England paceman Stuart Broad destroyed New Zealand's batting with an impressive six-wicket haul, allowing the tourists to enforce the follow-on at Basin Reserve on Saturday.
Broad finished with six for 51 from 17.2 overs of precision pace bowling as the home side collapsed to 254 all out, 211 runs short of England's first innings total of 465.
The last five New Zealand wickets fell for just 65 runs after a 100-run partnership between Brendon McCullum and BJ Watling threatened to build a competitive total.
But when McCullum fell for 69 shortly after the lunch break -- the first of two quick wickets by Steven Finn -- the writing was on the wall.
Watling soldiered on to reach 60 while Bruce Martin produced a stubborn 21 but the rest of the New Zealand tail folded with little resistance.
The home side resumed on day three at 66 for three and progressed to 169-5 by lunch before wickets fell steadily throughout the middle session as Broad's lively deliveries tormented the batsmen.
While McCullum was able to keep Broad out he was undone by Finn, edging the ball to the slips where Jonathan Trott made no mistake after earlier dropping Watling.
With the tail exposed, New Zealand needed Watling to stay at the crease and he looked comfortable in reaching 60 before he nicked Broad to wicketkeeper Matt Prior.
The Broad-Prior combination also accounted for Neil Wagner, who faced 13 balls without scoring, and Trent Boult, who contributed two as the last man.
Broad, who removed Hamish Rutherford and Ross Taylor in successive balls on Friday, took the first wicket of the day when he had Kane Williamson caught and bowled for 42.
Dean Brownlie followed three balls later when a Jimmy Anderson delivery nipped back and trapped him leg before wicket on 18, reducing New Zealand to 89-5 and bringing McCullum and Watling together.
With more than two days left, New Zealand are battling to avoid an innings defeat after the first match in the three-Test series ended in a draw.