Assessment 2: Sustainable Marketing Strategies of Tengri

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Assessment 2- SUSTAINABILITY AND MANAGMENT
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Table of Contents
Introduction....................................................................................................................................3
1. Background to the case..............................................................................................................4
2. Explanation of the case and synthesis with the theory: Consider the product, promotion,
distribution, and pricing strategy of this organization................................................................7
3. Provide a positioning analysis of the organization against its competitors...........................9
4. Sustainable marketing principles............................................................................................11
Conclusion....................................................................................................................................14
References.....................................................................................................................................15
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Introduction
The contemporary business environment has forced dynamic organizations to encourage
the practices of sustainability and efficient marketing in business strategies. Not only the
companies have altered the processes and operations but the customers have become
rational and alter their choices and preferences. These consumers are not just satisfied with
the application of traditional marketing strategies and policies ( Armstrong, et. al., 2014).
Therefore the 21st-century business organizations have adopted the policies of effective
marketing along with sustainability in order to seek competitive advantage in the global
and local markets. These norms have been bestowed upon the business associations due to
the large scale operations of business phenomena of globalization, international trade, and
online business transactions.
An effective and efficient mix of marketing policies and strategies have provided for the
accomplishment of desired results and outcomes in the most eminent and strategic
manner. These contemporary organizations are supported by the pillars of sustainability,
social sustainability, and corporate responsibility etc. The report has presented with the
case of Tengri a social business enterprise that is adamant to instill the practices of effective
marketing mix and sustainability in the business practices and operations to achieve the
goals of competitive advantage (Tengri, 2018). Tengri is business dealing within the sectors
of fashion clothing, homeware developer and accessories developer. The business procures
fabric from the Mongolian Yak from the regional Mongolian societies. The report will
describe how this organization is instilling sustainability in the business processes and
marketing mix.
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1. Background to the case
Tengri started off the business jointly with the herders from the Mongolian societies. The
business is largely inspired from the travels of east to west and incorporates the traditional
practices of the Mongolian societies and herders. The business is determined to spread the
practice of sustainability in business operations; therefore it has adopted unique and
innovative ideas in order to process for business products and services. The business has
adopted practices and policies of system thinking and system engineering in order to
inculcate the practices of sustainability in the business processes. The fabric is procured
from the regional and local Mongolian herders and is processed with a high degree of
craftsmanship and integrity in order to produce design led and innovative fashion driven
pieces of clothing (Tengri, 2018). The business has adopted effective waste management
systems to process the unused yak in the manufacturing for the textile and clothing
industry. The business initiated as a social business due to which premium prices are
provided to the herders from the yak provided to the business. This way the business is
supported to structure and furbish the ideas of sustainability in the processes of business
and towards the local herders representing the Mongolian societies.
Marketing Mix
The marketing mix is recognized as a contemporary business practice which aids the
business to achieve the marketing goals and objectives in a strategic and systematic
manner. The marketing mix is a business practice in which various marketing components
are intertwined in order to produce effective marketing policies and strategies. The aim of
the marketing mix is to provide with a combination of effective marketing elements which
ensures for accomplishment of the business aims and objectives ((Bahl and Chandra, 2018).
These include for controlled variables which are used to influence the decisions of buyers in
the favor of the business organization. The marketing mix in respect to Tengri is described
hereunder:
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Product: It refers to the products and services developed by the business organizations in
order to be offered to the consumer whether current or potential. Products are the
medium through the business connect with the consumers and creates a business presence
in the markets (Carillo and Redondo, 2018). The products offered by Tengri include
clothing, accessories, and homeware. The lays emphasis on the development of design-led
and sustainable products in partnership with the traditional Mongolian craftsmen's.
Price: The business highlights values of contemporary business practices in order to reach
for the greater benefits and revenues. To ensure sustainability higher and premium prices
are provided to the traditional herders from the Mongolian societies. The business ensures
practice of economies of scale to support for lower prices for the consumers and promote
the advantage of a greater share of profits amongst the business associates.
