Final Thesis: How to integrate NFC in a Mobile Marketing Strategy?
Final Thesis: How to integrate NFC in a Mobile Marketing Strategy?
William BELLE - Euromed Management - Kedge Business School
This thesis will talk about how the relationship between brand and customer is going to be in the next 5 years. With Near-field communication’s rolling out our daily life will change, indeed NFC can be used for many situations such as: Payment, Bank, Access, Retail, Health, Tag Reading just to name a few. NFC is a mobile marketing tool which:
- Can develop a company’s brand by creating a customer relationship with the mobile devices
- Acquisition of new customers and development of customer loyalty
- Generate income
The main issue today is how to implement this technology?
Let’s start now with a short overview about Mobile Marketing trends that have come into view in the last 5 years. We will then focus on how NFC can create an added value to these trends.
Final Thesis: How to integrate NFC in a Mobile Marketing Strategy?
Master of Science 2: Entertainment & MediaManagement – Operational Marketing Specialty2012 / 2013How to implement NFC in aMobile Marketing Strategy?End of Study ThesisWilliam BELLE
1Table of Contents1Commitment to personal work..................................................................................................3Information page about companies I have met.........................................................................4Acknowledgment........................................................................................................................5Summary ....................................................................................................................................7Foreword....................................................................................................................................9A – Introduction ....................................................................................................................... 10B- Content ................................................................................................................................ 12I) The mobile, a crucial media…............................................................................................ 12I) 1) A multi-connected world: French & worldwide situation.........................................12I) 2) Intensification and diversification of uses.................................................................16I) 3) News usages are coming up: mobile payment.......................................................... 18II) A marketing challenge for the brand ...............................................................................21II) 1) Mobile Marketing definition.....................................................................................21II) 2) Mobile Marketing issues:.......................................................................................... 23II) 3) Mobile Marketing Tools:........................................................................................... 25II) 4) Mobile Marketing limitations...................................................................................33III) NFC: Using Contactless technologies for mobility?......................................................... 35III) 1) Companies & customers issues ...............................................................................391Table des matières
2III) 2) NFC Use cases..........................................................................................................42III) 3) NFC eco system & Constraints.................................................................................48IV) Study cases......................................................................................................................55IV) 1) M-casino..................................................................................................................55IV) 2) Tesco........................................................................................................................ 59C- Conclusion............................................................................................................................ 62D- Recommendations...............................................................................................................64Bibliography.............................................................................................................................. 66Webography............................................................................................................................. 67
3Commitment to personal workThis thesis took me more than five months, whether through the daily monitoring analysis,and for the redaction NFC is crucial topic, which has of course really interested me andwhich enables me to bring added value to my personal profile. I took the opportunity toshare my expertise through writing articles on Word Press:http://williambelle.wordpress.com/ and on my Twitter account: @bellewilliam .My master thesis was part my strategic career plan. Through my awakened interest andgathered experience, I was able to gain a great internship position at the NFC department atGemalto, World leader in digital security.
4Information page about companies Ihave metDuring my thesis redaction I had the chance to meet essential NFC & Mobile Marketingcompanies such as:http://www.gemalto.com/france/Gemalto, World leader in Digital Security.http://www.forum-smsc.org/Association created in 2008 by the frenchgovernment, in order to rolling out NFC servicesin France.http://www.myfeelback.com/Social CRM Mobile. Customer relationship onmobile.
5AcknowledgmentI would like to thank the following people who were kind enough to let me share theirknowledge to guide my thesis. I really appreciate the time and effort you took for assistingme throughout my research process.Cédric Ghetty, Teacher at EuromedManagement & ConsultantEmmanuel Legros, Mobile Advertising atGemalto.Nicolas Chalvin, Field Marketing at Gemalto.Sandrine Blanquart, Senior MarketingManagement NFC at Gemalto.
6Pierre Métivier, French contactless industryassociation GM, professor, speaker & blogger.Stéphane Contrepoid, CEO My FeelBack.
7SummaryLe mobile est devenu aujourd’hui un instrument marketing à part entière.Objet du quotidien indispensable pour les utilisateurs, il est désormais un moyen uniquepour les marques de se rapprocher de leurs consommateurs.Ce mémoire présentera les dernières tendances autour de la consommation mobile : avecl’intensification et la diversification de nos usages. Ensuite, nous analyserons comment lesmarques utilisent et utiliseront le mobile marketing et comment cela fera évoluer la relationclient / marque.En effet, avec l’émergence des nouvelles technologies, notamment la Near FieldCommunication (Communication Champ proche) caractérisée par le Sans Contact, notre viequotidienne va considérablement évoluer. Nous pourrons utiliser la NFC pour tous les casd’usage de la vie : Paiement, Banque, Accès, Grande distribution, Santé, Lecture de Tag…Ainsi, les marques pourront mieux nous : cibler, conquérir, fidéliser et bien sûr augmenterleur ROI (Retour sur Investissement).Néanmoins, nous allons voir qu’autour de toute cette évangélisation, il y a de nombreusescontraintes dans sa mise en œuvre.Bonne lecture.
8This thesis will talk about how the relationship between brand and customer is going to be inthe next 5 years. With Near-field communication’s rolling out our daily life will change,indeed NFC can be used for many situations such as: Payment, Bank, Access, Retail, Health,Tag Reading just to name a few. NFC is a mobile marketing tool which:- Can develop a company’s brand by creating a customer relationship with the mobiledevices- Acquisition of new customers and development of customer loyalty- Generate incomeThe main issue today is how to implement this technology?Let’s start now with a short overview about Mobile Marketing trends that have come intoview in the last 5 years. We will then focus on how NFC can create an added value to thesetrends.
9ForewordI am currently studying at Euromed Management Marseille (recently changed to KEDGEBusiness School) on a Master of Science in Entertainment & Media Management with anoperational marketing specialty. My passion is driven by the mobile marketing field andsocial media. This area fascinates me and therefore I have chosen to write my master thesisabout the effects of Near Field Communication on companies and their customers.This topic is in reference to the International Seminar about Mobile Marketing presented byEdouard DETAILLE Mobile Marketing Professor at Euromed Management.
10A – IntroductionToday, marketing is evolving dramatically thanks to the arrival of new technologies whichleads to: A changing behavior among consumers - more and more equipped, connected, activeand mobile A total redefinition of the consumer & brand relationship: customer is less and lesspassive with the brand, which brings it closer to himThe global marketing scope of new technologies is very wide. Nevertheless I decided to focusmy study on Mobile Marketing and new trends on Near Field Communication.Mobile marketing involves the use of a mobile phone in order to reach and target theconsumer in the right way, at the right place, and at the right time.Mobile devices are a marketing support and a powerful communication tool, which allowsadvertisers to reach millions of users. In addition, it represents a medium to communicateon a “one to one” basis, which provides an important foundation for building andentertaining targeted customers relationships.Thanks to mobile devices which are owned by millions of users, advertisers have thepossibility to reach the selected target group and implementing Mobile MarketingCampaigns which take care of segmentation criteria such as: Age, Gender and Geographicsituation.Despite this crucial advantage, advertisers must keep in mind that mobile phones are strictlypersonal communication tools and any intrusion from advertising could irritate consumers.
