Report on Sustainable Management and Marketing of Tengri

This report examines Tengri, a UK-based fashion start-up, focusing on its sustainable management and marketing strategies. It explores the company's unique approach to ethical fashion, highlighting its partnership with Mongolian herders and its commitment to environmental responsibility. The report analyzes Tengri's marketing mix, including product, pricing, promotion, and distribution strategies, emphasizing its use of yak wool and green technologies. It also delves into the company's positioning analysis and the sustainable marketing principles it follows, such as a transparent supply chain and support for recycling. The report showcases Tengri's competitive advantage in the market and its vision for sustainable growth, aiming to provide readers with a comprehensive understanding of the brand's innovative and ethical business model.

Running head: SUSTAINABLE MANAGEMENT AND MARKETING
Sustainable management and marketing
Name of the student
Name of the university
Author note:

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Table of Contents
Part 1................................................................................................................................................4
Introduction......................................................................................................................................4
Figure No 1: Sustainable Marketing Policies of Tengri..................................................................5
Background of the case....................................................................................................................6
Marketing Mix of the Organization.................................................................................................6
Explanation of the case and Synthesis.............................................................................................7
Product Strategy...............................................................................................................................7
Promotion Strategy..........................................................................................................................8
Distribution Strategy........................................................................................................................8
Pricing Strategy...............................................................................................................................9
Part 2..............................................................................................................................................10
Analysis of the Situation................................................................................................................10
Positioning Analysis of the Company...........................................................................................10
Demonstration of the Body of Knowledge....................................................................................12
Sustainable Marketing Principles followed by Tengri..................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
Appendices....................................................................................................................................17

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Appendix 1.....................................................................................................................................17
Figure No 2: Sustainable Practices of the Company.....................................................................17

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Part 1
Introduction
The following report is based on the study of Tengri, the fashion start up based in the
United Kingdom. The report has been prepared in order to study the marketing essentials of
the company and the different ways by which the company promotes itself and implements
their strategy accordingly. Tengri is perhaps the only fashion brand of the world that markets its
products in the most sustainable manner with the least environmental degradation and also
without any harm to the animals (tengri.co.uk 2019). Founded by Nancy Johnston an
entrepreneur, Tengri is based on a fair-share deal in partnership with the Nomadic group of
Mongolian herders and the company. The profits of the business are shared in between the
management of the company and the Mongolian herders to ensure the steady growth of both
the organization as well as the Mongolian community (tengri.co.uk 2019). The business was
started based on a relatively simple model but now it has grown much larger with an even
better scope. The company which started in partnership with just 300 herders at the time of its
establishment now boasts of around 1500 different herders in its business sharing model.
The management of the company has created a direct supply chain with the herders
that ensure a safe and secure approach for them towards the environment. Though the quality
of the products are quite similar to that of the products produced in the Himalayan region, the
absence of any kind of animal atrocities and sensible environmental behaviors provides a
certain degree of competitive advantage to the products of Tengri (tengri.co.uk 2019). The
sensible and supporting role played out by the management of the fashion brand has
influenced the Mongolian Government to return a portion of favor to the Company by granting
different lands for the Yaks to graze about which was earlier not provided to the local farmers.
The vision of the company is to ensure the sustainability and future progress of the Company,
whereas its mission of the organization is to present itself as one of the best environmentally
sustainable and unique fashion brand. Apart from this the management of the company also
aims to research and develop innovative ways and ideas that aims to create new yarns and
fabric from Yak noble fiber and also include the use of a range of different green technologies

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along with closed loop systems (Gengler and Mulvey 2017). The following report thus starts
with a short yet descriptive introduction and continues with the marketing mix, analysis and
sustainability of the situation. The report also takes into account about the competitive
business advantage of the enterprise in the market.
The following report also aims to discuss one of the most crucial parts of the marketing
theory implemented by the management of Tengri, namely the positioning analysis and the
sustainable marketing practices. The report has discussed this two elements to give the readers
a clear view of the competitive strategies adapted by the organization to face their rivals in the
highly competitive market and also have an insight on the sustainable practices of the
organization that are believed to be formulated in order to provide Tengri a strong base for
future survival.
Figure No 1: Sustainable Marketing Policies of Tengri
Source: (tengri.co.uk 2019)

