market insights: level 6€¦ · our company seeks to pierce the market. nabbox nz ltd is a company...

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Pr oduced by: Mark Price: 0824887 Kiran Sahota: 1084763 Caleb Frost : 13827803 St even Su: 1323856 Oliver Hut chinson: 15923844 MARKET INSIGHTS: LEVEL 6 Assessment 2 - Integrated Project MAY 1, 2016 Nabbox NZ Lt d - No Burden Box es 55 Wellesley St East, Auckland 1010

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Page 1: Market Insights: Level 6€¦ · our company seeks to pierce the market. Nabbox NZ Ltd is a company offering a new service of Electronic Post Boxes (EPB) to the market. It is ultimately

Pr oduced by:

Mark Price: 0824887

Kiran Sahota: 1084763

Caleb Frost : 13827803

Steven Su: 1323856

Oliver Hutchinson: 15923844

MARKET INSIGHTS: LEVEL 6 Assessment 2 - Integrated Project

MAY 1, 2016 Nabbox NZ Ltd - No Burden Boxes

55 Wellesley St East, Auckland 1010

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CONTENTS

Background ........................................................................................................................................................ 3

Organisat ion Descript ion................................................................................................................................. 3

Vision Statement ............................................................................................................................................. 4

Short -term Goals .......................................................................................................................................... 4

Medium-term Goals..................................................................................................................................... 4

Long-term Goals .......................................................................................................................................... 4

Social Media – Target Market ......................................................................................................................... 4

Environment Analysis .......................................................................................................................................... 5

Social Media Tools Analysis ............................................................................................................................. 5

Instagram. .................................................................................................................................................... 5

Tw itter........................................................................................................................................................... 6

Facebook .................................................................................................................................................... 6

Social Media Tool/Website .......................................................................................................................... 7

Descript ion ................................................................................................................................................... 7

Limitat ions .................................................................................................................................................... 8

Business Analysis .............................................................................................................................................. 9

Social Media Tool/Website .......................................................................................................................... 9

Short -term Goals .......................................................................................................................................... 9

Business Goals .............................................................................................................................................. 9

Suitability ...................................................................................................................................................... 9

Data, Informat ion, and Know ledge ................................................................................................................... 9

Online Customer Analysis .............................................................................................................................. 10

Social media tool/website .................................................................................................................. 10

Customer demographics ..................................................................................................................... 10

Volume of customers and details of use ......................................................................................... 10

Compet itor analysis ................................................................................................................................. 11

Social media tool/website .................................................................................................................. 11

Weaknesses ............................................................................................................................................... 11

Social Media Communication Strategy ................................................................................................... 12

Communication / engagement strategy............................................................................................. 12

Social media tool/website .................................................................................................................. 12

Customers/users .................................................................................................................................. 12

Communication strategy ..................................................................................................................... 12

Social media monitoring / measurement activities table strategy table .................................. 13

Activity/milestone ................................................................................................................................ 13

Monitoring methods (what tools did you use to measure/monitor the impact of your

social media activities?) ...................................................................................................................... 13

Key Performance Indicators (KPIs) (what indicator/measurement result will need to be

met before this activity is considered a success?) ...................................................................... 13

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Business goals (which business goals/objectives does this activity align with, or help

achieve?)................................................................................................................................................. 13

Short -term Goals ........................................................................................................................................ 13

Risk Assessment .......................................................................................................................................... 14

Risk Management Table .......................................................................................................................... 14

Business risk #1........................................................................................................................................... 14

Business risk #2........................................................................................................................................... 14

Business risk #3........................................................................................................................................... 15

Business risk #4........................................................................................................................................... 15

Business risk #5........................................................................................................................................... 16

Appendix .......................................................................................................................................................... 17

References ....................................................................................................................................................... 21

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BACK GROUND

ORGANI SATI ON DESCRI PTI ON

Living in an urban mult i-storey dwelling p rovides

residents with a complex array of burdens and

benefits. One of these burdens is when a resident

purchases a p roduct online and wants it delivered

via signature-required couriers. One key

disadvantage these consumers face is the

unfortunate necessity to sign for parcels in

person, which requires the recipients to be onsite

when the courier arrives. Failing to meet this

requirement , the recipient is left no other option

but to have the package returned to the postal

depot . This is particularly challenging for full-

t ime working residents and students, who may not have an alternat ive secure locat ion to have packages

delivered to, which is also convenient enough to warrant a populous alternative. Many residents are left out

of the op tion to rent PO-Boxes supplied by local post outlets, as they require a minimum of 1-year rental of

$170 and over, annually (New Zealand Post, 2016) - whilst others do not receive enough mail to warrant the

investment. Additionally, courier drivers delivering packages to mult i-storey dwellings spend close to 30

minutes waiting for residents to come outside to collect parcels (Slade, 2015).

