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ENHANCING COMPETITIVE STRATEGY AT DARLING KENYA
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Ali Kanji and Brandon Swartz wrote this case under the supervision of Pamela Odhiambo and Nicole R.D. Haggerty solely to provide

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material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation.
The authors may have disguised certain names and other identifying information to protect confidentiality.

This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com.

Copyright © 2018, Ivey Business School Foundation Version: 2018-07-27

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September 16, 2013, was a warm, sunny day in Nairobi, Kenya. Mahmoud Saffideen, managing director of times
Mmkndfacturer
Darling Kenya (Darling), a haircare product company, was sitting in his office pondering his next move. As
a leader in the beauty haircare industry, Darling needed to stay a step ahead of the competition that had
recently increased and was threatening to offer superior products. With limited growth in the industry,
Saffideen was looking at a set of alternatives to protect Darling’s brand from losing market share.
housands
The marketing budget available to Saffideen and his team was US$1 million,1 which had to be spent astutely
in order to enhance the company’s brand image. Saffideen picked up the phone to arrange a meeting with Darlington'd
his brand managers to discuss their future moves.
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I
EXTERNAL ENVIRONMENT
stay ahead limited growth maimangramayygistrongasthlyoffes
Kenya, formally known as the Republic of Kenya, was located in East Africa on the equator. The population
lexibility was informally broken into 42 tribes, which resulted in cultural diversity. Every tribe had its own language, superior
and beliefs, but Kenyans were united by learning their official and national languages: English and products
w deliverycustoms,
Swahili, respectively.
ontime With a population of 44,037,656 (50.1 per cent female, 49.9 per cent male), Kenya was one of the larger
countries in Africa. Due to rapid growth in recent years, over half of the country’s population was under the
delivery age of 24. As Kenya continued to develop, so did the rate of urbanization, with the annual rate achieving
4.36 per cent. In 2011, 24 per cent of the population lived in urban areas.2

Kenya had occasionally suffered from an unstable political environment. In 2007, 1,200 people were killed
and 500,000 people were forced to flee their homes during an election.3 The Kenyan government was known
for having high levels of corruption. Furthermore, there were many established counterfeit markets, with

DARLING KENYA emulatedNina'sbusiness

Mahmoud model
VISION
1
2
All currency amounts are in U.S. dollars unless otherwise specified.
The World Factbook, s.v. “Kenya,” accessed April 8, 2015, https://www.cia.gov/library/publications/the-world-
factbook/geos/ke.html.
I is Darling's

Mytarget
3
BBC News, “Kenya Election Violence: ICC Names Suspects,” December 15, 2010, accessed April 8, 2015,
www.bbc.co.uk/news/world-africa-11996652.

s theentire world Untilevery woman puttonnhattimyworkisdone

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 this targetmarket
y
Page 2 9B15A012
popgalisedaircaremarketmostumpetitionalsoselling
correspondingly high levels of bribery to sustain them. Although corruption was prolific, the danger that
coincided with elections had significantly improved with only 20 deaths in the 2013 election.4 looking
THE HAIRCARE INDUSTRY IN SUB-SAHARAN AFRICA
torei vigorate
Yggfratashiontrends
The total population of sub-Saharan Africa — that is, countries located south of the Sahara Desert — was
910 million people.5 The ethnic haircare market, mostly centred in Kenya, was valued at around $2.5 billion
market in 2013. This market was split into two main areas: 55 per cent dry hair (i.e., hair extensions, wigs, wiglets, brand
M braids, and weaves) and 45 per cent wet hair (i.e., relaxers, head nourishment, and styling products).6

watThe
attention of many multinational healthcare and beauty companies. As consumerism followed the growth in p
ry hair emerging consumer class and rapid growth in disposable incomes across the continent had caught the

air 491the middle class, use of the Internet, especially via mobile phones, allowed many to access an unlimited
7
ip
É
554 amount of information. As a result, haircare companies reduced funds allocated to educating consumers
about their products and instead focused their resources elsewhere. inlowermiddieciassi jt7É
caughtattentionof
However, the rapid growth
Mncs targeted consumers
in retail products encouraged the expansion of illegal markets, especially in parts
Mugging
consumer of Africa where corruption and the black market were common. This added a major risk to companies entering product
this market. Many cosmetic products were illegally imported and sold at cheaper prices than those charged at
the cosmetic shops, grocery stores, and drugstores. The ethnic haircare market largely targeted consumers in low
apid the lower middle class who frequently opted for products with a lower price point. This, in turn, supported the
growth of the counterfeit market, which was generally dominated by knock-offs of premium brands.8
growth Most consumers from the lower- to middle-income groups purchased their hair products from supermarkets Pp
ndisposaland outdoor markets, while the upper-income groups usually purchased them from health and beauty retailers.
income Supermarkets and outdoor markets stocked a wide range of mass market brands that were affordable to most
Ciemiddleclassa
consumers in comparison to the health and beauty retailers that usually sold a diverse set of premium brands.9