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The sustainable marketing policies of the business are unique in nature. The
management of the company is having a fair-share deal with the registered herders of
Mongolia to share profits and revenues amongst each other which can make the organization
sustainable in manner (tengri.co.uk 2019). The interconnection of the communities and the
policy of the Company to work together as a unit is surely one of the major strategies of the
organization to attain sustainability. The 100% traceable and transparent supply chain of the
organization helps to ensure the integrity of the garments and the yarns which are generally
sourced and created in a ethical and sustainable manner (tengri.co.uk 2019). The products of
Tengri support recycling procedures. This includes the reuse of the products in a different
manner and a total reduction in the use of solid wastes. The high end products of the company
promises the best design and provides the best value to the customers of the organization.
Background of the case
Marketing Mix of the Organization
Product- The product of the company includes the likes of the different fashion items that are
manufactured from the yarns and the fibers of Yak. The uniqueness of the particular brand is
the use of green and environment friendly technology to produce clothes. The product occupies
an important part in the marketing mix of the organization as because products refer to those
elements that makes up the actual goods and the items marketable to the customers of the
organization. This includes the unique designing and the process by which the management of
Tengri manufactures the clothes and fashion accessories. Thus the unique ways to produce and
market the clothes makes Tengri one of the most sought after brands in United Kingdom.
Price- Pricing is another important marketing decision in addition to the other different factors
of the marketing mix. The price of different kinds of products produced by the organization is
generally based on the costs of the different kind of materials and the labor that the
management of the company employs to produce the item. This includes the employees that
form a part of the total Tengri System (tengri.co.uk 2019). It starts from the Mongolian
employees who supply the raw products like Yak Fiber and yarns and ultimately the employees

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who are in charge of stitching and designing them according to the needs and demands of the
customers and also provide a unique competitive advantage in the market.
Place- Place refers to the area and the place where the management of the company intends to
sell the products or the particular location where the management has targeted the group of
customers to sell the products produced by them. The management of the company has
selected United Kingdom to be its primary market. The founder of the store has selected United
Kingdom because of the large market offered by the country and the presence of a large
number of environmental friendly customers who prefer wearing branded clothes produced
with the help of green technologies. The use of the correct distribution channels is also one of
the major considerations for the management of Tengri. The selection of social media and some
other potentially viable sources helps the organization to reach out a large group of interested
as well as the real customers. The main location of the warehouse and the production houses
are in United Kingdom.
Promotion- According to, Brun Castelli and Karaosman (2017) promotion can be referred to as
one of the most important aspects of the marketing mix. Proper and effective promotion of the
organization is important as because a unique brand like Tengri must promote its exclusive
characteristics to the customers in order to garner their attention. The most important
characteristics to be highlighted by the organization include the likes of the use of
environmental friendly technologies and not affecting or treating cruelly with animals. A proper
promotion of the brand will help it to gain customers for their products.
Explanation of the case and Synthesis
Product Strategy
As mentioned earlier Tengri is a British kit wear label designed and made in the United
Kingdom with the use of Mongolian Yak Wool (tengri.co.uk 2019). The product is made from
the yarn and fiber of the Yak and is processed in a natural, environmental and animal friendly
process. The products are quite unique as the raw materials as well as the processing are done