Recently , the Auckland Council has released a reformed Unitary Plan, which looks to increase housing

supply, by reclassification of zones within the Auckland Region (Auckland Council, 2013). This is where

our company seeks to pierce the market. Nabbox NZ Ltd is a company offering a new service of Electronic

Post Boxes (EPB) to the market. It is ult imately init iated by similar products gaining popularity in Chinese

schools and apartment buildings, and has been imp lemented by Australian Post’s “MyPost” (Australia Post,

2016).

Nabbox offers an innovative, pure-good, convenient , specialty but low-involvement alternative to the

t radit ional method of parcel collect ion by providing key benefits to both the consumer and the many

independent courier companies. If a customer purchases a p roduct online, they can choose to have the

p roduct delivered to one of the many Nabbox electronic boxes. As identified in our Service Bluep rint[1], the

customer receives not ifications along the journey of their package, and when the package is ready to be

retrieved, the customer is sent a not ification via the Nabbox App (iOS and Android), along with a generated

code. The consumer types this code into

the EPB, and the corresponding

anonymous locker is opened. The

customer is then changed $1.00 for using

the service upon completion of the

t ransaction. The main themes

communicated by Nabbox are:

Effortlessness, Security, and Cultural

M odernity.

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[1] Serv icescape – See Appendix 13

V I SI ON STATEM ENT

(Top Nonprofit s, 2011)

SHORT- TE RM GOALS

Within a year, w e w ish to ut ilise piercing-pricing st rategies to build the company's name recognit ion w ithin

New Zealand, by encouraging part icipat ion through targeted events alongside guerrilla Social Media

campaigns, and establishing partnership agreements w ith surrounding courier providers. We aspire to reach

40% engagement on Instagram w ith cumulat ive share-ability.

M EDI U M-TERM GOALS

Within 3 years, w e w ish to offer more premium pricing st rategies to reach breakeven. We w ill revisit the app

ut ilised by consumers and make appropriate adjustments. Our team w ill invent new Hashtags to reinforce

the ability for our customers to integrate “Nabbox” into addressing their everyday service experience w ith

postage. We w ill expand inventory offerings to penet rate new segments, and expand into sub-urban

regions w hich are to be intensified.

LONG-TERM GOALS

Within 5 years, w e w ill use narrate our advert ising to ensure our brand is commonly phrased by both

consumers and suppliers as a common means to receive packages. To receive a package by get t ing it

"Nabbox 'd" w ould spell success for us. We w ill be offering employee/public shares and implement ing new

business opt ions to replace human labour needs for security desks.

SOCI AL M EDI A – TARGET M ARKET

Init ially w e are focussing on Auckland Cent ral residents, but w e w ill be expanding into w ider urban areas.

There is a higher density of people from Asia and Indian cont inents than anyw here else in New Zealand.

Residents w ho tend to frequent or live in the city tend to live in the upper Queen St reet area (Auckland

Council, 2014), are betw een 18 and 35 years of age. According to the Census for the Waitamata area,

there are more Asian groups than anyw here else in Auckland (Waitemata Council, 2014). They're more likely

to live fast -paced prideful progressive lifestyles (Watkins, et al., 2015), are concerned w ith consumpt ion

t rends, purchase indulgence products more frequent ly, usually are individualised, and have a tendency to

sw itch brands frequent ly (Wright , 2006) The migrant students tend to be on scholarships and aw ay from

family. Since this service is exclusive in it s niche, consumers are unable to easily compete by price, thus the

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brand is more durable. Urban residents tend to be on the low -medium to medium social economic profile,

usually full t ime w orking or studying, are less likely to ow n cars, and are usually younger w ithout children.

Since they are in temporary accommodat ion, the customer w ill not carry the service longer than their

necessary stay.

ENVIRONMENT ANALYSIS

SOCI AL M EDI A TOOLS ANALYSI S

The purpose of using social

media is to increase

reachability and accessibility of

Nabbox to pierce into the lives

of our target market, as well as

to expose ourselves to a wider

market. The exposure of our

serv ice to social media will help

us remain relevant and enable

a communication medium to

indicate if any improvements

need to be made to prov ide

more v alue to our customers.

