Sustainable Management and Marketing

This report focuses on the analysis of Tengri, a company which focuses on manufacturing sustainable products and it is positioned in the luxury customer segment.

Sustainable management and marketing
NAME OF STUDENT:
NAME OF COLLEGE:
AUTHORS NOTE:
Running head: SUSTAINABLE MANAGEMENT AND MARKETING

Sustainable management and marketing
Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion.......................................................................................................................................8
References......................................................................................................................................10
1

Sustainable management and marketing
Introduction
As the current competitive world is based on choices and it is often observed that these choices
are often affected for human sufferings, poverty, degradation of wildlife and degradation of the
environment. This report focuses on the analysis of Tengri, a company which focuses on
manufacturing sustainable products and it is positioned in the luxury customer segment.
Discussion
The marketing mix of Tengri is as follows:
Product- The product of Tengri includes fine woollen knit wear of the company manufactured
from yak wools which are sustainable in nature.
Price- The prices of the products of Tengri are premium in nature as the products of the company
are positioned in the luxury fashion segments.
Place- The products of Tengri are available in the form of yards in nature and are also available
in the form of finished knitwear which is produced by various companies which purchases the
yards of the company.
Promotion- The products of Tengri are promoted through the official website of the company
and not through other forms of advertisement such as print media or visual media. The products
of the company are promoted through various sponsored blogs of the company and through
positive words of mouth of the customers of the company.
Product Strategy
Tengri noble yarns provide their customers with a sustainably alternative choice in the form of
Tengri noble yarns which are not destructive in nature in context of the cashmere industry.
According to Alreshidi (2016) the noble yarns of the company are sourced in an ethical and
sustainable manner by promoting yak hair as Tengri noble yarns in order to create a luxury brand
which is attractive in nature and discerning to fashion customers and which also helps in
promoting the fair share model of the company. The Tengri noble yarns are mostly designed for
2

Sustainable management and marketing
the customers who value sustainability in each and every decision they take in their day to day
life.
Pricing Strategy
The pricing strategy which is being adopted by Tengri is premium pricing strategy as the
products of the company are positioned in the luxury items segment. As stated by Singh, Singh,
and Sharma (2016) the target customers of the company are the customers who prefer to
purchase sustainable products in the market at high premium prices as a result of the fair share
model of the company. Due to the premium prices of the products of the company, the company
is able to earn higher revenues for the products of the company and therefore can be able to earn
fair share for their customers.
Distribution Strategy
The products of Tengri are sourced directly from the herders of two Mongolian communities
from two herder communities and are cleared accordingly. After sourcing from the raw materials
from the two co-operative communities, the company adds values to the products of the
company through technological innovations which creates luxury fibres for creating luxury yards
for the premium yards of the company. As stated by Lasalewo et al. (2016)the high quality yarns
of the company are sourced from yak products which are ethical in nature which helps in
reducing the carbon footprint nature of others. The finished yarns of the company are then
supplied to various textile companies of the company in order to manufacture finished products
of the company.
Promotion Strategy
The promotional strategy of Tengri is based on promoting the products of the company through
the official website of the company and through the various sponsored forums of the company
rather than promoting the products of the company through various platforms which increases
the costs of the company.
Positioning Strategy
3

