Tengri's Marketing Mix: Product, Price, Promotion and Place

This article discusses Tengri's marketing mix involving product, price, promotion and place. It explains how Tengri uses unique quality and fiber as a marketing tool, fairshare business model for pricing, collaborations for promotion and global heritage for place. The article also includes a positioning analysis against competitors and Tengri's sustainable marketing principles.

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TENGRI
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Tengri’s Marketing Mix
Tengri’s marketing mix involves a set of actions with regards to price, product,
promotion and place the company uses to market its products.
Product
The company specializes by working with a particular breed of Yak that is exclusively
found in Mongolia. The Yak is an indigenous type that is found in Khangai Mountains. The
species has hair that has different qualities. Among the advantages that the product has is that it
produces the best fibre in the world (Sarswat, 2017). The fibre has unique texture and coloring
that are found in animals that live around Mongolia. Tengri uses the unique quality and the fibre
as one of its marketing tools.
As a result, the company enjoys competitive advantage in the textile industry for
producing a unique and good quality products to their consumers. Besides, different quality and
color of the fibre differentiates itself from other competitors by diversifying their products using
their yarn technology to blend exotic plants and animal’s fibre to manufacture other materials
(Hara et al., 2009). Since the Yak is a luxury material in fashion, the company has trademarked,
Tengri and Khangai yarns to compete favorably.
Price
The company’s business model depends on a concept referred to as fairshare business
model where the company relies on all stakeholders in the business to determine the prices. The
company’s business model is founded on the basis of social business that comprises the founder
and the herders in Mongolia. As a result, the business relies on trading fairly through paying

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premium prices to the herders for the fibre in order to enhance equitable share of profits earned
(Morais et al., 2011).
Tengri anticipated profits after two years of operation which would go towards buying
out the investors between three to five years. A significant portion of the company’s share
remain unallocated to prevent dilution of investor’s shares. The company’s pricing strategy as a
marketing tool depends on different types of business such as Yarn, Fashion and Furniture
(Fonseca, 2011). The company reduces its production cost significantly to allow the stakeholders
to profit.
Promotion
The company promotes its product through its distribution channel and collaborations.
For this reason the company’s products are promoted through manufacturing of bedding
companies that source their raw materials from Tengri (Cozzolino et al., 2015).. The company
aims to grow the business by growing relationships with their partners for long term and
sustainable initiatives. As a result, of strong quality and different color fibre, the brand promotes
itself because of increased demand for the products in the market (Dekimpe and Hanssens,
2000).
Besides, the company’s business model is used to promote the fibre since it exhibits a
mutual relationship where no stakeholder is shortchanged making the business appealing to its
numerous customers in different locations. The company uses its website to market the products
through describing their journey as well as the products that they offer including locations.
Tengri’s promotion depends on transparent and sustainable sourcing which is aligned with

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United Nations Sustainable Development Goals that helps the company to promote its products
(Kareivaitė, 2015).
Place
Tengri is a social business that operates locally in Mongolia as well as across the globe.
The company operates from London and centered on global heritage that helps the company to
move its products across the globe. Business is conducted by the cooperatives that represent the
herders in Mongolia.
The Yak noble fibre is purchased directly at competitive prices in raw form. The
materials are then shipped to London for milling where Tengri Yarn technology creates premium
Yarns that are used in making luxury products across the globe (Cravens and Piercy, 2006). The
company has a team comprising of designers, artists and researchers who assist the company to
promote the products across the globe. The company also sells its products to emerging
designers in the fashion industry as well as heritage manufactures across the globe for making
unique and quality products.
Explanation of the case and synthesis of the theory
The marketing mix theory used in this case is based on evolving discipline that enables
Tengri to have a sustainable business. The primary evolution that the company undertakes to
have a competitive advantage involves various principles relating to the company’s marketing
efforts. Considering product, price, promotion and distribution, it is evident that Tengri Noble
Yarn is expected to match the needs of the consumers (Anderson et al., 2004). Therefore, the
company’s product approach aims at delivering a variety of quality products that are desired by

