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 v

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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 Median Income (RM) Income Range (RM)

B40 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

M40 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

T20 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-
and- clicks 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 on-
the-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 WEAKNESSES

 Large Market Share  Narrow Product Line

 Brand Leader
 High Manufacturing Volume
 Recognizable Brand
 Own Patents
 Innovative Product
 Good Marketing Strategy
 Global Trading
EXTERNAL FACTORS

OPPORTUNITIES THREATS

 Expand Product Range  Consumer have a choice to use substitute

 Expand Customer Base product

 Diversifies Business  Product Exposed to imitation and illegally

mass duplicated

Table 2: SWOT Analysis

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 EXISTING PRODUCTS NEW PRODUCTS

MARKET PENETRATION PRODUCT DEVELOPMENT

 Implementation of various  Exclusive and premium products

EXISTING MARKETS

marketing strategy  Upgrading and Innovate Existing

 Launch SK VIP Card for loyalty Product
scheme
 Birthday Reward
 Newsletter Subscription Reward

MARKET DEVELOPMENT DIVERSIFICATION

 Targeting good economy and household  Accessories, Shoes, Bag, Box,

NEW MARKETS

income group (Targeting M40 Above) Container, Face Mask.

 Targeting Majority Religious Belief  Training Academy (Sri Kandi College)
 Implementation of various sales channel

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/new- advertisers/siti-khadijah-cps-affiliate-program-live-involveasia/]. Accessed
October 30, 2020.

Kasmiah Mustapha. 2018. Telekung 2.0. [https://www.nst.com.my/lifestyle/flair/2018/09/408399/telekung-

20]. Accessed October 30, 2020.

Malaysia National News Agency. 2017. Siti Khadijah Apparel Eyes RM50 Mln Revenue Growth This Year.
[https://article.wn.com/view/2017/08/09/Siti_Khadijah_Apparel_Eyes_RM50_Mln_Revenue_Growth_This_
Year/]. Accessed October 30, 2020.

SMECorp. 2017. Siti Khadijah unjur perolehan RM50juta.

[https://smecorp.gov.my/index.php/en/resources/2015-12-21-10-55-22/news/2089-siti-khadijah-unjur-
perolehan-rm50juta]. Accessed October 30, 2020.

Mutakhir. 2019. Kaut Untung Mudah. [https://www.hmetro.com.my/mutakhir/2019/08/491623/kaut-untung-

mudah]. Accessed October 30, 2020.

Nor Hatina Shuib . 2019. Sedekad penuh berliku perjuangan jenama SK.
[https://www.bharian.com.my/wanita/lain-lain/2019/01/520428/sedekad-penuh-berliku-perjuangan-jenama-
sk]. Accessed October 30, 2020.

CompareHero.my. 2020. T20, M40 And B40 Income Classifications in Malaysia.

[https://www.comparehero.my/budgets-tax/articles/t20-m40-b40-malaysia]. Accessed October 30, 2020.

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8. APPENDICES

Appendix A

Keep in mind that the income group definitions are not fixed. The names, B40, M40, and T20, represent
percentages of the country’s population of Bottom 40%, Middle 40%, and Top 20% respectively. The values
may increase or decrease year-to-year, depending on the country’s GDP, which is why the median household
income is used as the determinant instead.

Though the income levels for each group has improved over the past three years, we should not ignore the
escalating costs of living resulting from inflation and slower wage growth. To be exact, if we include
inflation into the picture (3.15%, 2.1%, 2.09%, and 4.1% respectively in 2014, 2015, 2016, and first half of
2017), the ringgit’s value is diminishing.

It was also reported that the average monthly income of employees, based on the 2016 Salaries and Wages
Survey Report by the Department of Statistics, increased from RM3,045 in 2016 to RM3,495 in 2019.

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