Sustainable management and marketing
As yak is considered as a luxury in the luxury commodity market and whereas Khangai Noble
Yarns is a unique fibre in its own rights and capabilities, the products of Tengri are being
positioned in the luxury good sector in order to differentiate themselves from the commodity
markets. The products of the company are targeted towards the customers who have developed
an environmental awareness among themselves to opt for sustainable products in the market
rather than opting for products in the market which contributes towards the degradation of the
environment. According to Wiese et al. (2015) as the products which are manufactured from
cashmere products are non-sustainable in nature, therefore the customers of the product are
seeking for products which are a replacement towards the cashmere products and are sustainable
in nature and therefore as the products of Tengri are sustainable in nature, therefore the products
of the company should be positioned in the luxury goods sector with premium pricing policy.
Sustainability Policy
As stated by Nkundabanyanga et al. (2017) the complete traceable and transparent supply chain
of Tengri helps in ensuring the integrity of the products of the company which are sourced and
created in an ethical and sustainable manner. The company adopts an innovative approach in
order to promote sustainability by minimizing the wastes in order to do the good. The company
believes in the principle that it is incorrect and unethical that 90% of the raw woollen fibres
which are sourced for the global fashion and textile industry becomes unused and unutilized by
product of the yarn. As opined by Yang, Ishtiaq and Anwar (2018) Tengri helps in promoting
sustainability by supporting the livelihood of their suppliers by virtue of their pioneering circular
design model, systems thinking and also due to their curiosity and respect regarding the people,
animals and the environment by designing and engineering innovative new products which are
constituted of the precious by-product fibre.
Tengri follows a brand new, replicable and ethical business model. The activities and operations
of the company has enabled the nomadic herder community of Mongolia the opportunity to trade
and export goods directly to the international market for the first time without the involvement of
any kind of third party support or intermediaries. According to de Guimarães et al. (2017) the
international trading activity of the company with the nomadic herders has influenced the
government of Mongolia for the first time in granting new lands and herding rights for the
nomadic herder families.
4

Sustainable management and marketing
As opined by Arbi, Bukhari and Saadat (2017) when a particular customer chooses a product of
the company, the company believes that the customers have chosen more than just a beautiful
knit product as the companies helps in supporting learning which are cross cultural in nature and
also trade opportunities for the small, Mongolian based companies and the company also seeks
to improve the way of life and livelihoods of the nomadic herder community of Mongolia,
simultaneously protecting the unique and beautiful landscapes and pastures of Mongolia.
Tengri does not have a Corporate Social Responsibility policy as it believes that it does not
require such separate policy as the entire business model of the company is based on
sustainability. The company highly believes that the company is a fair and ethical business
organization. In order to ensure that the company remain highly focused to the original goal of
the company of providing fair and sustainable to all their partners, the company adheres to
certain guidelines which are in place, in order to remind the company who they actually are
along with the main objectives of the organization. The guidelines which are fixed by the
company in order to promote sustainability also help the company to build their offerings and
share the relationships of the company with their partners to the world. Tengri does not intend to
gain share in the market in which they operate and later increase the prices of their products. The
company also does not believe in gaining traction as much possible in the market and then sell it
to the highest bidder. As opined by Sigalas and Papadakis (2018) the company believe that
business can and should do better. The company believe that they are in the business for the
people, the land and the animals. The company does not simply aspire in making a difference as
they believe that they are making a difference in the society. As stated by Yu, Kuo and Kao
(2017) the company is not a corporation but it is rather a collective movement as it believes that
every individual should have an opportunity to be a part of the ecosystem of the company and
the company highly believes that all business activities should benefit every individual and
entities that are a part of the business.
Tengri takes every necessary step in order to prevent the opaque nature of supply chain of the
company and to prevent the distance between the source of the product and their final owners as
it fosters the creation of distorted pricing policy, unethical supply chain practices between the
members and environmental degradation. As stated by Eneizan et al. (2016a) the company is
solely built on innovation, trust and partnerships and therefore based on the above mentioned
5