Social media is a way for customers to share their experiences with the rest of the world.

INSTAGRAM .

With over 400 million users of Instagram, Instagram is “one of the world’s largest mobile ads

platform” (Instagram, 2016). As at 2013, Instagram was used by 5.27% of kiwis (Jones, 2013), in

general, and [2] of which over 68% of users are female (Adcorp, 2016) – and is being utilised by

other companies to target users based on their demographic profiling. Of the various social

media platforms, the most used by our target market was Instagram (home of the ‘selfie’) (Kafka,

2015). Only 36% of marketers use Instagram, and User-Engagement is higher (3.1% compared to

Facebook’s 0.7%) (Faigle, 2015). Information from a Cowen & Company study found that 44% of

18-29 year olds use Instagram while only 23% of them use Facebook daily (Faigle, 2015). As part of

our advertising, we wish to encourage ‘healthy’ graffiti on our boxes, and share their artwork on

their Instagram accounts. These pieces of art will be used by Nabbox, and the artist’s Facebook

credentials or business name will be featured on the Cover Page of our Facebook and Linked-In

site. In addition, we can utilise Instagram's photo and video tools to communicate where our

brand is being used in circumstances familiar to the consumer (Fill, Hughes, & Francesco, 2012).

We can rely on our consumer to create and generate content which sets the tone of creativity,

extrinsic reward, and fun (Fill, Hughes, & Francesco, 2012). The user will gain free usage of the

Nabbox for the month, which we hope will direct fame back to the artist.

Users of Instagram, are able to take a 15 seconds long video and can edit photos using 13 artistic

filters (Lim & Yazdanifard). A v ideo uploaded to Instagram, can also be used as a website link,

which when tapped, can direct the consumer to the Nabbox Website. With our particular strategy

to use graffiti and emotive video advertisements, this feature can be used to direct our targets to

our Facebook page, or even inspire customers to download the app from their devices

corresponding App Store. Since our customers are individuals, we wish to capitalise on this by

prov iding an avenue for self-expression with high involvement.

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The limitations could be that artists feel that Instagram does not forgo the rights to own their own

art, but are told they relinquish their ability for Instagram to redistribute content without exclusivity,

payment, royalties, or licenses (Instagram, 2013), and because of this, users may change the

framing of the brand if they don't enjoy the artwork shared due to the self-construal nature of the

site (Lavoie, 2015).

TWITTER

Twitter is an online social networking platform, allowing users to post short, frequent message, or

microblog, about their daily lives in the form of "tweets"; it is a platform used mainly to share quick

links, articles, ideas, and information (Al-Deen & Hendricks, 2013). People can also follow one

another, creating relationships, and sharing common interests and views. Customers can use

Nabbox's Twitter tag, @nabbox_nz, to their followers when they wish to share their experience with

serv ice, positive or negative.

Tw itter has funct ions for promot ion of content . In terms of advert ising for Nabbox , if w e w ere a Promoted

Account or Promoted Trend, any follow ers w ho interact w ith the advert isement - liking, follow ing, or

retw eet ing- w ill allow the benefit s of our service to reach more potent ial customers (Tw itter, 2016). For

example, the w inner/s of our graffit i compet it ions w ill have the ability to not only promote their ow n w ork,

but the Nabbox , as w ell.

Tw itter has limited the length of a Tw eet to only 140 typed characters for all users. It is a const raint purposely

init iated, enforcing users to keep their Tw eets short and to the point . For Nabbox , this means w e w ill need to

craft each Tw eet carefully, as w ell as images, so our customers understand our message w ithout losing any

informat ion or meaning.

FACEBOOK

Facebook's stated mission is to "give people the pow er to share and make the w orld more open and

connected" (Facebook, 2016). It is a social media plat form used to connect people w ith friends and family

across the w orld, as w ell as discover and share personal experiences. Over the years, it has grow n to

become a crit ical advert ising and market ing mechanism for businesses, by creat ing aw areness of the

brand and ent icing purchase intent . Customers use Facebook as a means to invest igate and develop

opinions about a brand, by interact ing w ith others and gauging the brands credibility. In 2012, Nielson

reported that 2.7 million Kiw is use Facebook, making it the top ranked social media plat form; 54% of users

are female, and 46% are male, w ith 25 to 34 age bracket being the prominent user demographic, follow ed

closely by 18 to 24 (Pelea, 2015). We w ill use Facebook as one of the social media plat forms to promote

Nabbox .

