Marketing Plan for Host Me New Zealand

As a group we have decided to split the sections up between us and submit our pieces individually.

I am doing the marketing plan, Stacey is doing the feasibility study and networking, and Estel is doing the business plan.

Name: Host Me New Zealand (

Product description: Our product will be a website with two types of membership. The first type will be a catalogue of New Zealand residents wishing to host foreigners in their home for a small fee. The second type of membership will be potential to tourists to New Zealand looking for low budget accommodation and a cultural experience. All memberships will have to go through an authentication process of some kind when they sign up. The hosts can create a membership on the Host Me New Zealand website with personal information, interests, description of their home and where they live; it will also be possible that they upload a profile picture and a picture of their home if they wish to. Tourists may also create a profile with personal information, interests and where they want to travel. The website will provide a search engine where both tourists and hosts can filter their search based on their interests, destination, living situation etc. The website will then display a list of tourists/hosts that the user can browse through and choose the ones that suit them best. The website will also provide an activity search tool where tourists can search for activities/attractions within a particular destination; this might help them in deciding on where they would like to travel.


“Marketing is one of the single most important places you can focus your attention in your business. Particularly if you hope to create a successful business. Marketing equals money,when it is done right, and most businesses don’t put nearly enough attention on their marketing planning process, or on their marketing.”


A marketing plan will help a business to understand where they want to go with their product/service. It is an internal plan to help guide management towards the ultimate goals of the business. Without a marketing plan and heavy focus on your marketing efforts the business is likely to fail or not be overly successful. Our marketing plan will focus on the four P’s – Price, product, promotion and place, among other aspects like target market etc.


The following is what we will place the main focus on in the marketing plan:

The marketing plan identifies the ‘hook’ for a product or service. Who will buy it and why? How is it better than its competitors? 

What pricing strategy will the company follow for this product? Is the plan to sell large volumes so that economies of scale can keep the price low? Or will it be marketed to a niche at a high price?

What is the advertising strategy? How will the product be packaged? What will its marketplace positioning be?

How will the product be distributed? Will it be sold by retail stores or by direct marketing?


10/09/13 – To begin with, I did some research on what to include in a marketing plan and came up with the following websites:

In my opinion the most useful one is the Small Biz Trends website. Our marketing plan will follow this layout;


11/09/13 – Target market:

Our target market will be determined through researching statistics from the Statistics New Zealand website, Ministry of business, innovation & employment website, and the Tourism New Zealand website. Our target market will be low income/budget travellers and these websites will provide us with the details and demographics we need.

Understanding your target market is very important to beginning a business. You need to know who you are targeting so you can maximise sales at the minimum costs to yourself. Understanding your customer means that you know how and where to advertise and what exactly to offer them.


06/09/13 – Mission statement:

We decide on our mission statement as a group at our first group meeting on the 6th of September. Having a clear and understandable mission statement will help you to keep your business/offering on track and aligned with your goals.


06/09/13 – Offering to customers:

Our offering is basically our product description (which is seen above). We also wrote this at our first group meeting on the 6th of September. Writing down you product description can help you fill in any holes that you might notice and


15/09/13 – Price strategy:

Some research was done on the costs and what type of budget accommodation is offered in New Zealand already. The following website was very useful to find budget accommodation and gave us an idea of what prices are already out there. We want to be the cheapest accommodation supplier in the country and with such a unique offering we believe this is very possible after looking through this website;

A businesses price strategy helps to position a business in the market that they are operating in and will help with competitor analysis and internal analysis.


15/09/13 – Distribution strategy:

The internet has grown substantially in the last few years and there are not many people in the modern world who do not have access to the internet in some form. I have done some research on how to utilise the internet as a distribution channel for a service. Most of the websites I found focused a lot on promoting your website through things such as social networks/social media and blogs etc.

The internet is the largest and easiest way to reach our target audience not only in New Zealand but all over the world. This will help us to quickly expand into other countries if that is what we want to do.


15/09/13 – Sales strategy:

A sales strategy is important to have as this will help you to gain the results you are wanting when it comes to things like profit, market share etc. Basically our sales strategy will outline how we will get people to use our service as opposed to awareness of our service (Promotion strategy). A sales strategy “looks at how you will deliver objectives set out in your marketing plan, as well as how you have chosen to segment your target market and how you will fund you marketing activities.”

For an effective sales strategy we will need to decide on clear and understandable values that our business will follow; why our service is better and worth more than our competitors. We will need to conduct a competitor analysis for this section so we can position and differentiate ourselves from our competitors.