consumerism unlimitedamountofinfo haircarecompanies 1

ABOUT DARLING KENYA

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Darling was founded in 1983 in West Africa. By 2013 it had expanded into 21 African countries, as well as
14 countries worldwide. Darling’s expansionary growth resulted in organizational changes to decentralize
operations. Nairobi was the home of the main manufacturing plant for all of East Africa including Tanzania
and Uganda. This massive plant employed 90 per cent of the company’s 6,000 Kenyan employees.
growth
retail Darling was a leader in the haircare product market; however, with a 50 per cent market share, it was down
products from a much larger market share it had held up until the recent onset of stiff competition. 10 As the main
manufacturer for all of East Africa, Darling used thousands of distributors to get its products to their

4
Fred Attewill, “Kenyan Elections: Policemen Hacked to Death by Machete-Wielding Gangs on Polling Day,” Metro, March 4,

legal
2013, accessed April 8, 2015, http://metro.co.uk/2013/03/04/kenyan-elections-policemen-hacked-to-death-by-machete-
wielding-gangs-on-polling-day-3525757/.

market
5
“Sub-Saharan Africa,” The World Bank, accessed April 8, 2015, http://data.worldbank.org/region/sub-saharan-africa.
6
Mark Lawson, “Godrej Consumer Products Ltd. Earnings Call Insights: Hair Colour Creme and Darling Business,” The Cheat
Sheet, August 6, 2013, accessed April 8, 2015, http://wallstcheatsheet.com/stocks/godrej-consumer-products-ltd-earnings-
expanded call-insights-hair-colour-creme-and-darling-business.html/?a=viewall.
7
Dinfin Mulupi, “Why Africa Is an Important Market for Beauty Company L’Oréal,” How We Made It in Africa, April 30, 2013,
accessed April 8, 2015, www.howwemadeitinafrica.com/why-africa-is-an-important-market-for-beauty-company-loreal/26126/.
8
Kate Douglas, “Analysis: What Are the Market Opportunities for Beauty Companies in North Africa?,” How We Made It in
products Africa, May 31, 2013, accessed April 8, 2015, www.howwemadeitinafrica.com/analysis-what-are-the-market-opportunities-for-

sold
beauty-companies-in-north-africa/26980/.

wfmnestargetconsumer
9
Ibid.
10
Mahmoud Saffideen, interview, May 20, 2013, in Nairobi, Kenya.

cheaper
noway nowthey
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weredominated
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Page 3
brands
9B15A012

respective locations. Relying on multiple distributors gave the company flexibility with orders and
consistency with on-time deliveries.

The typical hair addition lasted anywhere from two to four weeks before its quality began to deteriorate.
Darling prided itself on the quality and durability of its products. Its large research and development
department helped the company stay ahead of its competition by continually providing high-quality products.
The introduction of kanekalon fibres enabled its products to last twice as long as the next leading products
on the market. Darling had this advantage because it was the only company throughout all of Africa with a
branded licence to use kanekalon fibre.11

Darling specialized in the dry hair market with products such as wigs, wiglets, braids, weaves, and
extensions. It had developed four product lines to cater to different consumer markets—the VIP, Classic,
Darling, and Celebrity lines (see Exhibit 1). Each product was easily differentiated with the name of the line
on a box and its corresponding colour. The blue VIP line was for higher-income individuals aged 15 to 45
who were looking to spend KSh2,00012 to KSh2,700 per month for hair additions. The maroon Classic line
was for medium- to high-income individuals, aged 15 to 45, who would spend on average of KSh1,400 to
KSh1,900 a month for hair additions. The Darling line, available in diverse colours, was the most broadly
defined. It was meant for any individual, aged eight to 60 years old, and included weaves, wigs, and braids.
Because most of the competition was also selling to this target market, Darling was looking for ways to
reinvigorate the brand. Finally, the green Celebrity line was for the lower-income individuals, aged eight to
60 years, who would spend KSh750 to KSh1,000 per month. Celebrity products were intended for rural
women who had less disposable income but still wanted the luxury of looking beautiful.