Set t ing up a Nabbox Facebook page (@nabbox) w ill allow customers to view , share, and keep up to date

w ith our business' promot ions, updates, and expansion across the count ry. A Facebook page encourages

customers to discover, connect, and understand a brand, present ing us w ith the opportunity to promote

the benefit s of our service. Customers also have the ability to share their experiences w ith Nabbox , both

posit ive and negat ive, w hich w e w ill respond to accordingly.

Nabbox w ill also ut ilise Facebook Live, w hich offers the feature to live-st ream videos to other Facebook

users. Users can tune into the live broadcast , leaving comments and react ions to the video in real-t ime

(DeMers, 2016). By using Facebook Live, Nabbox w ill, for example, reveal art ist s- w ith their permission- w ho

have adorned the sides of the boxes, promot ing their artw ork and themselves to our customers, as w ell as

the rest of the w orld.

Facebook has restrictions on advertisements to ensure they meet the Advertising Policies

(Facebook, 2016). An ov erview of their policy states:

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• Adv ertisements and video thumbnails cannot include images with texts covering more

than 20% of the overall image area; this is to help make advertisements more engaging for

Facebook users;

• If referring to Facebook within the advertisement, it must be displayed with a capital "F"

and in the same font size and style as the surrounding content; and

• Adv ertisements must adhere to age-restrictions.

Nabbox will comply with Facebook's policy, because it will be one of our main social media

platforms to be used to promote the serv ice. All advertisements are rev iewed- usually within 24

hours- to make sure they comply with the policies.

SOCI AL M EDI A TOOL/W EBSI TE

DESCRI PTI ON

Using social media platforms allows us to

gain a line of conversation to gain insight

into ever-changing consumer perceptions

about Nabbox. The purpose of using the

social media sites mentioned above is

because our target market is more

connected through technology than with

people (Al-Deen & Hendricks, 2013). Social

media has grown in the market industry -

80% of kiwis use Facebook (Grant, 2014)

with the majority of growth seen with

females (Grant, 2014). Our consumers will

have to, firstly, create an account to use the serv ice; creating an account will be free for all

consumers, and once the transaction has been complete and the package has been retrieved,

they will be charged an additional $1.00 for using the Nabbox serv ice. Customers will also be able

to giv e feedback to the business about their experience, positive or negative, to help us make

any improvements or adjustments as needed.

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1

Opportunit ies

Using social media will allow our business to works around our consumer, the opportunities that

social media gives is that it helps promote the product to consumers, gives the customer value on

their opinion, helps the business grow. By using social media tools like Facebook, Twitter etc. It

helps benefit our business because in recent years there have been studies that shows there has

been a dramatic change in social media. Businesses have to incorporated social media to

engage with their customers (Kumar, Bezawada, Rishika, Janakiraman, & Kannan, 2016). By doing

this, we can analyse our customer’s needs because it important to know their demands, and it is

also important because social media drives sales. Sales will help the business grow but it will also

show stats that determine whether a business is doing good or bad.

LI M I TATI ONS

Limitation would be that not everyone uses social media, social media Tool/Website that are

been used frequently are Twitter, LinkedIn, Instagram and Facebook. From collecting database it

shows that there are currently 2.7 million Kiwis who visit Facebook which makes top ranking

through social media in New Zealand (Pelea, 2015). That is like 80% percent of New Zealanders

v isiting Facebook. This indicate that the percentage of people in New Zealand using social media

are high but not everyone will use it. The top reason for using Facebook were to stay connected

with friends and family around 79% percent (Pelea, 2015). This gives us reason that the population

1 ht tp://www.otago.ac.nz/market ing/otago121778..pdf

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of people in New Zealand only use social media to connect with their families and friends so there

is a chance they would not use social media to keep in touch with news, events and new things.

BU SI NESS ANALYSI S

Consider the following questions when analysing your business:

• O verall, is social media suited to your business?

• Are your customers or potential customers likely to use social media?

SOCI AL M EDI A TOOL/W EBSI TE

Facebook aligns w ith our short -term business goal. It is a social media plat form w hich can help build the

brand in the init ial stages, especially through targeted part icipat ion.

