Simba – ROARRRS WITH FLAVOUR

Simba is one of the biggest snack and beverage companies in the world. Its humble beginnings started when Leon, the son of Mrs Greyvenstein (known for her Ouma Rusks) had some meetings with Herman Lay, the owner of Lay’s Chips in 1952.

‘Simba Chippies’ saw the light in 1957. This was also the start of Simba the Lion, one of South Africa’s most recognised icons. Since 1995, the Simba company has been part of the PepsiCo stable which took the brand to the international arena.

The PepsiCo mission is all about being a responsible corporate citizen. This directs the company’s behaviour towards consumers, customers, their associates and communities, the planet and shareholders.

• Consumers: Create joyful moments through delicious and nourishing products and unique brand experiences.

• Customers: Be the best possible partner, driving game-changing innovation, and delivering a level of growth unmatched in the industry.

• Associates and communities: Create meaningful opportunities to work, gain new skills and build successful careers, and maintain a diverse and inclusive workplace.

• Planet: Conserve nature’s precious resources and foster a more sustainable planet for the children and grandchildren.

• Shareholders: Deliver sustainable top-tier total shareholder returns and embrace best-in-class corporate governance.

In South Africa, Simba is a strong brand that has not only stood the test of time but also managed to continuously adapt to reflect and embrace the South African fun- loving and vibrant spirit.

There are currently 11 different snack product ranges available:

• Simba Chips

• Simba Kettle Popped Popcorn

• Simba Salted Peanuts

• Simba Salted Peanuts and Raisons

• Simba Chipniks

• Fritos

• Ghost Pops

• Nik Naks

• Lays

• Doritos

• Munchiez.

Adapted from: Simba (n.d.)

Although Simba Chips is an extremely popular snack in South Africa, there are many views and opinions about the nutritional value of it. Some of the views are that the texture and savoury taste makes it way too easy to consume them in large quantities. This can lead to excessive calorie intake and potential weight gain. In addition, some nutritionists are of the opinion that the chips contain unnaturally high combinations of fat, sugar, sodium and carbohydrates.

More and more South Africans are starting to focus on their fitness and physical well- being which means that they are also starting to look for healthier, yet still convenient snacking options. This indicates that there is great market potential for healthier, low- fat, savoury snacking options.

‘Plant-based’ snacking is another trend that is on the rise. Consumers are concerned about their health, the environmental impact and animal welfare and are increasingly looking for meals and snacks that use primarily plant-based ingredients. They also believe that plant-based snacking is not only healthier but it is also cheaper.

To ensure that Simba not only meets consumers’ needs and wants but also evolves and aligns with consumer trends the product research and development team spent months on developing and perfecting the new product, Simba Zucchini Chips. During the development they tested various flavours and ended up with five potential flavours. As it is a new product, they made the strategic decision to launch with only two flavours. The team members are divided on which of the five flavours will be the best two to launch and asked the research manager to assist with the decision by conducting some consumer research.

The five flavours to be considered are:

• Sea salt and freshly ground pepper

• Smoked paprika, garlic and marjoram

• Cumin, coriander and chili powder

• Dried basil, oregano and red chili flakes

• Curry powder, cardamom and ginger.

Question 1

The reason for research is always a problem or a potential opportunity or both. Identify and explain the reason (start) for this research request.(2)

One (1) mark will be awarded for identifying the reason (problem, opportunity or both)for the research.

One (1) mark will be awarded for the explanation.

Question 2

There are various ways that business decision makers can apply research to assist and guide them in the decision-making process. Identify and describe how this research will assist Simba in the decision-making process.(2)

One (1) mark will be awarded for identifying the way it will support the decision-making process.
One (1) mark will be awarded for describing it.

Question 3

A market research brief is important as it assists market research agencies to develop a detailed market research proposal. Formulate a written market research brief that incorporates all the key elements of a market research brief (as discussed in the study guide).(20)

Marks will be awarded for correctly populating all the headings/ key elements of the market research brief.

Question 4

Two market research agencies will be required to present their market research proposals to an evaluation panel of eight (8) members consisting of representatives from the product research and development team, the marketing department, the finance department and the market research team. To ensure that evaluation process is fair, you need to develop a proposal evaluation FORM. Please note you are required to develop a form.(10)

Three (3) marks will be awarded for the research evaluation criteria. Two (2) marks will be awarded for the general criteria.
Five (5) marks will be awarded for all the other important information included on the form.

Caselet / Scenario

Green Fingers Nursery

Themba Khumba opened his nursery, Green Fingers about five years ago. Through hard work and extremely tough times, especially in the first year, the business grew and after two years he was able to appoint two assistants. In the third year he moved to bigger premises.