Sustainable management and marketing
values the company creates unique and exquisite items for their target customers which looks
and feels top quality in nature and which in turn creates a positive lasting impact on each and
every member associated with the supply chain of the company. The company was created in
order to challenge the status quo of the current competitive business world. The activities of the
company are built on the three supporting pillars of sustainability namely social, economic and
environmental and the above mentioned three pillars of sustainability are integrated into the
operations of the company through its sourcing strategy, product and pricing strategy and brand
positioning strategy. The company is focussing on shaping anew heritage, working towards
providing a stable long term source of income, preserving heritage which are cultural in nature
and providing social, economic and environmental benefits in a positive manner to all the
individuals and entities with whom the company works with. The approach of Tengri towards
sustainability is interconnected in to the way in which the company operates and is conducted
through the below mentioned lenses as follows:
Fair Share- As opined by Omoregbe and Taiwo (2017) the herders who provide Tengri with
noble fibres are the most important aspect of the supply chain of the company as without the
herders and their supplying resources, the company would not be able to manufacture any
product and as a result the company has a fair share profit model in place which make sure that
the not only the noble herders get a fair price of the noble price, which they supply to the
company but also ensures that the company do not affect the local domestic market in a negative
manner. As opined by Chahal, Dangwal and Raina (2014) the fair share model of the company
ensures that all the members belonging to the supply chain of the company have a fair share. The
company proceeds by paying the herders who supply the raw materials to the company by
paying them a multiplier of 1.5 times the market value of the and accordingly applying a 2%
annual bonus Tengri profit- making years. Half of the payment is made in advanced to the
herders selling the product every year and the rest of the payment is made upon the receipt of the
raw materials from the herders which are followed by a bonus of 2%.
Land Degradation- The transition to the free market economy has made necessary for the
nomadic herders residing in every community the need to trade in order to earn a livelihood. The
rearing of cashmere goats for a period of numerous years on the Mongolian Steppes in order to
meet the demands of the global market have led to increased desertification the steppes regions
6

Sustainable management and marketing
of Mongolia. As stated by Chin, Thian and Lo (2017) the above mentioned land has crossed its
carrying capacity which is the maximum number of species the environment can support by 4.5
times its usual ability to support people and animals of those region in a sustainable manner. The
yaks, which are considered as an indigenous animal of that region eats grass in a different way in
contrast to the cashmere goats belonging to those areas. As opined by Sigalas and Economou,
(2013) the cashmere goats eat the grass of the region from its roots whereas the yaks graze the
upper portion of the grass, which not only allows bio-diversity and wildlife to thrive, but it also
reduces the rate of desertification in the region and offers an alternative which is more
sustainable in nature and which also supports livelihoods. The company is closely working with
experts in that region in order to reduce land degradation. The company is also fully aware
regarding the issue of potential overgrazing by yaks and is also aware of the carrying capacity of
the region and the company remains committed to the fact that it will never cross its set limits.
The company through its nature conservation program works in close association with the
families of the nomadic herders, government of the country and conservation and wildlife
experts in order to ensure that the company does not achieve its goal or make profits at the cost
of harming the local landscape, people, animals and plants.
Social Impact- As stated by Fonseka, Yang and Tian (2013) Tengri is already creating a social
impact in Mongolia by providing the nomadic herders with a good price for their products. But
still the company seeks to go beyond this limit and accordingly help in supporting the blending
of traditional nomadic herder life with modern outlooks in order to ensure that those individuals
who prefer to live with their herds can do so but not at the expense of missing out from the
benefits of the highly connected modern world. The company seeks to work with the entire
herder community regarding identification of their need and requirement and accordingly
providing them with a suitable platform for meeting those identified needs and become self-
sufficient in nature in various ways such as either by providing solar energy, education materials
or with relevant skills and knowledge.
Partnerships for development- According to Sitorus,. (2017) Tengri does more than by just
simply paying their suppliers with a bit of more money or by organizing humanitarian aids as the
company does not outprice the domestic market from the places where they source their raw
materials as it tends to create an impact in the domestic economy which is negative in nature.
7

