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The document recommends investing in Snactiv, a company that produces a device to organize snacks and gaming. It details Snactiv's current sales and orders, the large snack and gaming markets, and competitive advantages like its price and patent. The summary also notes potential risks like the product's price in Vietnam and environmental concerns.

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Hưng Nguyễn
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42 views

In Class Paper

The document recommends investing in Snactiv, a company that produces a device to organize snacks and gaming. It details Snactiv's current sales and orders, the large snack and gaming markets, and competitive advantages like its price and patent. The summary also notes potential risks like the product's price in Vietnam and environmental concerns.

Uploaded by

Hưng Nguyễn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Student name and ID: Suzi Student – 55555555

Date: 15 March 2020


Recommended investment: Snactiv
To: John Andre, Chief Investment Officer

Dear Mr.Andre,
I have been considering companies that our firm could invest in and I have a
recommendation I
would like to share with you. The company’s name is Snactiv .
I have done extensive research into the company, their products / services, and the
market and here is why I believe investing in this company could be a good idea
for our firm.
Snactiv already had $187,000 in sales. They also had $50,000 in international
purchase orders and a utility patent for the device.

 This proves that Snactiv already has a good number of customers and this
product has a patent so don't worry about copyrights
About the market, snactiv has a lot of room for expansion.
1. Snack Food market
- Revenue in the Snack Food segment amounts to US$5,398m in 2022. The
market is expected to grow annually by 9.36% (CAGR 2022-2027).

- In global comparison, most revenue is generated in the United States


(US$100,813m in 2022).

- In relation to total population figures, per person revenues of US$54.55 are


generated in 2022.

- In the Snack Food segment, volume is expected to amount to 1,069.5mkg by


2027. The Snack Food segment is expected to show a volume growth of
4.5% in 2023.
- The average volume per person in the Snack Food segment is expected to
amount to 8.5kg in 2022.

Source : “https://www.statista.com/outlook/cmo/food/confectionery-snacks/snack-
food/vietnam”

- The snack food market in Vietnam is also huge . In Vietnam, although the
income is modest and depends a lot on the family, the spending on eating
out of Generation Z
( target group born in 1995 or later ) is up to 892,400 VND. On average, the
amount of money this group spends on food and drink every month is nearly
13,000 billion VND.

 The snack food business is big and has a lot of potential, thus demand for the
product is growing as well.

2. Video gaming & eSports market

- There were 68.72 million Internet users in Vietnam in January 2021.


- The number of Internet users in Vietnam increased by 551 thousand people
(+0.8%) in the period 2020-2021.
- Internet usage rate in Vietnam reached 70.3% in January 2021.

 Demand for internet and entertainment is very high.

 Snactiv products were created to assist individuals in concentrating on


playing games, entertaining, working, and eating snacks in a neat and
orderly manner.

3. Competitive advantage
- Produce price: The production price is a reasonable price in the Vietnamese market :2$60cents
and 2$82 cents .
- Price : 15$/1 unit
=> Because the cost of production and the cost of sale are so dissimilar, the profit margin will be
substantial.

- Compact, convenient and we can design it fasionable for the young teenagers because they are
the potential customers
- The market for snack is crowded, but they don’t have any product like this in the market so
we have advantages to be the first one
4. Risk
- For the Vietnamese market, selling snactiv for $15 is too high, so the rate of customers using
it is limited.
- The product is made of plastic and rubber, so it is harmful to the environment
 Some customers do not like to use plastic and rubber products .
5. Investment goals
- Currently, snactiv has international agents in: Taiwan, Hong Kong, Korea and soon in Japan.
- The sales of snactiv are also extremely good; if we invest we must grow production and
dominate the market as quickly as possible.
- Then , We need to make the product better, such as by employing environmentally friendly
materials like wood, bamboo, aluminum, and iron.
- The product is also backed by two sharks from the American shark tank, which serves as a
source of inspiration and assistance for the product, therefore this is an opportunity for us to
invest in it.
6. Team
- Snactiv was founded in 2020. Snactiv is created by Inoobi company and its
president/co-founder is Choi. His Linked In profile stated that the product
has been developed by a team of experienced engineers, designers and
entrepreneurs.

- Before Snactiv, they worked at top companies including Marvel, Netflix,


Jurassic Park, Minecraft, Frozen, Barbie, Sanrio, Hot Wheels, and many
more.
=> They has a lot of knowledge and experience. We can put our faith in this group.
7. Customer's feedback
- There have been a lot of positive feedback from customers, but there are
limitations that we need to improve.

8. Conclusion
- For the reasons stated above, this is a product worth investing in both in
terms of products and people.

- If you have further questions about this company, I would be happy to share
with you what I know.

Best regards,

Suzi Student

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