However, Themba’s vision for Green Fingers was more than just a nursery. He dreamt about a garden and a lifestyle centre. He joined forces with an investor, Greg Black to expand Green Fingers into a fully-fledged lifestyle centre. They both have the same vision for Green Fingers and are a formidable team in the planning and developing of the garden and lifestyle centre.

The first phase of the garden centre is now complete with a beautiful nursery, landscaping services, a family restaurant and a children’s playground. They are currently busy with the development of the second phase which will include a décor shop, delicatessen, a coffee roastery, bakery and a wine boutique.

Themba feels that now that his business is established it is time to share his knowledge with others and the timing is perfect to build a training college. He realised that some market research will be extremely valuable to guide the planning and shaping of this next phase of the business venture. He asked The Research Nuts to assist with conducting some market research. See below some details about the research project:

Primary objective: Create an in-depth understanding of the needs, wants and expectations regarding a training college to guide the development of the strategy and a supporting action plan.

Secondary objectives:

Secondary objective 1: Establish the need for such a training facility

Secondary objective 2: Establish the type of training required, e.g. full time vs part time Secondary objective 3: Establish which subjects or what type of content should be covered.

Methodology: Quantitative telephonic interviews and qualitative personal interviews.

Target audience:

The Research Nut has access to a database with 155 000 names of people in South Africa that are involved in the gardening and landscaping industry. They proposed 200 telephonic interviews with people who are based in Gauteng and who have been in the industry for three years or longer.

The Research Nut has also access to a separate list with the names of senior people who work for companies that Green Fingers can partner with when developing the content of courses as well contracting them as trainers. The Research Nut proposed ten in-depth interviews with either the owner or the human resources manager at the ten of these companies.

See Addendum A (at the end of this assignment question paper) for the proposed questionnaire for the telephonic interviews.

Question 5

Themba would like to be 95% confident in the research findings and is willing to work with a 5% margin of error. He is concerned that the proposed sample size of 200 telephonic interviews is not scientifically sound. Assist Themba by calculating what the correct sample size should be if the confidence level is 95% and the margin of error is
5%.

One (1) mark will be awarded for the correct answer.

Question 6

Unfortunately, the response rate for telephonic interviews is seldom 100%. It is estimated that the response rate will be approximately 82%. Adjust the sample size (calculated in Question 5) to compensate for an 82% response rate.

(1) One (1) mark will be awarded for the correct answer.

Question 7

It is important that all the respondents that take part in the telephonic survey meet the target audience criteria. Develop two (2) screening questions to ensure that the correct people are interviewed.(2)

One (1) mark will be awarded for each correct screening question.

Question 8

Work through the proposed quantitative questionnaire in Addendum A and evaluate the CONTENT of the questionnaire using the secondary objectives as the guideline and conclude for each secondary objective separately whether the information will be sufficient to achieve the objective.(6)

For each secondary objective separately:

One (1) mark will be awarded for identifying the correct question(s).

One (1) mark will be awarded for concluding on whether the content is sufficient or not.

Question 9

Write an introduction that the interviewers can use before they start with the telephonic interview. Ensure that the introduction covers all the information that the respondents need to know before they can give their consent to proceed with the interview.(3)

Three (3) marks will be awarded for including all the relevant information in the introduction.

Question 10

Work through the questionnaire (see Addendum A at the end of this assignment) and identify at least three (3) questions that do not adhere to sound questionnaire design principles. For each question selected, you must identify and discuss the relevant questionnaire design principle(s). NOTE: The interview introduction and screening questions are excluded and should not be part of the questions and questionnaire design principles identified.(3)

One (1) mark will be awarded for each question PLUS the principle correctly identified up to a maximum of three (3) marks.

Question 11

Correct each of the three (3) questions identified in question 10 so that they adhere to sound questionnaire design principles.(3)

One (1) mark will be awarded up to a maximum of three (3) marks for correcting each question identified in question 10. Marks will only be awarded for the correction of the questions identified in question 10.

Question 12

According to the proposal there will be ten qualitative personal in-depth interviews with business owners and/or human resources managers. Themba is fully aware that this target audience is extremely busy and requested that the interview only takes 30 minutes. Develop a time plan incorporating all the key components of a qualitative interview, to ensure that the interviews will take only 30 minutes.

(2)

Two (2) marks will be awarded for including all the key components of the interview with a reasonable time allocation and the overall time is not more than 30 minutes.

Answers to Above Questions on Market Research

Answer 1: On the basis of the given scenario, the reason for the research can be both a potential opportunity and a problem. The opportunity can be in the form of grabbing the market for healthier snacking given the growing trend among South African towards fitness and physical well being or increasing interest shown by consumers toward plant based snacks in South Africa. In terms of the problem, it can be evaluated that the current portfolio of products offered by Simba snacks is not good enough to meet the changing preferences and needs of health conscious consumers.