Final Thesis: How to integrate NFC in a Mobile Marketing Strategy?

Master of Science 2: Entertainment & Media
Management – Operational Marketing Specialty
2012 / 2013
How to implement NFC in a
Mobile Marketing Strategy?
End of Study Thesis
William BELLE

1
Table of Contents1
Commitment to personal work..................................................................................................3
Information page about companies I have met.........................................................................4
Acknowledgment........................................................................................................................5
Summary ....................................................................................................................................7
Foreword....................................................................................................................................9
A – Introduction ....................................................................................................................... 10
B- Content ................................................................................................................................ 12
I) The mobile, a crucial media…............................................................................................ 12
I) 1) A multi-connected world: French & worldwide situation.........................................12
I) 2) Intensification and diversification of uses.................................................................16
I) 3) News usages are coming up: mobile payment.......................................................... 18
II) A marketing challenge for the brand ...............................................................................21
II) 1) Mobile Marketing definition.....................................................................................21
II) 2) Mobile Marketing issues:.......................................................................................... 23
II) 3) Mobile Marketing Tools:........................................................................................... 25
II) 4) Mobile Marketing limitations...................................................................................33
III) NFC: Using Contactless technologies for mobility?......................................................... 35
III) 1) Companies & customers issues ...............................................................................39
1
Table des matières

2
III) 2) NFC Use cases..........................................................................................................42
III) 3) NFC eco system & Constraints.................................................................................48
IV) Study cases......................................................................................................................55
IV) 1) M-casino..................................................................................................................55
IV) 2) Tesco........................................................................................................................ 59
C- Conclusion............................................................................................................................ 62
D- Recommendations...............................................................................................................64
Bibliography.............................................................................................................................. 66
Webography............................................................................................................................. 67

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Commitment to personal work
This 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 and
which enables me to bring added value to my personal profile. I took the opportunity to
share 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 and
gathered experience, I was able to gain a great internship position at the NFC department at
Gemalto, World leader in digital security.

4
Information page about companies I
have met
During my thesis redaction I had the chance to meet essential NFC & Mobile Marketing
companies such as:
http://www.gemalto.com/france/
Gemalto, World leader in Digital Security.
http://www.forum-smsc.org/
Association created in 2008 by the french
government, in order to rolling out NFC services
in France.
http://www.myfeelback.com/
Social CRM Mobile. Customer relationship on
mobile.

5
Acknowledgment
I would like to thank the following people who were kind enough to let me share their
knowledge to guide my thesis. I really appreciate the time and effort you took for assisting
me throughout my research process.
Cédric Ghetty, Teacher at Euromed
Management & Consultant
Emmanuel Legros, Mobile Advertising at
Gemalto.
Nicolas Chalvin, Field Marketing at Gemalto.
Sandrine Blanquart, Senior Marketing
Management NFC at Gemalto.

6
Pierre Métivier, French contactless industry
association GM, professor, speaker & blogger.
Stéphane Contrepoid, CEO My FeelBack.

7
Summary
Le mobile est devenu aujourd’hui un instrument marketing à part entière.
Objet du quotidien indispensable pour les utilisateurs, il est désormais un moyen unique
pour les marques de se rapprocher de leurs consommateurs.
Ce mémoire présentera les dernières tendances autour de la consommation mobile : avec
l’intensification et la diversification de nos usages. Ensuite, nous analyserons comment les
marques utilisent et utiliseront le mobile marketing et comment cela fera évoluer la relation
client / marque.
En effet, avec l’émergence des nouvelles technologies, notamment la Near Field
Communication (Communication Champ proche) caractérisée par le Sans Contact, notre vie
quotidienne va considérablement évoluer. Nous pourrons utiliser la NFC pour tous les cas
d’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 augmenter
leur ROI (Retour sur Investissement).
Néanmoins, nous allons voir qu’autour de toute cette évangélisation, il y a de nombreuses
contraintes dans sa mise en œuvre.
Bonne lecture.

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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.

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Foreword
I am currently studying at Euromed Management Marseille (recently changed to KEDGE
Business School) on a Master of Science in Entertainment & Media Management with an
operational marketing specialty. My passion is driven by the mobile marketing field and
social media. This area fascinates me and therefore I have chosen to write my master thesis
about the effects of Near Field Communication on companies and their customers.
This topic is in reference to the International Seminar about Mobile Marketing presented by
Edouard DETAILLE Mobile Marketing Professor at Euromed Management.

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A – Introduction
Today, marketing is evolving dramatically thanks to the arrival of new technologies which
leads to:
 A changing behavior among consumers - more and more equipped, connected, active
and mobile
 A total redefinition of the consumer & brand relationship: customer is less and less
passive with the brand, which brings it closer to him
The global marketing scope of new technologies is very wide. Nevertheless I decided to focus
my 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 the
consumer 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 allows
advertisers to reach millions of users. In addition, it represents a medium to communicate
on a “one to one” basis, which provides an important foundation for building and
entertaining targeted customers relationships.
Thanks to mobile devices which are owned by millions of users, advertisers have the
possibility to reach the selected target group and implementing Mobile Marketing
Campaigns which take care of segmentation criteria such as: Age, Gender and Geographic
situation.
Despite this crucial advantage, advertisers must keep in mind that mobile phones are strictly
personal communication tools and any intrusion from advertising could irritate consumers.

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Thanks to the arrival of new technologies, mobile marketing can include various tools such
as SMS / MMS campaigns, Mobile Application, Geolocation, Augmented reality, M-
couponing, M-loyalty or Mobile Website. Thus, Mobile Marketing’s scope is pretty wide and
always 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’s
evolution and situation. Secondly, I will focus on the different tools of Mobile Marketing
which are already used today. Thirdly, I will introduce Near Field Communication as a new
Mobile Marketing tool which can be integrated for everyday situations. Last but not least, I
will illustrate those tools with some studies cases.