Place: With headquarters in London and stores spread over different parts of the globe,
Tengri processes the products only through traditional channels of supply i.e. is through
stores. The business is yet to invest in online services and stores. Although several
collaborations are processed by the brand to increase market share presence examples of
which include Tengri x Harry Stedman, Tengri x Huntsman, Tengri x Nile & York, Tengri
Selfridges, Tengri x savior beds, and Tengri x You (Tengri, 2018).
Promotion: The business enjoys a fair share in the market and is supported by rational and
cautious choices of the consumers. As the theme of business is dependent over the
practices of sustainability large share of promotional activities are executed on a similar
basis.
People: The employees at Tengri are selected over the basis of their knowledge about the
traditional Mongolian practices and traditional aspects of craftsmanship. The employees
are encouraged to support each other and instill sustainability in the processes and
corporate culture (Tengri, 2018).
Process: The business strategies and processes revolve around the concepts of strategic
and ethical resourcing of the products. With sustainability in mind business practices and
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processes are structured over the concepts of system thinking, system engineering and
waste management (Cooper, 2016).
Physical Evidence: These include for the brand’s logo and trademark used in the business
to distinguish from the competitors in the global markets.
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2. Explanation of the case and synthesis with the theory: Consider the product, promotion,
distribution, and pricing strategy of this organization
Tengri is keen to develop as a high-end fashion and clothing brand worth £25 million in the
coming 10 years. The business executes diversified concepts in the areas of Product,
Promotion, Distribution and Pricing Strategy which are explained as below:
Product: The competitive advantage accessed by this business is procurement of fabric
from the regional and traditional Mongolian herders. This natural and finest quality of
fabric provided by the herders' aids in development of rich in quality and designed fabrics
for the consumers (Eiseman, et. al., 2015). The competitors for Tengri procure their fabric
from China, Tibet, and Nepal which lacks the quality of the fabric as compared to the
fabrics of Tengri.
Promotion: The promotional activities executed by Tengri are exemplary and outstanding as
compared to the competitors. The business drives promotional campaigns and activities on
the themes where people, land, and animals are resourced as an integral part of the
business. This attracts the consumers and fetches attention in the most dramatic manner.
Along with the practices of sustainability is endorsed through all the business processes
and functions.
Price: The business considers traditional and regional herders as eminent business
associates. These are represented by the business in front of the consumers as most
precious and valuable resources for the company. Therefore the business executed
premium pricing policies for these herders and shares maximum of the profits to spread
sustainability in the textile industry along with these herders ( Khan, 2014). Alternatively,
moderate prices are targeted towards the consumers in order to ensure a fair share of sales
and distribution of high-quality products in the markets.
Distribution: The business provides and distributes its products through offline channels
and supplies. The business is executed through stores and collaborations in order to spread
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the sales and share in the market. The business is decisive of entering in the modern
channels of distribution through online stores and retailing systems in the future.
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3. Provide a positioning analysis of the organization against its competitors.
Positioning Analysis is an analysis through which the position or standing of the brand is
assessed in the market. This analysis includes perceiving the mindsets and thoughts related
to the brand amongst the consumer (current and potential) and the competitors in the
market. The analysis lays focus towards the target market and determines for the power of
a brand to satisfy the needs and requirements of the consumers. The determinants of the
target market are possessed as an essential element of the analysis ( Perry, et. al., 2018). In
context to Tengri, it is considered in both the global and local markets of the textile
industry. The business is perceived as a great mix of traditional and modern practices that
runs behind the concepts of sustainability of the business (Gordon, 2012).
The business has succeeded in recognizing the rights of local herders representing the
Mongolian societies. The business practices have forced the Mongolian government to
provide these herders with land and herding rights with expansion in the herding areas and
lands provided (Welford, 2016). The government has also recognized financing these
herding activities by developing strategic policies and programs to support for the herding
activities and sustaining the indigenous species "Yak". It is with the development of these
activities focus towards developing herding associations providing with education to the
herders for developing the finest quality of fabric has been emphasized (Tengri, 2018). The
competition in herding markets and fabrics have increased due to the presence of
increased business opportunities. Thee points resent for the position and impact the
business of Tengri has laid in the local markets and scenarios.
