Insight
OCTOBER 2014 //
FROM THE GROUP CEO
Foreign land owners part of the landscape. Up until about early August it seemed New Zealand was sleepwalking towards the September 20 election day. The usual bear baiting and snapping had seemed relatively subdued, and things were, well…boring. That was until Conservative Party leader Colin Craig let it slip that Lochinver Station in central North Island was to be sold to Chinese company Shanghai Pengxin, subject to Overseas Investment Office (OIO) approval. The massive 13,800ha station near Taupo can justifiably be called iconic, in league with higher profile South Island runs, and it has enjoyed ownership under Auckland based Stevenson Family Group for over 50 years. So the announcement that Shanghai Pengxin wanted to buy the station looked like it may be the fuel needed to fire the pre-election debate beyond the usual petty one-upmanship that seemed so prevalent and banal until that point. Alas, it does not seem to have been the fuel some in parliament may have wished for. Any debate around Lochinver’s sale has admittedly been eclipsed by the blogger hacking scandal that quickly dominated after Nicky Hager’s book launch. However there also seems a greater level of acceptance among New Zealanders that
if we want to participate in a global market, sale of land to foreign interests is an almost inevitable part of that. The lack of outcry about the proposed sale was mirrored in a NZ Herald Digipoll survey confirming the majority of those surveyed approved the sales of land to foreigners when it bought significant advantage over a NZ based purchase, including creating extra jobs. Only a third believed farm sales to overseas investors should be banned altogether. This immediately put Labour’s 100% “fortress NZ” ban on foreign land sales off kilter with the majority of the electorate’s views. Opposition parties also seemed immune to the claim made by Lochinver’s present owners that the sale would release capital that could in turn be used to reinvest by the company to create new jobs. What appears to have been forgotten by many in Wellington trying to turn the deal into a pre-election issue is that much of the past issues over foreign land sales have been dealt with over two years ago. That was in part thanks to the inept attempt by businesswoman May Wang to buy Crafar farms in 2010. It was then reinforced with efforts by Sir Michael Fay to acquire the farms with local iwi resulting in purchase rules being significantly tightened. Wang caught the country off guard with her quixotic efforts to slide under the OIO radar in her efforts to pick up Crafar farms.
Peter and Toni May, Peter May Ltd RURALCO NZ LTD
PO Box 433 Ashburton 7740
For his part Sir Michael Fay in his own true style pushed efforts by Shanghai Pengxin all the way to the High Court. While he may have lost in his efforts to overturn the sale, they were not in vain. The already tighter rules were tightened further by the court requiring the benefits to be “above and beyond what NZ buyers would bring” to a land purchase. For a while it looked like the Lochinver sale might see a re-hashing of these requirements. However poll results suggest most New Zealanders “get” the new rules, and simply expect them to be enforced thoroughly and transparently when assessing sales. Exact numbers are hard to get, but best estimates are about 10% of land is foreign owned. That means 90% is not, and remains part of our robust farming family culture. A glance through the many rural publications highlights how many young, keen and educated Kiwis there still are who do, or intend, to own their own piece of this country. It remains possible, and foreign owners look set to become simply another plank in our strong rural economy, subject to some sound and focused assessments.
The OIO is now far more familiar to New Zealanders, and expectations of it to perform and monitor sales are significantly
Considered planning ensures marketing success
IN THIS ISSUE
greater. Meantime the government modified foreign sale rules, requiring “substantial and identifiable benefits” to accrue to NZ as a result of foreign land sales.
Tel 0800 787 256 Fax 03 307 6721
ruralco@ruralco.co.nz www.ruralco.co.nz
Plenty to smile about Peter Shenoda, Methven Paharmacy
The new and improved Ruralco website
Your partner in business growth
PROFILE
Considered planning ensures marketing success By Linda Clarke
A strategic investment in marketing is paying dividends for canvas maker and fabricator Peter May. Peter and Toni May used business cards and the odd newspaper advertisement when they launched their business 30 years ago; now they have a carefully considered marketing plan that embraces social media to spread the Peter May brand. Their strategy involves planning, networking and using professionals to ensure their message is delivered to a target audience. The results have been impressive and this year their small and innovative business won Ruralco’s Excellence in Marketing Award. While Peter leads a skilled team in the workshop, creating a big range of protective products for rural customers and commercial clients throughout the South Island, Toni has led the development of the marketing plan, alongside growing a new part of the business involving hiring out marquees and event equipment. Toni said spending time each year to develop a marketing plan saved time, money and energy. “We had become tired of having to decide if we would advertise or not, and not really knowing if it was money well spent.”
