Sustainable Management and Marketing
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This report explores the challenges and strategies of sustainable management and marketing for House of Tengri, a London-based clothing design company. It discusses the marketing mix, product strategy, promotion strategy, distribution strategy, pricing strategy, market positioning, and sustainable marketing principles. Recommendations are provided for improving brand awareness and implementing sustainable practices.
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SUSTAINABLE MANAGEMENT AND MARKETING
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1SUSTAINABLE MANAGEMENT AND MARKETING
Table of Contents
Introduction......................................................................................................................................2
Marketing Mix.................................................................................................................................2
Product.........................................................................................................................................2
Promotion....................................................................................................................................3
Place.............................................................................................................................................3
Pricing..........................................................................................................................................3
Theoretical explanation...................................................................................................................4
Product strategy...........................................................................................................................4
Promotion strategy.......................................................................................................................4
Distribution strategy....................................................................................................................4
Pricing strategy............................................................................................................................4
Market positioning...........................................................................................................................5
Sustainable marketing principle......................................................................................................6
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8
Table of Contents
Introduction......................................................................................................................................2
Marketing Mix.................................................................................................................................2
Product.........................................................................................................................................2
Promotion....................................................................................................................................3
Place.............................................................................................................................................3
Pricing..........................................................................................................................................3
Theoretical explanation...................................................................................................................4
Product strategy...........................................................................................................................4
Promotion strategy.......................................................................................................................4
Distribution strategy....................................................................................................................4
Pricing strategy............................................................................................................................4
Market positioning...........................................................................................................................5
Sustainable marketing principle......................................................................................................6
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8
2SUSTAINABLE MANAGEMENT AND MARKETING
IntroductionHouse of Tengri is one of the popular London based clothing design company with high
level craftsmanship and unique design of its dresses. The founder of Tengri, Nancy Johnston,
belongs to the Asian-American culture identified the potential use of far of Khangai Yak of
Mongolia in wardrobe fashion (tengri.co.uk 2019). The company was established in 2014 but
got fame within a year because of its different and unique type of wardrobe collections. The
raw materials are directly coming from Mongolia and obtains different products in the category
of fibres, yarns and fabrics. Moreover, the company likes to shape its supply chain more
transparent in order to get high level of raw materials and expand the market effectively. Most
of the products that
House of Tengri offers are 100% natural and environmental friendly. As a
result of that it helps the organisation to establish a better market capitalisation in UK.
In this regard, this report is going to find out the possible advantageous and challenging
factors that
House of Tengri is facing in order to bring more efficacy into the business
orientation. Therefore, different tools are used to identify the existing market of Tengri such as
marketing mix, brand positioning map and the sustainable marketing principles that will help
the organisation to make progress further.
Marketing Mix
Product
A wide range of woollen clothes are offered by
House of Tengri for both men and
women. Most of the products are made of 100% original yak wool and extremely warm and
comfortable (tengri.co.uk 2019). The craftsmanship and the exclusive design of the products
are also provided strategic advantage for the organisation in doing business in a high
competitive wardrobe and clothing market of UK (Theresident.co.uk 2014). As per the website
of
House of Tengri, the organisation belongs to the luxury goods industry with cutting edge
textile technologies that will bring a unique product value and position into the UK market.
IntroductionHouse of Tengri is one of the popular London based clothing design company with high
level craftsmanship and unique design of its dresses. The founder of Tengri, Nancy Johnston,
belongs to the Asian-American culture identified the potential use of far of Khangai Yak of
Mongolia in wardrobe fashion (tengri.co.uk 2019). The company was established in 2014 but
got fame within a year because of its different and unique type of wardrobe collections. The
raw materials are directly coming from Mongolia and obtains different products in the category
of fibres, yarns and fabrics. Moreover, the company likes to shape its supply chain more
transparent in order to get high level of raw materials and expand the market effectively. Most
of the products that
House of Tengri offers are 100% natural and environmental friendly. As a
result of that it helps the organisation to establish a better market capitalisation in UK.
In this regard, this report is going to find out the possible advantageous and challenging
factors that
House of Tengri is facing in order to bring more efficacy into the business
orientation. Therefore, different tools are used to identify the existing market of Tengri such as
marketing mix, brand positioning map and the sustainable marketing principles that will help
the organisation to make progress further.