11Thanks to the arrival of new technologies, mobile marketing can include various tools suchas SMS / MMS campaigns, Mobile Application, Geolocation, Augmented reality, M-couponing, M-loyalty or Mobile Website. Thus, Mobile Marketing’s scope is pretty wide andalways improving thanks to new technologies’ evolution such as Near Field Communication,which is continuously changing the relation between customer and brand.This study will highlight how to implement NFC in a Mobile Marketing Campaign.In order to answer to the problematic, I will firstly make an overview about the Mobile’sevolution and situation. Secondly, I will focus on the different tools of Mobile Marketingwhich are already used today. Thirdly, I will introduce Near Field Communication as a newMobile Marketing tool which can be integrated for everyday situations. Last but not least, Iwill illustrate those tools with some studies cases.
12B- ContentNFC: to a mobile contactless world.It’s important to make first a short overview of the Mobile landscape.I) The mobile, a crucial media…More features, new technologies, low contract fees, new usage, more intense, there is nodoubt to say that mobile device is truly becoming an essential media.For understanding this trend, it is important to make an overview on the situation of devicesconsumption.I) 1) A multi-connected world: French & worldwidesituationFirstly, some people may think that France is delayed in comparison to other countries suchas Japan or USA when it comes to technological equipment and advancements. However, interms of “connected devices” France has the second worldwide rank with a penetration rateof 35, 7% just behind Norway (38, 8%) and forward Netherland (35, 1%), USA is ranked 12thand Japan 18th.2This rank clarifies the French quality equipment: Internet Box (38%), Smartphone (40%),Tablet (15%) and connected TV.2JDN – Internet mobile les pays les plus connectés – Février 2013
13That situation can be explained as well on the Mobile Network Operators’ evolution; ofcourse they are more and more offering discount services such as unlimited Internet, Voices,SMS/ MMS, TV and so on… In France, 2012 was an extremely crucial year for MNOs3, due tothe arrival of Free Mobile in the smartphone offer, which reduced price contractsdramatically: 19, 99 euros/month unlimited contract. This has enabled people to get a higherrange smartphone choice.In 2015, our equipment average rate will reach 60, 8% thanks to Smartphone. In terms ofscreens consumption French people have got more than 6.3 screens per household4, whichmeans we are multi equipped in terms of: Television, computer, video game, mobile phone,tablet, and mp3.The French mobile market boomed at the end of 2012. Two out of three mobile devicessold were smartphones and 46, 6 % of French population already own a Smartphoneaccording to l’ARCEP5. This means 23, 8 million of smartphones. In the future, we are talkingabout 50 % for 2013 and 72% for 2015 (penetration rate).6This trend is not just specific to France; it is applicable all over the world.3Mobile Network Operators (Orange, Bouygues Telecom and SFR)4JDN – Nombre d’écrans dans les foyers – February 20135Autorité de régulations des communications électroniques et des Postes6ZenithOptimédia – February 2013
14When we refer to the last figures revealed during the World Mobile Congress in Barcelona(February 2013), the smartphone sector showed signs that it is indeed growing: in 2018more than 4 billion people will be equipped with smartphone devices, namely the halfworldwide population7.It represents today 1000 billion dollars (almost 750 billion euros), 3, 2 billion users and over750 Mobile Network Operators.Regarding the worldwide Smartphone sales in 2012, Android (Google Operating System)dominates the consumer global platform race with 70 percent market share, Apple withalmost 21 percent is ranked second. 87GSMA – January 20138Gartner.com – February 2013
15However, when we look at the Worldwide Mobile Phone sales, you can see that the firstthree manufacturers are Samsung (1st) which has increased its market share from 17, 7%(2011) to 22% (2012) thanks to its new high range phones: Galaxy S2 and S3. At the secondrank, Nokia, which previously held the first rank, from 23.8% (2011) to 19, 1% (2012)because of its low quality phone model and its delay regarding smartphones. The last“Lumia” range, Nokia sold only 6 million units between September and December 20139(Apple 48 million & Samsung 62 million in the same period). Last but not least, theCalifornian firm, Apple which is continuously increasing its market share from 5 % (2011) to7.5% (2012) market share worldwide, thanks to its iPhone4 (s) and 5 which are premiumbrands and also very up to date.109LesEchos.fr – Nokia monte en gamme mais voit ses volumes chuter – April 201310Gartner.com – February 2013
16To summarize, there are still more Mobile Phones present around the World thanSmartphones. However, but with the emerging countries such as Brazil, India, China or SouthAfrica, there is no doubt that Smartphone consumption will keep increasing and overtakingMobile Phone sales in the next years.We just have seen some figures about smartphone and devices worldwide situation, nowlet’s develop on the trend of consumers habits.I) 2) Intensification and diversification of usesToday Mobile usage is more and more intensified, especially because of internet whichenables users to access of a large scale of contents. This is known in France as “Mobinaute”,namely “Internet Mobile user”.A recent study showed that on average teenagers check their smartphones 150 times eachday11. This trend shows that people are using more and more mobile phones instead ofcomputer. For the last quarter 2012, Facebook revealed that for the first time ever, therewere more mobile users than computer users.11Study made by Tony Ahonen for Nokia – February 2013
17Mobile Social Media usage is more important than Desktop social Media which is starting tofall; in 2013, over 60 % of US social network users will be connected via Mobile Phone12.This trend is not just in US but in fact all around the world:- UK: 42% of mobile phone users accessed a social network/blog via theirphone in July 201213- Australia: 61% of mobile phone users visited a social networking site fromtheir phone in 201214- India: 92 % of smartphone users accessed social media content from theirphone daily in Q2 201215Furthermore, its usage is more and more diversified: Pictures/videos (84%), Internet (78%),Emails (77%), Applications (67%) or Listening music (67%)16.Smartphone also represent a crucial element for making research and bank activity: 49% ofusers make researches every day17and 41% of them have used their smartphones for a bankactivity: bank transfer or checking account18. Those figures will continue to increase.12Emarketer.com – Social Media Marketing on Mobile Devices – February 201313ComScore – December 201214Australian Interactive Media Industry Association – January 201315InSites Consulting – December 201216OurMobile Planet – November 2011
18All those numbers show that smartphones users are willing to evolve towards new usagesuch as using smartphone for paying.Let’s have a look at mobile payment.I) 3) News usages are coming up: mobile paymentMobile payment or Mobile Commerce can be defined as “Money rendered for a product orservice through a portable electronic device such as a cell phone, smartphone, tablet or PDA.Mobile Payment technology can also be used to transfer money to friends or familymembers”19or more simply as “the use of wireless handheld devices such as cellular phones,tablets and laptops to conduct commercial transactions online.”20As you can see on the scheme above from: “Technologysalon.org” the mobile paymentstructure can be divided into 3 parts:17Ipsos OTX – Mai 201218BFM Business radio – February 201319Investopedia.com – Mobile Payment definition20Investopedia.com – Mobile Commerce definition