They went to local marketing firm Jo Foster Marketing (JFM) for advice. “Like so many small businesses, we were busy doing what we were doing and didn’t have real marketing expertise.” Toni said Jo and her team had drawn Peter May into the 21st century, helping them embrace new technology and concepts they wouldn’t have had the knowledge or confidence to try. Part of the strategy has been to develop the brand Peter May Ltd. This is reflected in their brand colours, font, logo, uniforms and all advertising. They have a website www.petermay.co.nz, two Facebook pages www.facebook.com/PeterMayCanvas and www. facebook.com/PeterMayMarquee, and sign-written vehicles. “The plan saves us greatly in terms of deciding where money will be spent with an overall agenda making sure we target the right product at the right time to the right people.” While print has traditionally been the best marketing channel, Peter May is making more and more use of social media, like Facebook, to spread its word. “We also support Ruralco’s Real Farmer magazine and advertising opportunities given to us by Ruralco as this really reaches our target market, our rural and supporting customers,” Toni said. The business makes a point of supporting Ruralco events, seeing it as a great chance to meet clients face-to-face and connect with the community. She said part of the marketing plan was tracking goals and measuring success. So has there been an increase in sales? “We have noticed an increase in business by running a consistent general awareness campaign. Marketing has become an important part of our business. Getting it right tells our clients who we are, what we stand for and what we can deliver.” Boosting the business’ profile has meant Peter and Toni have stepped outside their comfort zone and also promoted themselves, including photographs of the couple in advertising. “It’s not something that we are absolutely comfortable with, but I think people like to see who they are dealing with.” Toni said there were plenty of challenges and opportunities ahead as the marketing landscape evolved and new mediums appeared. “We are always tweaking and remembering that nothing ever stays the same.” One constant though is that they try to think from a client’s point of view: “We always ask, what does our customer want? What is going to make it easier for our customers to do business with us?”
ABOVE LEFT: The Peter May Facebook page —one of the many marketing channels Peter May
now uses ABOVE: Their workshop in Ashburton with promotion of their Ruralco Supplier Award win LEFT: Peter and Toni May;
PROFILE
Plenty to smile about By Linda Clarke
Pharmacist Peter Shenoda is living the dream… almost. If he could take the odd weekend off to chase tahr in the mountains on his back door, then life would be perfect. Peter is the new owner of Methven Pharmacy, breathing new life into an established pharmacy that has served Methven and its surrounding districts for many decades. In the busy winter season, when tourists flock to ski on the fabulous slopes of Mt Hutt Skifield, the pharmacy is open seven days; as the sole pharmacist, Peter is on deck every day. He says he misses his time off hunting and fishing, but wants to work hard to grow the business. Since qualifying from Otago University with a Bachelor in Pharmacy, he dreamed of owning his own pharmacy. After graduation, and completing his internship in Timaru, he jumped at the chance to buy the small town pharmacy.
has retail lines including perfume and skincare, and other services, like passport photos. Seasonal promotions also bring customers to the pharmacy, where every purchaser goes into a lucky draw to win an iPad. The pharmacy belongs to an independent pharmacy group, with access to bulk buying so customers benefit from low prices. Peter said his days are never the same. “I always meet so many different people, which keeps things exciting.” A Facebook page keeps customers up to speed with specials and other announcements, and allows customers to correspond with pharmacy staff. “It has a pretty far-reaching audience and lets people know when we are trying something new or starting a new line of stock.” He said the relationship with Ruralco was an important part of the business and well used by customers.
Locals say it is a great place with friendly staff and excellent professional advice. Peter says the wide variety of customers, from tourists to farmers and other locals, keep him on his toes.
Peter has plans to grow the pharmacy further. “We will be trying to keep up the good work and try to expand a little bit more, to the extent we can get another pharmacist to help with the workload.”
Methven Pharmacy’s growth in the past 12 months was recognised by Ruralco at its annual awards recently, receiving the Emerging Business Award. To qualify for this award, you need to be the owner of a new business or the new owner of an established business, and demonstrate determination within the market.
Meanwhile, there is plenty to smile about with sales on the up… and the tahr will still be in the hills next winter.
