October 14, 2022
Introduction
Hello everyone!
Welcome to today’s meeting. How is everyone doing today? Our agenda is to get funding from you for this new project. I will convince you that this new project from Samsung is worth the risks and investment. The Smart Mirror is steps into the future where technology empowers humans.
We shall discuss the following: value proposition, competitive advantage, risks and opportunities, growth opportunities, the new product, target segment, sales speculation, profitability speculation, CSR plan, and of course, the DEI plan. Please sit tight, relax, and have yourselves ready to be impressed.
[To make the Funding Pitch Script easier to grade, I have separated the content by headings.]
Value Proposition
Do you ever look at yourself in the Mirror and feel fabulous, only to take a selfie and find out that is not the case? Do you ever want to take a screenshot of what the Mirror sees and share that “screenshot” with everyone because the cameras aren’t doing it for you anymore? Well, do you ever want to try clothes from online stores such as Amazon, Zara, Shein, and more? Do you want to see if a hairstyle or color suits you before making that commitment?
You can now have a solution to these problems with Samsung’s Smart Mirror.
Samsung always prides itself on innovation and delivering new products that support people to be their best (Samsung, 2022). The technologies like biometrics, facial I.D., and waterproof phones were first developed by Samsung (Samsung Newsroom, 2022). The company has been serving the public and the sectors such as hospitality, finance, and education. With over 16 R&D centers worldwide, it is no surprise that Samsung is able and proud to present another technology that improves the quality of life for everyone: the Smart Mirror.
Samsung’s mission is to improve everyone’s lives with the technology it creates. This new product not only does that but also helps advance technology.
Competitive Advantage
Samsung’s competitors currently do not offer such a product with endless possibilities and integrations like the Smart Mirror. The product discovery happened one day when I noticed the disconnect between my photos and mirror reflection. I am sure I am not the only one who feels this way. However, it extends further: the Smart Mirror can be the answer for online businesses. With the Smart Mirror, companies finally have a way to minimize damaged inventory and keep customers happy by letting them try clothes with the virtual try-on.
The new product offering services for an extra fee tremendously shifts the company’s value proposition. This product has been created using the Blue Ocean Strategy. It is unique by itself, as it is not offered by anyone else in the industry. Samsung leads the market with this innovation, the Smart Mirror. Not only does Samsung provide consumer electronics such as phones and appliances, but now it can deliver a product that helps businesses and consumers.
Risks And Opportunities
Samsung keeps expanding and improving the catalog of products it has. That said, this improvement and expansion bring risks and opportunities. This new product may disrupt the consumer electronics industry, just as Samsung did with the mass-produced foldable phones. This phone line gained a loyal following with fans willing to pay premium prices for great technology and services. As a result, foldable phones have become a constant topic in every technology and electronics discussion. I believe the Smart Mirror will have the same effect when released.
One risk associated with developing this new product may be the difficulties of creating packaging that protects the Mirror during delivery. Another is ensuring the product’s durability since it is made from glass. The parts may have to be created from scratch, fit into a thin glass mirror, and take plenty of time. Finally, another risk might be the product taking some time to capture the hearts of consumers. However, this task has been done before with the Flex series. With the Smart Mirror, it may take more time and a different strategy.
Growth Opportunities
Back in August 2018, Samsung Group announced it wants to focus on four key areas: “artificial intelligence (AI), fifth-generation mobile network technology, electronic components for future cars and bio-pharmaceuticals” (Choudhury, 2018). Samsung has steadily followed its’ plan and worked towards improving the products it offers. Additionally, focusing on innovation, global semiconductor market, and mobile 5G commercialization market are three growth opportunities for the company in its’ SWOT analysis.
Being in competition encourages the company to innovate and offer new products and services not offered by other companies at a better rate and quality. This combination allows the company to grow at a faster rate. Competitive advantage includes factors such as “cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service” (Twin, 2022).
Distinguish As A New Product Or Innovation
This new product is an innovation, as it has never been offered on a mass scale—if approved and funded by you. This new product also fits perfectly within the capabilities of the company. Samsung is a known leader in display technology; the Mirror is more than possible and is feasible. Samsung has done the foldable displays, a feat that other companies are only trying to catch up with. It can do it again with the Mirror.
