Sustainability In Business Marketing: A Case Study Of Tengri

Marketing Mix

Tengri, a business idea conceived by Nancy Johnson, is a London based brand that employs the Mongolian yak fibre in creating sustainable natural luxury clothing products. Today, Tengri represents slightly above 4,500 nomadic herders since the yak fibre is supplied directly from the herders (Tengri, 2018). The company has revolutionized the fashion industry by bringing on board a new business model that enables the Mongolian nomadic herder communities to export and trade their goods on the international market without having intermediaries. The trading activity between Tengri and nomadic herders has sparked the Mongolian government to provide new lands and herding rights to the community hence promoting development.

Marketing Mix

Tengri employs a marketing mix to both evaluate and reevaluate its business activities. The marketing mix incorporates; pricing strategy, product, promotion, and place.

Tengri focusses on the luxury market hence its prices are slightly high. The company applies technological innovation in order to increase value on its products. For example, in creating woven fabrics, the company has invested more in research and development so as to produce high-quality knitwear. This allows the product to fetch high prices. In addition, Tengri’s has partnered with great fashion brands such as Harry Stedman, Huntsman, and Nile & York so as to expand its products (Tengri, 2018). This has allowed the company to set competitive prices on their products due to uniqueness of their niche in the fashion industry.

Tengri’s main product is the yak fibre which is used in designing natural and luxurious garments. The yak fibre is acquired from specific breeds of yak only present in Mongolia. The Mongolian yak fibre is unique and has different qualities. About 90% of the globally sourced raw woolen fibres used in the fashion and textile industry ends up being unused yarn by-products. The yak fibre is purchased directly from the Mongolian herders hence preventing intermediaries who may take advantage of the herders.

• Place/distribution.

Mongolia is a unique location for Tengri’s business concept while Europe is also a unique place for selling the concept. Nancy’s idea to launch the concept in the United Kingdom particularly in London has ensured the success of the brand. Besides, choosing Mongolia as the source of Tengri’s products has ensured competitiveness. Tengri products are designed using the British heritage craftsmanship hence being able to acquire a large market share in different markets.  Tengri’s collaborations have ensured the business expands its collection. Its collaboration with Selfridges & Co has helped Tengri products to be located and distributed in different locations (Tengri, 2018).

• Promotion

Price Strategy

Promotion is an essential marketing concept since it tells customers about a company’s product and services. How one promotes his or her products may affect the sales positively or negatively. Tengri has extensively benefitted from its collaboration with Selfridges. Material World, an annual retail platform owned by Selfridges has helped promote the Tengri brand (Tengri, 2018). Material World promotes sustainable innovation by considering the materiality of the fabrics of fashion. Selfridges has selected Tengri as the brand to head the sustainable fashion revolution thereby promoting the brand extensively.

Tengri differentiates itself from its competitors due to how it has positioned itself on the market. The company creates value in the market by carving out a spot in the competitive landscape. Since the inception of the company, its constantly winning the mindshare in the marketplace. Tengri has been acknowledged as a champion in sustainable manufacturing and has won an award since it’s considered to be pioneering one of the leading sustainable global initiatives (Tengri, 2018). Tengri’s position strategy is differentiated from its competitors through the following;

• Market profile.

Tengri’s market profile is distinguished by three major aspects and they include; competitors, size and stage of growth. Beginning with its size, Tengri has grown drastically over the years. Basing its operations in London, the company has managed to secure great deals with other luxury brands. For example, its collaboration with Savior beds has allowed the company to grow its image (Tengri, 2018). This is something other luxury brands have not been able to achieve in such a short time as Tengri.

Secondly, we have competition. Tengri in the process of licensing its trademark so that it can be used by their buyers. For example, the company has trademarked its Khangai Noble Yarns and also its Tengri Noble Yarns (Tengri, 2018). By doing so, it has set its materials apart from the convocational commodity market. Therefore, any competitors will have to work hard in order to come up with new brands that can be compared to Tengri.

Lastly, we have stage of growth. Tengri makes its products once a year since the herders shave off the yak fibres once a year. This is the only yak that Tengri uses to makes its product. However, this is changing since the Mongolian harder’s are growing the yak fibre business hence supply will increase drastically over the years.

• Customer segments.

Tengri has divided its market segment into four general areas so as to meet the demands of its customers quite easily. Other competitor brands do not have such segments hence giving Tengri a competitive edge.

Product

Psychographic segmentation: Tengri classifies its products in the luxury segment in order to satisfy the luxurious lifestyle of customers. The material used in their products is scarce and also, it’s of high quality.

Demographic segmentation: Tengri has based its operation in London so as to focus on both fashion lovers and B2B relationships. The company products are only for men but it’s growing its capacity to cover all groups.

Geographic segmentation: Tengri has focused its products on the London market hence taking the opportunity to grow amidst great brands and be competitive. It has also managed to get into great partnerships in London.