Ruralco’s Partnership Services Representative Sarah Paton said Methven Pharmacy was popular with cardholders, who had plenty of positive feedback about the business and described customer service as superb. “The pharmacy exceeded their budget for 2013-14 and was very proactive with signage on their premises. Cardholder feedback from those who use Methven Pharmacy was also positive, evident by their repeat business. Customer satisfaction is very high, with cardholders commenting on the excellent customer service by staff, who were also described as extremely helpful and very personable.” Peter and two other full-time staff work in the pharmacy. It is busy, and Peter is finding management skills learned during further study for a National Certificate in Business have helped. Since taking over the pharmacy in May last year, Peter has made physical changes, renovating the interior of the store to make it more spacious. The pharmacy is a dispensing pharmacy and also
BELOW: Pharmacist Peter Shenoda (centre) with staff Angie (Left) and Kristy (Right) BOTTOM: Peter as the new owner of Methven Pharmacy, is breathing new life into the
established pharmacy
RURALCO WEBSITE
NEW SUPPLIERS
Over the past few months we have been working on a new and improved Ruralco website. It’s packed full of exciting new features to benefit both yourselves and our cardholders. Key features for you as suppliers are:
ASHBURTON Nandos Ashburton
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CULVERDEN Stocker Dairy North Ltd
MOSGIEL Mosgiel Mobil Workshop
DUNEDIN Cable Court Motel Jesco Hydraulic and Pneumatic Engineers
MOTUEKA Hot Mama’s Café Westrupp Jewellers
BLUFF Jesco Hydraulic and Pneumatic Engineers
A listing on the website for your business which you have editing rights for. Essentially you have your own webpage built into our website at no cost to you;
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One place to update both your business to business contact details, and your public contact details to help Ruralco and our cardholders get in touch with you;
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The opportunity to see what our cardholders think about your business through the new reviews function;
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Add in your products and services to enable cardholders to find you simply by searching a word such as ‘timber’;
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And lots more!
To make the most of the new website, you need to be able to login. If you have a login to the previous Ruralco website this will still work and the password has remained the same. If you don’t have a login, click ‘Create a Login’ in the black Join Us box. We will set you up with one within the next business day. Enjoy having a look around the website and if you have any feedback or suggestions we would love to hear from you on 0800 RURALNZ (787 256), ruralco@ruralco.co.nz or contact your account manager.
RURALCO CALENDAR
October 3 October 3 October 24 October 27 October 31– November 1 November 5 November 12–14 November 17 December 3 December 5 December 25 December 26
CHRISTCHURCH Ashford Motor Lodge
Southern Workwear South City Liquorland Southland Super Liquor Speights Ale House Thar & Feather Waxy O’Shea’s Windsor Wines
September Invoices due by 4pm December Real Farmer advertising booking deadline December Real Farmer advertising due Labour Day Ashburton A&P Show October Invoices due by 4pm
METHVEN Advanced Feed Drycreekmeats Ltd
GORE Southern Oil Southern Workwear 100% Selectrix Gore INVERCARGILL Ascot Park Hotel Automotive Engine Reconditioners Balmoral Lodge Motel Barluca Pizza Kitchen and Club Centrepoint Liquorland Collingwood Super Liquor East End Bottlestore Jesco Hydraulic and Pneumatic Engineers Homestead Cobb & Co Homestead Villa Motel Kelvin Hotel Lone Star The Kiln The Saucy Chef
NELSON The Anchor Restaurant & Bar OAMARU Milligans Café & Store Milligans Food Group Ltd RICHMOND Bar 321 Franks Trees Paper Plus TE ANAU Fiordland Community Pharmacy TEMUKA Temuka Hammer Hardware TIMARU ANDAR Engineering Solutions Laser Plumbing
Canterbury A&P Show
JOINING THE TEAM
February Real Farmer advertising booking deadline November Invoices due by 4pm
Mary-Anne Martin
February Real Farmer advertising due
Mid Canterbury Tel 03 307 5182 Mob 027 706 7085 mary-anne.martin@ruralco.co.nz
Christmas Day Boxing Day
YOUR PARTNERSHIP SERVICES TEAM Contact your representative to discuss marketing your business through Ruralco. Lester Chambers
Jason McKenzie
Mary-Anne Martin
Richard Potter
National Sales Manager Mob 027 707 8120 lester.chambers@ruralco.co.nz
Lower Central South Island Tel 03 307 5178 Mob 027 722 7070 jason.mckenzie@ruralco.co.nz
Mid Canterbury Tel 03 307 5182 Mob 027 706 7085 mary-anne.martin@ruralco.co.nz
Otago/Southland Mob 027 479 8351 richard.potter@ruralco.co.nz
Chris Montgomery
Sarah Paton
Upper Central South Island Mob 027 839 7487 chris.montgomery@ruralco.co.nz
Mid Canterbury Tel 03 307 5167 Mob 027 702 6774 sarah.paton@ruralco.co.nz
Sales Support Tel 03 307 5121 nerada.molloy@ruralco.co.nz
Don Joseph Fuel Account Manager Mob 027 839 7351 don.joseph@ruralco.co.nz
Angela Cotton Nelson/Marlborough Mob 027 839 7215 angela.cotton@ruralco.co.nz
Nerada Molloy