15/09/13 – Service strategy:

Service Strategies can help you design an effective set of value added Service Offerings and Programs to meet your clients’ needs and generate revenues for the company. Service strategies are used to segment your target market to better understand their needs and requirements.

The following website also gives a very good breakdown of what will be covered in our service strategy;


11/09/13 – Promotion strategy:

Some research was done looking into how to promote a website, I have found a useful website with tips and strategies;

We cannot rely simply on promotional strategies such as word of mouth so like most successful businesses we will have to develop a strong promotional/advertising strategy. This will be aimed at the origin destinations as people generally want to have accommodation sorted by the time they arrive at their destination. We also decided that most of our advertising will be through other tourism websites.




50 Business terms relating to “NZcycle”

1. Advertising:  Advertising for NZcycle would be done through other related apps and done through Tourism New Zealand, at i-Sites’ etc.

2. Arrangement Fee: A fee paid to a mandated bank or group of banks (lead arrangers) for arranging a transaction. It includes fees to be paid to participating banks. E.g. a fee on a loan for NZcycle financing

3. Asset: The physical project (NZcycle) and its associated contracts, rights, and interests of every kind, in the present or future, which can be valued or used to repay debt.

4. Available Cash Flow: Total cash sources less total cash uses before payment of debt service e.g.  revenue from people purchasing the app less the costs of development.

5. Bankable: NZcycle is Capable of being financed

6. Beta (B, systematic risk, nondiversifiable risk): Risk that cannot be diversified away. Risks that will be encountered when developing NZcycle that cannot be avoided.

7. Bond: The paper evidence of a legal promise by the issuer to pay the investor on the declared terms.

8. Buffer: Interim storage where work-in-process can be stored between steps in a process. For example; while NZcycle is being developed before it is launched.

9. Contribution Margin: Certain percentage of the price consumers pay for the app that will go towards fixed costs.

10. Expected return: Average possible returns from the sale of the app weighted the probability.

11. Financing: How a company chooses to pay for its on-going operations and/or expansion. For NZcycle it will probably mostly be venture capital but possibly some loan as well.

12. Forecasting: To predict or project a future outcome e.g.  future development of the app

13. Internal Funding: Cash retained in the business after dividends and other financial cash flows (e.g., repayment of debt) are deducted from operating cash flows. This money will then be used to further develop the app.

14. Liquidity: The ability of a firm to meet its obligations in a timely manner e.g. app release deadline etc.

15. Net Sales: Total sales revenue less certain offsetting items such as returns and allowances and sales discounts.

16. Operation, Operating System, (also Process): Any part of an organization that takes inputs and transforms them into outputs of greater value to the organization than the original inputs. e.g. developers skills into the NZcycle app

17. Product Tolerance: How the product must be made to be usable later in a process or by a customer.

18. Profitability: The ability of a company to provide investors with a particular rate of return on their investment. Most investors in NZcycle will be the owner/developers, this also includes being able to repay loans to the bank etc.

19. Profit margin: The proportion of each sales dollar that filters down to income, defined as income divided by net sales. The percentage of the sale price that is left over after all debts and costs have been paid.

20. Retention Rate: When used in the context of customers, the percentage of customers that remain customers after a number of experiences with a product or company. Usually linked to customer satisfaction. A high customer retention rate would lead to a high lifetime value from those customers. It is the hope that many users will remain customers after using NZcycle.

21. Set up costs: The costs associated with preparing  to manufacture a specific product. The set-up costs for NZcycle will probably be relatively high, including equipment costs (computers etc.) and developers

22. Unit sales: The number of app downloads sold by a NZcycle.

23. Valuation: The process of assigning value to a company of project. e.g. how much NZcycle will be worth as a company.

24. Break-Even PointThe point at which sales equal total costs. Sales from NZcycle will be enough to cover debts and costs.

25. Entrepreneur: Someone who is willing to assume the responsibility, risk and rewards of starting and operating a business like NZcycle.

26. Venture Capital: Money used to support new or unusual undertakings; equity, risk or speculative investment capital. This funding is provided to new or existing firms which exhibit potential for above-average growth like NZcycle which is in a developing market in New Zealand. This will be where most of NZcycle’s funding will come from.

27.  Affiliate: In web marketing an affiliate normally receives a commission for promoting another company’s products or services. This will be a way that NZcycle will be advertised.

28. Allocentric: a term, coined in 1977 by Plog, which refers to those tourists who are adventurous, outward-looking and like to take risks; the type of tourists who would be most interested in using NZcycle.