Think future focus, types of persuasion, Instagram being visual, use of hashtags, Facebook integration and connectedness (target demo), peripheral visual messages, etc

Tw itter

Instagram

SHORT- TE RM GOALS

Within a year, w e w ish to ut ilise piercing-pricing st rategies to build the company's name recognit ion w ithin

New Zealand, by encouraging part icipat ion through targeted events alongside guerrilla Social Media

campaigns, and establishing partnership agreements w ith surrounding courier providers. We w ill rew ard

customers w ho share our company page to their Social Media plat forms a chance to w in 1 month's free

usage.

Medium-term Goals

Within 3 years, w e w ish to offer more premium pricing st rategies to reach breakeven. We w ill revisit the app

ut ilised by consumers and make appropriate adjustments. We w ill expand inventory offerings to penet rate

new segments, and expand into sub-urban regions w hich are to be intensified.

Long-term Goals

Within 5 years, w e w ill use narrate our advert ising to ensure our brand is commonly phrased by both

consumers and suppliers as a common means to receive packages. To receive a package by get t ing it

"Nabbox 'd" w ould spell success for us. We w ill be offering employee/public shares and implement ing new

business opt ions to replace human labour needs for security desks.

BU SI NESS GOALS

SU I TABI LI TY

DATA, INFORMATION, AND K NOWLEDGE

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ONLI NE CU STOM ER ANALYSI S

SOCIAL MEDIA TOOL/WEBSI TE

-Twitter.

-Instagram.

-Facebook.

CUSTOMER DEMOGRAPHICS

To determine our target market, it is necessary to look at w ho would gain the most utility and value f rom our

service. Seeing as receiving mail is a universal need, anyone is a potential customer. Those living in inner-

city apartment buildings are among the best placed to benef it f rom Nabbox, due to the inconvenience of

needing to sign w hen receiving a parcel and potentially missing its delivery. It is hardly safe to leave a

parcel in a hallw ay shared with 10 other apartments, therefore a courier would be expected to take the

parcel back to a distribution centre if nobody is available to receive it. This provides a valuable opportunity

for our service to remove the hassle f rom receiving mail in shared urban living areas, and thus provides a more specif ic demographic to be targeted.

VOLUME OF CUSTOMERS AND DETAILS OF USE

The inhabitants of inner-city Auckland are predominantly youths and young professionals. As seen w ith the

2013 census conducted by StatsNZ, 23,309 out of 37,449 people living in buildings four storeys or more

w ithin New Zealand's main population centres, w ere betw een the ages of 15 and 34 (Statistics NZ, 2013).

This information is valuable w hen it comes to designing a social media campaign so that w e may ef fectively target this age group.

In New Zealand, of those aged betw een 14 and 24, 49.4% used a social netw orking site, such as

Facebook, w ithin the last 4 w eeks. The 25 to 34 age bracket had the largest proportion of social media

usage at 52.4% (Roy Morgan, 2014). This level of usage suggests that these age groups are entrenched as users of social media, and can thus be targeted through ef fective social media campaigns.

By combining these tw o populations w e gain a rough estimate of how many lie w ithin our target

demographic that are also users of social media. To do this w e must take 50.9% of 23,309, the average

percentage of those 14 to 34 using social media and the population of the same age parameters living in

buildings four storeys or more w ithin New Zealand's main population centres, leaving us w ith 11,864 people w ithin our target market.

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COMPETITOR ANALYSIS

SOCIAL MEDIA TOOL/WEBSITE

From gathering information about our competitors we can see that they only use Twitter and

Linked In to connect with their consumers. Nabbox already has an advantage, as there are other

social media sites that Kiwis use more frequently, because it is more efficient and easier to use.

Like Facebook, Twitter is the top 3 most use social media in New Zealand; it gives new features

constantly and also introduced more focused ads to benefit the measure of a business who want

to promote their products and advertise it to the right people (Pelea, 2015).

Competitors

When we were looking at competitors, we selected the main businesses that would have a threat

against our business. It was mainly Freightways/ New Zealand courier, New Zealand Post and

Courier post, as they are the main businesses that deliver goods. There is data showing that

Freightways/ New Zealand courier dispatch 200,000 items per business day and about 50 million

items per year (Freightways, 2015). These businesses have a nationwide network, which is

worldwide delivery serv ices through their alliances with in the international express package

operators. We need to know what they do as a business, so we can adjust and make our serv ice

better and different from what they are doing.

Online Market Share

We can see that none of our competitors currently utilise Facebook for their marketing purposes.

