SITI KhadijaH GROUP ASSIGNMENTS JDADA PDF

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COMPANY ANALYSISSITI KHADIJAH APPAREL SDN BHDTECHNOLOGY ENTREPRENEURSHIP (ENT600): CASE STUDYFACULTY & PROGRAMME : BA / BASEMESTER : SESSION 1 2020/PROJECT TITLE : SITI KHADIJAH APPAREL SDN BHDGOUP MEMBERS : 1. FAQRUL HAKIM BIN HIDZIR (2020686548)2. NURFARAH SYAMIMI BINTI ABDULLAH SHAIDI(2020212...

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COMPANY ANALYSIS SITI KHADIJAH APPAREL SDN BHD

TECHNOLOGY ENTREPRENEURSHIP (ENT600): CASE STUDY FACULTY & PROGRAMME

: BA / BA721

SEMESTER

: SESSION 1 2020/2021

PROJECT TITLE

: SITI KHADIJAH APPAREL SDN BHD

GOUP MEMBERS

: 1. FAQRUL HAKIM BIN HIDZIR (2020686548) 2. NURFARAH SYAMIMI BINTI ABDULLAH SHAIDI (2020212876)

LECTURER

: DR. MOHAMMED HARDY LOH RAHIM

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TABLE OF CONTENT PAGE TITLE PAGE

i

ANKNOWLEDGEMENT

ii

TABLE OF CONTENT

iii

LIST OF FIGURES

iv

LIST OF TABLE

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1. INTRODUCTION 1.1

Background of The Study

The Muslim community is very concerned about the deeds of worship. In Islam, it is a sunnah to wear the best clothes when performing acts of worship as well as an obligatory to cover the aurat; especially for women who are more critical in terms of covering the aurat. The women’s prayer outfit called ‘Telekung’ is one of the attires that is commonly worn by Muslim women during their prayer especially in South-East Asia.

It’s important for one’s being comfortable in their attire for any occasion. For Muslims, being comfortable during their prayer enable them to concentrate in deeds of worship. Telekung however, often come with low quality, uncomfortable, not fit and sometimes feels hot makes its users feel uncomfortable. If there is a telekung product that is quality and comfortable, sometimes the consumers find it difficult to distinguish which one is good or not because telekung brands are often not clear and not significance enough.

The importance of innovative products with strong branding can make it easier for consumers to identify the product that they are buying. The produced product also must have the required standards and have the ability to solve problems that are faced by consumers. Hence, there is a need to study a successful product that is not just in sales but also in term of innovation of the product.

1.2

Problem Statement

Ideally, there are many traders that sell telekung from the streets to bigger malls. However, they are often indistinguishable in term of quality due to similar appearance and design. Various type of telekung are sold at the same range price even though the quality is very different from each other resulting unattainable market targets. As well as the product’s character often vague.

There are needs of strong product’s branding featuring optimum quality and Innovative features. This requires reviews and research of the marketing strategies made by successful company that own telekung products in the market.

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1.3

Purpose of The Study

The purpose of this study is to identify the marketing strategies of telekung company and the characteristic of successful telekung products in the market.

2. COMPANY INFORMATION

2.1 Background

Siti Khadijah Apparel (SKA) began its business selling woman prayer outfits (telekung) under the brand name of Siti Khadijah. It all began with the problem faced by most users of the telekung who could not find a comfortable wear and would always resort to do alterations to make it fit and suitable. Seizing this as an opportunity, SKA created the brand to distinguish itself as a maker of prayer outfits who put quality and comfort through innovative facial design and quality materials.

Now, in its tenth year of operation, SKA has introduced several facial designs to its range of telekung in order to fulfill the needs of its customers. SKA seeks to preserve the history and heritage values of the telekung by adapting old and new features through its design and utilization of cotton and high quality spun polyesters blended with spandex, sewn together meticulously using beautiful crafted laces. The culmination of which is a very comfortable, practical and beautiful piece.

