Teaching case. Mobile payment in retail. Presented at IMP 2013, Atlanta, USA

1. Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 1
Tatjana Apanasevic and Jan I. Markendahl
Wireless@KTH, KTH Royal Institute of Technology
Stockholm Sweden
The 29th
Annual IMP Conference, September 1, 2013, Atlanta
The MOBILE PAYMENT in the RETAIL
The CASE

2. Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 2
AGENDA
GUIDELINES on TEACHING
PRESENTATION of the CASE
PRESENTATION of the ASSIGNMENT
GUIDELINES on ANSWERS

3. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 3
TEACHING
The OBJECTIVES of the CASE
To gain practical skills in decision making in strategic
marketing
Practical application of different analysis frameworks and
theories

4. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 4
The AUDIENCE of the CASE
Master level students
Business, commerce, and technical areas
With some background in strategic marketing
and management
TEACHING

5. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 5
TEACHING
The TEACHING APPROACH
Group work in the class
20–30 min to introduce
the situation and assignment
1.5–2 hours group work over
several selected assignment
questions
30 min for each group to present
results with following discussion

6. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 6
TEACHING
The TEACHING APPROACH
Group work in the class Team homework
20–30 min to introduce
the situation and assignment
1.5–2 hours group work over
several selected assignment
questions
30 min for each group to present
results with following discussion
Student groups get the case and
full assignment
Assignment completion time –
one week

7. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 7
The MAIN IDEA of the CASE
A range of mobile payment solutions introduced in
Sweden
Application of the mobile payment in the retail sector
TEACHING

8. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 8
Benefit for Retailers
A direct communication channel
with consumers
A range of mobile payment solutions introduced in
Sweden
Application of the mobile payment in the retail sector
The MAIN IDEA of the CASE
TEACHING

9. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 9
Benefit for Retailers Benefit for Consumers
A direct communication channel
with consumers
Additional services:
loyalty and fidelity programs, coupons,
event, personalized offers, and so on
A range of mobile payment solutions introduced in
Sweden
Application of the mobile payment in the retail sector
TEACHING
The MAIN IDEA of the CASE

10. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 10
CASE
The main RETAILERS in the MARKET
50%
Others
14%
Lidl, Netto, Vi,
and Bergendahls
15%
21%

11. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 11
The BACKGROUND of ICA
The largest Nordic retailer operating in Scandinavia and
Baltic states
Main focus of the strategy:
strengthening of the brand position
development of new customer offering
CASE

12. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 12
CASE
The BACKGROUND of COOP
The second largest Swedish retailer, a market leader in the
sales of ecological brands
Focus of the strategy:
sustainability in assortment, stores, and suppliers

13. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 13
The BACKGROUND of AXFOOD
The third largest Swedish retailer, a market leader in
an offered range of private labels
Main focus of the strategy:
innovative thinking meeting consumer needs
development of new customer offerings
improvement of shopping experience
CASE

14. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 14
CASE
MOBILE PAYMENT SERVICES
available in the MARKET
provided by provided by
4T Sweden
provided by provided by

15. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 15
The BACKGROUND of SEQR
CASE
Solution:
not linked to any bank account or card
QR-code based
Requirements: registration of a credit account at
a financial service company Collector
Billing: monthly bills issued to consumers by Collector

16. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 16
The BACKGROUND of BART
Solution:
linked to consumer’s bank account
acts as a bank card
QR-code based
Requirements: to have a bank account
Billing: retailers issue bills to consumers via the mobile payment
app
CASE

17. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 17
The BACKGROUND of PAYAIR
Solution:
linked to the user’s bank account or credit card
QR-code based
Requirements: to have a bank account
Billing: retailers issue bills to consumers via the mobile
payment app
CASE

18. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 18
The BACKGROUND of WYWALLET
Solution:
linked to the user’s bank account
NFC tags can be used
Requirements: registeration of user service account
Billing: a partner – PayEx – performs payment transfers
CASE

19. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 19
ASSSIGNMENT
The IDEA of the ASSIGNMENT
A student team performs a role of managers of one of the
retailers
They get information that one of their competitors starts
deployment of one or several mobile payment solutions
However, there is no information about actions of
the remaining third retail chain

20. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 20
ASSSIGNMENT
GROUP representing ICA
In October 2012, Axfood partnered with Seamless and introduced
SEQR in its retail chains. By December 2012, about 2400 point of
sale terminals were installed at 380 Axfood’s stores.
In addition, from November 2012, Axfood started a pilot project
trying the Bart payment service in three shops in Stockholm. It is
planned to roll out the service in 400 Axfood’s stores.
There is no available information about Coop’s intentions regarding
introduction of mobile payment solution in their chains.

21. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 21
The QUESTIONS of the ASSIGNMENT
1. What are the main driving forces in the retailing market?
2. How provided information will affect the strategy of your
retail company and its position in the market in 2013?
3. What actions you as company’s managers will take in
response in order to gain a sustainable advantage?
4. What is the future of mobile payment solutions in retail?
ASSSIGNMENT

22. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 22
1. What are the main driving forces in the retailing market?
ANSWERS
The GUIDELINES on ANSWERS
Frameworks for analysis of market macro-forces:
PEST (Political, Economic, Social and Technical)
STEEP (Social, Technological, Economic, Environmental, and Political)
Industry analysis using five Porter’s forces
(Threat of new entrants, bargaining power of suppliers, threat of
substitute products, bargaining power of buyers, and rivalry
among existing competitors)

23. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 23
2. How provided information will affect the strategy of
your company and its position in the market in 2013?
ANSWERS
The GUIDELINES on ANSWERS
Answer to this question and suggested strategy could be
based on SWOT analysis

24. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 24
3. What actions you as company’s managers will take
in response in order to gain a sustainable advantage?
ANSWERS
The GUIDELINES on ANSWERS
Answer based on the evaluation of core competences of a retailer
(e.g. VRIS (Valuable, Rare, Inimitable, non-Substitutable) framework)
Main points to include:
Decision about a launch of mobile payment solution
How will it affect or change existing business model
What kind of services to offer to consumers
How can it be used in the future

25. CASETEACHING ASSIGNMENT ANSWERS
Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 25
4. What is the future of mobile payment solutions in retail?
ANSWERS
The GUIDELINES on ANSWERS
Discussion of benefits of mobile payment for retailers
(e.g. easier management of consumer database, new marketing channel,
personalized targeted marketing, lock-ins, different loyalty and fidelity
programs, and coupons)
Discussion of benefits the for consumers
(e.g. creation of a single unified mobile payment platform simplifying
management of payment and multiple user accounts for different mobile
services)
Comparison of the mobile payment against credit cards

26. Tatjana Apanasevic and Jan I. Markendahl, The 29th
Annual IMP Conference, September 1, 2013, Atlanta 26
THANK YOU
The CASE
Jan I. Markendahl janmar@kth.se
Tatjana Apanasevic tatjanaa@kth.se