This is a key area that we can use for our business; Facebook has the ability to grab viewers as

there are currently about 2.7 million Kiwis who v isit Facebook, and it will also promote our business

publicly (Pelea, 2015). NZ Post currently have 5,421 followers and Courierpost have 718 followers

on Twitter (CourierPost, 2016). This shows that they use a different type of media tool to connect

with their customers. Freightways/New Zealand courier appeared to have created a Twitter page

in September 2011, but have yet to post any content and have only 12 followers. This shows that

there is a lack of communication in their business and they will have to do some adjustment

because social media is growing every day, it creates sales and it also build relationship between

the business and the consumer. Without the relationship businesses will not grow that much (Hajli,

2014).

Strengths

The first and main st rength of our compet itors use of social media is the advantage of already being

established and able to expand their reach, w hich has allow ed NZ Post specifically to garner a significant

amount of follow ers. Another st rength is the informat ive w ay in w hich both Courierpost and NZ Post run their

Tw itter pages, by using them to provide updates to their customers about potent ial issues w ith their service

and how they are being dealt w ith. We can see that they are w ell know n for w hat they do- delivery of

goods to their consumers- as millions of items are been dispatch each year (Freightw ays, 2015). This is a

st rength because customers w ill stay loyal and it w ill be hard for them to change to another service that is

similar to the one they are using.

WEAKNESSES

Neither Courierpost nor NZ Post ut ilise their Tw itter pages for the use of compet it ions or promot ions, and user

generated content is almost non-ex istent . This displays a lack of user involvement and show s that lit tle is

being done to create a st rong relat ionship betw een the brands and their customers. This is a w eakness that

w e can use in our business against them because w e w ill show more communicat ion though our social

media that w ould benefit our service in the long term. We w ill have a w ider range of tools that w e w ill use,

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such as, Tw it ter, Facebook, Linked In and Instagram. Studies have shown how social media/network

affects customers in that social media is an important driver that distribute technology products or

serv ices to consumers (Qiu, Tang, & Whinston, 2015). The more consumers who use social media,

increases business value; with new content/updates that is added by the business constantly,

consumers will add potential value through exchanging with other consumers. This will help draw

other customers in, they would want to try something different because of how people use social

media to share their experiences. This will add value to our business because it will get around

people using similar serv ices to our one.

SOCIAL MEDIA COMMUNICATION STRATEGY

COMMUNICA TION / ENGAGEMENT STRATEGY

SOCIAL MEDIA TOOL/WEBSITE

We understand that having successful social media communicat ions is crucial w ith in brand success in the

digital era. That is w hy w e have chosen to have 3 key social media plat forms for Nabbox - Facebook,

Instagram, and Tw it ter.

In the early stages of launching our brand we will put our focus into “Paid Social” in order to

generate a backing of customers/users to help drive traffic to our social media platforms. For

example, using paid sponsorship for ads on websites such as Facebook and Instagram in order to

gain exposure in our earlier months. Once our online social media presence has gained

momentum it will allow us to pull back our paid social media sponsorship and hopefully allow for

more organic, or "earned", social hype to occur.

CUSTOMERS/USERS

We decided we wanted a way for our customers to engage with us over our social platforms and

create user generated content as social media thrives of this (Fulgoni, 2015). Having our customers

and users uploading content to their social media pages is a great chance for us to interact and

create relationships.

COMMUNICA TION STRATEGY

Using the Crowd Sourcing Process of User Generated Content we decided to run a social

campaign where the first 50 customers to download our mobile app and link it with one of our

v arious social media platforms would receive a code via email. The user would then be instructed

to go to our “Nabbox” kiosk and use the code they have received in the email to open a specific

box, inside would be a small gift of sort, such as a voucher for fiv e free uses of Nabbox.

We decided we wanted a way for our customers to engage with us over our social platforms and

create user generated content as according to Fulgoni (2015) social media thrives of this. Using

the Crowd Sourcing Process of User Generated Content we decided to run a social campaign

where the first 50 customers to download our mobile app and link it with one of our various social

media platforms would receive a code via email. The user would then be instructed to go to our

“Nabbox” kiosk and use the code they have received in the email to open a specific box, inside

would be a small gift of sort, such as a voucher for fiv e free uses of Nabbox.

We also wanted to establish a way in which our customers would feel as if they were contributing

something to the brand itself. We decided to run a second campaign, in which our customers

could decorate the side of their “Nabbox” parcel using pens, pencils, stickers, paint etc. The

customer would then upload a photo of their design to either our Facebook, Instagram or Twitter

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page, tagging Nabbox in the users post along with the hashtag "#MYNABBOX". The design that

receives the largest positive response from the users would be chosen and then used to decorate

the side of the Nabbox kiosk, also putting the winners’ signature on the bottom of it.