190 20 40 60 80Digital GoodsPhysical goodsBill paymentServices, LeisuresWorldwideFrance1. Peer to Peer: namely between two mobiles that enables to make Mobile Money2. Consumer to Business: namely to Purchase online (E-commerce) or at the Point ofsale (Proximity Payments)3. Business to Business: that enables to replace cash in supply chainMobile payment industry will reach 13, 8 billion dollars (10.4 billion euros) in 2013 to 278, 9billion dollars in 201821.French mobile commerce has reached 1 billion euros in 201222.39% of French internet mobile users say they bought a product with their smartphones,against a worldwide average of 53%. Those purchases are:23Worldwide Mobile payment – JDN June 2012Basically, this graph shows that digital goods (music, application, gaming & subscriptions tonewspaper) are the most purchased good made by users with their smartphones (57 % inFrance and 62% all over the world). This underlines the fact that iTunes is still very muchused.21MarketsandMarkets Research center – February 201322Internet Marketing – EBG - 201323Services are: transport, travel, cinema ticket - Digital Goods: music, app, gaming & subscriptions
20Additionally, we can see that Physical Goods is ranked second with 42% in France and 35%Worldwide. I truly think there is a big opportunity in that sector and with the help of NFC,this figure can definitely increase.But those figures are still low for several reasons: France is considered as the 3rdEuropean market, in 2017 it will generate 3,1billion euros24 Consumer is not totally willing to make a mobile transaction: “83% of Frenchare willing to adopt purchase on his/her smartphone, but only if his bankdetails are well secured”25 Security problem may occur due to possibility of low network coverage inpublic areas and public transport systems.After seeing the overview and the figures, let’s turn to the marketing challenge for the brandthat represent smartphones.24Cabinet Forrester Research - January 201325CCM Benchmark & CSA – December 2012
21II) A marketing challenge for the brandAs I highlighted before, Mobile phone is a mass media, thus it can be used by advertisers forits Multichannel campaigns. Let’s turn to a more theoretical part.II) 1) Mobile Marketing definitionMobile Marketing can be defined as “the use of the mobile medium as a means ofmarketing communication”26or “using interactive wireless media to provide customers withtime and location sensitive, personalized information that promotes goods, services andideas, thereby generating value for all stakeholders”27.Usually, Mobile Marketing is a component of a Multichannel campaign for brand, whichuses many different marketing channels to reach a customer. A channel might be a retailstore, a website, TV commercial, a mail order catalogue, or direct personal communicationsby letter, email or SMS and so on…26Karjaluoto Heikki and Leppäniemi Matti, “Factors influencing consumers’ willingness to accept mobileadvertising: a conceptual model”, Int. J Mobile Communications, Vol 3, No. 3, 2005, p. 198.27Leppäniemi, Matti, “Mobile marketing communications in consumer markets”, Faculty of Economics andBusiness Administration, Department of Marketing, University of Oulu, 2008, p. 21.
22The roles of multichannel campaign are to:1. link producers to buyers because through active interaction2. make it easier for a consumer to make purchases from the buyer in whatever way ismost appropriate283. perform sales, advertising and promotionBut the main problem of a multichannel campaign is the cost of implementation. Except bigcompanies, small and medium companies cannot afford implementing a very efficientmultichannel campaign. The other problem is to be not so rewarding than before, there aresome channels which are getting more and more old fashion such as old direct marketingtools (phoning/telemarketing, flyers, brochure mailing) which are very costly and not soefficient compare to the investment made.That’s why with the growing of new technological usage leading to changes in customerbehaviors, brands use more and more specific marketing tools such as Mobile Marketing inorder to target the brand’s audience in a more efficient and personal manner.The best example now is SoLoMo – Social, Local, Mobile – it’s a combination that allowsBrand to target and communicate with its target audience with new ways, becausetechnology has caught up with the way people behave when they are ready to make buyingdecisions.Now, let’s see the Mobile Marketing issues for the brand.28EMC.com - 15-Minute Guide to Multichannel Marketing Communications - 2011
23II) 2) Mobile Marketing issues:As we highlighted before, mobile phone is the most used tool nowadays by people, alwaysswitched ON and always with us or in our pocket. It allows marketer to reach theircustomers 24/7.The Smartphone is becoming a kind of digital database that constantly allow Smartphoneusers to store, access and use information about who we are, who we know, what we liketo do, where we are, and where we have been. We volunteer this information in exchangefor goods and services.Thus recruitment campaigns, loyalty or notoriety are really effective on this channel:because it’s a personal, it enables for the brand to turn from a one-to-many relation to aone-to-one and thus to build up the proximity feeling: by implementing a relational programwith a personalized communication, innovative and differentiating services.We can underline 4 big objectives such as: gaining brand awareness, attracting newcustomers, generating new profit and brand loyalty.1) Brand developmentOne of the biggest issues of Mobile marketing is brand development. An advertiser aims tomake its brand accessible wherever and whenever. An advertiser also aims to build hismultichannel campaigns and try to establish the brand’s image. Advertisers are alreadyaware that mobile devices are an additional communication channel. Besides, they know amobile-adapted website can create an interaction between their customers at any time ofthe day. Those multichannel campaigns have also an important impact thanks to mobileadvertising such as a SMS/MMS campaign.Generally speaking, while a brand wants to develop with Mobile Marketing, some notorietyand modernity issues appeared even if customers can not perceive it.
242) Customer acquisitionIn addition to brand development, acquiring new customers is also part of an advertiser’sobjective. This conquest can be made by products and services promotion with itscustomers. Such promotional activities will generate point of sales traffic as it created aninterest for customers. Finding products and services of the brand become easier for theconsumers when these are presented to them directly. Besides, new customer acquisitionwill enable advertisers and brands to create a customer data base, which will help forimplementing other mobile marketing campaign according the different customers profiletypes.3) To generate new profitWhile advertisers have conquered new clients, they will implement new objectives whichconsist in generating new profit. They will try to make the mobile as a new selling channel,for services and for products in order to make profit. As we saw before, mobile users aremore willing to purchase on the mobile so there is definitely an opportunity for brands.Besides, a mobile marketing campaign is implemented for stimulating impulsive buying.Indeed the mobile user can buy whenever and wherever he wants. As we saw before, mobilepayment is used mostly for digital goods such as music, applications and newspapersubscription which are less expensive. For that advertisers will have to implement a mobilepayment solution such as: Paybox, Payzen, PayScan, or PayPal. In order to get additionalrevenues, advertisers can monetize its audience by selling advertisement space on itsmobile websites. There are two types of advertising formats: key words and display.4) Customer loyaltyHenceforth, the last issue for advertisers is to make their consumers loyal. Indeed customerloyalty is crucial for brands in terms of turnover and healthy business.