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the consumers. This is achieved through the strong quality of the fibre as well as differentiated
colors that meet the demands of the consumers.
On the other hand, the company’s products are distributed through the main office in
London where is also the location for the millers of raw material sourced from Mongolia. The
company’s distribution strategy is centered on relationship with its partners. The company
collaborates with various merchants who produce various fashion and luxury products assisting
the company to move the products from Mongolia to other parts of the World. Consequently,
Tengri’s pricing strategy is pegged on the concept of social business where the herders are
offered premium rates for their produce thereby meeting their goals for providing value for
money (Tengri, 2018).
The prices of the produce are determined by various cooperatives that are involved in
negotiating favorable prices. As a result, customers pay high prices for the produce because the
company offers quality products hence the focus on fashion and luxury products that are in
demand. Moreover, the company achieves marketing objective through promoting their products
using various channels such as press release, sales promotion, website marketing among other
tools the company uses to communicate to its stakeholders.
Based on the theory if hierarchy of needs by Abraham Maslow, basic needs need to be
satisfied before other needs of the company are met. As a result, the company establishes good
rapport with the people it depends for the success of the business. For this reason, Tengri relies
on the people who play significant role through recruiting the right people with skills that help
the company to achieve its sustainable goals. Besides, the process involved in delivering
products to the consumers is important for the company and it has since described the company’s

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journey in their website for their business partners to understand why consumers pay for the
products made from the Yarn fibre.
The company realizes its objective and vision through physical evidence provided by the
products made out of raw material that are sourced from Mongolia herders (Tengri, 2018).
Tengri’s sustainability initiatives is encouraged by low cost productivity that encourages herders
to increase production and help the business to stay afloat for unforeseen future. Tengri’s
products are differentiated from other textile products in the market as a result of their quality
and limited nature since they are sourced from Mongolia only. The company main locations
include Italy and Britain where the company has manufacturing plants with sophisticated
technology. The company also boasts of bulk supply of the products which cannot be matched to
products that are supplied by other players in the textile market.
The high demand of products made by Tengri puts the company in a position where
many emerging fashion brands approach Tengri to supply them with products that can help them
meet the needs of their consumers in the fashion and luxury industry (Hara et al., 2009). The
company does not require additional financing because they have the capacity to meet their
production goals based on the deals made by the herders, cooperatives and Tengri as a company.
All the stakeholders in the business benefit from the business because they are involved in the
decision making process that encourages growth and sustainability initiatives structured by the
company.
Positioning analysis against competitors
The company boasts of a transparent and ethical chain that can be delivered at scale
which is lacking among other fashion brands and suppliers of textile. Tengri as a fashion brand

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has the ability to diversify the products that they offer into other fashion and lifestyle accessories.
The company achieves this objective through their Yarn technology that blends other material to
produce differentiated products to the market. The company’s main blends include indigenous
fibre that is made from exotic plants and animals (Bergen and Peteraf, 2002). The company’s
vision is to replicate the business to other parts of the world through partnership programs and
skills that help them to improve their supply chain process.
The Yak is considered as a precious commodity in luxury fashion. For this reason, the
company has ensured that it has a trademark for both Tengri and Khangai Noble Yarns that
guarantees its firm position in the luxury goods market. Other direct competitors to Tengri will
be forced to create new brands and involve themselves in extensive marketing campaigns in
order to have a competitive advantage (Upson et al., 2012). The company has zero cost in
marketing efforts which implies that other competitors will have to offer unique products or
otherwise carry out creative marketing efforts to be able to compete with Tengri favorably.
Mongolia has not reached its full capacity in terms of land used. Further, it is indicated
that the country has the potential to product five times its current capacity of 20 tonnes. This
figure represents about forty percent of the total supply. The company’s business model is
widely known and other interested parties such as Nepal and Tibetan Yak herders are interested
in the business model being replicated in their region in order to provide the herders with a
means of livelihood (Slater et al., 2010). Unlike other competitors, the company offers attractive
positions as a result of sharing profits from the sale of products with herders. Also, the company
differentiates itself from the competition by paying the herders three times a year as opposed to
once per year which increases the value addition of the British manufactures.