SKA also produces various woman apparels targeted for the comfort of pilgrims doing their Umrah and Hajj. Some of the products include head veils, hand socks, jubah, traditional baju kurung and various accessories. Siti Khadijah has been in the market since 2009 and has now expanded to have more than 10 branches all over Malaysia including one in Jakarta, Indonesia. Siti Khadijah Apparel Sdn Bhd wish to move forward globally by leading the telekung and diversification to modest woman apparel industry through aggressive branding and product innovation.

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2.2 Products

Siti Khadijah’s telekung is a revolutionary design that focusses on comfort and superior quality with a complete prayer outfit (telekung) that customer will prefer. More importantly, Siti Khadijah wanted to help user to stay focused when performing ibadah. Siti Khadijah Apparel (SKA) was built on a desire to help followers of the faith feel equanimous in their prayer. Each piece of creation is designed to the finest thought and details to help user to feel a mindful connection when performing their spiritual obligations. SKA prayer outfits, apparel and accessories are thoughtful creations made based on crucial insight of the day of life of their consumers.

Siti Khadijah Apparel divided into three categories which is women, men and accessories that the main focus is to perform prayer. Women apparel such as baju kurung, jubah, hijab and prayer outfit (telekung) which followed the Islamic compliances. Men apparel are more gravitated towards performing Hajj such as Belt Hajj, Adam Shirt (Kemeja Adam) and T-shirt Ihram. In the other hand, SKA accessories compliment both women and men categories such as bag, Al-Quran, hand sock, prayer mat (sejadah) and shoes.

2.3 Technology

Siti Khadijah Apparel seeks to preserve the history and heritage values of the telekung by adapting old and new features through its design and use of high quality traditional and high-tech material. The pattern design choose by Siti Khadijah is mainly focuses on facial design, ensuring comfort during prayer and stretchable material which will compliment any face shape and size. The material use of high quality cotton, spun polyester, rayon and silk with the combination of beautiful crafted lace sewn in a meticulous manner.

Siti Khadijah Apparel Sdn Bhd face design is registered with myIPO under industrial design that launch four design which are Original, Classic, Modern and Harmony. SKA offered telekung with fine embroidery with hem, neck and the edge of the sarong and using a special unique smocking technique technologies for the head band that is sewn with lace and a stretchable chin strap. Other features include broideries anglaise, embroideries florals with eyelet and rhinestone.

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2.4 Business, Marketing and Operational Strategy

i.

Pricing Strategy

Siti Khadijah telekung pricing strategy is by using profitability approach. This can be established with a price that cover mostly the variable costs and fixed costs used in the production and operation of the company while bringing overwhelming profits. Still, the pricing of the products was moderate and valued for the customer. Competitive price strategy is applied in the pricing of Siti Khadijah’s products. This strategy is to decrease the emphasis on the competitor price and stay competitive in the market by matching other companies’ prices like Zaahara and Ariani. There are different in price between Siti Khadijah telekung and the competitors but just in small range. Siti Khadijah have to make sure the price setting is profitable to the company even though the company is using competitive price strategy.

The pricing strategy of Siti Khadijah’s telekung is carefully manage and marketers have decided and adjust the price frequently to accommodate changes in the competition market and economic status’s Khadijah will be capable to provide high-quality product to consumers with the pricing strategy. Siti Khadijah decide the price of the products frequently and adjust the price regularly to match the market change.

ii.

Target Market

Siti Khadijah’s mainline product have a price range from RM 93.00 to RM 1,699.00. This clearly, shows that their main target audience are the M40 and above (based from Malaysian’s Household income groups). To cater the exclusivity and premium quality of the product, the price is reasonably fair comparing to the conventional telekung that is much cheaper. They however able to penetrate the market even they face challenges in the early stage because of the high price. In term of demographic and psychographic, they are targeting Muslim community who values premium and high-quality products.