The company’s SWOT analysis backs this up: Samsung’s strengths lie in its presence across diverse geographies, robust R&D activities, and high current ratio. The “presence across diverse geographies [and] robust R&D activities” alone ensure that Samsung has the power to create products that seem futuristic in nature but feasible. While one threat to Samsung is competitive pressure, the company constantly makes products that push the boundaries for phones and technology. The Smart Mirror fits perfectly with the company’s portfolio.
Target Segment
Content creation has also increased with technology and cameras being more accessible than ever. Almost anyone can create blogs, videos, edits, and more and share them on the internet. This easy access to content creation has valued the global influencer marketing market at $13.8B (Statista Research Department, 2021). For example, an estimated 92 million selfies are taken daily (Photutorial, 2022). However, most people are unsatisfied with their selfie photos and want to capture how they see themselves in the Mirror. Immediately, there is a specific customer segment.
In addition, because of the rise of TikTok, content creation has become a career choice for an estimated 200 million individuals (Gutelle, 2022). A simple video of someone sharing an item or experience can be a subtle advertisement that people enjoy watching. That said, digital advertising agencies in the United States earned an estimated $20B in 2021 ((Statista Research Department, 2022). In another study, online advertising revenue in the USA grew by 35.4% in 2021 and made $189.3B (Statista Research Department, 2021). These are industries that Samsung wants to improve and capitalize on.
Other customer segments include stylists, fitness enthusiasts, and online fashion retailers. As mentioned earlier, the Mirror has been created to address the difference between one’s photos and reflection. it is unique and follows the Blue Ocean Thinking Strategy, as it offers a new unique value. It is not offered by anyone else in the electronics industry and can be extremely helpful for other businesses.
Speculate Sales
In a 24-month period, the projected sales figure is estimated to be around ₩320,000,000. These numbers are derived from Samsung’s income statement. It has been challenging to pinpoint which phone, appliance, semiconductor, or display line is responsible for increasing the company’s revenue since it has multiple product lines. Thus, for this projection, the numbers follow the trend Samsung’s numbers displayed in the past five years.
Additionally, I have looked at various forecasts. For example, “Trefis expects Samsung’s (LSE: SMSN) appliances revenue to increase from around $16 billion in 2020 to $17.7 billion in 2021 and $18.2 billion in 2022” (Trefis Team, 2021). Another forecast I have found is that Samsung expects growth in the display segment through foldable and quantum-dot OLED TV panels (Byford, 2022).
The projected sales number is subject to risks. For example, if the price of the materials increases due to scarcity, then it may be harder to get the product costs back. As always, one risk associated with projected sales is that consumers may just not want the product. That can always be remedied by more aggressive marketing, though.
Speculate Profitability
The Smart Mirror will belong to the premium smartphones and consumer electronic products offered by Samsung. It will have the same effect as the Galaxy Z Fold 3 and Galaxy Z Flip 3 phones. It is a novel consumer product, extraordinary, and may be considered unconventional. However, just as the Galaxy Fold lines affected the public and the revenues, the Smart Mirror will. According to Samsung’s IT & Mobile Communications Division, the company had “KRW 28.42 trillion in consolidated revenue and KRW 3.36 trillion in operating profit during the July to September period. [This increase in revenue is brought] by a rise in smartphone sales, especially the foldable Galaxy Z Fold 3 and Galaxy Z Flip 3 phones” (Mohan, 2021). All these means the Smart Mirror shall bring an increase of around 10% to the quarterly revenue and a 26% increase to the operating profit. Finally, in a 24-month period, the consolidated net income is speculated to be ₩ 45,000,000, following the company’s financial statement trends.
CSR Plan
The idea for the Mirror came about because of the disconnection I saw between the mirror and my photos. My photos made me dissatisfied with my appearance, and I wished that what I saw in the mirror would be reflected in my photos. I also thought about how convenient it would be to take a screenshot of myself as I see in the mirror. While this issue may seem vain, it affects millions of other people. The CSR initiative the new product will support will be the Body Dysmorphic Disorder Foundation. This idea is also in line with Samsung's mission of supporting people "to be their best on the basis of human resources & technologies" (Samsung Electronics, 2022).
Additionally, the new product will continue Samsung's existing CSR initiatives, such as eco-packaging, using recycled materials, and ensuring a sustainable manufacturing process.