Marketing Mix
Product
A wide range of woollen clothes are offered by
House of Tengri for both men and
women. Most of the products are made of 100% original yak wool and extremely warm and
comfortable (tengri.co.uk 2019). The craftsmanship and the exclusive design of the products
are also provided strategic advantage for the organisation in doing business in a high
competitive wardrobe and clothing market of UK (Theresident.co.uk 2014). As per the website
of
House of Tengri, the organisation belongs to the luxury goods industry with cutting edge
textile technologies that will bring a unique product value and position into the UK market.
3SUSTAINABLE MANAGEMENT AND MARKETING
Promotion
As far as the promotion of
Tengri is concerned, it can be argued that both the online and
offline marketing tools are used in course of getting extra advantage in the UK market. The
offline promotional strategies are mainly associated with word of mouths of the customers
(Binotto and van Lunn 2014). As the company believes in doing business sustainably and
transparently, therefore, adding extra effort for offline advertisement is not required for the
organisation (Duma
et al. 2016). In the online advertisement strategy,
Tengri maintains a user
friendly website with a list of products with pictures and price tags so that the customers will
get adequate information regarding the product. Moreover, the company charges no extra
money for shipment and delivery which seems an extra ordinary measure carried out by
Tengri.
Place
The supply of raw materials are coming from Khangai Mountains of Mongolia.
Therefore, a partnership and collaboration with the suppliers is highly essential for
Tengri to
establish better business environment within UK. As a matter of fact, it is within the mission of
the company to facilitate a sustainable business orientation in terms of preserving the remote
landscape of Mongolia and helping the indigenous communities through protecting the wildlife
and supporting the livelihoods of the indigenous people of Mongolia. On the other hand,
Tengri
also tries to keep a better relation with the distributors as well. Mutual partnership and
collaboration also play pivotal role in this regard. For instance, partnering with Savior beds
helps the company to manufacture handcrafted sleep system.
Pricing
As
Tengri belongs to the luxury goods industry, so that it is obvious for the organisation
to set its pricing level a bit high. Most of the
Tengri customers are seeking for premium
products. Therefore, the pricing is also premium as compared to other companies
(Knittingindustry.com 2017). The price range starts from 165 pounds to 175 pounds for the
Beanies. Furthermore, the throw and blanket price range is limited form 1150 pound to 1950
pounds. The organisation creates diverse price ranges for different products. As a result of that
it seems justifiable to the customers to get products of their range.
Promotion
As far as the promotion of
Tengri is concerned, it can be argued that both the online and
offline marketing tools are used in course of getting extra advantage in the UK market. The
offline promotional strategies are mainly associated with word of mouths of the customers
(Binotto and van Lunn 2014). As the company believes in doing business sustainably and
transparently, therefore, adding extra effort for offline advertisement is not required for the
organisation (Duma
et al. 2016). In the online advertisement strategy,
Tengri maintains a user
friendly website with a list of products with pictures and price tags so that the customers will
get adequate information regarding the product. Moreover, the company charges no extra
money for shipment and delivery which seems an extra ordinary measure carried out by
Tengri.
Place
The supply of raw materials are coming from Khangai Mountains of Mongolia.
Therefore, a partnership and collaboration with the suppliers is highly essential for
Tengri to
establish better business environment within UK. As a matter of fact, it is within the mission of
the company to facilitate a sustainable business orientation in terms of preserving the remote
landscape of Mongolia and helping the indigenous communities through protecting the wildlife
and supporting the livelihoods of the indigenous people of Mongolia. On the other hand,
Tengri
also tries to keep a better relation with the distributors as well. Mutual partnership and
collaboration also play pivotal role in this regard. For instance, partnering with Savior beds
helps the company to manufacture handcrafted sleep system.
Pricing
As
Tengri belongs to the luxury goods industry, so that it is obvious for the organisation
to set its pricing level a bit high. Most of the
Tengri customers are seeking for premium
products. Therefore, the pricing is also premium as compared to other companies
(Knittingindustry.com 2017). The price range starts from 165 pounds to 175 pounds for the
Beanies. Furthermore, the throw and blanket price range is limited form 1150 pound to 1950
pounds. The organisation creates diverse price ranges for different products. As a result of that
it seems justifiable to the customers to get products of their range.