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B- Content
NFC: 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 no
doubt 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 devices
consumption.
I) 1) A multi-connected world: French & worldwide
situation
Firstly, some people may think that France is delayed in comparison to other countries such
as Japan or USA when it comes to technological equipment and advancements. However, in
terms of “connected devices” France has the second worldwide rank with a penetration rate
of 35, 7% just behind Norway (38, 8%) and forward Netherland (35, 1%), USA is ranked 12th
and Japan 18th
.2
This rank clarifies the French quality equipment: Internet Box (38%), Smartphone (40%),
Tablet (15%) and connected TV.
2
JDN – Internet mobile les pays les plus connectés – Février 2013

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That situation can be explained as well on the Mobile Network Operators’ evolution; of
course 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 to
the arrival of Free Mobile in the smartphone offer, which reduced price contracts
dramatically: 19, 99 euros/month unlimited contract. This has enabled people to get a higher
range smartphone choice.
In 2015, our equipment average rate will reach 60, 8% thanks to Smartphone. In terms of
screens consumption French people have got more than 6.3 screens per household4
, which
means 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 devices
sold were smartphones and 46, 6 % of French population already own a Smartphone
according to l’ARCEP5
. This means 23, 8 million of smartphones. In the future, we are talking
about 50 % for 2013 and 72% for 2015 (penetration rate).6
This trend is not just specific to France; it is applicable all over the world.
3
Mobile Network Operators (Orange, Bouygues Telecom and SFR)
4
JDN – Nombre d’écrans dans les foyers – February 2013
5
Autorité de régulations des communications électroniques et des Postes
6
ZenithOptimédia – February 2013

14
When 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 2018
more than 4 billion people will be equipped with smartphone devices, namely the half
worldwide population7
.
It represents today 1000 billion dollars (almost 750 billion euros), 3, 2 billion users and over
750 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 with
almost 21 percent is ranked second. 8
7
GSMA – January 2013
8
Gartner.com – February 2013

15
However, when we look at the Worldwide Mobile Phone sales, you can see that the first
three 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 second
rank, 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, the
Californian firm, Apple which is continuously increasing its market share from 5 % (2011) to
7.5% (2012) market share worldwide, thanks to its iPhone4 (s) and 5 which are premium
brands and also very up to date.10
9
LesEchos.fr – Nokia monte en gamme mais voit ses volumes chuter – April 2013
10
Gartner.com – February 2013

16
To summarize, there are still more Mobile Phones present around the World than
Smartphones. However, but with the emerging countries such as Brazil, India, China or South
Africa, there is no doubt that Smartphone consumption will keep increasing and overtaking
Mobile Phone sales in the next years.
We just have seen some figures about smartphone and devices worldwide situation, now
let’s develop on the trend of consumers habits.
I) 2) Intensification and diversification of uses
Today Mobile usage is more and more intensified, especially because of internet which
enables 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 each
day11
. This trend shows that people are using more and more mobile phones instead of
computer. For the last quarter 2012, Facebook revealed that for the first time ever, there
were more mobile users than computer users.
11
Study made by Tony Ahonen for Nokia – February 2013

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Mobile Social Media usage is more important than Desktop social Media which is starting to
fall; 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 their
phone in July 201213
- Australia: 61% of mobile phone users visited a social networking site from
their phone in 201214
- India: 92 % of smartphone users accessed social media content from their
phone daily in Q2 201215
Furthermore, 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% of
users make researches every day17
and 41% of them have used their smartphones for a bank
activity: bank transfer or checking account18
. Those figures will continue to increase.
12
Emarketer.com – Social Media Marketing on Mobile Devices – February 2013
13
ComScore – December 2012
14
Australian Interactive Media Industry Association – January 2013
15
InSites Consulting – December 2012
16
OurMobile Planet – November 2011

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All those numbers show that smartphones users are willing to evolve towards new usage
such as using smartphone for paying.
Let’s have a look at mobile payment.
I) 3) News usages are coming up: mobile payment
Mobile payment or Mobile Commerce can be defined as “Money rendered for a product or
service 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 family
members”19
or more simply as “the use of wireless handheld devices such as cellular phones,
tablets and laptops to conduct commercial transactions online.”20
As you can see on the scheme above from: “Technologysalon.org” the mobile payment
structure can be divided into 3 parts:
17
Ipsos OTX – Mai 2012
18
BFM Business radio – February 2013
19
Investopedia.com – Mobile Payment definition
20
Investopedia.com – Mobile Commerce definition

19
0 20 40 60 80
Digital Goods
Physical goods
Bill payment
Services, Leisures
Worldwide
France
1. Peer to Peer: namely between two mobiles that enables to make Mobile Money
2. Consumer to Business: namely to Purchase online (E-commerce) or at the Point of
sale (Proximity Payments)
3. Business to Business: that enables to replace cash in supply chain
Mobile payment industry will reach 13, 8 billion dollars (10.4 billion euros) in 2013 to 278, 9
billion 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:
23
Worldwide Mobile payment – JDN June 2012
Basically, this graph shows that digital goods (music, application, gaming & subscriptions to
newspaper) are the most purchased good made by users with their smartphones (57 % in
France and 62% all over the world). This underlines the fact that iTunes is still very much
used.
21
MarketsandMarkets Research center – February 2013
22
Internet Marketing – EBG - 2013
23
Services are: transport, travel, cinema ticket - Digital Goods: music, app, gaming & subscriptions

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Additionally, 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 3rd
European market, in 2017 it will generate 3,1
billion euros24
 Consumer is not totally willing to make a mobile transaction: “83% of French
are willing to adopt purchase on his/her smartphone, but only if his bank
details are well secured”25
 Security problem may occur due to possibility of low network coverage in
public areas and public transport systems.
After seeing the overview and the figures, let’s turn to the marketing challenge for the brand
that represent smartphones.
24
Cabinet Forrester Research - January 2013
25
CCM Benchmark & CSA – December 2012