25On mobile as much your consumer is loyal as much company will know him. Thus, they willcreate a close relationship between them. This loyalty can also be established whenconsumers undertake actions on mobile sites they visit. When ordering an item online, theycan also track their packages directly on the mobile site. When they trust their suppliers,they will not hesitate to make repurchases from them. This loyalty can also be established byreceiving special and customized offers according what consumers like.II) 3) Mobile Marketing Tools:We have several tools for mobile marketing, for each tool companies have to decide what theend goal of using them is, where to use it and how big the target is.Internet Mobile Website: A mobile website is similar to any other website. Itconsists of browser HTML pages that are linked together and accessed over the internet(typically Wifi or 3G or 4G mobile networks). The obvious characteristic that distinguishes amobile website from a standard website is the fact that it is designed for the smallerhandheld display and touch-interface. Like any website, mobile websites can display any textcontent, data, images and video. They can also access mobile-specific features such as click-to-call (to dial a phone number) or location-based mapping. Generally speaking, a mobilewebsite should be considered your first step in developing a mobile web presence. If yourgoals are primarily related to marketing or public communications, a mobile website isalmost always going to make sense as a practical first step in your mobile outreach strategy.The main advantages of mobile websites are: to offer mobile-friendly content to the widestpossible audience, and to be instantly accessible and compatible to users via browsersacross a range of devices (iPhone, Blackberry, Android…). It’s very dynamic in terms of pureflexibility to update content. It can be found on the search engines because their pages canbe displayed in search results and listed in industry-specific directories. This makes it easierfor website visitors looking for similar goods or services to find your brand.
26It can be shared easily by publishers and between users thanks to mobile website URLswhich can be easily integrated within other mobile technologies such as SMS, Qr codes andof course NFC. Furthermore, it cannot be deleted. It is a very long life cycle and it is alwaysavailable for users. Last but not least it is not so expensive as well as easy to implement.Mobile applications: Apps are actual applications that are downloaded andinstalled on your mobile device, rather than being rendered within a browser. Users visitdevice-specific portals such as Apple Store, Android Marketing or Blackberry App World inorder to find and download apps for a given operating system. The app may pull content anddata from the internet, in similar fashion to a website, or it may download the content sothat it can be accessed without an internet connection.Apps are very popular, and there are a number of specific use scenarios where an app will beefficient. It enables an interaction with the brand and its consumers through gaming. Youcan also entertain them by creating contest gaming and so on in order to create acommunity. It doesn’t need internet connection so the app can be used by userseverywhere, it can improve the brand awareness and it can make people loyal to the brand.
27The best example is Oasis with its application; today Oasis Be Fruit has the best Facebook fannumber in Europe29, thanks in part to its mobile application.OASIS BE FRUIT APPLICATION30M-CRM: Mobile customer relationship management (Mobile CRM) enables anywhereaccess to centralized customer and information data bank of a company. In contrast withCRM, mobile CRM provides access via mobile devices such as notebooks or mobile phone.31Thus, control and maintenance of customer relationships and customer loyalty as well as theretrieval of current customer and prospect data are available outside the company, forinstance for a sales representative during a customer visit.It also sets up of management system more or less personalized in the commercialrelationship that a brand would like to get with its customers. The objective is to maintainthe customer loyalty by answering in the best way to their expectations and by removingany wishes to try another brand.29Comestible.fr – Pourquoi oasis est la meilleure page Facebook - 2012/08/0630Oasisbefruit.com31Techopedia.com – Mobile Customer Relationship Management
28SMS: SMS campaign is a major tool because it is simple, cheaper, 100% compatible andquick/reacting. There are several types: text SMS, Wap push SMS, click to SMS, and SMS+.Implementing an SMS Marketing strategy will enable brands to personalize theircommunication with customers, because it enables the brand to make the consumer feelingof individual treatment via the SMS sent to their mobile phones. It’s fast because you canreach groups of people who are interested in knowing the brand products and servicesinstantly. Brands can also reach people whenever they want for example, if a brand wants toreach its customers just before lunch hour (e.g a restaurant) for promoting daily specialsparticularly on slow business days of the week.
29MMS: Multimedia Messaging service is a standard way to send messages that includemultimedia content to and from mobile phones. It’s a tool less used because it is tooexpensive. Multimedia Messaging service is not compatible with all the devices and is alsohard to implement. There are several types: Text MMS, video MMS and MMS+. But it’sconvenient for finding pictures or videos.Augmented Reality: is a technic which enables to superimpose 2D or a 3D virtualcontent into the reality in order to visualize all in real time. The opportunities are endless.Marketers can interact with consumers, shops can display offers and people can voice theiropinions on certain places. It can be used in commercial, event exhibitions, at the point ofsale and so on. It enriches the customer experience because you can for example, in aclothing store, use augmented reality for seeing outfits that best fit to you. It can enrichtourism in a museum and for leisure communication. Last but not least, it can bepersonalized by people, which is much more engaging than a standard video or image.
30Geolocation: is a technology for the identification of the real-world geographiclocation of an object, such as a mobile phone or radar. It is widely used today by location-based services (LBS) like Foursquare, Gowalla and Loopt. IP technologies now enablemarketers to significantly enhance their ability to reach customers.By knowing precisely where someone is going online, along with their connection speed,brands can target audience segment based on business type-level, reaching customersonline in ways that were previously possible through direct mail and billboards.It gives merchants the tools they need to get information for discount coupons, online dealsand banner ads. This allows them to get the right products to the right consumers, at theright time, at the right place. At the same time, it allows marketers to efficiently integrateonline and offline campaigns at the local level. The benefits are undeniable. Hyper localized(or Geolocation) marketing enables more relevant messaging and increases customerengagement and conversion with each campaign.The problem with the Geolocation technology is that can be switched off or it’s notembedded in all the devices.