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4SUSTAINABLE MANAGEMENT AND MARKETING
Theoretical explanation
Product strategy
Most of the
Tengri products are eco-friendly products with the implementation of the
green technology. The use of green technology is considered to be a tool of sustainability that
the organisation follows in order to maintain business for future (Walker 2016). Moreover,
reducing pollution and making hospitable community engagement program with the suppliers
are also effective measures for the organisation (Robinson and Hsieh 2016).
Promotion strategy
Both above the line and below the line promotional strategies are implemented in the
promotion strategy of
Tengri. In above the line strategy,
Tengri used the official website and
the digital marketing media. On the other hand, the below the line strategy follows online and
offline media to promote the products (Wu et al. 2015).
Distribution strategy
Both business to business and business to customer strategies are followed in the
distribution strategy of
Tengri. The primary focus of the organisation is to maximise the selling
figures and increasing profitability (Al 2016). Therefore, the business to business strategy leads
the organisation to make partnership with Savoir beds, Huntsman and Selfridges. Those
companies supports the business orientation of
Tengri through providing expert products. As a
result of that in the business to customer strategy is effective enough to offer top quality
products to the premium customers (Winston 2016).
Pricing strategy
In the pricing strategy the role of the premium pricing strategy is highly relevant
because
Tengri targets the premium customers for buying quality products. As a matter of fact,
the pricing of
Tengri is also rational because of its high quality and fashion sense. In compare to
other companies in the same sector,
Tengri follow high pricing strategy and the customer
segmentation and targeting is also associated with the pricing strategy.
Theoretical explanation
Product strategy
Most of the
Tengri products are eco-friendly products with the implementation of the
green technology. The use of green technology is considered to be a tool of sustainability that
the organisation follows in order to maintain business for future (Walker 2016). Moreover,
reducing pollution and making hospitable community engagement program with the suppliers
are also effective measures for the organisation (Robinson and Hsieh 2016).
Promotion strategy
Both above the line and below the line promotional strategies are implemented in the
promotion strategy of
Tengri. In above the line strategy,
Tengri used the official website and
the digital marketing media. On the other hand, the below the line strategy follows online and
offline media to promote the products (Wu et al. 2015).
Distribution strategy
Both business to business and business to customer strategies are followed in the
distribution strategy of
Tengri. The primary focus of the organisation is to maximise the selling
figures and increasing profitability (Al 2016). Therefore, the business to business strategy leads
the organisation to make partnership with Savoir beds, Huntsman and Selfridges. Those
companies supports the business orientation of
Tengri through providing expert products. As a
result of that in the business to customer strategy is effective enough to offer top quality
products to the premium customers (Winston 2016).
Pricing strategy
In the pricing strategy the role of the premium pricing strategy is highly relevant
because
Tengri targets the premium customers for buying quality products. As a matter of fact,
the pricing of
Tengri is also rational because of its high quality and fashion sense. In compare to
other companies in the same sector,
Tengri follow high pricing strategy and the customer
segmentation and targeting is also associated with the pricing strategy.
5SUSTAINABLE MANAGEMENT AND MARKETING
High quality
Low price
Low quality
High price
Market positioning
Figure 1: Brand positioning map
(Created by the author)
The UK clothing market is highly volatile and competitive enough that pushes the
organisations to create new brands value and implement new technologies in order to bring
more efficacy into the market positioning (Henninger
et al. 2017). As
Tengri manufactures
mostly the premium and luxury wardrobe fashion products therefore the competition in the
market is intricately relies on the innovation and uniqueness. In this regard, the Premier
Textiles and Merino Wool Clothing are the major rivals of
Tengri. Premier Textiles offers low
quality products to the customers in compare to
Tengri but the price range is so high and
similar to the
Tengri products. On the other hand, Marino Wool Clothing is famous for its low
pricing strategy with high quality of products. In compare to both the competitors,
Tengri is
popular to provide high and exclusive quality of products with high pricing strategy.
