to December) we will auction for the opportunity to

produce a video for high-value products, such as the Apple Watch. By offering an auction, we enable companies

with greater revenue to compete against each other, which in turn increases revenue for MeshTech. Each auction

starts with a reserve of $60 ($11 higher than standard demonstration videos). We endeavour to have three

auctions within our first year, returning revenue of $180. Assuming we will attract 5 retailers within the first

three months, 15 in the next three, and 22 in the final three, we will achieve a Gross Profit of $2490, $5470, and

$7736, respectively.

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Advertising

Aligning with our small-growth strategy, we will advertise with Google Adverts initially at $200, and climbing

over the first year, totalling $775. We will not advertise our website on Facebook within the first year of

production. As our leaders, will need to travel to various locations, we have reserved $240 for petrol costs. We

considered using LinkedIn, as they would be the most effective for retailer recruitment, however at $15/day

minimum, it was too expensive for the entire year; $450 monthly; $5400 annually (LinkedIn, 2016).

Website

We have chosen to have our domain

(www.meshtech.co.nz) hosted on HostPapa due to their affordability,

green energy use, and overall customer satisfaction ratings. We have

decided to use HostPapa’s ‘Business Pro’ website due to the nature

of our site, how much traffic it will receive, and the number of images loaded on the site. HostPapa is one of the

fastest web-hosting companies in New Zealand, which offer unlimited bandwidth, and a free web-builder.

What’s more, they are renowned for reliability and security – each page under their Business Pro package has

SSL encryption enabled. HostPapa operates under green energy initiatives, with relevant certifications, and

whose power centres run off solar and wind energy. They have achieved multiple awards by 3 rd party industry

analysts: BBB, Verified Authorize, Shawte, SiteLock Secure, SpotMyID, PC World, and others (Hosting

Review, 2016). With the Business Pro package, we will get free unlimited: bandwidth, email, apps, web-

statistics, ecommerce, free domain rental - saving us $39.99 - and 24/7 live support from any issues. This is the

more comprehensive offering we could find, and only costs us: $14.95 monthly/$538.20 over three years

(HostPapa, 2016).

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In preparation for our 2nd year, we will purchase materials for costumes, costing $500, and hire a private Tailor

for 20 hours at a cost of $400. At the end of our first year, we assume we will achieve a Net Profit of $13,556

after conversions of retailer consumers and expenses.

2018 Jan >

Apr

May >

Aug

Sept >

Dec

Annual

Total

Total Sales $2520 $5490 $7776 $15786.00

Total Cost of Sales

$0 $0 $0 $0.00

Total Expenses $365 $935 $930 $2230.39

Net Profit $2,155 $4,555 $6,846 $13555.61

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Picture SEQ Picture \* ARABIC 1 Facebook Crowd funder https://www.facebook.com/marketplace/permalink/1574425902571487/?rt=11

Year Two – Website Launching

Crowdfunding

To cover initial costs of our Experiential Campaign (EC), we have

used crowdfunding “PledgeMe” to raise $3,000 (Price &

Sahota, 2016), as well as a Facebook Shop pledge, shown in the image

below (Price M. J., 2016). The Facebook pledge offers investors 0.5%

share of the company, for a deposit of $10. This is a high value share,

but may not generate much revenue, as outlined in our Financial

Statements. The 2nd year is primarily focussed on gaining

awareness from our consumers, and introducing MeshTech to the

New Zealand marketplace.

Advertising

To build reach and awareness, we

are going to get aggressive with our

advertising. First and foremost, the

experiential campaign requires

casual actors. We will hire 20

actors, and pay the minimum rate

of $15.25 (including PAYE) per

hour, in which case we will only

require them for one hour. As part of the EC we will spend $50 on a

billboard. We will decrease the budget we spend on Google Adverts, and

instead, reallocate those resources to focus on Facebook Advertising. In

the first three months, we will spend $200 which costs $0.76 per click for

New Zealand (Bedy, 2016). After our EC, the public will be aware of us,

but we must ensure our target market can be reached by us. By the increased website traffic generated by the

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public, untouched retailers may sign up to the SME packages as to not get left behind generating further revenue.

In August, the terms “IoT” and “Smart Tech” and “Smart Home” are searched for most according to Google

(Google, 2013-2016). For this reason, we kept our budget reasonably high, at $50 per month. “Smart Home” was

searched extensively in October 2014, due to Apple’s release of the iPhone 6 Plus, following their public

mention that they are working on a new app: HomeKit. In the last two years, the term IoT was viewed mostly on

YouTube.