312D Code: QR codes are similar to the standard bar codes that currently appear on all thetypes of consumer products, except QR codes can contain much more information thantraditional barcodes and allow better tracking. This is done by downloading a readerapplication and taking a photo using the mobile phone camera. There are several types ofcodes: the AFMM32decided to get an owned code and the Flashcode. Other companies areusing free right access codes (open source) like QR code, Data Matrix and Aztec Code. Thistechnology allows a tracked shortcut.Qr codes can be used for marketing and promotions in a variety of settings. It can beintegrated into just about any type of printed materials such as: conferences, event displays,print advertisements, business cards, brochures, posters and flyers. QR code can beimplemented in almost every case. It’s very cheap, versatile, device independent,measurable and of course it’s a way to Bridge Offline and Online Media.32Association Française du multimédia Mobile
32However, it’s not as convenient as it might seem, because it needs to use an application forscanning the code, furthermore the Qr code size has to be respected otherwise the scanningdoes not work well. Then people, by thinking it is too complicated, are not so willing to useit.Qr code advertise in a metro station impossible to scan33Nevertheless, Mobile Marketing tools have a lot of restrictions regarding privacy issues thatbrands must know and take into consideration.33Unbounce.com – Legendary Marketing Fails
33II) 4) Mobile Marketing limitationsPrivacy issuesAs mentioned earlier, mobile devices today are considered as an incredible tool formarketing, but it can also considered intrusive for the user with personal data (picture, SMSand other information). Therefore, any information sent to a customer’s mobile (via SMS orMMS) may sometimes seems as an intrusion in his or her private life.Mobile marketers need to understand and respect the fact that users would like theirprivacy online. So they should only indulge in promotional activity if they have the user’spermission for it, because if they don’t respect user’s opinions, it can be punishable by thelaw.That has brought us now to the “opt-in” and “opt-out” notions:- Opt-out refers to several methods by which individuals can avoid receivingunsolicited products or service information- Opt-in refers to several methods by which individuals can accept receivingsolicited or unsolicited products or service informationFor a mobile marketing campaign, customers have to be Opt-in, namely they have to acceptreceiving information from companies. Otherwise they cannot receive any directinformation. In France, the CNIL34control all the abuse about this topic.34Commission nationale de l’informatique et des libertés
34Platforms too diverseMobile devices do not have any particularstandards, as compared to PCs andlaptops. Mobile phones come in manyshapes and sizes, so screen size is neverconstant. Besides, mobile platforms vastlydiffer from each other, using different OS’and browser. Hence creating onecampaign for all of them can get difficult.Navigation on a mobile phoneThe mobile phone usually comes with a small screen and no mouse. This means thatnavigation on a mobile phone may get difficult for the user, even if it has a touch screen. Insuch case, most ads may go untouched, as the user may find it too tedious to look in detailthrough each one of them.After underlining the classical Mobile Marketing Tools, let’s go on the central part of mythesis: Near Field Communication, let’s see how it can be used and integrated in a Mobilemarketing strategy with the others tools.
35III) NFC: Using Contactless technologies formobility?Before going deeply into the topic, I just wanted to show you how important is NFC for thenext few years.Indeed, Gartner has identified NFC payments as one of the fastest moving technologies inits 2012 Emerging Technologies Hype Cycle35(the curve below), an annual research reportthat assesses the maturity, business benefit and future for direction of numerous high-impact technologies. What is more interesting is that in the 2011 Hype Cycle, Gartner hasplaced NFC payments at the very peak of the “inflated expectations” curve. 2012 finds NFC“moving noticeably” along the curve, followed closely by NFC payments, according toGartner. However, the research firm expects NFC payments to be 5-10 years away frommainstream adoption, i.e. the Plateau of Productivity,” while NFC in general still has two tofive years to go.35Gartner.com – July 2012
36Near-field communications (NFC) technology is a short range wireless RFID technology thatmakes uses of interacting electromagnetic radio fields instead of the typical direct radiotransmissions used by technologies such as Bluetooth. This technology is already used todaywith contactless cards.Smartphone + Contactless card = Mobile NFCMobile NFC is a link between internet virtual world and real world. NFC can be adapted forevery use cases for every type of company.NFC is a technology which is not useful by itself. It must to be combined with otherstechnologies such as: Geolocation, Qr code, Augmented Reality, SMS / MMS and so on. Wecannot separate it to those others mobile marketing tools.
37It makes life easier and more convenient for consumers around the world by making itsimpler to make transactions, Sharing Photos, videos, contact and websites.There are 3 ways of using it:1. Tag reading & writing (reading a link which is integrated in an NFC tag)2. Peer to Peer (interaction between two NFC enabled phones)3. Card emulation (the NFC device behaves like an existing contactless card, such asduring a payment case)NFC represents the three main elements for a mobile application even more for a paymentcase:Safe, Secure and Convenient
38It will enable contactless mobile payments and it is transforming the shopping experience insome part of the world.NFC’s key numbers: Over 85 NFC-enabled handset models are available36 More than 1 Million NFC-enabled Android devices are shipped every week, and thisnumber is growing quickly37 More than 500 million NFC-ready mobile phones will enter the market in 201438,nearly doubles the estimated 285 million NFC phones shipping in 2013. The total value of NFC payment will represent in 2015 75 billion euros39and over 146billion euros in 201740NFC technology represents a key technology for brands and service providers because it cancreate some advantages for each case.After presenting NFC, let’s see what benefits NFC provides companies and its customers.It must create an advantage for using and paying with the mobile.36NFC World37Google I/O – June 201238ABI research – March 201339Study from JUNIPER – March 201340ABI Research – March 2013
39III) 1) Companies & customers issuesNear Field Communication is the latest tool for Mobile Marketer for using this consumerbehavior trend (Social, Local, Mobile) in order to create a new way of interaction betweenthem and the brand.III) 1)1) Customers issuesRetain and increase customer loyalty- Increase customer engagement, retention and loyalty by offering personalizedservices that add value- Protect customers’ sensitive information with total security- Enable one-to-one personalized marketing campaigns- Make customer closer to his brand- Receiving personal offers or coupons- Customers can have access to a wide range of new services, such as mobilepayments, transport, ticketing, loyalty programs, and many other innovativepossibilities
40III) 1)2) Companies issuesThere are several companies involved in the NFC landscape.Mobile network operators:- Differentiate their offers for fighting against low cost competitors such as FreeMobile in France,- Finding new source of profit (NFC service can be rented by banks or Serviceproviders)- Finding new customers (the technology natives)- Increasing customer loyaltyBanks:- Make people using less cash in order to decrease cash management fees- Economies of scales at the bank offices (less employees, less paper)- Being innovative and improving its “classical” image- New source of profit by implementing a fee per transaction- Being competitive against OTT players4141Over The Top player: Google, Paypal, Amazon, Apple, Microsoft …
41Retailers:- Acquiring more customer insights (customer behavior, age, gender…)- Utilize and leverage value from core assets such as customer base, billingrelationship, customer care and direct channel with SMS- Attracting consumers to the point of sale (against online purchase)- Improving impulsive purchases with coupons and personal offers- Make the purchasing act easier for consumers and avoiding abandonedtransactions especially from online purchase (data bank process…)Transport Operators:- Economies of scale from ticket machine and paper- Offering a faster service check in/ check out- Liquidizing transport traffic and preventing queue line- Attracting new customer which are not used to using public transport- Offering a large scale of services with others service providers (shops basednear a train station)
42III) 2) NFC Use casesNFC can be used for every use cases in our life. The essential element of this technology is tocreate added values for customer and mainly for service provider.That point has been understood by experts, as more than 200 projects have already beenlaunch in the world, even more in the north part such as Europe, North America, and Southeast of Asia. But there is no doubt that Emerging countries will roll out as well NFC programsoon.
