UNIVERSITI TEKNOLOGI MARA (UiTM)

KAMPUS BANDARAYA MELAKA

FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR IN BUSINESS TECHNOLOGY MANAGEMENT (HONORS)

SEMESTER 1 SESI 2023/2024

MKT420: PRINCIPLES AND PRACTICE OF MARKETING

GROUPING ASSIGNMENT: MARKETING ENVIRONMENT

PREPARED BY: MBA2621C

NO. NAME MATRIC ID

1. Nur Farihah binti Kamarulzaman (2024947469)

2. Nurulnathasya binti Noorizam (2024741113)

3. Siti `Aisyah binti Abdul Malik (2021741347)

4. Nur Maisarah Nabila binti Abd Malek (2024741457)

PREPARED FOR:
MADAM NOR HAMIZA BINTI MOHD. NOOR
DATE OF SUBMISSION:
20 MAY 2023
 TABLE OF CONTENT

CONTENT PAGES

1.0 ACKNOWLEDGEMENT 1

2.0 INTRODUCTION OF HABIB 2

3.0 MARKETING ENVIRONMENT

3.1 MICROENVIRONMENT 3
3.2 MACROENVIRONMENT 4
3.3 COMPANY’S RESPONSIBILITY TOWARDS THE 5
FORCES
3.4 OPINION ON RESPONSES TOWARDS THE FORCES 6

4.0 CONCLUSION 7

5.0 REFERENCES 8
1.0 ACKNOWLEDGEMENT (TASYA)

In the name of God Almighty and Merciful.

Indeed, all goodness and glory are only from Allah SWT, who has given us the opportunity to
complete this group assignment. May peace and blessings be upon the prophet Muhammad,
the greatest human example guide.

First of all, we want to appreciate our beloved lecturer, Madam Nor Hamiza Binti Mohd. Noor, for
always being a good advisor while completing this group assignment. Madam was also good at
giving support, motivation, and sharing immense knowledge.

Next, we also want to appreciate our team members and also our fellow classmates for giving
their opinions to each other, the stimulating discussions, sleepless nights, and working together
while finishing this assignment for deadlines. Thank you for always committing to this
assignment and being a great supporter of each other.

2.0 INTRODUCTION OF HABIB (MAI)

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The history of HABIB dates back more than 60 years, to 1958 when a young man with initiative
by the name of Habib Mohamad started working in a jewelry store. Having progressed from
assistant to participating partner, Habib thoroughly understood actual client demands.

Later, he decided to go it alone and founded Pitt Street's first jewelry store on Penang's
renowned "Jeweller's Corner." From the start, our late founder Datuk Haji Habib Mohamed Latif
made it clear that HABIB was a distinct company that operated differently. When jewelers sold
mostly gold, we stood out by selling diamonds instead.

His clientele quickly grew as his jewelry line of extraordinary quality emerged from that tiny, busy
workshop. He realized that he could provide Malaysians with something distinctly special:
excellent jewelry that captures the essence of our country and is refined by traditional
techniques, artistry, and perfection.

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3.0 MARKETING ENVIRONMENT

3.1 MICROENVIRONMENT (TASYA)

The marketing microenvironment for Habib Jewels Sdn Bhd contains several factors that may
determine consumer satisfaction and organizational needs. First and foremost, the customer is
one of the most essential macro-environmental forces at Habib Jewels. Understanding
customers' needs, wants, and buying habits is essential to ensuring the right products and
promotional strategies to target in the market. Habib Jewels' target market includes individual
customers with exceptional and quality jewelry products, especially corporate customers for gift
purposes. Therefore, daily customer communication through surveys, feedback, and individual
approaches will help Habib Jewels improve its products and frequency.

Second, suppliers are an important element in a company's microenvironment. Habib Jewels

buys raw materials such as gold, diamonds, and gemstones from reliable traders in the market.
These raw materials determine the nature of the production process and the quality of the final
product based on factors such as quality, availability, and cost.Building good relationships with
suppliers ensures a reliable source of quality inputs, an essential ingredient that contributes to
providing quality products in the market. Moreover, customers are more concerned about ethical
sourcing and sustainability than ever before, and therefore, it is also profitable for Habib Jewels
to source from responsible suppliers.