DEI Plan
As with everything, the key to having a successful project team is to have suitable candidates that are passionate about the product, technology, and the causes it supports. Samsung maintaining CSR helps attract employees with "better talent or that the CSR programs help to develop better employees" (Thorpe, 2021). After signing up and being accepted for the project team, several benefits, such as remote options, schedule flexibility, travel, and daycare expenses, are paid or provided to reward the project team. Finally, the company already has an employee volunteer program, and we plan to join this. In addition, since the product supports the BDDF, members are encouraged to volunteer for the foundation. Out-of-pocket expenses such as food and travel are reimbursed for members that volunteer.
Samsung boasts of its’ diverse presence across geographies. It has R&D centers and locations throughout the world. It also believes that “innovation and growth are driven by an inclusive culture and a diverse workforce” (Samsung, 2022). The project’s DEI plan fits perfectly into the company’s overall strategic plan as it follows the company mission of providing everyone with a better life through technology.
Conclusion
Thank you for your time. I hope you find the potential in Samsung’s Smart Mirror and allow it a chance. I hope my presentation has convinced you to fund this project. Have a great day, everyone!
References
Byford, S. (2022, January 27). Samsung sets revenue records with stronger product sales. The Verge; The Verge. https://www.theverge.com/2022/1/26/22902283/samsung-earnings-q4-2021-record-revenue-galaxy-s22
Choudhury, S. R. (2018, August 8). Samsung to invest $22 billion into new growth areas like A.I. and 5G. CNBC; CNBC. https://www.cnbc.com/2018/08/08/samsung-to-spend-22-billion-in-new-growth-areas-including-ai-and-5g.html
Gutelle, S. (2022, April 20). 200 million people are earning money from digital content creation - Tubefilter. Tubefilter. https://www.tubefilter.com/2022/04/20/linktree-2022-creator-report-economy-statistics-link-in-bio/
Mohan, B. (2021, October 28). Samsung posts record Q3 revenue as foldable phone sales surge. Android Central; Android Central. https://www.androidcentral.com/samsung-q3-2021-earnings
Photutorial. (2022, March 10). 20+ Selfie Stats, Demographics & Fun Facts (2022). Photutorial.com. https://photutorial.com/selfie-statistics/
Samsung Electronics. (2022, March 23). Leadership & Mission | About Us | Samsung US. Samsung Us. https://www.samsung.com/us/about-us/leadership-and-mission/
Samsung Newsroom. (2022, February 9). How Samsung Galaxy Has Rewritten Smartphone History in 10 Innovative Technologies. Samsung.com. https://news.samsung.com/global/how-samsung-galaxy-has-rewritten-smartphone-history-in-10-innovative-technologies#:~:text=Samsung%20first%20applied%20its%20AI,to%20improve%20performance%20and%20convenience.
Samsung. (2022, March 25). Company Info | About Us | Samsung Levant. Samsung Levant. https://www.samsung.com/levant/about-us/company-info/
Statista Research Department. (2021, June 3). U.S. online advertising revenue 2021 | Statista. Statista; Statista. https://www-statista-com.ezproxy.snhu.edu/statistics/183816/us-online-advertising-revenue-since-2000/
Statista Research Department. (2021, October 14). Global influencer market size 2021 | Statista. Statista; Statista. https://www-statista-com.ezproxy.snhu.edu/statistics/1092819/global-influencer-market-size/
Statista Research Department. (2022, May 5). Digital ad agencies in the U.S. - industry revenue 2021 | Statista. Statista; Statista. https://www-statista-com.ezproxy.snhu.edu/statistics/299099/revenue-of-digital-advertising-agencies-in-the-us/
Thorpe, D. (2021, December 10). Why CSR? The Benefits Of Corporate Social Responsibility Will Move You To Act. Forbes. https://www.forbes.com/sites/devinthorpe/2013/05/18/why-csr-the-benefits-of-corporate-social-responsibility-will-move-you-to-act/?sh=3ee8fc3065a3
Trefis Team. (2021, July 6). Forecast Of The Day: Samsung’s Appliances Revenues. Trefis; Trefis. https://www.trefis.com/stock/smsn/articles/519487/forecast-of-the-day-samsungs-appliances-revenues/2021-07-06
Twin, A. (2022, May 22). What Is a Competitive Advantage? Investopedia. https://www.investopedia.com/terms/c/competitive_advantage.asp#:~:text=Investopedia%20%2F%20Michela%20Buttignol-,What%20Is%20a%20Competitive%20Advantage%3F,compared%20to%20its%20market%20rivals.