43Let’s have a look on several use case examples which are implemented all around the world:Retail: Many opportunities lie within the retail sector using NFC in both payment andnon-payment scenarios. More and more NFC Wallet initiatives are emerging plus loyaltysolutions offer huge opportunities for retailers to connect with customers enabling a richand simple user experience.September 2012 in France, Casino has opened theworld’s first NFC-enabled supermarket at LesBelles Feuilles’s district in Paris.42With the Casino digital wall, shoppers chooseproducts from a large display and then pay usingtheir phones equipped with the mCasino NFC app.Transport: NFC facilitates and speeds up the process for both consumers and transportoperators such as: Subways, Buses and Airlines. Ticketing, marketing and loyalty campaigns,information updates, access control using mobile, gateways, information kiosks and smartposters. These facilities open up numerous opportunities to engage travelers and improvecustomer services.4342NFCworld.com – Casino to open world’s first NFC enabled Supermarket – September 2012
44Example: London commuters can already use their contactlessbank cards on buses, and Transport for London (TfL) isextending the system to tubes andperhaps on trains. It’s also consideringpayments using NFC on mobile phones.44Advertising: Check in on a smart poster in a café restaurant,store, hotel, train station, at different locations around an even and letyour friends know where you are! Give feedback of your favoriterestaurant, event or shop by touching a location based NFC tag. Addnew friends to your network by touching two NFC mobile phones.Picture example: Universal Music Launches NFC poster campaign inParis45(March 25th, 2013), by tapping their NFC phones to the posters,passer-by can access and download further information about thealbum as well as purchase it on their phone.Gaming: NFC brings an exciting new interactiveangle to mobile gaming while offering an enjoyable userexperience. Alone, with a friend or as part of a group,start a new game and unlock new levels, by tappingtogether two NFC mobile phones or touching a location-based tag. Game developers and publishers arediscovering how NFC can enhance productivity ingaming.43Payment processing in Japan - 22michaels.com44Zdnet.com – Mobile and bank cards to replace tickets for travelling – April 201345NFCworld.com – Orange + Universal Music + Poster Campaign - March 2013
45For example, 13thMarch 2013, Nintendo launched the new Pokemon Scramble U gamewhich is going to work with a series of figures equipped with NFC, including main characterPikachu, that will be available to purchase separately. These characters can then be addedinto the game via the NFC interface on the Wii U GamePad Controller.46Healthcare: NFC is an excellent way to monitor wellness& patient healthcare. NFC has proven to be the perfectsupporting technology to monitor patients at home, managingpatient records that can be applied to patients of any ages asNFC offers such a simple user experience. For example, over50,000 Dutch nurses are now using NFC phones to track andmanage home healthcare visits.47Wellness: Wellbeing is another sector where people actively training benefit from theease of uses NFC. People today use a range of devices to harvest data in order to monitortheir progress and with the use of NFC this data can easily be transferred to another devicefor further computations and analysis.Secure services: Open doors, gates and barriers with the touch of an NFC device andcentrally manage the access in real time without the need for the physical delivery of cards.Office blocks, universities, car parks, hotels, event stadiums, mass transport systems aresome examples where NFC can be used to offer secure access control.46NFCworld.com – Nintendo to launch Pokemon toys with NFC – March 201347NFCworld.com – 50000 Dutch Nurses now using NFC phones – September 6th2011
46Fraunhofer Institute for Secure Information Technologyhas launched Key2Share app which allows virtual keys storedon NFC phones to be shared securely using QR codes that can besent by email of MMS message or even in the mail. Thus, it’simpossible for unauthorized people to gain access to the digitalkey, because the opening door requires information contained bothin the encrypted token sent to the user and in the app installed ontheir smartphone.48We can imagine using this technology in a hotel chain such as Accor hotels, which couldimplement this technology in all of its hotels (Novotel, Sofitel, Formule 1 etc.) in order toimprove their hotel services for guests such as: No wait line at the reception to check in and check out To save time for using food, drink and hotel services Acquiring hotel information: map, room services, spa & gym, restaurant… To make economies of scale (low need of employees) Be innovative & enhance the guest experienceAccording to a survey made by Clarion Hotel Stockholmwhich has implemented an NFC service in 2011, almostall of the participants “would use mobile keys for their hotelstays if NFC-compatible cell phones were widely availabletoday and their phone supported the service.”49Social services: NFC can also be used in day care and primary schools to monitor thearrival and departure of children when checked in with an NFC mobile phone or device.Information can be forwarded to the mobile of a parent by SMS, instant messaging or e-mail.48NFCworld.com – Fraunhofer offers secure NFC keys that can be shared via QR codes – March 201349NFCworld.com NFC room keys find favour with hotel guests – June 2011
47Access control: Crowd intense venues are important to track both from a securitystand points as well as a means to improve the overall experience such as in sports arenas,festivals, tradeshows etc.Tracking (Logistics): NFC can monitor quality control of shipments withoutopening parcels and data gathered both as evidence but more importantly to ensure thequality upon arrival at the customer’s premises.This is what Bodega Norton winery in Argentina does.It has implemented a new system that usesNFC phones and RFID tags to track how many grapeseach worker has harvested. The new NFC solutionreplaces a paper and RFID tag-based system that requiredone day a week to be spent by workers collecting,counting and processing tracking chips so that the correctwages could be paid to each harvester.50But why are we still waiting for this technology? Whereas we hear every day about news andprojects which use NFC, such as the last World Mobile Congress51by implementing an NFCExperience for its visitors around and inside the Congress.50NFCworld – Winery automated grape picking wages with NFC – October 201251Mobileworldcongress.com – NFC at MWC – February 2013
48III) 3) NFC eco system & ConstraintsThere is no doubt that today constraints and eco system are related, of course thoseelements slowdowns the NFC worldwide implementation. Let’s focus on it.III) 3) 1) Eco systemFirstly we can divide it in to two main situations for NFC applications:1- Applications which use private or personal data (use cases: Payment,Access, Transport, and Identification)2- Applications which do not use private or personal data (uses cases: TagReading, Game)Let’s focus on the first case:Those applications include private data and they have to be managed in a secure part ofthe handset called “Secure Element” (SE) in order to avoid external issues such as hacking.The Secure Element is managed by a TSM – Trusted Service Manager which is:Interconnected with mobile network operators and service providers, activate or deactivateservices, end to end security and so on… (For example: Gemalto or GI-de have a TSM).
49However 3 Secure Element types exist:1- SE directly embedded inside the handset (MIDlet)2- SE on an external element such as micro SD Card3- SE stored in the SIM card so managed by the MNO (CARDlet)The GSMA52advices to use the first type: stored in the SIM Card (3): (CARDlet). This isconsidered as the most secure solution: every application is embedded in an assigned andindependent slot.52The worldwide association of mobile operator and related companies devoted to supporting thestandardizing, deployment, and promotion of the GSM mobile telephone system.
