Caselet $/$ Scenario

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.

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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.

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$$Plant$-$based$$ 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

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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.

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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.