BIOGRAPHY OF MAHMOUD SAFFIDEEN

Saffideen had an excellent academic background and a lengthy list of management experience. He had
attended the University of Florida for his undergraduate degree, achieving a bachelor of science in chemical
engineering and later went on to attain a master of business administration from the University of Leicester,
School of Management. Aside from managing many small businesses in West and East Africa, he had
worked as a health and safety consultant for Shell, Total (West Africa), and DuPont (Dubai). Saffideen had
been in his current position as the managing director for Darling for eight years.

In terms of his management style, Saffideen liked to emulate Nivea’s business model, seeing that the key
component was consistency. He did not have a problem with taking risks as long as consistency in Darling’s
products was maintained. His one main goal, which set the tone for the company, was simple: “My target is
the entire world. Until every women puts on hair, my work is not done!”13

CONSUMERS

The economy in Kenya was growing at such a rapid pace that there were fears inflation might affect
consumers’ disposable incomes, and by extension the haircare market, as with less money consumers were
more likely to purchase a lower line of products.14

11
Accessed April 9, 2015, www.darlingkenya.biz/superbrand-status-no1-hair-company/.
12
KSh = KES = Kenyan Shillings; US$1 = KSh87.58 on September 16, 2013.
13
Saffideen interview, op. cit.
14
Euromonitor International, Beauty and Personal Care in Kenya, July 2014, accessed April 9, 2015,
www.euromonitor.com/beauty-and-personal-care-in-kenya/report.

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 Page 4 9B15A012

Not only consumers but also companies involved in the hair industry viewed haircare products as a necessary
commodity for women. According to Saffideen, a study that analyzed women’s shopping behaviours, set up
several closed circuit televisions in grocery, department, and retail stores. It appeared to him that most
women, on entering a supermarket, headed straight to the haircare products section before buying what was
on their grocery list, spending money on hair products before on other grocery store items. Because beautiful
hair was often associated with confidence, these women apparently considered hair products as necessities.15

In Kenya’s haircare industry, brand loyalty was a major factor. Most consumers tended to stick with one
haircare brand, trusting that the brand would always serve them well. The industry was heavily influenced
by fashion trends.16

COMPETITION

Sister

One of Darling’s main competitors was Sister. Sister originally started out of Nigeria and had recently
expanded into Kenya. The products produced by Sister and Darling were very similar, however Sister’s
products were made with lower quality ingredients than Darling’s. According to Saffideen, Sister had
products developed with the kanekalon fibre, but it was only licensed to sell this specific fibre outside of
Africa. Sister was currently trying to secure the rights to use the fibre in Africa. Sister had three main brands
that competed directly with Darling’s lines: X-pression, the lower-end product costing between KSh700 to
KSh1,200; Outré, a mid-level product selling for KSh1,200 to KS1,600; and the high-end Sensationnel line,
selling for KSh2,000 to KSh3,000.17

Fashion Idol

Fashion Idol was a brand of the giant hair product company Rebecca Hair Product Inc. (Rebecca), the largest
haircare products and research and professional sales company in China. Rebecca owned the world’s best
production lines and research centre for hair fibre. It had over 2,000 products, which were sold in more than
30 countries worldwide. Rebecca aimed to provide hair beauty solutions to its customers through a variety
of good quality products. Hair products in the popular Fashion Idol line were made with synthetic fibres that
were cheaper than kanekalon. With its large resource base, low-cost production in China, and lower-quality
fibre, Fashion Idol products were more affordable than either Darling or Sister’s products (see Exhibit 2).18

ALTERNATIVES

Saffideen knew he needed to implement a plan to maintain Darling’s strong brand equity. With a marketing
budget of US$1 million, his team of marketing managers had to put their heads together and come up with
some innovative ideas.

15
Saffideen interview, op. cit.
16
Lawson, op.cit.
17
“Sensationnel” Ebonyline.com, accessed April 9, 2015, www.ebonyline.com/manufacturers/sensationnel/; “Outré,”
Ebonyline.com, accessed April 9, 2015, www.ebonyline.com/manufacturers/outre/, accessed April 9, 2015.
18
“About Us,” Fashion Idol, accessed April 9, 2015, www.rebeccafashion.com/FashionIdol_about.