Along with this, there will also be a side of the kiosk in which we would allow customers to draw,

paint, graffiti etc. The user would then take a photo of their design on the kiosk wall and upload it

to their chosen social media platform, once again tagging our Nabbox social page and using the

MYNABBOX hashtag. The post that generates the most positive feedback and social hype would

be selected and given a prize. The Winner would be announced publicly on our social platforms,

creating more content and hype around our brand.

Using social media contests in order to create user generated content is a great way to create a

fun, engaging and interesting platform for communication with our customer base, also giv ing the

users the potential to win a prize through interacting with our brand can give the consumer base

the positive reinforcement that there is the potential for an extra extrinsic reward to be received

for participating and engaging themselves with our brand.

Frequency

The design will be changed once every month which will allow for different users to have their

designs selected for the kiosk decoration. These social campaigns are an effective way to

communicate and engage with our customer base, retain and attract new customers and build

new relationships through social media and allow us to expand the Nabbox business.

SOCIAL MEDIA MONITORING / MEASUREMENT ACTIVITIES TABLE

STRATEGY TABLE

ACTIVITY/MILESTONE

MONITORING METHODS (WHAT TOOLS DID YOU USE TO MEASURE/MONITO R THE

IMPACT OF YOUR SOCIA L MEDIA ACTIVITIES?)

KEY PERFORMANCE INDICATORS (KPIS) (WHAT INDICATOR/MEA SUREMENT

RESULT WILL NEED TO BE MET BEFORE THIS A CTIVITY IS CONSIDERED A

SUCCESS?)

BUSINESS GOALS (WHICH BUSINESS GOALS/OBJECTIVES DOES THIS ACTIVITY

ALIGN WITH, OR HELP ACHIEVE?)

SHORT- TE RM GOALS

Within a year, w e w ish to ut ilise piercing-pricing st rategies to build the company's name recognit ion w ithin

New Zealand, by encouraging part icipat ion through targeted events alongside guerrilla Social Media

campaigns, and establishing partnership agreements w ith surrounding courier providers. We w ill rew ard

customers w ho share our company page to their Social Media plat forms a chance to w in 1 month's free

usage.

Medium-term Goals

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Within 3 years, w e w ish to offer more premium pricing st rategies to reach breakeven. We w ill revisit the app

ut ilised by consumers and make appropriate adjustments. We w ill expand inventory offerings to penet rate

new segments, and expand into sub-urban regions w hich are to be intensified.

Long-term Goals

Within 5 years, w e w ill use narrate our advert ising to ensure our brand is commonly phrased by both

consumers and suppliers as a common means to receive packages. To receive a package by get t ing it

"Nabbox 'd" w ould spell success for us. We w ill be offering employee/public shares and implement ing new

business opt ions to replace human labour needs for security desks.

RISK ASSESSMENT

RISK MANAGEMENT TABLE

B USINESS R ISK #1 Malfunctions of Nabbox: malfunctions such as, the locker door may not open when the code is

input, or the generated code does not work. If malfunctions occur, customers may feel that the

serv ice is unreliable or untrustworthy, and may use our competitor's serv ices in the future.

Impact: malfunctions will have a high impact level on the business as the service is solely operated

electronically. A malfunction may cause customers to switch to use our competitor's serv ices for

any future deliveries.

Likelihood: it is highly likely that malfunctions will occur as it will take time for the business to work

out the flaws.

Mitigation strategy: adding a function to the Nabbox App which will allow customers to report any

malfunctions quickly and efficiently; it is the business’ responsibility to respond to these reports

within an adequate timeframe and deliver a situation. A solution would be deploying trained

technicians to fix any problems as soon as possible. Technicians will regularly inspect and maintain

the Nabboxes, ensuring any risks of malfunctions are kept to a minimum.

Contingency strategy: if a malfunction occurs, customers will be notified as soon as possible

through the various social media platforms. Any packages waiting to be retrieved or delivered,

will be sent to the depot where the packages can be retrieved. Customers affected will be given

compensation in the form of a discount on their next Nabbox usage.

B USINESS R ISK #2

App crashes or servers are down: the Nabbox serv ice will be entirely operated through the app

for customers. If the app crashes or our servers are down, customers will not be able to retrieve

their packages as the generated code will not be accepted.