High quality
Low price
Low quality
High price
Market positioning
Figure 1: Brand positioning map
(Created by the author)
The UK clothing market is highly volatile and competitive enough that pushes the
organisations to create new brands value and implement new technologies in order to bring
more efficacy into the market positioning (Henninger
et al. 2017). As
Tengri manufactures
mostly the premium and luxury wardrobe fashion products therefore the competition in the
market is intricately relies on the innovation and uniqueness. In this regard, the Premier
Textiles and Merino Wool Clothing are the major rivals of
Tengri. Premier Textiles offers low
quality products to the customers in compare to
Tengri but the price range is so high and
similar to the
Tengri products. On the other hand, Marino Wool Clothing is famous for its low
pricing strategy with high quality of products. In compare to both the competitors,
Tengri is
popular to provide high and exclusive quality of products with high pricing strategy.
6SUSTAINABLE MANAGEMENT AND MARKETING
Sustainable marketing principle
Sustainable marketing is considered to be an important aspect for any organisation in
order to bring more future sustainability in business. According to Janssen
et al. (2014) there
are some primary principles of sustainable marketing that are important for the corporate
organisations in order to survive in the highly competitive market such as reduce waste, plan
for better business entry, innovation in business, effective partnership and implementation of
sustainable technology (Ryding
et al. 2016). In this context, it can be stated that it is important
for
Tengri to develop sustaible business practice in terms of the marketing strategies. The
principles are
Social sustainability and fair business practice with the suppliers and the customers
Implementing innovative and waste reduction technologies
Effective sustainability pillars in terms of transparency in business
Community engagement and development programs.
Recommendations
There are some recommendations that
Tengri should follow in order to bring more
efficacy into the business environment. The recommendations are as follows,
Putting more focus on the brand awareness among the local communities with the
process of consumer engagement is considered to be an effective means for
Tengri in
order to maximise customers in an effective manner. In fact, the customer engagement
mechanism paves the way for analysing the customer needs in a regular basis (Ayertey
and Ozuem 2018). A pro-active measure is bestowed in the practice that can provide
Tengri strategic advantage.
Use of technology must be associated with the sustainability. Moreover, understanding
the consequences of the technological implementation has to be noted as well. For
instance, the use of Angora Fur is not effective enough for
Tengri to manufacture luxury
wardrobe products. The Angora fur are not naturally elastic (Guercini, Ranfagni and
Runfola 2014). Therefore, it should be altered by some different types of fur.
Sustainable marketing principle
Sustainable marketing is considered to be an important aspect for any organisation in
order to bring more future sustainability in business. According to Janssen
et al. (2014) there
are some primary principles of sustainable marketing that are important for the corporate
organisations in order to survive in the highly competitive market such as reduce waste, plan
for better business entry, innovation in business, effective partnership and implementation of
sustainable technology (Ryding
et al. 2016). In this context, it can be stated that it is important
for
Tengri to develop sustaible business practice in terms of the marketing strategies. The
principles are
Social sustainability and fair business practice with the suppliers and the customers
Implementing innovative and waste reduction technologies
Effective sustainability pillars in terms of transparency in business
Community engagement and development programs.
Recommendations
There are some recommendations that
Tengri should follow in order to bring more
efficacy into the business environment. The recommendations are as follows,
Putting more focus on the brand awareness among the local communities with the
process of consumer engagement is considered to be an effective means for
Tengri in
order to maximise customers in an effective manner. In fact, the customer engagement
mechanism paves the way for analysing the customer needs in a regular basis (Ayertey
and Ozuem 2018). A pro-active measure is bestowed in the practice that can provide
Tengri strategic advantage.
Use of technology must be associated with the sustainability. Moreover, understanding
the consequences of the technological implementation has to be noted as well. For
instance, the use of Angora Fur is not effective enough for
Tengri to manufacture luxury
wardrobe products. The Angora fur are not naturally elastic (Guercini, Ranfagni and
Runfola 2014). Therefore, it should be altered by some different types of fur.
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7SUSTAINABLE MANAGEMENT AND MARKETING
Animal testing is also a significant threat for the image of the company that
Tengri
should end in order to gain more positive reputation and goodwill in the UK market.
Conclusion
Therefore, it can be derived from the above discussion that there are some challenges
that
Tengri can face in the high competitive market of UK in order to bring more efficacy into
the organisational sustainability. The remedy of the challenges are incorporated into the
operation of
Tengri. A thorough analysis of the product, price, promotion and distribution
strategy will provide adequate evidences regarding the mitigation strategy of the organisation.