Demonstration Videos

We anticipate that demonstration videos will become more popular in the second year, due to the competitive

landscape and saturation of small businesses. The customer service will be handled by the MeshTech leaders, as

consumer turnover during this time will be slow. We will also increase the number of auctions during this time to

stimulate the demand. By this time, we expect some consumer purchases, as the public become more engaged,

and generate website traffic. Delivery fees are not either revenue or expenses, but a short-term liability in which

the retailers refund MeshTech for.

2019 Jan > Apr

May > Aug

Sept > Dec

Annual Total

Total Sales $7928 $7495 $5791 $21214.54

Total Cost of Sales

$0 $0 $0 $0.00

Total Expenses $835 $445 $445 $1725.39

Net Profit $7093 $7050 $5346 $19489.15

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Year Three – Maintenance

In the third and future years, we acknowledge that

whilst there are many SME businesses, we will see a

reduction in subscription rates, as we reach saturation.

By this time, consumers will be aware of MeshTech,

and will merely need reminding.

Employee Recruitment

With the higher demand, we will hire a casual

staff member to answer queries for our Live Chat

service, to cope with the extra demand. To align

with our small-growth strategy, the staff member

will be a high school student between 16 and 17

years of age, with no prior work experience. Per

the Ministry of Business, a ‘starting-out wage’

applies to students entering the workforce for the

first time (MBIE, 2016). We will only require the

staff member to cover overflow of workload, and

therefore we believe we only need him/her for 16

hours a week (8 hours on Saturday, and the remaining split during the week). Under the minimum pay regulation,

we can pay this student $12.20 an hour under casual employment, for the first 6 months of continual

employment, and then must pay them $15.20 per hour thereafter (ENZ, 2016). This information also applies to

adults aged 18 or 19, who have been paid one or more social security benefits for six months or more, and who

haven’t completed six months’ continuous employment with an employer since they started to get paid for a

benefit. We must also pay the worker Holiday Pay which is 4-weeks of annual work, per the Holidays Act 2003,

Section 21(2) (New Zealand Legislation, 2003). As the staff member is working on a casual basis, but more than

8 hours weekly, we will pay them 0.0766% (28 days out of 365.25 days), and reserve this on their payslip –

payable at the end of the financial year (ENZ, 2016).

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Exclusive Imported Products

As better trade relationships form with our supply chain, we will be able to introduce new products onto the site,

and are reserving $500 for these purposes. These products could be available for retailers to supply, or MeshTech

will dub these products our own exclusive products. We may incur import transaction fees on each order of

MeshTech products (Customs NZ, 2016). The onus of MeshTech will be to pay the duty to customs upon arrival

of the goods (Customs NZ, 2015). Due to the increased demand of Smart Technology, we expect SME’s to

increase their market offerings, thus demonstration videos will also increase. The increase of consumer

purchasing will provide additional revenue through surcharges. Compared to the OECD, New Zealand is ranked

55th for Customs ease of trade across borders (World Bank Group, 2016). New Zealand in comparison with other

OECD countries, requires a higher number of documentation from importers (Certificate of Origin, Commercial

Invoice, Import Delivery Order, Packing List, and Bill of Lading) and charges more for the documentation.

MeshTech needs to be aware of importing limitations, as delays at the border could lengthen the time customers

wait to receive packaging.

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Advertising

To continue to encourage consumers to investigate our website, we will increase the advertising budget, raising

Facebook Adverts progressively from $75 to $300 at around Christmas. We will mildly raise our google

advertisements, though more focus will be on social media, as millennials will be thinking about gift purchases

during this time. We will reintroduce our mascots in the third year to run our Summer Campaign called

#MeshingAround. The costumes have already been made by our tailor in Year One, therefore are ours to reuse at

no cost. We will purchase several A3 billboards for the mascots to use as the public takes photos with them,

which will display our logo and website domain, which will cost $50.