Along with this, business has also laid emphasis on the global practices and systems in the
textile industry. The business has developed strategic and modern business models that
imply the integration of system thinking, system engineering, and waste management in
business processes. These business models are also supported by the practice of
sustainability and profit sharing with the local business partner the herders. The business
has strategically gained value in the eyes of the consumer developing a rational decision
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making for the branding and purchase decisions. The global impact and positioning Tengri
has made is evident (Tengri, 2018). The business competitors such as Haworth’s Textiles Ltd
and James Robinson Fibres Ltd. have to resort towards these practices in order to provide
competition to the branding and strategic policies of the Tengri. the business attributes of
100% transparent and ethical sourcing of the business from the Mongolian herders have
increased the brand values and subjected to an increased practice of sustainability in the
business (Todorova, 2015). Therefore the local and global business competitors have to
develop policies that integrate the processes of sustainability and out of box thinking in the
coming years of cutthroat competition.
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4. Sustainable marketing principles
Sustainability is the ground over which the business model and practices of Tengri are
based. The business has evolved sustainability in the aspects of marketing in order to
multiply the results and profits on a larger scale. The concepts of sustainable marketing
enforce such activities and approaches that negotiate to meet the current and future
requirements of the business and the consumers in a socially and environmentally
responsible manner (Wongleedee, 2015). The practice of sustainable marketing also
ensures for the accomplishment to meet for the requirements of the future generations. In
order to grow and develop it is necessary for the business to follow sustainable marketing
for accomplishing the current and future needs in an effective manner. The sustainable
marketing principles followed by Tengri are as below:
Consumer Value Marketing
This principle of sustainable marketing is firmly followed in the marketing activities
processed by Tengri. The business has marketed its ideas on sustainable themes where
people, animals, and lands are nurtured and cherished (Emery, 2012
). This idea of marketing has also been engrossed through a sustainable business model
where consumers are viewed as a center of resource and energy for developing and
shaping business practices and activities.
Innovative Marketing
The business is seeking innovative marketing by projecting the reality of products and
fabrics gathered by the craftsmanship of the regional and nomadic herders from the
Mongolian societies (Lii, et. al., 2013). The business has evolved for the integration of
practices of sustainability, waste management, system thinking and engineering into
marketing activities and mixes. This has evolved for innovative marketing which determines
for improvements in the business and society.
Societal Marketing
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The business has revolutionized the textile and fashion industry by integrating the presence
and contribution of herders in the industry domains. The business has focused on
presenting herders into the international supply chain directly which has contributed to
maximum profit sharing towards these herders (Minton, et. al., 2012). The business
marketing strategies have not only provided with representation for the herders but have
also altered the way business is executed in the fashion industry. This has aided the herders
and the business in establishing a different lookout from the competitors in the market
providing with long term benefits.
Recommendations for the improvement of sustainable marketing principles
The marketing principles and strategies followed by Tengri are effective and have provided
with diverse opportunities to meet the sustainable objectives for the business. The
company can consider the recommendations below to meet the expectations of the
stakeholders.
 The business must lay emphasis to enter lucrative markets such as the Asian markets
where demands are high. The market entrance into these regions will provide with
opportunities to increase the consumer base and indirectly the revenues for the
business.
 These lucrative markets will also provide with cheaper prices for the fabrics and
materials required due to abundance which can be sold at greater prices for the
consumers (Grant, et. al., 2017).
 The business must also consider expansion in the business operations through
online stores and distributions. In the world of digitalization and modernization, the
business must strategically enter the online shopping portals and other websites to
distribute the produces.
 This will provide with an opportunity to enter the lucrative markets and spread
operations at an increased pace without investing heavily into the business models
and portals (Noo-Arai and Jaroenwisan, 2016).
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