Third, competitors are one of the most influential factors in the microenvironment. The jewelry
market has fierce competition with many brands, as mentioned earlier. It is essential for Habib
Jewels to constantly monitor critical areas such as designs, prices set for products and services,
promotions, and competitors' customer care services. Competitive analysis will help Habib
Jewels understand market trends, exploit competitors' weaknesses, and differentiate the
company through a value proposition. This competitive intelligence helps the company modify
its market strategy in a way that will attract more customers.

Finally, the 'Micro Environment' includes intermediaries such as distributors, retailers, and
marketing agencies. These partners help Habib Jewels expand its market reach and play an
essential role in marketing its products. Sustained retailer involvement and utilizing the
knowledge of a marketing agency can assist in a company's market position and brand
recognition. Managing and maintaining the right intermediary partnerships guarantees Habib

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Jewels products to customers through physical retail stores and online stores to increase
Habib's selling points and strengthen its customer base.

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3.2 MACROENVIRONMENT (AISYAH)

The macroenvironment of Habib Jewels Sdn Bhd comprises external factors that significantly
impact its marketing strategies and overall business performance. These factors include
economic, socio-cultural, technological, political, and environmental forces.

The economic environment is a critical macro factor affecting Habib Jewels. Changes in
economic conditions, such as GDP growth, inflation rates, and consumer spending power,
directly influence demand for luxury goods like jewelry. During periods of economic prosperity,
consumers are more likely to spend on premium products, prompting Habib Jewels to
emphasize its high-end offerings. Conversely, in economic downturns, the company may need
to adjust its marketing focus to highlight value-for-money options and cost-effective luxury to
attract budget-conscious consumers.

Therefore, Habib Jewel Sdn's socio-cultural environment is another critical macro environment.
This includes aspects such as the demographic characteristics of users, their cultural
endowment, and the prevailing culture in society. These aspects are essential in creating a
marketing campaign that will appeal to the target audience. For example, Habib Jewel Sdn Bhd
can position its products to attract specific customer segments, such as the millennial and luxury
segments.

Furthermore, technological advancements are another vital aspect of the macroenvironment.

Innovations in digital marketing, e-commerce, and manufacturing technologies have
transformed how jewelry businesses operate. Habib Jewels must stay up-to-date on these
technological developments to remain competitive. Utilizing digital platforms for marketing and
sales, engaging with customers through social media, and adopting advanced manufacturing
techniques for new designs are crucial for meeting the evolving needs of tech-savvy consumers.

In addition, political and legal factors, including government regulations and policies, also impact
Habib Jewels' operations. Compliance with regulations regarding product quality, ethical
sourcing, and environmental protection is essential for maintaining consumer trust and avoiding
legal issues. The company must stay informed about relevant policies and adapt its practices to
ensure legal compliance and uphold its reputation.

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Lastly, environmental factors are increasingly influencing consumer preferences and business
practices. The growing awareness of environmental issues such as climate change and
resource depletion drives demand for sustainable products. Habib Jewels can respond by
integrating eco-friendly practices in its operations, such as using recycled materials and
reducing carbon footprint, which meets consumer expectations and contributes to global
sustainability efforts.

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3.3 COMPANY’S RESPONSIBILITY TOWARDS THE FORCES. (MAI)

Habib Jewels Sdn Bhd, a leading local jeweler in Malaysia, has demonstrated a solid
commitment to responsibly navigating micro and macroenvironmental forces. Habib Jewels has
successfully adapted to and managed these forces as a prosperous local jeweler, contributing to
their remarkable success and expansion. Habib Jewels prioritizes ethical sourcing in the
microenvironment by maintaining transparent and sustainable supplier relationships. This
ensures the procurement of high-quality materials such as gold, diamonds, and gemstones,
which are fundamental to their product offerings. By sourcing responsibly, Habib Jewels meets
consumer demand for ethically produced goods and enhances its brand reputation. The
company respects ethical principles by procuring goods ethically and acting honestly and
sincerely toward its clients.