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II) A marketing challenge for the brand
As I highlighted before, Mobile phone is a mass media, thus it can be used by advertisers for
its Multichannel campaigns. Let’s turn to a more theoretical part.
II) 1) Mobile Marketing definition
Mobile Marketing can be defined as “the use of the mobile medium as a means of
marketing communication”26
or “using interactive wireless media to provide customers with
time and location sensitive, personalized information that promotes goods, services and
ideas, thereby generating value for all stakeholders”27
.
Usually, Mobile Marketing is a component of a Multichannel campaign for brand, which
uses many different marketing channels to reach a customer. A channel might be a retail
store, a website, TV commercial, a mail order catalogue, or direct personal communications
by letter, email or SMS and so on…
26
Karjaluoto Heikki and Leppäniemi Matti, “Factors influencing consumers’ willingness to accept mobile
advertising: a conceptual model”, Int. J Mobile Communications, Vol 3, No. 3, 2005, p. 198.
27
Leppäniemi, Matti, “Mobile marketing communications in consumer markets”, Faculty of Economics and
Business Administration, Department of Marketing, University of Oulu, 2008, p. 21.

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The roles of multichannel campaign are to:
1. link producers to buyers because through active interaction
2. make it easier for a consumer to make purchases from the buyer in whatever way is
most appropriate28
3. perform sales, advertising and promotion
But the main problem of a multichannel campaign is the cost of implementation. Except big
companies, small and medium companies cannot afford implementing a very efficient
multichannel campaign. The other problem is to be not so rewarding than before, there are
some channels which are getting more and more old fashion such as old direct marketing
tools (phoning/telemarketing, flyers, brochure mailing) which are very costly and not so
efficient compare to the investment made.
That’s why with the growing of new technological usage leading to changes in customer
behaviors, brands use more and more specific marketing tools such as Mobile Marketing in
order 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 allows
Brand to target and communicate with its target audience with new ways, because
technology has caught up with the way people behave when they are ready to make buying
decisions.
Now, let’s see the Mobile Marketing issues for the brand.
28
EMC.com - 15-Minute Guide to Multichannel Marketing Communications - 2011

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II) 2) Mobile Marketing issues:
As we highlighted before, mobile phone is the most used tool nowadays by people, always
switched ON and always with us or in our pocket. It allows marketer to reach their
customers 24/7.
The Smartphone is becoming a kind of digital database that constantly allow Smartphone
users to store, access and use information about who we are, who we know, what we like
to do, where we are, and where we have been. We volunteer this information in exchange
for 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 a
one-to-one and thus to build up the proximity feeling: by implementing a relational program
with a personalized communication, innovative and differentiating services.
We can underline 4 big objectives such as: gaining brand awareness, attracting new
customers, generating new profit and brand loyalty.
1) Brand development
One of the biggest issues of Mobile marketing is brand development. An advertiser aims to
make its brand accessible wherever and whenever. An advertiser also aims to build his
multichannel campaigns and try to establish the brand’s image. Advertisers are already
aware that mobile devices are an additional communication channel. Besides, they know a
mobile-adapted website can create an interaction between their customers at any time of
the day. Those multichannel campaigns have also an important impact thanks to mobile
advertising such as a SMS/MMS campaign.
Generally speaking, while a brand wants to develop with Mobile Marketing, some notoriety
and modernity issues appeared even if customers can not perceive it.

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2) Customer acquisition
In addition to brand development, acquiring new customers is also part of an advertiser’s
objective. This conquest can be made by products and services promotion with its
customers. Such promotional activities will generate point of sales traffic as it created an
interest for customers. Finding products and services of the brand become easier for the
consumers when these are presented to them directly. Besides, new customer acquisition
will enable advertisers and brands to create a customer data base, which will help for
implementing other mobile marketing campaign according the different customers profile
types.
3) To generate new profit
While advertisers have conquered new clients, they will implement new objectives which
consist 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 are
more 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, mobile
payment is used mostly for digital goods such as music, applications and newspaper
subscription which are less expensive. For that advertisers will have to implement a mobile
payment solution such as: Paybox, Payzen, PayScan, or PayPal. In order to get additional
revenues, advertisers can monetize its audience by selling advertisement space on its
mobile websites. There are two types of advertising formats: key words and display.
4) Customer loyalty
Henceforth, the last issue for advertisers is to make their consumers loyal. Indeed customer
loyalty is crucial for brands in terms of turnover and healthy business.

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On mobile as much your consumer is loyal as much company will know him. Thus, they will
create a close relationship between them. This loyalty can also be established when
consumers undertake actions on mobile sites they visit. When ordering an item online, they
can 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 by
receiving 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 the
end 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. It
consists 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 a
mobile website from a standard website is the fact that it is designed for the smaller
handheld display and touch-interface. Like any website, mobile websites can display any text
content, 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 mobile
website should be considered your first step in developing a mobile web presence. If your
goals are primarily related to marketing or public communications, a mobile website is
almost 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 widest
possible audience, and to be instantly accessible and compatible to users via browsers
across a range of devices (iPhone, Blackberry, Android…). It’s very dynamic in terms of pure
flexibility to update content. It can be found on the search engines because their pages can
be displayed in search results and listed in industry-specific directories. This makes it easier
for website visitors looking for similar goods or services to find your brand.