In this regard, the recommendations have high significance to guide the organisation to follow
the right way. Henceforth, this report is clearly reflects the insights of the sustainability
principles and mitigation strategies that
Tengri should follow for future benefits.
Animal testing is also a significant threat for the image of the company that
Tengri
should end in order to gain more positive reputation and goodwill in the UK market.
Conclusion
Therefore, it can be derived from the above discussion that there are some challenges
that
Tengri can face in the high competitive market of UK in order to bring more efficacy into
the organisational sustainability. The remedy of the challenges are incorporated into the
operation of
Tengri. A thorough analysis of the product, price, promotion and distribution
strategy will provide adequate evidences regarding the mitigation strategy of the organisation.
In this regard, the recommendations have high significance to guide the organisation to follow
the right way. Henceforth, this report is clearly reflects the insights of the sustainability
principles and mitigation strategies that
Tengri should follow for future benefits.
8SUSTAINABLE MANAGEMENT AND MARKETING
Reference
Al, M., 2016.
Made in Mongolia: Empowering fashion brand Tengri | Salt. [online]
Wearesalt.org. Available at: https://www.wearesalt.org/made-in-mongolia-empowering-
fashion-brand-tengri/ [Accessed 13 Apr. 2019].
Ayertey, S. and Ozuem, W., 2018. Developing Compelling Online Recovery Strategies:
Implications for the Fashion Clothing Industry. In
Digital Marketing Strategies for Fashion and
Luxury Brands (pp. 264-288). IGI Global.
Binotto, C. and van Lunn, C., 2014. Silk purse, sow’s ear: Transforming second-hand clothing
into luxury fashion through craft practice.
Making Futures Journal,
3, pp.311-324.
Duma, F., Willi, C.H., Nguyen, B. and Melewar, T.C., 2016. The management of luxury brand
behaviour: Adapting luxury brand management to the changing market forces of the 21st
Century.
The Marketing Review,
16(1), pp.3-25.
Guercini, S., Ranfagni, S. and Runfola, A., 2014. Time in business-to-business interactions. A
case analysis in textile and clothing.
Journal of Global Fashion Marketing,
5(1), pp.87-102.
Henninger, C.E., Alevizou, P.J., Tan, J., Huang, Q. and Ryding, D., 2017. Consumption strategies
and motivations of Chinese consumers: The case of UK sustainable luxury fashion.
Journal of
Fashion Marketing and Management: An International Journal,
21(3), pp.419-434.
Janssen, C., Vanhamme, J., Lindgreen, A. and Lefebvre, C., 2014. The Catch-22 of responsible
luxury: Effects of luxury product characteristics on consumers’ perception of fit with corporate
social responsibility.
Journal of Business Ethics,
119(1), pp.45-57.
Knittingindustry.com, 2017.
Tengri kick starts the year with sustainable fashion project. [online]
Knittingindustry.com. Available at: https://www.knittingindustry.com/tengri-kick-starts-the-
year-with-sustainable-fashion-project/ [Accessed 13 Apr. 2019].
Reference
Al, M., 2016.
Made in Mongolia: Empowering fashion brand Tengri | Salt. [online]
Wearesalt.org. Available at: https://www.wearesalt.org/made-in-mongolia-empowering-
fashion-brand-tengri/ [Accessed 13 Apr. 2019].
Ayertey, S. and Ozuem, W., 2018. Developing Compelling Online Recovery Strategies:
Implications for the Fashion Clothing Industry. In
Digital Marketing Strategies for Fashion and
Luxury Brands (pp. 264-288). IGI Global.
Binotto, C. and van Lunn, C., 2014. Silk purse, sow’s ear: Transforming second-hand clothing
into luxury fashion through craft practice.
Making Futures Journal,
3, pp.311-324.
Duma, F., Willi, C.H., Nguyen, B. and Melewar, T.C., 2016. The management of luxury brand
behaviour: Adapting luxury brand management to the changing market forces of the 21st
Century.
The Marketing Review,
16(1), pp.3-25.