Behavioral segmentation: Tengri is also able to meet the tastes of the quality-conscious people. For example, Tengri’s sweaters are woven by hand in order to ensure they are classical and of high quality (Tengri, 2018).

A SWOT analysis can be used to determine the competitiveness of Tengri. Factors such as its strengths, weaknesses, threats, and opportunities are covered. They include;

Strengths.

• Maintenance of the Mongolian culture.
• Presence of a transparent and traceable supply chain.
• High-quality products.

Weaknesses.

• The yak fibre is only acquired once a year.
• The demand for the yuk fibre is still low.
• The Tengri brand has not yet gone global.

Opportunities.

• Collaboration with other luxury brands.
• New markets have opened to the idea of yak clothing.
• New textile innovation to help grow the yak fibre textile.

Threats.

• Competition from cashmere which is another fibre from Mongolian goats.
• Competition from other convocation cloth brands. For example, Gucci and Lois Vuitton.
• Degradation of the Mongolian landscape due to overgrazing hence may reduce the amount of yak fibre acquired.
• Delivery of value.

Tengri has invested more in its R&D to help promote high-quality products. Through technological innovation, Tengri adds value to its yak fibres hence being able to create premium yarns that meet luxurious standards. With the help of Heritage mills in Britain, Tengri has converted its yuk fibres into high-quality fabrics hence offering value that its competitors are unable to meet.

Tengri follows a set of sustainable marketing principles in ensuring their operations are successful. The following articles expose some sustainable marketing principles that help illustrate how Tengri applies such principles in its operations.

1.    Characterizing marketing paradigms for sustainable marketing environment.

One of the principles in this article is the focus of creating sustainable wellbeing. This principle outlines that the primary focus of a market is to serve the wellbeing of the real stakeholders (Hurth & Whittlesea, 2017, pg. 381).  Tengri applies this principle by ensuring that its stakeholders equally benefit from its operations hence the relationships among them is continually growing.

1.    Sustainable Marketing-Managerial Ecological issues.

According to the article’s new paradigm of sustainable marketing, marketing systems have adopted a principle of “zero waste” and “zero discharge” (Fuller, 2000, pg. 5). The article suggests that as marketing systems consume resources and end up creating more waste. However, as resources are depleting, the reusing of the waste could be advantageous. Tengri has used this sustainable marketing principle to its advantage. For example, before the Yak fibre idea arose, the Mongolian farmers were throwing away the excess yak fibre hence not benefitting from it. However, Tengri took the idea and has benefitted itself and the community.

1.    Fostering fair and sustainable marketing for social entrepreneurs in the context of subsistence marketplaces.

Promotion

The article points out that the principle of engagement with the impoverished is of crucial concern since it promotes true and long-term benefits (Facca-Miess & Santos, 2014, pg. 508). The engagement helps in building trust and empowering the people served. Tengri has also promoted authentic engagement among herders hence ensuring they promote from their yak fibre. The relationships have also allowed better supply chains to be developed.

1.    Applying sustainable marketing strategies – the key to obtaining competitiveness.

The article recognizes that positioning through differentiation is of great importance in achieving sustainable marketing strategies. This is through the provision of high-quality products that meet customer requirements hence resulting in customer loyalty (Duralia, 2014, pg. 28). Tengri has positioned its products in different customer segments hence ensuring they meet the customers’ expectations.

1.    Sustainability: Economic Environmental and Public issues. Marketing possibilities.

This article suggests that planning can increase productivity since many environmental challenges can be eased (Bormane, Škiltere & Batraga, 2017, pg. 23). This is a crucial sustainable marketing principle since the environment is evolving. Through supporting the Mongolian yak herders, goat rearing is being discouraged since goats are the main reason why desertification is growing. Goat rearing in Mongolia has increased due to the demand for cashmere. Therefore, by promoting yak rearing, the rate of desertification is being reduced hence offering more sustainability.

1.    Sustainable marketing and social media.

According to this article, green advertising is a principle that may appeal to the desires of the concerned environmental consumers (Minton et., 2012, pg. 70). However, many people may be reluctant in participating in the sustainable project. Tengri is applying the principle of green advertising with a different style. For example, by making the luxurious products, consumers get interested with the story behind the product hence being able to connect with the product.

1.    Emergence of green marketing strategies and sustainable development in India.

The article suggests that partnerships are great means of supporting green initiatives since they are complex to handle (Singh, Singh & Sharma, 2016, pg. 700). Therefore, working as a team ensures the effectiveness of a company. Tengri has collaborated with different luxury brands and also textile companies in order to push the idea of sustainable yuk fibre textile. This has proved a success to them.