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It can be shared easily by publishers and between users thanks to mobile website URLs
which can be easily integrated within other mobile technologies such as SMS, Qr codes and
of course NFC. Furthermore, it cannot be deleted. It is a very long life cycle and it is always
available 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 and
installed on your mobile device, rather than being rendered within a browser. Users visit
device-specific portals such as Apple Store, Android Marketing or Blackberry App World in
order to find and download apps for a given operating system. The app may pull content and
data from the internet, in similar fashion to a website, or it may download the content so
that 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 be
efficient. It enables an interaction with the brand and its consumers through gaming. You
can also entertain them by creating contest gaming and so on in order to create a
community. It doesn’t need internet connection so the app can be used by users
everywhere, it can improve the brand awareness and it can make people loyal to the brand.

27
The best example is Oasis with its application; today Oasis Be Fruit has the best Facebook fan
number in Europe29
, thanks in part to its mobile application.
OASIS BE FRUIT APPLICATION30
M-CRM: Mobile customer relationship management (Mobile CRM) enables anywhere
access to centralized customer and information data bank of a company. In contrast with
CRM, mobile CRM provides access via mobile devices such as notebooks or mobile phone.31
Thus, control and maintenance of customer relationships and customer loyalty as well as the
retrieval of current customer and prospect data are available outside the company, for
instance for a sales representative during a customer visit.
It also sets up of management system more or less personalized in the commercial
relationship that a brand would like to get with its customers. The objective is to maintain
the customer loyalty by answering in the best way to their expectations and by removing
any wishes to try another brand.
29
Comestible.fr – Pourquoi oasis est la meilleure page Facebook - 2012/08/06
30
Oasisbefruit.com
31
Techopedia.com – Mobile Customer Relationship Management

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SMS: SMS campaign is a major tool because it is simple, cheaper, 100% compatible and
quick/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 their
communication with customers, because it enables the brand to make the consumer feeling
of individual treatment via the SMS sent to their mobile phones. It’s fast because you can
reach groups of people who are interested in knowing the brand products and services
instantly. Brands can also reach people whenever they want for example, if a brand wants to
reach its customers just before lunch hour (e.g a restaurant) for promoting daily specials
particularly on slow business days of the week.

29
MMS: Multimedia Messaging service is a standard way to send messages that include
multimedia content to and from mobile phones. It’s a tool less used because it is too
expensive. Multimedia Messaging service is not compatible with all the devices and is also
hard to implement. There are several types: Text MMS, video MMS and MMS+. But it’s
convenient for finding pictures or videos.
Augmented Reality: is a technic which enables to superimpose 2D or a 3D virtual
content 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 their
opinions on certain places. It can be used in commercial, event exhibitions, at the point of
sale and so on. It enriches the customer experience because you can for example, in a
clothing store, use augmented reality for seeing outfits that best fit to you. It can enrich
tourism in a museum and for leisure communication. Last but not least, it can be
personalized by people, which is much more engaging than a standard video or image.

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Geolocation: is a technology for the identification of the real-world geographic
location 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 enable
marketers 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 customers
online 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 deals
and banner ads. This allows them to get the right products to the right consumers, at the
right time, at the right place. At the same time, it allows marketers to efficiently integrate
online and offline campaigns at the local level. The benefits are undeniable. Hyper localized
(or Geolocation) marketing enables more relevant messaging and increases customer
engagement and conversion with each campaign.
The problem with the Geolocation technology is that can be switched off or it’s not
embedded in all the devices.

31
2D Code: QR codes are similar to the standard bar codes that currently appear on all the
types of consumer products, except QR codes can contain much more information than
traditional barcodes and allow better tracking. This is done by downloading a reader
application and taking a photo using the mobile phone camera. There are several types of
codes: the AFMM32
decided to get an owned code and the Flashcode. Other companies are
using free right access codes (open source) like QR code, Data Matrix and Aztec Code. This
technology allows a tracked shortcut.
Qr codes can be used for marketing and promotions in a variety of settings. It can be
integrated into just about any type of printed materials such as: conferences, event displays,
print advertisements, business cards, brochures, posters and flyers. QR code can be
implemented 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.
32
Association Française du multimédia Mobile

32
However, it’s not as convenient as it might seem, because it needs to use an application for
scanning the code, furthermore the Qr code size has to be respected otherwise the scanning
does not work well. Then people, by thinking it is too complicated, are not so willing to use
it.
Qr code advertise in a metro station impossible to scan33
Nevertheless, Mobile Marketing tools have a lot of restrictions regarding privacy issues that
brands must know and take into consideration.
33
Unbounce.com – Legendary Marketing Fails

33
II) 4) Mobile Marketing limitations
Privacy issues
As mentioned earlier, mobile devices today are considered as an incredible tool for
marketing, but it can also considered intrusive for the user with personal data (picture, SMS
and other information). Therefore, any information sent to a customer’s mobile (via SMS or
MMS) 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 their
privacy online. So they should only indulge in promotional activity if they have the user’s
permission for it, because if they don’t respect user’s opinions, it can be punishable by the
law.
That has brought us now to the “opt-in” and “opt-out” notions:
- Opt-out refers to several methods by which individuals can avoid receiving
unsolicited products or service information
- Opt-in refers to several methods by which individuals can accept receiving
solicited or unsolicited products or service information
For a mobile marketing campaign, customers have to be Opt-in, namely they have to accept
receiving information from companies. Otherwise they cannot receive any direct
information. In France, the CNIL34
control all the abuse about this topic.
34
Commission nationale de l’informatique et des libertés

34
Platforms too diverse
Mobile devices do not have any particular
standards, as compared to PCs and
laptops. Mobile phones come in many
shapes and sizes, so screen size is never
constant. Besides, mobile platforms vastly
differ from each other, using different OS’
and browser. Hence creating one
campaign for all of them can get difficult.
Navigation on a mobile phone
The mobile phone usually comes with a small screen and no mouse. This means that
navigation on a mobile phone may get difficult for the user, even if it has a touch screen. In
such case, most ads may go untouched, as the user may find it too tedious to look in detail
through each one of them.
After underlining the classical Mobile Marketing Tools, let’s go on the central part of my
thesis: Near Field Communication, let’s see how it can be used and integrated in a Mobile
marketing strategy with the others tools.