50III) 3)2) NFC Constraints:There is no doubt to say that there are some constraints which are slowing down the NFCimplementation.1- SecurityIn fact in a survey made by “les numériques.fr”53in December 2012 about: are you ready toleave your wallet for paying with your mobile?43% say “yes, only if I get guarantees on the payment security”. And 22% say “Yes, I trust itand I am ready” while 22% say “No I don’t trust it”.In my personal point of view, by asking people about NFC, first they all replied with issuesregarding mobile hacking and theft.Actually, security is already managed by digital security companies which provide Secure andReliable NFC SIM card in relation with Service Providers and MNO (Mobile NetworkOperator). Those services, certified by banks, avoid issues about losing money in the case ofhack, theft or loss.53Lesnumeriques.com – Paiement sans contact - December 2012
512- Usage & “waving”Namely how will people get used to waving their mobile at a POS terminal instead of usingtheir traditional wallet with cards and cash?Actually, if you just refer to the last key numbers fromCityzi54in France: Contactless Payment is already in ourusage: as 11 million people wave their contactlesscards and 2.5 million with their NFC-enhanced Phoneat the 50 000 POS Terminal.Nevertheless, those numbers just show the equipment and not necessarily the usage. Thiscan be explained that contactless technology is principally used for public transport such asin Paris with Navigo card55or Marseille with Transpass/Rtm card56.So one of the main issues is to make people use their NFC-enhanced Phone for shopping. Forthat, Service Providers, MNO, and Mobile manufacturers will have to innovate for creatingan added value or a desire of waving such as: advertising, sales promotion, events,couponing, new shopping experience… Namely: Communication and Marketing around NFCexperience.3- Equipment price:The third element is of course the price; we cannot avoid the fact that NFC equipment (Pointof sale Terminal, NFC tag …) is expensive to roll out for services providers. For example, forsupermarkets it costs about 200 000 euros to equip57a shop with this technology.54Cityzi is a French initiative for rolling out NFC or contactless mobile projects. It gathers together MNO, banks,transport operators, companies and industry players.55Navigo.fr56Rtm.fr – la carte Transpass57Features.techworld.com
52This element will overwhelm small sized companies to roll out a budget for NFC terminals &services. For medium & large sized companies such as retail chains, cost of implementationmay be less of an issue due to the achievement of economies of scale.4- Apple and NFCWhereas all the Mobile Manufacturers have already implemented NFC technology in theirdevices, Apple is still the last one to not use it, but why? Maybe it is a question ofdifferentiation strategy or just a question of money, I don’t know… But the only thing Ibelieve is that the third largest Mobile seller (300 million phones sold) is in a bad situationand it is losing more and more market share since Steve Jobs’s death. Anyway, recentlysome rumors58claimed the iPhone 5S will feature NFC, but another report from Apple(January 2013) had pointed out that it won’t offer its technology…58Expertreviews.co.uk – iPhone 5s to get fingerprint scanner and NFC – March 2013
53However, a special NFC cover for iPhones which allows using NFC technology on Appledevices already exists. This cover costs approximately 44 dollars59, which is definitelyaffordable. However, it is not necessarily a tool which will make users embrace thecontactless mobile activities.5- Finding an agreement between NFC actorsAs I underlined before there are several NFC players which are:- Mobile Network operators (Orange, SFR…) which own the Sim Card and End-users- Banks (BNP, Crédit Agricole…)- Transport Operators (Bus, Train…)- Retailers (Casino, Carrefour…)As you know the trend for Mobile Network operators is to reduce their price offersbecause of the competition and the demand.NFC, is a good solution for them to differentiate their offers. However, in the current modelof mobile contactless, the security is managed by the SIM card, then owned by the MNO, sofor all the service providers (banks, transport operators and retailers) which want to createa CARDlet application (inside the SIM card), they have to accept some conditions such ascentralized control or compensation which is usually very unfavorable for them.59Gizchina.com - NFC enabled iPhones arrive Taiwan – October 2011
54So in this situation if common agreements are not found between the actors, the NFCexpansion will slow down.In this situation, some other alternatives are coming out such as Google Wallet, Square60,Paypal, Bankinter61which are MIDlet (outside of the SIM Card) or Visa & Samsung62.Samsung has signed a partnership for launching a NFC payment application directlyembedded inside the new Galaxy S4; so not owned by the MNO, which bring the sameadvantages for the end-users. The question is how do they manage with cases oftransactions problems? Who should be contacted? Visa? Samsung? Bank? The MNO63?(Square)Some other elements that constrain NFC are such things like Network & Roaming fortourists. In the case, they want to use NFC abroad. This means that they will need aninternet connection which is currently very expensive in a foreign country. So MNOs have tofind a common agreement between them in order to unify its international price.Now, let’s highlight all the contents I have written, with some projects made by serviceprovider60Square is an electronic payment service used in US and Canada which used credit card and mobile phone61Bankinter develops NFC payment service that eliminated need for secure elements62Pressreleases.visa.com – Visa & Samsung Sign Global Alliance Agreement – February 201363Mobile Network Operator
55IV) Study casesFor this part, I have chose Two study cases in the retailing because there are the bestexamples for showing the importance of NFC with other mobile marketing tools forrevolutionizing the shopping experience . One is in Paris and the other one is in Japan.IV) 1) M-casinoCasino liked the technology so much that it decided to offer NFC shopping to the rest of itsBelles Feuilles customers (Shopping center in Paris).The French supermarket chain Casino is using an NFC commerce platform from start-upcompany Think&Go64to create an NFC customer experience. This collaboration betweenCasino and Think&Go has been made in order to help improve the shopping experience forvisually impaired customers who have difficulty reading product packaging.Think&Go placed bright red NFC tags in front of products on shop shelves, so that whencustomers touched their phones to the tag they could view the product information via amobile interface with big yellow characters on a black background. The company has alsoincorporated voice synthesis, so that the phone could read out the name of the product, aswell as the price, ingredients and nutritional information, if desired.64Thinkandgo-nfc.com
56With hand scanners, customers use a hand-held barcode scanner to scan a product beforeputting it into their basket. At the end of their shop, they simply pug the hand scanner intoa checkout machine and pay for their goods, without having to unpack and re-pack theirbasket.Casino customers wanting to use thesystem must download an app to theiriPhone or Android device. Although NFCis still not included in Apple products,iPhone users can still participate bypicking up an NFC sleeve for their phoneas they enter the store.As the customer walks around the shop and scans items, the app compiles a list ofeverything in the basket, so that the customer can keep tracking of their purchases, and addor subtract items.Unlike most NFC tags, which work by fetching information from the “cloud”, Think&Go’sarchitecture is completely network resistant. The application contains a database of 170 000available products, so items can be added to the basket even if there is no networkaccess.6565Thinkandgo-nfc.com
57When the customer has picked up everything he wants, he touches his phone to contactlesspayment terminal and the list of groceries is transferred over, using peer-to-peer NFC. Hecan then pay by cash, cheque, credit card or via the mobile phone if the device has amobile wallet installed.Think&Go is now working to incorporate special offers into the app, so that if a customerscans an item that is “buy one get one half price” offer, they are prompted to pick up asecond item at the point of decision.Casino and Think&Go are working as well on a way to handle couponing and loyalty points.This project will enable to incorporate a comparison engine that will allow customers to tagan item and then view a list of alternative products, either in order of price or using criteriasuch as fair trade.