Sustainable management and marketing
Rather, the company focuses on creating and developing partnerships and associations with
existent small and medium sized enterprises of those regions for helping in shaping the market
and for growing together as a collective movement.
Technology- As opined by Nefat, and Rakitovac. (2013) the raw material which is sourced by
Tengri from the nomadic herders of Mongolia is Khangai Yak Fibre, which is a sustainable and
all natural product which is relatively new in the textile and fabric market whose uses are
comparatively unexplored in nature. Tengri operates with the latest manufacturing innovation
and green technology and by partnering with renowned and established facilities which ensures
that every element of the new yak fibre could be used and utilized. As the company is aware of
its social and environmental responsibility, the company also focuses on ensuring that the
innovation of the company is capable of avoiding environmental impacts which are adverse in
nature and which minimizes wastes.
Innovation and Education- As stated by Cavaleri and Shabana (2018)the designers of the current
and future generation needs to be fully aware of the effect which they can generate in the fashion
supply chain. The understanding of the working of the supply chain, the designs of the supply
chain which can help in increasing production and how those designs can be a part of the
solution is very vital regarding the progress of the fashion industry. As opined by Eneizan et al.
(2016b) by virtue of its partnerships in context of innovations, the company ties up with several
eminent faculties in order to teach and learn about various supply chain practices and for creating
a space for inspiration, creativity and debates regarding the future of fibres and textiles and
accordingly rewarding and supporting various innovation approaches through various
recognitions and awards of the company.
The above mentioned elements provide the foundation of Tengri, in context of how the company
operates. The above mentioned elements are not add-ons or after though of the company but it
are vital to the way in which the company works. As the elements are dynamic in nature,
therefore the company reviews the practices and approaches quite frequently and aims to update
or improve them in whichever way they can.
8

Sustainable management and marketing
Conclusion
From the above report it can be stated that practices adopted by Tengri helps in supporting
sustainable policies and approaches of the company and the marketing mix of the company helps
in justifying the sustainability approach adopted by the company. The products of the company
are positioned in the luxury customer segment in order to fetch higher prices so that the members
of the supply chain can commend fair share of the products.
9

Sustainable management and marketing
References
Alreshidi, B. A. (2016). Toward sustainability in manufacturing: Linking green training and
green supplier development for sustainable business advantages . Business Premium Collection.
(Online). Retrieved from https://search.proquest.com/docview/1876037345?accountid=30552
Arbi, K. A., Bukhari, S. A. H., and Saadat, Z. (2017). THEORETICAL FRAMEWORK FOR
TAXONOMIZING SOURCES OF COMPETITIVE ADVANTAGE. Management Research and
Practice, (Online). 9(4), 48-60. Retrieved from
https://search.proquest.com/docview/1977198138?accountid=30552
Cavaleri, S., and Shabana, K. (2018). Rethinking sustainability strategies. Journal of Strategy
and Management, (Online). 11(1), 2-17. Retrieved from
https://search.proquest.com/docview/2007478277?accountid=30552
Chahal, H., Dangwal, R., and Raina, S. (2014). Antecedents and consequences of strategic green
marketing orientation. Journal of Global Responsibility,(Online) 5(2), 338-362. Available at
doi:http://dx.doi.org/10.1108/JGR-09-2013-0012 Accessed as on 1/1/2019
Chin, C. H., Thian, S. S., and Lo, M. C. (2017). Community's experiential knowledge on the
development of rural tourism competitive advantage: A study on kampung semadang - borneo
heights, sarawak. Tourism Review of AIEST - International Association of Scientific Experts in
Tourism, (Online). 72(2), 238-260. Retrieved from
https://search.proquest.com/docview/1917950826?accountid=30552
de Guimarães, J.,Cesar Ferro, Severo, E. A., and de Vasconcelos, C.,Ricardo Maia. (2017).
Sustainable competitive advantage: A survey of companies. Brazilian Business Review,
(Online). 14(3), 352-367. doi:http://dx.doi.org/10.15728/bbr.2017.14.3.6
Eneizan, B. M., Abd Wahab, K., Zainon, M. S., and Obaid, T. F. (2016a). EFFECTS OF
GREEN MARKETING STRATEGY ON THE FINANCIAL AND NON-FINANCIAL
PERFORMANCE OF FIRMS: A CONCEPTUAL PAPER. Arabian Journal of Business and
Management Review (Online) 5(12), 14-27. Available at
https://search.proquest.com/docview/1825187298?accountid=30552 Accessed as on 1/1/2019
10