35
III) NFC: Using Contactless technologies for
mobility?
Before going deeply into the topic, I just wanted to show you how important is NFC for the
next few years.
Indeed, Gartner has identified NFC payments as one of the fastest moving technologies in
its 2012 Emerging Technologies Hype Cycle35
(the curve below), an annual research report
that 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 has
placed 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 to
Gartner. However, the research firm expects NFC payments to be 5-10 years away from
mainstream adoption, i.e. the Plateau of Productivity,” while NFC in general still has two to
five years to go.
35
Gartner.com – July 2012

36
Near-field communications (NFC) technology is a short range wireless RFID technology that
makes uses of interacting electromagnetic radio fields instead of the typical direct radio
transmissions used by technologies such as Bluetooth. This technology is already used today
with contactless cards.
Smartphone + Contactless card = Mobile NFC
Mobile NFC is a link between internet virtual world and real world. NFC can be adapted for
every use cases for every type of company.
NFC is a technology which is not useful by itself. It must to be combined with others
technologies such as: Geolocation, Qr code, Augmented Reality, SMS / MMS and so on. We
cannot separate it to those others mobile marketing tools.

37
It makes life easier and more convenient for consumers around the world by making it
simpler 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 as
during a payment case)
NFC represents the three main elements for a mobile application even more for a payment
case:
Safe, Secure and Convenient

38
It will enable contactless mobile payments and it is transforming the shopping experience in
some 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 this
number 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 euros39
and over 146
billion euros in 201740
NFC technology represents a key technology for brands and service providers because it can
create 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.
36
NFC World
37
Google I/O – June 2012
38
ABI research – March 2013
39
Study from JUNIPER – March 2013
40
ABI Research – March 2013

39
III) 1) Companies & customers issues
Near Field Communication is the latest tool for Mobile Marketer for using this consumer
behavior trend (Social, Local, Mobile) in order to create a new way of interaction between
them and the brand.
III) 1)1) Customers issues
Retain and increase customer loyalty
- Increase customer engagement, retention and loyalty by offering personalized
services 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 mobile
payments, transport, ticketing, loyalty programs, and many other innovative
possibilities

40
III) 1)2) Companies issues
There are several companies involved in the NFC landscape.
Mobile network operators:
- Differentiate their offers for fighting against low cost competitors such as Free
Mobile in France,
- Finding new source of profit (NFC service can be rented by banks or Service
providers)
- Finding new customers (the technology natives)
- Increasing customer loyalty
Banks:
- 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 players41
41
Over The Top player: Google, Paypal, Amazon, Apple, Microsoft …

41
Retailers:
- Acquiring more customer insights (customer behavior, age, gender…)
- Utilize and leverage value from core assets such as customer base, billing
relationship, 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 abandoned
transactions 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 based
near a train station)

42
III) 2) NFC Use cases
NFC can be used for every use cases in our life. The essential element of this technology is to
create added values for customer and mainly for service provider.
That point has been understood by experts, as more than 200 projects have already been
launch in the world, even more in the north part such as Europe, North America, and South
east of Asia. But there is no doubt that Emerging countries will roll out as well NFC program
soon.

43
Let’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 and
non-payment scenarios. More and more NFC Wallet initiatives are emerging plus loyalty
solutions offer huge opportunities for retailers to connect with customers enabling a rich
and simple user experience.
September 2012 in France, Casino has opened the
world’s first NFC-enabled supermarket at Les
Belles Feuilles’s district in Paris.42
With the Casino digital wall, shoppers choose
products from a large display and then pay using
their phones equipped with the mCasino NFC app.
Transport: NFC facilitates and speeds up the process for both consumers and transport
operators such as: Subways, Buses and Airlines. Ticketing, marketing and loyalty campaigns,
information updates, access control using mobile, gateways, information kiosks and smart
posters. These facilities open up numerous opportunities to engage travelers and improve
customer services.
43
42
NFCworld.com – Casino to open world’s first NFC enabled Supermarket – September 2012

44
Example: London commuters can already use their contactless
bank cards on buses, and Transport for London (TfL) is
extending the system to tubes and
perhaps on trains. It’s also considering
payments using NFC on mobile phones.44
Advertising: Check in on a smart poster in a café restaurant,
store, hotel, train station, at different locations around an even and let
your friends know where you are! Give feedback of your favorite
restaurant, event or shop by touching a location based NFC tag. Add
new friends to your network by touching two NFC mobile phones.
Picture example: Universal Music Launches NFC poster campaign in
Paris45
(March 25th
, 2013), by tapping their NFC phones to the posters,
passer-by can access and download further information about the
album as well as purchase it on their phone.
Gaming: NFC brings an exciting new interactive
angle to mobile gaming while offering an enjoyable user
experience. Alone, with a friend or as part of a group,
start a new game and unlock new levels, by tapping
together two NFC mobile phones or touching a location-
based tag. Game developers and publishers are
discovering how NFC can enhance productivity in
gaming.
43
Payment processing in Japan - 22michaels.com
44
Zdnet.com – Mobile and bank cards to replace tickets for travelling – April 2013
45
NFCworld.com – Orange + Universal Music + Poster Campaign - March 2013