Impact: if the app crashes or the servers are down due to a malfunction, it can have a high

impact on the business, as package retrieval is directly operated through the app.

Likelihood: it is unlikely that the app will crash because advances in technology have made it

easier to upgrade apps to reduce the risk of crashes.

Mitigation strategy: send out an immediate notification, via email, to any customers currently

using the Nabboxes, if issues arise which could affect the delivery or retrieval of the packages. A

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notification will also be sent out via our social media pages for any customers who are considering

using the serv ice. Customers will be given an estimated time it will take to fix the issue, as well as a

notification when the issue has been resolved. Rapid response from the business demonstrates to

our customers that we acknowledge there is an issue and we are using all of our resources to

rectify it (Accenture, 2015).

Contingency strategy: we will implement the same contingency strategy as with malfunctions of

the Nabboxes. Any packages currently awaiting retrieval or delivery, will be sent to the depot,

where they can be retrieved by customers at their leisure.

B USINESS R ISK #3

Vandalisation: there is the potential risk of the boxes being vandalised by citizens, especially the

boxes located outside of apartment buildings. Vandalisation may come in the form of

unauthorised graffiti, or attempted destruction of the boxes to retrieve packages from inside. Any

form of v andalism viewed by customers, or potential customers, may shift their perspective about

the safety of their packages.

Impact: this can have a high impact level for the business as safety and security are our main

business responsibility.

Likelihood: it is highly likely vandalisation of the boxes will occur. According to Crime in New

Zealand Statistics 1996-2005, abuse of postal services accounted for 20% of all property abuse

statistics in 2005, with a resolution rate of 53.9%. Though the resolution percentage is above 50%,

v andalisation is still a potential risk our business will face.

Mitigation strategy: provide a 0800 number to customers and the wider public to be used to

report any vandalisation or destruction of the boxes. Citizens will need to provide details of their

identity (name, current address, and contact number to be stored on our serves for future

reference, if needed), details of the vandalisation, location, and if they saw the perpetrator.

Packages will also only be stored for 48 hours by Nabbox, before being delivered to the depot;

this is to ensure extra security, as well as keeping up with demand.

Contingency strategy: the Nabboxes will be regularly monitored and maintained against any

forms of v andalisation. If vandalisation continues, CCTV cameras will be placed at strategy

v antage points around the boxes in the hopes of deterring any future destruction of property.

B USINESS R ISK #4

Negative experiences shared through social media: if a customer has a negative experience with

the serv ice, they may share that experience across the multiple social media platforms Nabbox

uses. Potential and current customers will be made aware of this experience, and it may shift their

perspective about the serv ice.

Impact: this may have a high to medium impact level on the business. According to Accenture

(2015), customers have been empowered to complain across a variety of social media platforms;

negative exposure can effect the company name and result in loss of consumer trust and

rev enue.

Likelihood: it is likely this will occur, because social media has now become the first point of

contact between customers and businesses when there is a grievance to settle.

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Mitigation strategy: generate pre-written responses, which can be used quickly in response to a

customers negative experience

Contingency strategy: the business will conduct effective and efficient communication with our

customers to resolve any issues as efficiently and accurately as possible; we want our customers to

have a positive and effortless experience, which places us as a customer-centric business.

B USINESS R ISK #5

Exposing sensitive customer information: there is a potential risk of sensitive customer information

being exposed to the wider public. Customers will question our ability to protect their confidential

information (Tan, Benbasat, & Cenfetelli, 2016), such as, credit card information, creating a

negative association with the business.

Impact: this will have a high impact on the business and on customers’ trust in the serv ice, as they

will think our serv ice is not secure, and are more likely to use our competitor's serv ice instead.

Likelihood: it is unlikely to happen, as security for keeping sensitive information private has

strengthen through technology development.

Mitigation strategy: access to customer information will require their explicit permission to be

shared on our social media platforms; information such as, name, location, and physical image of

their identity. Customer information will be stored for 30 days on our servers, which will lower the

risk of any personal and sensitive information being exposed.

Contingency strategy: if customer information is exposed

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APPENDIX

https://www.dropbox.com/s/xf38icb1h4dalim/Servicescape%3B%20Service%20Blueprint.xlsx?dl=0

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Nabbox Smartphone App Icon

Official Nabbox © Logo

Nabbox Elect ronic Postal Box (EPB)

Commented [MP1]: W hy is there no reference list

sources added yet?

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