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in different manner that clearly separates the product from the other available ones in the
market. The main strategy of the company is to ensure the sustainability of the Yak Wool and
the traditional industries of Mongolia which are threatened as a result of rapid industrialization.
The wool and textile industries in Mongolia depend on government subsidies, but Yak wool is a
sustainable and eco-friendly alternative to cashmere. Just because the world doesn’t know
much about the amazing qualities of yak wool, there isn’t a significant demand for it (Cetinguc
Calik and Calisir 2016). In fact, yak wool is as soft as cashmere, warmer than merino wool,
breathable, odor-resistant and hypoallergenic, and less prone to balling and fluffing than other
fibers.
Promotion Strategy
According to, (Khurana and Ricchetti 2016) the existence of an effective and
contemporary promotional strategy is essential for the success of the business. The
management of the organization uses different yet the best promotional strategies and
distribution channels to popularize the brand in the country and also to increase the sales and
the revenue of the products produced by them. The company recently selected the Vancouver
Fashion Week to launch its 2018 products. The reason behind this was the immense popularity
of the fashion week where the best 25 fashion designers from across the globe seek to
showcase their collections (tengri.co.uk 2019). The company is also bound to encourage a
sustainable fashion for its range of products and thus has selected the particular events to
promote itself. Apart from such events the presence of the company in well known social media
channels is also a serious part of their business promotions. The promotional features are thus
essential for the smooth and effective operations of the mentioned business enterprise. Apart
from these the promotion of the different products of Tengri are also carried out through social
media channels and by the conduction of promotional marketing campaigns.
Distribution Strategy
The suppliers of the organization include mainly the Mongolian suppliers who herds Yak
and supply the raw material to the business enterprise. The manufacturing is completed in the

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UK production house and the customers generally include the persons who like to wear high
end clothing brands. The study of, Diabat Kannan and Mathiyazhagan (2014) shows that
fashion, particularly at the luxury level, is one of the most prestigious industries however once
there is an internal failure the problematic side is sometimes revealed. Although heritage along
with genuineity are key drivers for the consumers of the fashion industry, the positioning of the
brand around artisanship, ingredient branding and the different countries of origin forms the
main basis of the marketing strategy inducted by the consumers are far-removed from the lives
of those at the beginning of the supply chain who may be surviving on subsistence wages whilst
providing the ingredients for global luxury labels. The proposal to increase consumer demand
for ‘greener’ products gives opportunities for entrepreneurs to create both profit and purpose
in their work and we are seeing a new type of business emerging- the social enterprise- that
operates as a hybrid business model being both ethically and profit-driven (tengri.co.uk 2019).
The following case study on the business analysis of Tengri based on the innovative model has
been one of the brightest sides of the organization. The physical distribution of the company
includes the sales of Tengri products in large scale fashion outlets like Matches Fashion, Oasis
and Relik.
Key Principles
The key principles of the business organization not only include the care for the
Mongolian Yak herders but also a sustainable care for the employees working in the
organization. Apart from the sustainable Human Resource planning the company ensures the
proper maintenance of the environment and keeps itself away from any kind of ventures that
may lead to the damage in the environment. The management of the company also involves
itself in philanthropy activities and is one of the leading business houses to perform its CSR
activities in a proper manner.
Pricing Strategy
Tengri being a luxury as well as a unique brand has its own pricing strategy. The
organization is one of the very few among the list of different companies in United Kingdom

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that produces clothes through green and environmentally friendly procedures. The pricing
strategy of the business is thus based on the exclusiveness it brings with the production of each
of its product.
Part 2
Analysis of the Situation
Positioning Analysis of the Company
A brand is generally built by the accumulation of experience, interactions and the social
behavior that exists between a product, company and service. The reason behind the
consideration of a brand as a total item is the main reason behind this. According to, Choi and
Cheng (2015) a brand is never considered or segregated into different departments. However,
the positioning strategy of the brand needs to be balanced according to the aspirations for the
brand, selection of the ideal customers and also ensure the selection of the choice of the ideal
customers (Choi and Cheng 2015. The management of Tengri believes that the success of their
unique brand lies on the adaption of the best and the most effective positioning strategy
(tengri.co.uk 2019). The positioning strategy implemented by the said organization is thus;
 Relevant
 Different and unique
 Credible
Tengri has been marked as a social enterprise that is fighting for the cause of the Mongolian
farmers by producing a range of different kinds of ethical woolens that are produced from the
wool of the Yak’s of the local people. While Tengri has launched its own set of products, the
study of, Li Zhao Shi and Li (2014) reveals that the company is currently facing intense
competition from the likes of Cashmere, considered to be its main rivals. As mentioned earlier,
the management of the company aims to break up the dominance of Cashmere clothing by
presenting its alternative soft woolen clothing to the customers. Apart from this the strategy of