45
For example, 13th
March 2013, Nintendo launched the new Pokemon Scramble U game
which is going to work with a series of figures equipped with NFC, including main character
Pikachu, that will be available to purchase separately. These characters can then be added
into the game via the NFC interface on the Wii U GamePad Controller.46
Healthcare: NFC is an excellent way to monitor wellness
& patient healthcare. NFC has proven to be the perfect
supporting technology to monitor patients at home, managing
patient records that can be applied to patients of any ages as
NFC offers such a simple user experience. For example, over
50,000 Dutch nurses are now using NFC phones to track and
manage home healthcare visits.47
Wellness: Wellbeing is another sector where people actively training benefit from the
ease of uses NFC. People today use a range of devices to harvest data in order to monitor
their progress and with the use of NFC this data can easily be transferred to another device
for further computations and analysis.
Secure services: Open doors, gates and barriers with the touch of an NFC device and
centrally 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 are
some examples where NFC can be used to offer secure access control.
46
NFCworld.com – Nintendo to launch Pokemon toys with NFC – March 2013
47
NFCworld.com – 50000 Dutch Nurses now using NFC phones – September 6
th
2011

46
Fraunhofer Institute for Secure Information Technology
has launched Key2Share app which allows virtual keys stored
on NFC phones to be shared securely using QR codes that can be
sent by email of MMS message or even in the mail. Thus, it’s
impossible for unauthorized people to gain access to the digital
key, because the opening door requires information contained both
in the encrypted token sent to the user and in the app installed on
their smartphone.48
We can imagine using this technology in a hotel chain such as Accor hotels, which could
implement this technology in all of its hotels (Novotel, Sofitel, Formule 1 etc.) in order to
improve 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 experience
According to a survey made by Clarion Hotel Stockholm
which has implemented an NFC service in 2011, almost
all of the participants “would use mobile keys for their hotel
stays if NFC-compatible cell phones were widely available
today and their phone supported the service.”49
Social services: NFC can also be used in day care and primary schools to monitor the
arrival 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.
48
NFCworld.com – Fraunhofer offers secure NFC keys that can be shared via QR codes – March 2013
49
NFCworld.com NFC room keys find favour with hotel guests – June 2011

47
Access control: Crowd intense venues are important to track both from a security
stand 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 without
opening parcels and data gathered both as evidence but more importantly to ensure the
quality upon arrival at the customer’s premises.
This is what Bodega Norton winery in Argentina does.
It has implemented a new system that uses
NFC phones and RFID tags to track how many grapes
each worker has harvested. The new NFC solution
replaces a paper and RFID tag-based system that required
one day a week to be spent by workers collecting,
counting and processing tracking chips so that the correct
wages could be paid to each harvester.50
But why are we still waiting for this technology? Whereas we hear every day about news and
projects which use NFC, such as the last World Mobile Congress51
by implementing an NFC
Experience for its visitors around and inside the Congress.
50
NFCworld – Winery automated grape picking wages with NFC – October 2012
51
Mobileworldcongress.com – NFC at MWC – February 2013

48
III) 3) NFC eco system & Constraints
There is no doubt that today constraints and eco system are related, of course those
elements slowdowns the NFC worldwide implementation. Let’s focus on it.
III) 3) 1) Eco system
Firstly 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: Tag
Reading, Game)
Let’s focus on the first case:
Those applications include private data and they have to be managed in a secure part of
the 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 deactivate
services, end to end security and so on… (For example: Gemalto or GI-de have a TSM).

49
However 3 Secure Element types exist:
1- SE directly embedded inside the handset (MIDlet)
2- SE on an external element such as micro SD Card
3- SE stored in the SIM card so managed by the MNO (CARDlet)
The GSMA52
advices to use the first type: stored in the SIM Card (3): (CARDlet). This is
considered as the most secure solution: every application is embedded in an assigned and
independent slot.
52
The worldwide association of mobile operator and related companies devoted to supporting the
standardizing, deployment, and promotion of the GSM mobile telephone system.

50
III) 3)2) NFC Constraints:
There is no doubt to say that there are some constraints which are slowing down the NFC
implementation.
1- Security
In fact in a survey made by “les numériques.fr”53
in December 2012 about: are you ready to
leave 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 it
and 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 issues
regarding mobile hacking and theft.
Actually, security is already managed by digital security companies which provide Secure and
Reliable NFC SIM card in relation with Service Providers and MNO (Mobile Network
Operator). Those services, certified by banks, avoid issues about losing money in the case of
hack, theft or loss.
53
Lesnumeriques.com – Paiement sans contact - December 2012

51
2- Usage & “waving”
Namely how will people get used to waving their mobile at a POS terminal instead of using
their traditional wallet with cards and cash?
Actually, if you just refer to the last key numbers from
Cityzi54
in France: Contactless Payment is already in our
usage: as 11 million people wave their contactless
cards and 2.5 million with their NFC-enhanced Phone
at the 50 000 POS Terminal.
Nevertheless, those numbers just show the equipment and not necessarily the usage. This
can be explained that contactless technology is principally used for public transport such as
in Paris with Navigo card55
or Marseille with Transpass/Rtm card56
.
So one of the main issues is to make people use their NFC-enhanced Phone for shopping. For
that, Service Providers, MNO, and Mobile manufacturers will have to innovate for creating
an added value or a desire of waving such as: advertising, sales promotion, events,
couponing, new shopping experience… Namely: Communication and Marketing around NFC
experience.
3- Equipment price:
The third element is of course the price; we cannot avoid the fact that NFC equipment (Point
of sale Terminal, NFC tag …) is expensive to roll out for services providers. For example, for
supermarkets it costs about 200 000 euros to equip57
a shop with this technology.
54
Cityzi is a French initiative for rolling out NFC or contactless mobile projects. It gathers together MNO, banks,
transport operators, companies and industry players.
55
Navigo.fr
56
Rtm.fr – la carte Transpass
57
Features.techworld.com