Guercini, S., Ranfagni, S. and Runfola, A., 2014. Time in business-to-business interactions. A
case analysis in textile and clothing.
Journal of Global Fashion Marketing,
5(1), pp.87-102.
Henninger, C.E., Alevizou, P.J., Tan, J., Huang, Q. and Ryding, D., 2017. Consumption strategies
and motivations of Chinese consumers: The case of UK sustainable luxury fashion.
Journal of
Fashion Marketing and Management: An International Journal,
21(3), pp.419-434.
Janssen, C., Vanhamme, J., Lindgreen, A. and Lefebvre, C., 2014. The Catch-22 of responsible
luxury: Effects of luxury product characteristics on consumers’ perception of fit with corporate
social responsibility.
Journal of Business Ethics,
119(1), pp.45-57.
Knittingindustry.com, 2017.
Tengri kick starts the year with sustainable fashion project. [online]
Knittingindustry.com. Available at: https://www.knittingindustry.com/tengri-kick-starts-the-
year-with-sustainable-fashion-project/ [Accessed 13 Apr. 2019].
9SUSTAINABLE MANAGEMENT AND MARKETING
Robinson, P. K., and Hsieh, L., 2016. Reshoring: a strategic renewal of luxury clothing supply
chains.
Operations Management Research,
9(3-4), 89-101.
Ryding, D., Vignali, G., Caratù, M., Wang, Y.Y. and Carey, R., 2016. 21st century luxury fashion
retailers’ marketing strategies for customer satisfaction: UK perspective.
Int J Bus Glob,
16(1),
pp.79-103.
tengri.co.uk, 2019.
Who we are — Tengri. [online] Tengri. Available at:
https://www.tengri.co.uk/who-we-are [Accessed 13 Apr. 2019].
Theresident.co.uk, 2014.
TENGRI: A FASHION BRAND LIKE NO OTHER. [online]
Theresident.co.uk. Available at: https://www.theresident.co.uk/london-culture-events/local-
people/tengri-fashion-brand/ [Accessed 13 Apr. 2019].
Walker, N., 2016.
Tengri named in the Sustainia100 2016 guide. [online]
Manufacturingglobal.com. Available at: https://www.manufacturingglobal.com/lean-
manufacturing/tengri-named-sustainia100-2016-guide [Accessed 13 Apr. 2019].
Winston, A., 2016. Luxury brands can no longer ignore sustainability.
Harvard Business
Review,
8.
Wu, M.S.S., Chen, C.H.S. and Nguyen, B., 2015. Luxury brand purchases and the extended self: a
cross-cultural comparison of young female consumers in Taiwan and the UK.
Asia-Pacific
Journal of Business Administration,
7(3), pp.153-173.
Robinson, P. K., and Hsieh, L., 2016. Reshoring: a strategic renewal of luxury clothing supply
chains.
Operations Management Research,
9(3-4), 89-101.
Ryding, D., Vignali, G., Caratù, M., Wang, Y.Y. and Carey, R., 2016. 21st century luxury fashion
retailers’ marketing strategies for customer satisfaction: UK perspective.
Int J Bus Glob,
16(1),
pp.79-103.
tengri.co.uk, 2019.
Who we are — Tengri. [online] Tengri. Available at:
https://www.tengri.co.uk/who-we-are [Accessed 13 Apr. 2019].
Theresident.co.uk, 2014.
TENGRI: A FASHION BRAND LIKE NO OTHER. [online]
Theresident.co.uk. Available at: https://www.theresident.co.uk/london-culture-events/local-
people/tengri-fashion-brand/ [Accessed 13 Apr. 2019].
Walker, N., 2016.
Tengri named in the Sustainia100 2016 guide. [online]
Manufacturingglobal.com. Available at: https://www.manufacturingglobal.com/lean-
manufacturing/tengri-named-sustainia100-2016-guide [Accessed 13 Apr. 2019].
Winston, A., 2016. Luxury brands can no longer ignore sustainability.
Harvard Business
Review,
8.
Wu, M.S.S., Chen, C.H.S. and Nguyen, B., 2015. Luxury brand purchases and the extended self: a
cross-cultural comparison of young female consumers in Taiwan and the UK.
Asia-Pacific
Journal of Business Administration,
7(3), pp.153-173.
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