2020 Jan > Apr

May > Aug

Sept > Dec

Annual Total

Total Sales $5277 $3801 $3587 $12665.49

Total Cost of

Sales

$149 $149 $379 $675.95

Total Expenses $390 $1201 $1559 $3150.06

Net Profit $4738 $2452 $1649 $8839.48

3-Year Figures 2018 2019 2020 Total

Total Sales $15786.00 $21214.54 $12665.49 $49,666.03

Total Cost of Sales $0.00 $0.00 $675.95 $676.95

Total Expenses $2230.39 $1725.39 $3150.06 $7,105.84

Net Profit $13555.61 $19489.15 $8839.48 $41,884.24

Recommendations

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MeshTech has identified a gap in the market for a website specialising in smart devices. In our feasibility report,

our main goal was to generate a profit, but we came to realise that we may not be able to compete in an established market. Therefore, we developed the idea to turn our competitors in our opportunity and strength. We

are a forward-thinking business, and this trait has been shown throughout the development of this business idea. Investing in a forward-thinking business, such as MeshTech, will yield creativity and innovation. We are young minds, with ambitious goals; we will look into every possible avenue to make MeshTech the one-stop smart-shop

for New Zealand consumers.

MeshTech is a viable business. With the project financials, see expect to see a net profit of NZ$41,884.24 within

3 years. As a young business, we will need to cut back on costs wherever possible. Our advertising and

marketing plans will revolve around creating consumer relationships, increasing consumer loyalty and retention

in the long-term.

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Conclusion

Currently the New Zealand market does not have one store or website, where consumers can effortlessly purchase smart devices. MeshTech was developed to fill that gap in the market. From the initial feasibility report,

we were simply a retailer offering and selling smart devices imported from overseas countries, such as Japan and China. We have since developed the business to be a reseller by partnering up with electronic retailers across New Zealand. Consumers will be purchasing their smart devices from a retailer, for example, Noel Leeming,

with MeshTech taking a small percentage of the sale. As a price and product comparison website, consumers have multiple choices and can purchase the device best suited to their budget.

The idea of recruiting retailers was developed when we realised, as a startup business, we may not be able to

compete in market because we are not a trusted brand. Consumers are well aware that they can visit any Noel Leeming, JB Hi-Fi, or PB Tech store across the country and purchase smart devices. We, then, developed the idea to turn our competition into our opportunities and strengths. By recruiting electronic retailers- including

small-to-medium electronic retailers- MeshTech, by association in the initial startup phases, will become a brand New Zealanders will and can trust. The retailers have the opportunity to become part of MeShME, a membership service costing NZ$199.00 annually. The retailers will be placed in premium positions on the website, with their

store logo and colours clearly displayed, and a 30 second introduction video to the company. The 30 second videos will be beneficial for smaller businesses to reach a wider audience, as they may not have the same budget

to spend on marketing and advertising than larger retailers.

We will encourage our retailers to contribute to the website by creating and uploading 60 demonstration videos for new smart devices they have received in store. The videos will be conducted in an interview fashion,

with a MeshTech employee interviewing a retailer. They will educate our consumers by: explaining the benefits of the smart device, its features and functions, how to achieve the best possible output from the device, and how

to install and setup it up without calling out a technician. For every video a retailer produces, they will pay MeshTech NZ$99.00 to cover the cost of the camera, lighting, labour, petrol and travel, and other expenses. Retailers are not obliged to create videos, but it will be heavily encouraged.

As the idea of recruiting retailers developed further, it came to our attention that our target market are are avid

video watchers. Combined with the low adoption rate of smart devices throughout New Zealand, the idea of user-created demonstration videos was implemented. Consumers, who have recently purchased from MeshTech, will

also have the opportunity to create and upload review videos, becoming part of MeshMates, an online community. To incentivise our consumers, we will offer a maximum of NZ$20.00 refunded back to them- refunded by the retailer- if they create and upload a video within 7 days of the product being delivered to them.

We have launched 2 crowdfunding campaigns on Facebook and Pledge Me. Our Facebook campaign is aimed

towards attracted investors; for NZ$10.00, pledges gain a 0.5% stake in the business. Our Pledge Me campaign’s target is NZ$3,000 to cover the initial startup expenses, such as website development and marketing and advertising costs.

Our advertising and marketing plan will revolve around experiential marketing and advertising. Prior to the

launch of MeshTech, we will have actors dressed up in mascot costumes shaped as products which can be

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purchased from the website. The mascots will then interact and engage with people on Queen Street, Auckland,

to create hype and awareness of the business. Experiential marketing and advertising has been proven to be effective in relation to consumer remembering a brand, creating an emotional connection, strengthen consumer

relationships, and increase consumer loyalty. Millennials and Gen Zers respond positively to experiential marketing and advertising than compared to traditional means of marketing and advertising.

New Zealand’s projected adoption rate of smart devices is a positive outlook for MeshTech. By launching in

2018, we have 2 to 3 years to build our reputation and, within 5 years, become the nation’s one-stop smart-shop.

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Appendix

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