52
This 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 implementation
may be less of an issue due to the achievement of economies of scale.
4- Apple and NFC
Whereas all the Mobile Manufacturers have already implemented NFC technology in their
devices, Apple is still the last one to not use it, but why? Maybe it is a question of
differentiation strategy or just a question of money, I don’t know… But the only thing I
believe is that the third largest Mobile seller (300 million phones sold) is in a bad situation
and it is losing more and more market share since Steve Jobs’s death. Anyway, recently
some rumors58
claimed the iPhone 5S will feature NFC, but another report from Apple
(January 2013) had pointed out that it won’t offer its technology…
58
Expertreviews.co.uk – iPhone 5s to get fingerprint scanner and NFC – March 2013

53
However, a special NFC cover for iPhones which allows using NFC technology on Apple
devices already exists. This cover costs approximately 44 dollars59
, which is definitely
affordable. However, it is not necessarily a tool which will make users embrace the
contactless mobile activities.
5- Finding an agreement between NFC actors
As 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 offers
because of the competition and the demand.
NFC, is a good solution for them to differentiate their offers. However, in the current model
of mobile contactless, the security is managed by the SIM card, then owned by the MNO, so
for all the service providers (banks, transport operators and retailers) which want to create
a CARDlet application (inside the SIM card), they have to accept some conditions such as
centralized control or compensation which is usually very unfavorable for them.
59
Gizchina.com - NFC enabled iPhones arrive Taiwan – October 2011

54
So in this situation if common agreements are not found between the actors, the NFC
expansion will slow down.
In this situation, some other alternatives are coming out such as Google Wallet, Square60
,
Paypal, Bankinter61
which are MIDlet (outside of the SIM Card) or Visa & Samsung62
.
Samsung has signed a partnership for launching a NFC payment application directly
embedded inside the new Galaxy S4; so not owned by the MNO, which bring the same
advantages for the end-users. The question is how do they manage with cases of
transactions problems? Who should be contacted? Visa? Samsung? Bank? The MNO63
?
(Square)
Some other elements that constrain NFC are such things like Network & Roaming for
tourists. In the case, they want to use NFC abroad. This means that they will need an
internet connection which is currently very expensive in a foreign country. So MNOs have to
find 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 service
provider
60
Square is an electronic payment service used in US and Canada which used credit card and mobile phone
61
Bankinter develops NFC payment service that eliminated need for secure elements
62
Pressreleases.visa.com – Visa & Samsung Sign Global Alliance Agreement – February 2013
63
Mobile Network Operator

55
IV) Study cases
For this part, I have chose Two study cases in the retailing because there are the best
examples for showing the importance of NFC with other mobile marketing tools for
revolutionizing the shopping experience . One is in Paris and the other one is in Japan.
IV) 1) M-casino
Casino liked the technology so much that it decided to offer NFC shopping to the rest of its
Belles Feuilles customers (Shopping center in Paris).
The French supermarket chain Casino is using an NFC commerce platform from start-up
company Think&Go64
to create an NFC customer experience. This collaboration between
Casino and Think&Go has been made in order to help improve the shopping experience for
visually impaired customers who have difficulty reading product packaging.
Think&Go placed bright red NFC tags in front of products on shop shelves, so that when
customers touched their phones to the tag they could view the product information via a
mobile interface with big yellow characters on a black background. The company has also
incorporated voice synthesis, so that the phone could read out the name of the product, as
well as the price, ingredients and nutritional information, if desired.
64
Thinkandgo-nfc.com

56
With hand scanners, customers use a hand-held barcode scanner to scan a product before
putting it into their basket. At the end of their shop, they simply pug the hand scanner into
a checkout machine and pay for their goods, without having to unpack and re-pack their
basket.
Casino customers wanting to use the
system must download an app to their
iPhone or Android device. Although NFC
is still not included in Apple products,
iPhone users can still participate by
picking up an NFC sleeve for their phone
as they enter the store.
As the customer walks around the shop and scans items, the app compiles a list of
everything in the basket, so that the customer can keep tracking of their purchases, and add
or subtract items.
Unlike most NFC tags, which work by fetching information from the “cloud”, Think&Go’s
architecture is completely network resistant. The application contains a database of 170 000
available products, so items can be added to the basket even if there is no network
access.65
65
Thinkandgo-nfc.com

57
When the customer has picked up everything he wants, he touches his phone to contactless
payment terminal and the list of groceries is transferred over, using peer-to-peer NFC. He
can then pay by cash, cheque, credit card or via the mobile phone if the device has a
mobile wallet installed.
Think&Go is now working to incorporate special offers into the app, so that if a customer
scans an item that is “buy one get one half price” offer, they are prompted to pick up a
second 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 tag
an item and then view a list of alternative products, either in order of price or using criteria
such as fair trade.

58
It has also created a prototype of a Dynamic NFC
Screen, which allow consumers to communicate
through a video display using their NFC phones.
While most NFC tags are static, the screen
contains a matrix of NFC tags which can be
programmed using the same computer that
broadcasts the video content, and their meaning
changed over time.
As we saw on this example, NFC is a tool which can be integrated with other mobile
marketing tools. This experience was a trial. It has been a success because it was the first
one in France for implementing this experience. The mobile marketing service scope was
really wide because it mixed a range of new and classical mobile marketing tools such as
couponing, loyalty cards, Qr code, special offers and of course NFC. But some problems can
be underlined for example the cover for iPhone has not been a success due to the difficulty
of 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 all
about NFC technology and couldn’t teach customers about how to use it. So in a case of
paying 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 for
the retailers to use NFC in France, thus Carrefour is going to implement a NFC offer in the
coming months.
Now let’s see the second study case which is about TESCO.

59
IV) 2) Tesco
This study case does not include NFC but it shows how NFC could be implemented on this
case 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, where
users shop by scanning QR codes on their Smartphones. A large wall length billboard was
installed in the subway station, designed to look like a series of supermarket shelves and
displaying images and prices of a range of common products, each sign also includes a Qr
code. Users scan the code of any product they would like to purchase, thereby adding it to
their online shopping cart. After the transaction is completed, the products are delivered to
the user’s home within a day.