1.    The influence of marketing and the influence of corporate social responsibility.

The relationship between the environment and the economy has been a significant element in promoting the principle of corporate social responsibility. Having a closer contact with the cultures is a quick prerequisite of acquiring information (MORRONE, 2012, pg. 4). Nancy Johnson, the founder of Tengri, has maintained contact with the Mongolian herders hence being able to promote them. Tengri’s assistance of the herders has allowed the Mongolian government also to support the herders in ensuring the land is not degraded.

1.    Integrating sustainable tourism and marketing management.

Position analysis of Tengri

According to the article, achieving sustainability within the context of tourism will require an integrative approach to be considered (Gilmore & Simmons, 2007, pg. 194). This is where different parties come together to share how to promote tourism services. Tengri has integrated different designers, textile experts, and fashion experts to aid promote sustainable marketing in its operations. This has fostered creativity and excellence.

1.    Sustainable Event marketing in the MICE industry: A theoretical framework.

The article states that sustainable event marketing is crucial in driving change. This is because events drive different communication capabilities (Tinnish & Mangal, 2012, pp. 234-235). Tengri’s communication of its business model has helped drive change in the fashion industry. People have begun accepting the brand since it promotes sustainability. The brand has been recognized to be among the top hundred companies supporting global sustainable initiatives.

1.    The living product – using the creative nature of metaphors in the search for sustainable marketing

Interdependence and relationship are factors that are highlighted in this article. In supporting a product, being part of an ecosystem allows the interdependency of the involved parties to be effective (Mitchell & Saren, 2008, pg. 405). Tengri has created an ecosystem in its operations since the company believes that every person must benefit from the business. It includes; the herders, investors, employees, small startups and the customers.

1.    Ethical Dimensions of sustainable marketing: A consumer policy perspective.

The article highlights that ethics in very crucial in promoting sustainable development. Ethics provides a rationale on managerial services hence providing values in the organization (García-Rosell & Moisander, 2008, pg. 212). Tengri promotes a transparent supply chain between them and the yak herders. This ensures the herders get value from their yak fibre supplied to Tengri.

1.    Marketing in and For a Sustainable Society

The article outlines that organizational responsiveness to sustainability initiatives is both good for an organization and the environment (Malhotra, 2016, pg. 3). Tengri considers itself as a business model that has incorporated social responsibility in itself. Therefore, the principle of responsiveness to sustainability is critically observed in Tengri operations.

1.    Marketing education for sustainability.

The article suggests that education for sustainability is of crucial concern. Making education locally relevant and culturally effective ensures objectives of sustainability are met (Wilhelm, 2008, pg. 12). Tengri together with the government of Mongolia are educating the Mongolian people of ways to ensure the preservation of the landscape. This principle is essential since the locals understand what they should do.

1.    Sustainability marketing research: past, present, and future.

The article justifies that a long-term relationship is crucial in achieving sustainability. The relationship between the environment and customers should help create value in the products provided (McDonagh & Prothero, 2014, pg. 1199). Tengri should employ this marketing principle so that it can promote the Mongolian society in advancing themselves in the future.

1.    The structure of sustainability research in marketing.

Competitive analysis

According to this article, the environmental dimension promotes value creation in order to enhance the financial performance of an organization (Chabowski, Mena & Gonzalez-Padron, 2011, pg. 56). Tengri’s has patterned with heritage mills to create value on the yak fibre. This value creation has enabled the company to give back to the community through education and support hence promoting the environment.

1.     Toward a “theoretical toolbox” for sustainable research in marketing.

The article suggests that sustainability is a socially constructed concept. This means that an organization must be part of the sustainable process through the entire project it may be handling (Connelly, Ketchen & Slater, 2011, pg. 90). Tengri has made sure that it is part of the sustainable process of the yak production since its inception. This principle has allowed it to strengthen the relationship with the Mongolian communities.

1.     Sustainability in business from a marketing perspective.

According to a study in the article, commitment to corporate sustainability by companies ensure the vision provided by different governmental and non-governmental bodies is met hence driving sustainability (Tollin, Christensen & Wilke, 2015, pg. 490). Tengri’s support for the Mongolian herders has sparked the Mongolian government to achieve some objectives through ensuring the environment is protected.

1.    Towards holistic sustainability marketing: Insights from traditional culture.

According to the article, fashion giants such as Zara and H&M, persuade customers that their marketing style is sustainable while its only based on stimulating consumption (Long, FitzPatrick & Varey, 2015, pg. 290). There is a need for promoting a sustained society. From the grassroots, Tengri has ensured the Mongolian society is taken care of such that they do not take advantage of them while making huge profits.

1.    Market-oriented sustainability: a conceptual framework and propositions.

The article suggests that sustainability is a consumption concept and not exception concept (Crittenden et al., 2012, pg. 72). This means sustainability is not a voluntary activity but a critical component of a firm. Tengri has incorporated sustainable programs in its operations hence it is regarded to be among the top a hundred sustainable initiatives. Sustainability is the core of its operations. 

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Sustainable principles applied by Tengri

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