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Household Group B40

M40

T20

Median Income (RM)

Income Range (RM)

B1

1,929

Less than 2,500

B2

2,786

2,500-3,169

B3

3,556

3,170-3,969

B4

4,387

3,970-4,840

M1

5,336

4,850-5,879

M2

6,471

5,880-7,099

M3

7,828

7,110-8,699

M4

9,695

8,700-10,959

T1

12,586

10,960-15,039

T2

19,781

15,039 or more

Table 1: Household Income and Basic Amenities Survey Report 2019, Department of Statistic Malaysia “Appendix A”

Muslim Community

M40 Group Premium and Exclusivity user

Chart 1: Demographic and Psychographic of the Target Market

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iii.

Distribution Channel

SKA Has utilized various channels available to optimize their sales. They have taken the Bricks-andclicks approach to strengthen their physical and virtual presence in the market. They now have 30 physical stores in Malaysia and 12 in Indonesia. As an approach to ecommerce, they have built an exclusive website for their brand which is www.sitikhadijah.com. In addition, they use the opportunity to place their products on various online marketplaces such as Lazada and Shopee. Recently, they have partnered with GrabMart by Grab company to provide delivery services of their products from their official store to their customer’s door step in less than 30 minutes. As the recent pandemic hit, SKA has come up with a dropship program where the agents help to support the SKA team making sales to their potential customer while making sure their staff vulnerability to the pandemic is reduced. Apart from that, they’ve seen listed in Involve Asia where their products are able to monetize by any promoter that wanted to earn commission up to 5%. Last but not least, Go Shop by Astro Malaysia Holdings Berhad is one of the home shopping channels that they have collaborate to engage with the mass audience while promoting the features of their product.

iv.

Marketing Strategy

SKA is known with their Mass Marketing strategy. They have broadcast their message focused on radio, television, newspaper and even large outdoor billboard. Their often seen using emotional phrases that capture attention of the audience such as “Lambang Cinta Abadi” and “Nak.. Mak teringin nak pakai telekung Siti Khadijah”. With the launch of their ecommerce site, it’s crucial to have good traffic into their website. They’ve also seen doing an Online targeting advertising so that their target groups are addressed as directly as possible. Besides that, SKA wanted to leverage the power of niche influencers and promoters where they create that opportunity by listing their products in affiliate program as a part of their Affiliate marketing strategy. Direct response marketing strategy also has been applied in their business. This will help them to evoke an onthe-spot response and encourage a prospective customer to take action by opting in their sales offer. Lastly, they have launch a loyalty scheme called SK VIP where their loyal customers could get a points for every purchase they have made and a special reward for birthday month.

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v.

Human Resources

Besides having hundreds of staff and agents, SKA is very critical regarding human resources. They believe by having multiple outlets will create high demands and require them to have efficient and high production volume of products while maintaining the exact quality. To counter this problem, they have come up with the idea of establishing a sewing academy that can produce labor of skilled manpower in the field of sewing. The academy is called Sri Kandi College. Apart from providing manpower resources that can support the growth of the local clothing industry, the existence of this training center will also open up opportunities for the development of textile entrepreneurs.

2.5 Financial Achievements

Siti Khadijah Apparel brand has 30 boutiques in the country with a total of 265 female staff, that is 95 percent of the sewing department workers are women and they used to be housewives. SKA Sdn Bhd not only produce telekung for sale in the market but also contribute back to the community in the employment industry. To strengthen the Siti Khadijah (SK) brand in the local and international markets, the premium telekung company has invested RM3.5 million in the country including Indonesia throughout the year. Within 2019, the company had opened 12 more boutiques in the Indonesian region which carried the same purpose to help the local community especially housewives.

The company has organized a turnover of 50 million Ringgit Malaysia at the end of 2017 compared to 32.5 million Ringgit Malaysia compared to last years. Thus, this acquisition has made a total of 24 branches throughout Malaysia and successfully opened branches in Indonesia as well. In addition, Siti Khadijah Apparel has customers from Singapore, Brunei, Dubai and London who offer high potential for the Siti Khadijah Apparel brand. Due to this overseas demand, the company has entered online sales as it covers 10 percent of total sales and helps the brand grow outside of Malaysia.