Furthermore, Habib Jewels focuses on customer satisfaction through personalized service and
regular engagement. The company employs feedback collection, customer surveys, and
individual consultations to understand and respond to consumer needs and preferences. This
approach helps tailor products and marketing strategies that resonate with their target market,
thus fostering customer loyalty and satisfaction.

Regarding competition, Habib Jewels actively monitors market trends and competitor activities.
This wariness allows the company to stay ahead by innovating its product designs, adjusting
pricing strategies, and enhancing promotional efforts. By continuously analyzing the competitive
landscape, Habib Jewels can identify opportunities to differentiate itself and offer unique value
propositions to its customers. Their excellent marketing continues to be supported by a network
of showrooms throughout Malaysia, and they have opened stores for international brands such
as Stephen Webster and Tous, enhancing their market presence.

Intermediaries also play a crucial role in the company's strategy. Habib Jewels collaborates with
reliable distributors, retailers, and marketing agencies to broaden its market reach. These
partnerships ensure that their products are widely available through various online and offline
channels, thus increasing accessibility and convenience for customers. Managing and
maintaining the right intermediary partnerships guarantees that Habib Jewels products reach
customers through physical retail stores and online platforms, thereby increasing Habib's selling
points and strengthening its customer base.

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On the macroenvironmental front, Habib Jewels is experienced in responding to economic
fluctuations by adjusting its marketing strategies. During economic growth periods, the company
emphasizes its premium jewelry collections, while in downturns, it focuses on cost-effective
luxury options to appeal to a broader audience. This flexibility helps the company maintain
steady sales and customer engagement regardless of economic conditions.

Additionally, Habib Jewels address socio-cultural factors by aligning its products with cultural
trends and consumer values. For instance, the increasing awareness and demand for
sustainable and ethical products have led the company to highlight its commitment to
responsible sourcing and eco-friendly practices in its marketing campaigns. Habib Jewels offers
a variety of jewelry items crafted from premium gemstones, such as pearls, gold, and diamonds,
and invests in research and development to enhance designs and align their products with
current trends.

Next, technological advancements are another area where Habib Jewels show responsibility.
The company leverages digital platforms for marketing and sales, utilizing social media and
e-commerce to reach a broader audience. This enhances customer convenience and keeps the
company competitive in the digital age. Furthermore, improvements in manufacturing
technology can lead to new designs or optimized production procedures, creating a competitive
advantage for the company.

Finally, Habib Jewels adheres to legal and regulatory standards, ensuring compliance with
industry norms related to product quality, ethical sourcing, and environmental protection. The
company upholds its integrity and builds consumer trust by staying informed about relevant
regulations and adapting its practices accordingly. Their mission is to make a difference through
initiatives like Yayasan Habib, which emphasizes giving back to society, reflecting the
company's commitment to corporate social responsibility.

In summary, Habib Jewels' proactive and strategic response to both micro and macro
environmental forces highlights its commitment to ethical practices, customer satisfaction, and
continuous improvement, ensuring sustained growth and competitive advantage in the jewelry
industry.

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3.4 YOUR OPINION ON REASON TO RESPOND TO THE FORCES (FARIHAH)

It is crucial for Habib Jewels to proactively respond to the various forces in the marketing
environment for several key reasons. Firstly, staying competitive in the dynamic jewelry industry
demands continuous adaptation and responsiveness. The market is saturated with numerous
local and international brands, all competing for consumer attention and loyalty. By monitoring
competitors and responding to market trends, Habib Jewels can differentiate itself through
unique value propositions, innovative designs, and competitive pricing strategies.

Secondly, understanding and catering to consumer needs is essential for maintaining customer
satisfaction and loyalty. Consumer preferences are continually evolving, driven by changes in
lifestyle, income levels, and cultural trends. For instance, the growing demand for ethically
sourced and sustainable products has become a significant consideration for many buyers. By
aligning its product offerings and business practices with these emerging consumer values,
Habib Jewels can enhance its brand reputation and foster stronger customer relationships.