29. Brand: the name, symbol or design, or combination of these, that is used to identify the products or services of a producer to differentiate them from competitors’ products or services e.g. “NZcycle”

30. Catchment area: the geographical area from which the overwhelming majority of an organization’s or product’s customers
are drawn. Geographically, NZcycle’s customers will not only be domestic but world wide.

31. Competition: the process by which two or more organizations endeavour to gain customers at the expense of the other organization or organizations. Currently there are no other apps that are extremely similar to NZcycle.

32. Concentrated marketing: the focusing of the marketing effort on just one or two of the available market segments. NZcycle will focus on the adventure tourists; specifically those who are into mountain biking.

33. Consumer: the person who actually uses or consumes a product or service. e.g the tourist/mountain biker.

34. Customer: the person who actively purchases the product or service, and pays the bill. The term is often used interchangeably with ‘consumer’ but they are different. For example, in business tourism, a company is the customer as it pays for the travel services, but it is the employee or business traveller who actively travels, and is therefore the consumer. In the case of NZcycle the customer is also the consumer.

35. Direct marketing: selling directly from the producer to the customer without the use of intermediaries such as travel agents. Travel agents and other intermediaries will not be used to sell NZcycle.

36. Domestic tourism: tourism where the residents of a country take holidays as business trips wholly within their own country. Domestic tourists will be some of the consumers of the app.

37. Eco-tourist: someone who is motivated by a desire to take a vacation that allows him or her to see the natural history of a destination and meet the indigenous population. NZcycle promotes eco-tourism in New Zealand, showing the natural scenery of New Zealand in many different places.

38. Ethics: the moral values and standards that guide the behaviour of individuals and organizations. Ethics are important for any company including NZcycle.

39. Growth market: a market where demand is growing significantly e.g. the mountain biking/cycling sector in New Zealand.

40. Market: those consumers who currently are, or potentially may become, purchasers and/or users of NZcycle.

41. Market leader: the product which has the largest share of a single market, in other words, it is purchased by more people than any of its competitor products. This is what NZcycle would like to achieve eventually.

42. Market share: the proportion of sales of a particular type of product achieved by an individual product. NZcycle would like to gaini the largest market share in the cycling app market.

43. Seasonality: the distribution over time of total demand for a product or destination, usually expressed in terms of peak and off-peak seasons to distinguish between those times when demand is higher than average and vice versa. NZcycle will most likely be popular during the summer months in New Zealand.

44. Segmentation: the technique of dividing total markets into subgroups whose members share similar characteristics as consumers. The consumers of NZcycle will all have similar characteristics being adventure tourists etc.

45. Target marketing: marketing activity aimed at a particular group of consumers within the overall total population. This target market will mostly be domestic tourists but will include international tourists who all have an interest in cycling/mountain biking in New Zealand.

46. Virtual reality: a set of technologies which replicate real-world experiences and can be developed as a leisure product. This is basically what NZcycle is; showing the cycling tracks around New Zealand in a virtual reality.

47. Word of mouth: the process whereby consumers who have experienced a product or service pass on their views, both positive and negative, about the product or service to other people. NZcycle will rely on word of mouth advertising a lot with it’s consumers.

48. Economic analysis: Tourism generates directly and indirectly an increase in economic activity in the places visited (and beyond), mainly due to demand for goods and services that need to be produced and provided. NZcycle will generate economic activity for small towns and businesses that want to advertise in the app.

49. Tourism expenditure: Tourism expenditure refers to the amount paid for the acquisition of consumption goods and services, as well as valuables, for own use or to give away, for and during tourism trips.

50. Tourism sector: The tourism sector, as contemplated in the TSA, is the cluster of production units in different industries that provide consumption goods and services demanded by visitors. NZcycle lies in the tourism cycling industry which is an emerging market in New Zealand.



The Idea… NZcycle

Mountain biking is recognised as an emerging tourist market in New Zealand and has recently gained funding to develop this activity. My idea is for an app for mountain biking tourists. The app will contain on line (and off line – for areas with no coverage) maps and tracks around the country for the user to browse through. Users will be able to rate the tracks and maps so others know what the tracks are like. Tracks will be rated by difficulty and/or length covering everything from beginners to advanced. Users can search by region, difficulty, most popular etc. The app will also show facilities/other activities and amenities (i.e. cafes, restaurants, toilets, photo opportunity spots) in the area of the tracks. The app will mostly be used as a guide book to the tracks around New Zealand and how others rate the tracks but also will be able to be used as a GPS tracker (only in areas with coverage) so the user can track their progress along the track and know where they are and how long the have until the end.


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