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Tengri to highlight the plight of the Mongolian herders can also be considered as the trump
card for the business organization to earn sympathy and attract customers to buy the products.
The fall in the price of the different products of Cashmere can be said to be as a result of the
immense popularity of Tengri products (tengri.co.uk 2019). The company also positions itself to
be unique by ensuring a sensible and well behavior with the employees and ensuring the
presence of a good environment within the organization. The positioning approach of the
company has been because of a number of different dimensions namely;
 What Category of Products- Bouzon and Govindan (2015) describes that the products
have been categorized under the luxury category. The varied range of these luxury
products are generally obtained from that of the Yak’s soft wool and the fibers obtained
from the yarns. The company obtains these raw products from the Nomadic herdsmen
of Mongolia who have been struggling for a long time due to varied reasons.
 How it differentiates from other products- The main difference from the other products
and the products of Tengri are the use of green technologies and the absence of any
kind of atrocities towards the Yaks. The total process of collecting the raw materials,
processing them and manufacturing the end products involves green and environmental
friendly technologies (Karaosman Brun and Morales Alonso 2015). Apart from this
Tengri is the first Fashion brand that has been created on a fair-share model which
ensures the equal share of the revenue of the company in between the management
and the local Mongolian herders (tengri.co.uk 2019). Such a fair share model
differentiates the organization and its products from the others in the market.
 Who are the customers- The customers of the organization includes mostly the people
who prefer to wear environmental friendly brands and are conscious about the
environment.
 Where is the market for the products and the source of the products- The basic idea of
the founder of the business enterprise is to market its products across the United
Kingdom and make a name for itself by showcasing their unique products in different
fashion shows across the world (Macchion et al. 2015). The raw materials of the
organization are usually obtained from the wool of the Yaks.

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 Why does the customer need these products- The globalization of the world has
brought forth a number of drastic changes in the choice and behavior of the customers.
The change in the perception has thus forced the organizations to research and develop
environmental friendly products to attract the customers. When does the need for the product arose- The need for the product has aroused with
the rise in the awareness for environment. The customers for different products are
now more aware of their surroundings and thus want to take part and contribute in the
change process.
Demonstration of the Body of Knowledge
Sustainable Marketing Principles followed by Tengri
According to the study of Todeschini et al. (2017) sustainable marketing can be said to
be a marketing practice that involves socially and environmentally responsible marketing to
meet the needs and demands of the present customers and also ensuring the ability of the
future generation to meet their needs. Most of the fashion brands in the modern world have
the tendency to ensure the satisfaction of the present customers and ignore the future
generation. Grant (2016) has said that the failure to have the future perception makes them
vulnerable to different types of risks. The sustainability of these business firms comes under risk
in such situations. The sustainable marketing plans created by Nancy Johnston can be termed
as an ideal example for effective and responsible marketing of a unique fashion brand.
According to, Bouzon and Govindan (2015) the very establishment of the business
organization has been possible as a result of the sustainable marketing principles. A fair share
deal is a very rare phenomenon. It is quite rare to see that a fashion brand following the fair
share deal in order to recognize the plight of the nomadic herders of Mongolia and share the
revenue earned from selling the products with these herders (tengri.co.uk 2019). The
recognized and sensible marketing of the organization in such a case is the perfect example to
showcase sustainable marketing in today’s highly competitive market. The company provides
value to the customers as well as the employees and Mongolian herders.