Additionally, compliance with regulatory standards and legal requirements is essential for the
company's credibility and long-term viability. The jewelry industry is subject to various
regulations concerning product quality, ethical sourcing, and environmental impact. Adhering to
these regulations not only reduces legal risks but also builds trust with consumers who are
increasingly concerned about the ethical implications of their purchases.

Furthermore, addressing environmental and social concerns supports sustainable growth. In

today's market, consumers and stakeholders are more conscious of corporate social
responsibility (CSR). By implementing sustainable practices, such as eco-friendly packaging
and ethical sourcing of materials, Habib Jewels not only contributes positively to society but also
appeals to a broader, socially-conscious customer base. This approach not only enhances
brand loyalty but also positions the company as a leader in sustainability within the industry.

Overall, responding to the forces in the marketing environment is not merely a reactive strategy
but a proactive approach to ensuring Habib Jewels' resilience, relevance, and long-term
success. By staying competitive, meeting consumer needs, complying with regulations, and
promoting sustainability, the company can navigate challenges and capitalize on opportunities in
the ever-evolving jewelry market.

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4.0 CONCLUSION (FARIHAH)

In conclusion, Habib Jewels Sdn Bhd's marketing environment is shaped by many micro and
macro environmental factors that significantly influence its business operations and strategies.
The company's ability to understand and effectively respond to these forces has been integral to
its success and longevity in the competitive jewelry industry.

Habib Jewels has adeptly guided the microenvironmental factors such as customers, suppliers,
competitors, and intermediaries. The company has delivered high-quality products and
exceptional customer service by maintaining solid relationships with suppliers, engaging in
competitive analysis, and leveraging intermediaries. Understanding customer needs and
preferences through constant feedback and market research has enabled Habib Jewels to tailor
its offerings to meet market demands.

On the macroenvironmental front, the company has demonstrated resilience and adaptability in
economic, socio-cultural, technological, political, and natural environmental challenges. Habib
Jewels has maintained consumer interest and purchasing power by strategically positioning its
products and adjusting its marketing strategies in response to economic fluctuations. The
company's commitment to technological advancements and sustainable practices reflects its
proactive stance in addressing the evolving market landscape and consumer expectations.

Moreover, Habib Jewels' dedication to ethical sourcing and corporate social responsibility
highlights its commitment to sustainability and ethical business practices. This enhances its
brand image and aligns with the growing consumer demand for responsible and sustainable
products. The company's strategic responses to the marketing environment have solidified its
position as a leading jeweler in Malaysia. Habib Jewels ensures its relevance and
competitiveness in the market by continuously evolving and adapting to external forces. The
proactive approach to understanding and responding to micro and macro environmental factors
is crucial for the company's sustained growth and success.

In essence, Habib Jewels' ability to navigate the complexities of the marketing environment and
its commitment to quality, innovation, and sustainability places it favorably for future growth and
success. The company's strategic foresight and responsiveness to environmental changes will
continue to drive its mission of providing exceptional jewelry that captures the essence of
Malaysian craftsmanship and tradition.

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5.0 REFERENCES

1. About Us | HABIB JEWELS. (n.d.). Www.habibjewels.com. Retrieved from

https://www.habibjewels.com/about-us
2. HABIB 1958. (n.d.). Www.habibjewels.com. Retrieved from
https://www.habibjewels.com/HABIB-1958
3. Habib Jewels. (n.d.). Habib Jewels. Retrieved from
https://www.habibjewels.com/
4. Investopedia. (n.d.). Macro Environment. Retrieved from
https://www.investopedia.com/terms/m/macro-environment.asp
5. L'Officiel Malaysia. (n.d.). Habib: The Nation’s Own Jewel in the Crown. Retrieved
from
https://www.lofficielmalaysia.com/jewellery-watches/habib-the-nation-s-own-jew
el-in-the-crown
6. The CEO Magazine. (n.d.). Sustainable Jewelry: Ethical Practice. Retrieved from
https://www.theceomagazine.com/lifestyle/jewellery/sustainable-jewelry-ethical-
practice/

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