58It has also created a prototype of a Dynamic NFCScreen, which allow consumers to communicatethrough a video display using their NFC phones.While most NFC tags are static, the screencontains a matrix of NFC tags which can beprogrammed using the same computer thatbroadcasts the video content, and their meaningchanged over time.As we saw on this example, NFC is a tool which can be integrated with other mobilemarketing tools. This experience was a trial. It has been a success because it was the firstone in France for implementing this experience. The mobile marketing service scope wasreally wide because it mixed a range of new and classical mobile marketing tools such ascouponing, loyalty cards, Qr code, special offers and of course NFC. But some problems canbe underlined for example the cover for iPhone has not been a success due to the difficultyof downloading the application on a website made for the project and not from apple store.Besides, the most significant problem was that Casino employees were not aware at allabout NFC technology and couldn’t teach customers about how to use it. So in a case ofpaying at the cash register, customers were not able to pay with their NFC enabled devices.Anyway, as I said it was a trial, which was already very positive for Casino and generally forthe retailers to use NFC in France, thus Carrefour is going to implement a NFC offer in thecoming months.Now let’s see the second study case which is about TESCO.
59IV) 2) TescoThis study case does not include NFC but it shows how NFC could be implemented on thiscase and what we could do with it.Tesco Virtual Supermarket in a Subway station (June 2011)Tesco “Homeplus” opened a virtual grocery store in a South Korea subway in 2011, whereusers shop by scanning QR codes on their Smartphones. A large wall length billboard wasinstalled in the subway station, designed to look like a series of supermarket shelves anddisplaying images and prices of a range of common products, each sign also includes a Qrcode. Users scan the code of any product they would like to purchase, thereby adding it totheir online shopping cart. After the transaction is completed, the products are delivered tothe user’s home within a day.
60The strategy makes productive use of commuters waiting time, while simultaneously savingshopper’s time spent going to the supermarket.Tesco has implemented others virtual grocery stores around the world such as at GatwickAirport66(London).People could scan posters of Tesco’s 80 most popular items to fill a shopping basket using anapp. The application also allowed 20,000 extra products and to have the items delivered orcollected up to three weeks after ordering. Tesco said that the average traveler of Gatwickspends 70 minutes in the departure lounge and is offering staple good that shoppers will bekeen to have in the fridge when they return home from holiday.67This case is quite interesting because Tesco is one of themost active retailers in implementing new technologies.Tesco is supporting and implementing resources for itsonline innovations such as mobile phones.6866Retail-week.com – Tesco launches virtual shopping wall at Gatwick airport – August 201267Retail-week.com – Tesco launches virtual shopping wall at Gatwick airport – August 201268Tesco.com
61This virtual store was a great success because it targeted busy people whom do not have thetime for grocery shopping. It is also good for increasing impulsive buying and targettingtravelers.But on this trial there was nothing about traceability which meant Tesco could implement atraceability system which is enabled by using NFC and not QR code, in order to get to knoweach customer’s preferences (taste, gender, age etc.). For example, a vegetarian customercould get vegetable promotions and not meat offers. It could also implement a trackingsystem for checking in which sector he is used to shopping in order to make a flash offer at aTesco which is close to a customer’s location. With NFC, Tesco could enable people to givetheir products point of view by implementing NFC tags for each product shelf. When acustomer taps a tag, they can choose to comment on or to inform the store if a product ismissing or no longer available. In turn, they can also ask where to find a similar item or askwhen the item will come back in stock. They can state if a quality of the product is not good,and even make recommendations.The scope is very wide, but all is made for creating a good interaction between the brandand its customer.
62C- ConclusionAs we saw, nowadays and for the next few years, our world is always multi connected andmobile. With the wave of new technologies, our needs are changing constantly. We arebuying more and more interactive devices, such as TVs, Tablets, Laptops, and of courseSmartphones. These devices connect people and of course to business and their brands. Weare using our Smartphones on a daily basis and it’s without a doubt becoming an essentialtool in our lives. Some may even consider it as having more value than a purse or a wallet.That is to say, that smartphones have become more than just a device for making phonecalls. It is truly becoming a tool for everything: checking emails, taking pictures, researching,chatting, interaction, news, agenda, and in the near future as a mobile payment option.For companies and their brands it means implementing more and more mobile campaign’sand adapting a new strategy for attracting potential customers and making assuringcustomer loyalty. It is definitely one of the main challenges for companies to use Mobile inits strategy. For that, some tools are available and already used such as Mobile Website, SMScampaign, Mobile applications, and Qr codes. We underlined the opportunities but we alsohighlighted the drawbacks with those tools.Thus, we focused on Near Field Communication. A mobile contactless technology which canbe used for everyday use such as enabling people to pay directly with their smartphones onsecure, safe and convenient applications. However, it is also a crucial way for brands in eachfield of activity to implement NFC in its mobile strategy. It can also enable businesses toachieve economies of scale, to change its image into an innovative brand image and last butnot least, getting to know its customer better by interacting directly with them.
63Near Field Communication will be the future of Mobile strategy for pushing and pullingcampaigns, because it is a tool which can be implemented to other classical mobile tools. Itwill of course enable brands to be closer to their customers by creating a new way forbrand/customer relationship as well as revolutionize the shopping experience as seen on thestudy cases.However, some limitations appear such as the cost of the NFC implementation, makingpeople using more contactless technology instead of credit card, and finding a commonagreement between NFC’s actors (Bank, Service providers, MNO) for implementing moreNFC services.
64D- RecommendationsAs I noted during my researches and my interviews, there is an enormous potential for NFC.It’s definitely an essential technology for consumers and brands, but not yet used bycompanies in their Mobile Marketing Strategies.The main issue is due to lack of agreement. How can the benefits between all the NFCplayers be distributed fairly and equally? As long as no common agreement is found, NFC willsimply remain as an interesting innovation.Furthermore, the second recommendation is to make people get used to waving contactlesstechnology such as a contactless credit card which is currently being implemented by banks.However, banks must communicate the benefits of such technology in order to increaseconsumer experience.The third recommendation is for Apple to launch NFC enabled iPhones. As Apple was thefirst mover in smartphone technology, it has created a reputation which is highly demandedby the millennial generation. If Apple can manage to implement NFC technology in theirfuture roadmaps, they will attract a large public, including opinion leaders, who will pushNFC technology into the wider community.The fourth recommendation is for companies to continue to implement mobile marketingcampaigns at the point of sale which uses several tools such as: Qr codes, augmented realityand geolocation. This will enable people to use their mobile phones more frequently whenpurchasing products.I truly believe that Near Field Communication will grow in popularity within the next twoyears but this will require cross industry collaboration. Actors must start to communicateefficiently and effectively together and address concerns of infrastructure and economies ofscale in order to reach a common solution which everyone can agree to.
65Through continuous trial and error, all faults and bugs can be resolved and opportunities interms of Return of Investment can be achieved. Everyday situations will become as easy asmaking a phone call.
66BibliographyINTERNET MARKETING 2013 – NEILA ROMDANE & WILLY BRAUN – EBGINTERNET MARKETING 2012 – GUILLAUME BER & JULIA JOUFFROY – EBGMARKETING MANAGEMENT – PHILIP KOTLER, KEVIN KELLER, DELPHINE MANCEAU &BERNARD DUBOIS – PearsonMARKETING MOBILE – FLORENCE JACOB, FABIEN LIENARD - DUNODSTRATEGIE newspaperCAPITALE newspaper01net newspaper