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 Page 5 9B15A012

Reinvigorate the Brand

Darling had had the same image since incorporation, with only slight changes to brand quality and products.
The first option to consider was to reinvigorate the brand by improving the packaging, differentiating the
product lines, and increasing product quality. Darling had used the same colours on its product-line boxes
and the same boxes for the past 10 years, while its competitors were making their product packaging more
attractive. What colours should Darling’s product lines be changed to? What type of packaging design should
be used? Should consumers be able to feel the product before purchasing it? With advanced technology, the
industry had developed synthetic hair that felt more and more like human hair and lasted longer. Darling
produced high-quality synthetic products, but with the recent introduction of human hair to the competitions’
product lines, should Darling invest into adding human hair as well? This large change would cost Darling
the whole year’s marketing budget and would take three years to complete. Instead, should the company
focus on improving the quality of its market-leading synthetic hair line?

Explore New Advertising Channels

Darling currently pursued a traditional route to advertise its product lines, such as in newspapers, bridge
banners, painted murals in local markets, branded vehicles, and on posters and displays in salons. The
increasing use of the Internet and availability of television in Kenya suggested new ways to reach the target
market. Advertising through social media, television, radio, and the company website were possibilities, but
these channels could be costly (see Exhibit 3). Which channel would readily capture the consumer? Predicting
the future was important for this decision, as Kenya was adopting new technologies at different rates.

Institute a Road Show

Most beauty and hair product companies were located in urban areas in order to easily capture the urban
demographic. However, only 24 per cent of Kenyans lived in urban areas. Darling could rapidly increase
market share by reaching out to the 76 per cent of the population who lived in rural areas. How could this
part of the market be informed about Darling’s products, and how could consumers be persuaded to purchase
them? The marketing team came up with the idea of a road show: the company would buy a truck, fill it with
products, and drive around to rural villages where they would demonstrate the use of their products on a
willing local participant and give women the opportunity to make themselves feel beautiful with Darling’s
products. At a cost of only US$800,000 per year, the road show would leave some room in the marketing
budget to spend on other areas.

CONCLUSION

Saffideen certainly had a lot on his mind. He wondered if he should allocate his whole budget to any one
promotional campaign. He knew that decisions needed to be made promptly before competitors further
established their brands and attained greater market share. As he finished his cup of chai tea and walked
toward the conference room, Saffideen contemplated the tough but exciting times that lay ahead and looked
forward to further growing his already successful company.

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 Page 6 9B15A012

EXHIBIT 1: PACKAGING FOR DARLING PRODUCT LINES

 VIP         Classic 

 Celebrity         Darling 
Source: Company files.

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 Page 7 9B15A012

EXHIBIT 2: COMPETITORS’ PRODUCT PACKAGING

   

 Fashion Idol                 Sister 
Source: Company files.

EXHIBIT 3: ESTIMATED COST OF ADVERTISEMENTS

Type of Ad Length of Cost of Ad

Ad
Newspaper Ad 1,000,000 KSh
One month
One full page
Website Update N/A 400,000 KSh

Television Ad 17,500,000 KSh

One month
30 seconds, three times a day
Billboard Ad One day 100,000 KSh

Radio Ad 1,740,000 KSh

One month
One minute, five times a day

Note: US$1 = KSh87.58 on September16, 2013.

Source: Data provided by Mamhoud Saffideen.

content data
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Grammar
INDUSTRY

Problemstatement enhancecompayshelandinvage

countayanalysis
2kt Urban Gestural
over halfthe country'spopulation
undertheageof24

50Mt female population

49.91 male population
level ofcorruption
high
unstable political
environment

high corruption Tsustainedcorruption

make beef
counterfeit
culturaldiversity
GOOD RATE OF URBANISATION
Clapdifference differentincome
groups
technologicalprocess
Industyouthnichaircaremarket
2
shilling
set bath
45TWeta
 dry
4 39 Billion 1 gs billion
lowermiddledarwoment
counterfeitmarket supermarkets
distribution channels
stores
tacheasingcompetitionbeauty

company Darling
theoutillworld Vision
Risktaking appetite
innovate
vantagepositontanbelon
specialise
indeybocalenarbet
declining marketshall
decentralised operations

multipledistributors
Products

competitor
consumers