Sustainable management and marketing
Eneizan, B. M., Wahab, K. A., Zainon, M. S., and Obaid, T. F. (2016b). PRIOR RESEARCH
ON GREEN MARKETING AND GREEN MARKETING STRATEGY: CRITICAL
ANALYSIS. Arabian Journal of Business and Management Review (Online), 6(2), 46-64.
Available at https://search.proquest.com/docview/1844659144?accountid=30552 Accessed as on
1/1/2019
Fonseka, M. M., P., Yang, X., and Tian, G., PhD. (2013). Does accessibility to different sources
of financial capital affect competitive advantage and sustained competitive advantages? evidence
from regulated market. Journal of Applied Business Research, (Online). 29(4), 963-982.
Retrieved from https://search.proquest.com/docview/1413881473?accountid=30552
Lasalewo, T., Masruroh, N. A., Subagyo, Hartono, B., and Yuniarto, H. A. (2016). THE
EFFECT OF COMPETITIVE ADVANTAGE AND HUMAN ADVANTAGE ON
INDUSTRIAL COMPETITIVE STRATEGY. Journal of Indonesian Economy and Business :
JIEB., (Online). 31(3), 307-324. Retrieved from
https://search.proquest.com/docview/1925836306?accountid=30552
Nefat, A., PhD., & Rakitovac, K. A., PhD. (2013). TOWARDS COMPETITIVE ADVANTAGE
OF SUSTAINABLE MARKETING: ANALYSIS OF SELECTED FIRMS. Ekonomska Misao i
Praksa, (Online). 22(2), 499-514. Retrieved from
https://search.proquest.com/docview/1491099100?accountid=30552
Nkundabanyanga, S. K., Akankunda, B., Nalukenge, I., & Tusiime, I. (2017). The impact of
financial management practices and competitive advantage on the performance of
MFIs. International Journal of Social Economics, (Online). 44(1), 114-131.
doi:http://dx.doi.org/10.1108/IJSE-05-2014-0104
Omoregbe, O., & Taiwo, E. Y. (2017). PRODUCTION FACILITIES MAINTENANCE
PRACTICES AND SUSTAINABLE COMPETITIVE ADVANTAGE. Annals of the University
of Petroş ani.Economics, (Online). 17, 209-222. Retrieved from
https://search.proquest.com/docview/2113239579?accountid=30552
11

Sustainable management and marketing
Sigalas, C., & Economou, V. P. (2013). Revisiting the concept of competitive
advantage. Journal of Strategy and Management, (Online). 6(1), 61-80.
doi:http://dx.doi.org/10.1108/17554251311296567
Sigalas, C., & Papadakis, V. M. (2018). Empirical investigation of relationship patterns between
competitive advantage and superior performance. Journal of Strategy and
Management, (Online). 11(1), 81-111. Retrieved from
https://search.proquest.com/docview/2007445676?accountid=30552
Sitorus, S. A. (2017). Marketing communication mix and innovation on customer retention and
sustainable competitive advantages in business environment. Journal of Environmental
Management & Tourism, (Online) 8(8), 1567-1578.
doi:http://dx.doi.org/10.14505/jemtv8.8(24).13
Singh, P., Singh, R., and Sharma, S. (2016). Emergence of green marketing strategies and
sustainable development in india. Journal of Commerce and Management Thought,
(Online) 7(4), 693-710. Available at https://search.proquest.com/docview/1826914575?
accountid=30552 Accessed as on 1/1/2019
Wiese, A., Rose, L., Heyns, G. J., & Pisa, N. M. (2015). The integration of lean, green and best
practice business principles. Journal of Transport and Supply Chain Management, (Online). 9(1)
doi:http://dx.doi.org/10.4102/jtscm.v9i1.192
Yang, S., Ishtiaq, M., & Anwar, M. (2018). Enterprise risk management practices and firm
performance, the mediating role of competitive advantage and the moderating role of financial
literacy. Journal of Risk and Financial Management, (Online). 11(3)
doi:http://dx.doi.org/10.3390/jrfm11030035
Yu, H., Kuo, L., & Kao, M. (2017). The relationship between CSR disclosure and competitive
advantage. Sustainability Accounting, Management and Policy Journal, (Online). 8(5), 547-570.
Retrieved from https://search.proquest.com/docview/1961412688?accountid=30552
12