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3. COMPANY ANALYSIS INTERNAL FACTORS STRENGHTS •

Large Market Share

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Brand Leader

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High Manufacturing Volume

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Recognizable Brand

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Own Patents

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Innovative Product

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Good Marketing Strategy

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Global Trading

WEAKNESSES •

Narrow Product Line

EXTERNAL FACTORS OPPORTUNITIES •

Expand Product Range

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Expand Customer Base

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Diversifies Business

THREATS •

Consumer have a choice to use substitute product

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Product Exposed to imitation and illegally mass duplicated

Table 2: SWOT Analysis

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EXISTING PRODUCTS

NEW PRODUCTS

MARKET PENETRATION

PRODUCT DEVELOPMENT

EXISTING MARKETS

•

Implementation

of

various

marketing strategy •

Exclusive and premium products

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Upgrading

Launch SK VIP Card for loyalty

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Innovate

Existing

Product

scheme •

Birthday Reward

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Newsletter Subscription Reward

MARKET DEVELOPMENT NEW MARKETS

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DIVERSIFICATION

Targeting good economy and household

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income group (Targeting M40 Above) •

Targeting Majority Religious Belief

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Implementation of various sales channel

Accessories,

Shoes,

Bag,

Box,

Container, Face Mask. •

Training Academy (Sri Kandi College)

Table 3: Ansoff Matrix Analysis 4. FINDINGS AND DISCUSSION The SWOT Analysis shows that they are very successful in term of the Strength. It could be one of the successful factors of the company. Despite having some threats and weaknesses, the company have a solid business stability. The Ansoff Matrix above shows that the company able to penetrate the market by implementing various marketing strategy such as mass marketing, online targeting, pricing strategy, affiliate marketing as well as direct response marketing. They also tackle the customer relationship by rewarding them in every birthday month. Besides that, newsletter subscriber also gets rewarded. By targeting middle class group, they are able to develop new market consisting of Muslim community that seek premium and exclusive telekung product. The way SKA develops their product is very noticeable. The original product has gone through 3 times of innovation process. They keep upgrading their product by adding new features that fits the need of their customers. In term of diversification, they have come out with various type of products. Accessories, shoes, bag, box, container and because of the recent pandemic, they also release a face mask. Apart of that, education is something that is far from their business nature. The company somehow, able to see opportunity by building a training academy where the students later will become their prospect of skilled laborer.

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5. CONCLUSION The results of this studies indicate that it is possible for a telekung company to penetrate new market with different price range by using good marketing strategy. A strong brand’s presence must be established in order to reach the target audience. SKA company has gained many loyal customers and gaining trust because of their strategic efforts. This is also showing that one’s brand can be distinguished from each other by promoting innovative and customer-centered product.

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7. REFERENCES Nor Hatina Shuib. 2017. Padzilah pelopor industri fesyen telekung. [https://www.bharian.com.my/wanita/fesyen/2017/10/337083/padzilah-pelopor-industri-fesyen-telekung]. Accessed October 30, 2020. Jami’ah Sokri. 2018. Tiga ciri unik jana keunggulan telekung SK. [https://www.bharian.com.my/wanita/keluarga/2018/09/469626/tiga-ciri-unik-jana-keunggulan-telekung-sk]. Accessed October 30, 2020. Siti Khadijah Apparel Sdn Bhd. 2020. About Us. [https://sitikhadijah.com/id/about-us]. Accessed October 30, 2020. Andrew Tay. 2018. Siti Khadijah Cps – Affiliate Program Live On Involveasia. [https://blog.involve.asia/newadvertisers/siti-khadijah-cps-affiliate-program-live-involveasia/]. Accessed October 30, 2020. Kasmiah Mustapha....