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Competition is significantly reduced as a result of challenging mountainous region that
lacks infrastructure and logistics. As a result, it poses a challenge to aggregate and scale since
Yaks can be found in Nepal, Tibet as well as South America. Tengri has a competitive advantage
since Mongolia topography is flat and has infrastructure as well as supports international trade.
In addition, favorable operating environment characterized by conducive government policies
and support helps the business to thrive and is considered as among the largest suppliers of
luxury fibre in the world. The company increases competitive advantage by collaborating with
known brands such as Huntsman Sevile Row in Britain. These collaborations helps the company
to create a sustainable business model that helps the company to move its products. Renowned
brands that source raw material from Tengri helps the company to achieve its marketing
objective which reduces its marketing costs and allows it to focus on other aspects that help the
company to grow (Peattie and Peattie, 2009).
Tengri business model is unique and strong which offers the company an added
advantage over its competitors. The company has set 15 percent shares aside so as a way to
prevent dilution of investor’s equity. The company decision making team depends on a team that
is governed by founder (Tengri, 2018). Also, single sourcing from Mongolia helps the company
to have a competitive advantage over its competitors. There are minimal suppliers in the market
which reduces competition since the herders are offered competitive prices for their produce. The
competitive prices restrict the herders from working with other businesses. Its relationship with
conservation personnel, animal’s health, agricultural sector, global chain and supply as well as its
corporate social responsibility helps the company to increase its competitive advantage. Besides,
aligning the business model with United Nations sustainable initiatives helps the company to
receive support in various capacity.

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Tengri’s sustainable marketing principles and recommendation
Tengri Company employs a number of sustainable marketing principles in its business
model. The first marketing principle that Tengri applies is centered on the needs of the
consumers. The client uses the quality and variety of the fibres to attract new customers as well
as creating loyal customers. Satisfying their consumers is at the core of their business model and
the company achieves this objective by supplying their business partners with quality products
that are appreciated by consumers across the globe. The second sustainable marketing principle
that is used by Tengri is targeted market (Schaltegger and Wagner, 2006). The company focuses
in fashion and luxury products thereby increasing its conversion rate. This particular target
market is unique since it requires luxury products that are unique and of high quality. For this
reason, Tengri business model supports the target market through creating unique products and
offering them to the market at competitive prices.
Besides, another sustainable marketing initiative is pegged on the value the consumers
receive from this business model. The company reveals its value to their consumers through
describing their journey and business relationships with stakeholders (Ottman et al., 2006). This
information works well in cementing a good relationship with all the stakeholders and guarantee
sustainability. The company goes an extra mile to provide their target market with the products
they need including blends and different colors that meet the consumer’s demands. Fashion and
luxury products demand specific expectation and Tengri has positioned itself in the market to
produce products that meet the clients in this niche.
Moreover, the company is able to meet its sustainable marketing initiatives as a result of
growing its network base through increasing collaboration initiatives which play a significant
role in helping the company to meet its overall goals. The company has partnered with

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stakeholders from various fields who provide the company with information that helps the
decision makers of the company to drive Tengri’s growth and help it to meet its sustainable goals
(Kotler, and Armstrong, 2010). Besides, the company business model and corporate social
responsibility as a result of aligning the business model with United Nations sustainable
initiatives helps the company to enhance its sustainable marketing principles to meet its overall
and purpose of the business.
However, Tengri can improve its sustainable marketing initiatives through diversification
process. The company has potential in diversifying its resources, people and investments.
Through diversifying its investments the company is in a position to reduce risk risks as well as
increase its competitive advantage. Consequently, the company should adapt to interchangeable
form of business model that facilitates information and knowledge flows (Barker, 2013). For this
reason, the company should uphold its strategy to split the business into distinct segments that
helps the business to be sustainable even in the event of unforeseen shocks.
Tengri should enhance transparency and openness with how it conducts its business
operations. Through encouraging openness, the company is able to have a sense of control on
factors beyond its boundary that have a direct influence on how the business is being managed.
The company can achieve these goals by constant monitoring the external environment and
analyzing trends that help to predict the future (Epstein and Roy, 2003). The advantage of
linking organizations to external business plays a crucial role in the success of the business. The
company should adapt to new technology that helps the business to become efficient in its
production in order to meet the increasing demands of the market. Moreover, Tengri should
optimize its business in order to cut costs and increase the value of the company by

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understanding the rhythms of business and environment that have a direct influence on the
overall performance of the business.

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