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

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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