60
The strategy makes productive use of commuters waiting time, while simultaneously saving
shopper’s time spent going to the supermarket.
Tesco has implemented others virtual grocery stores around the world such as at Gatwick
Airport66
(London).
People could scan posters of Tesco’s 80 most popular items to fill a shopping basket using an
app. The application also allowed 20,000 extra products and to have the items delivered or
collected up to three weeks after ordering. Tesco said that the average traveler of Gatwick
spends 70 minutes in the departure lounge and is offering staple good that shoppers will be
keen to have in the fridge when they return home from holiday.67
This case is quite interesting because Tesco is one of the
most active retailers in implementing new technologies.
Tesco is supporting and implementing resources for its
online innovations such as mobile phones.68
66
Retail-week.com – Tesco launches virtual shopping wall at Gatwick airport – August 2012
67
Retail-week.com – Tesco launches virtual shopping wall at Gatwick airport – August 2012
68
Tesco.com

61
This virtual store was a great success because it targeted busy people whom do not have the
time for grocery shopping. It is also good for increasing impulsive buying and targetting
travelers.
But on this trial there was nothing about traceability which meant Tesco could implement a
traceability system which is enabled by using NFC and not QR code, in order to get to know
each customer’s preferences (taste, gender, age etc.). For example, a vegetarian customer
could get vegetable promotions and not meat offers. It could also implement a tracking
system for checking in which sector he is used to shopping in order to make a flash offer at a
Tesco which is close to a customer’s location. With NFC, Tesco could enable people to give
their products point of view by implementing NFC tags for each product shelf. When a
customer taps a tag, they can choose to comment on or to inform the store if a product is
missing or no longer available. In turn, they can also ask where to find a similar item or ask
when 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 brand
and its customer.

62
C- Conclusion
As we saw, nowadays and for the next few years, our world is always multi connected and
mobile. With the wave of new technologies, our needs are changing constantly. We are
buying more and more interactive devices, such as TVs, Tablets, Laptops, and of course
Smartphones. These devices connect people and of course to business and their brands. We
are using our Smartphones on a daily basis and it’s without a doubt becoming an essential
tool 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 phone
calls. 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’s
and adapting a new strategy for attracting potential customers and making assuring
customer loyalty. It is definitely one of the main challenges for companies to use Mobile in
its strategy. For that, some tools are available and already used such as Mobile Website, SMS
campaign, Mobile applications, and Qr codes. We underlined the opportunities but we also
highlighted the drawbacks with those tools.
Thus, we focused on Near Field Communication. A mobile contactless technology which can
be used for everyday use such as enabling people to pay directly with their smartphones on
secure, safe and convenient applications. However, it is also a crucial way for brands in each
field of activity to implement NFC in its mobile strategy. It can also enable businesses to
achieve economies of scale, to change its image into an innovative brand image and last but
not least, getting to know its customer better by interacting directly with them.

63
Near Field Communication will be the future of Mobile strategy for pushing and pulling
campaigns, because it is a tool which can be implemented to other classical mobile tools. It
will of course enable brands to be closer to their customers by creating a new way for
brand/customer relationship as well as revolutionize the shopping experience as seen on the
study cases.
However, some limitations appear such as the cost of the NFC implementation, making
people using more contactless technology instead of credit card, and finding a common
agreement between NFC’s actors (Bank, Service providers, MNO) for implementing more
NFC services.

64
D- Recommendations
As 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 by
companies in their Mobile Marketing Strategies.
The main issue is due to lack of agreement. How can the benefits between all the NFC
players be distributed fairly and equally? As long as no common agreement is found, NFC will
simply remain as an interesting innovation.
Furthermore, the second recommendation is to make people get used to waving contactless
technology 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 increase
consumer experience.
The third recommendation is for Apple to launch NFC enabled iPhones. As Apple was the
first mover in smartphone technology, it has created a reputation which is highly demanded
by the millennial generation. If Apple can manage to implement NFC technology in their
future roadmaps, they will attract a large public, including opinion leaders, who will push
NFC technology into the wider community.
The fourth recommendation is for companies to continue to implement mobile marketing
campaigns at the point of sale which uses several tools such as: Qr codes, augmented reality
and geolocation. This will enable people to use their mobile phones more frequently when
purchasing products.
I truly believe that Near Field Communication will grow in popularity within the next two
years but this will require cross industry collaboration. Actors must start to communicate
efficiently and effectively together and address concerns of infrastructure and economies of
scale in order to reach a common solution which everyone can agree to.

65
Through continuous trial and error, all faults and bugs can be resolved and opportunities in
terms of Return of Investment can be achieved. Everyday situations will become as easy as
making a phone call.

66
Bibliography
INTERNET MARKETING 2013 – NEILA ROMDANE & WILLY BRAUN – EBG
INTERNET MARKETING 2012 – GUILLAUME BER & JULIA JOUFFROY – EBG
MARKETING MANAGEMENT – PHILIP KOTLER, KEVIN KELLER, DELPHINE MANCEAU &
BERNARD DUBOIS – Pearson
MARKETING MOBILE – FLORENCE JACOB, FABIEN LIENARD - DUNOD
STRATEGIE newspaper
CAPITALE newspaper
01net newspaper

67
Webography
Business news websites:
JDN.net
NFCworld
NFCnews
BFMTV.com/economie
Emarketing.fr
Viuz.com
FrenchWeb.fr
LaTribune.fr
LesNumériques.com
Challenges.fr
Bbc.co.uk
Association websites:
GSMA
Citizy
Afscm.org

68
Corporate Websites:
Live Orange
JustaskGemalto.com
Casino.fr
Tesco.com
Blog:
Sanscontact.wordpress
Nicolasguillaume.fr
Williambelle.wordpress

Final Thesis: How to integrate NFC in a Mobile Marketing Strategy?

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