SUSTAINABLE MANAGEMENT AND MARKETING

SUSTAINABLE MANAGEMENT AND MARKETING
(ASSIGNMENT-2)
SUBMITTED BY
JITHESH SUDHAKARAN NAIR
(19862046)
TABLE OF CONTENTS
EXCECUTIVE SUMMARY………………………………………………………………… 3
INTRODUCTION…………………………………………………………………………….. 3
MARKETING MIX……………………………………………………………………………. 3
PRODUCT…………………………………………………………………………… 4
PRICE…………………………………………………………………………………. 5
PLACE………………………………………………………………………………… 5
PROMOTION……………………………………………………………………… 5
SUSTAINABILITY IN TENGRI……………………………………………………………. 6
POSITIONING ANALYSIS OF TENGRI……………………………………………….. 8
CONCLUSION…………………………………………………………………………………. 9
REFERENCES…………………………………………………………………………………… 10EXECUTIVE SUMMARY
First, the article gives an introduction to the history and organizational structure of the company Tengri. The report later discusses the market mix of Tengri which includes Price, Place, Product and Promotion. Sustainability of Tesla is also discussed in comparison to its competitors. The different tools for analysing sustainability in Tengri are also covered in the essay. A positional analysis of Tengri has also been done with respect to its competitor brands.
INTRODUCTION
Tengri, one of the brand leaders in the modern fashion industry, started its operations in London on 2014. The idea of Tengri was first written on a chocolate wrapper by a social worker named Nancy Johnston while she visited Mongolia. She got inspired by the intense relationship between different members of the ecosystem. Tengri is a premium clothing brand based in London which gets its raw materials directly from Mongolia. Their fabrics are made from the fur of a Yak found in the western part of Mongolia. Tengri focuses on natural Mongolian fibre which is comparatively softer and warmer than woollen fabrics. Their work gives sustainable income for herders. It cannot be categorized under the normal luxury brands. (Tengri, 2018) The major difference is the equity of ownership amongst all the groups involved in the business. It has a transparent supply chain system and a straight forward store network provenance. The design and production are done in the UK by small scale British manufactures using older machineries. The fibre is procured directly from almost thousand five hundred families in Mongolia as a joint venture. The fibres are hand combed which will be available only once in a year. The major products of Tengri are hand woven jumpers, trousers, shorts and scarves. (wearesalt, 2018).
MARKETING MIX
The marketing mix is a business instrument utilized in promoting and by advertisers. The showcasing blend is regularly significant while deciding an item or brand’s offer and is frequently connected with the 4 P’s: value, item, advancement, and place. Promoting is a business work that recognizes buyer needs, decides target showcases and applies items and administrations to serve these business sectors. It additionally includes advancing such items and administrations inside the commercial centre.
Sustainable marketing is necessary in the achievement of a business, expansive or little, with its essential spotlight on quality, buyer esteem and consumer loyalty. A technique usually used is the Marketing mix. This instrument is comprised of four factors known as the 4 Ps of showcasing. The advertising combine mixes these factors to create the outcomes it needs to accomplish in its target showcase. These 4 Ps are the parameters that a showcasing administrator can control. The objective of 4 Ps is to make an apparent esteem and produce a positive reaction. The advertisers who keep on embracing the 4 Ps model and outlook make a structure of astounding showcasing and arrangement offering system. (4psofmarketing, 2018)
Tengri focuses on sustainable marketing techniques which are eco-friendly as well as ethical. Customer education and awareness are the ways they follow in achieving their goals. Their motto is- beautiful products with less harm. They believe that, these policies will inspire customer behaviour and thinking. These unconventional marketing techniques were found to be much effective when compared to others. The marketing mix of Tengri can be identified with the help of four Ps of marketing.

Product
Tengri specialises in hand woven Yak fibre fabrics. The main advantage of Yak fibre is that, it is softer than Cashmere whereas warmer than wool. It is about 5 degrees warmer than wool. It is hypoallergenic and can be breathable. This kind of fibre is sustainable and eco-friendly. The Warrior collection is the current launch of Tengri. This includes coats, warrior trousers, jumpers, gloves and so on. The latest launch was the Winter series named ‘The Rider’ which was launched in 2015. These models were manufactured in London and Scotland. It was designed by the co-founder, Mr. Carlo Volpi and fashion technology students from Heriot-Watt university. Improvements in quality of craftsmanship and technology has been found to further increase the value of the brand. Tengri also seeks help from design studios and textile designers to create unmatchable quality goods.

Price
Pricing strategy will directly affect supply, overall revenues, request and showcasing technique. Similar brands should be classified keeping I mind the variation in prices, while price elasticity will affect the other Ps- Place and Promotion. (purelybranded 2018) The pricing factor of Tengri has very less impact on its customers due to the unrivalled quality of its products. The pricing of their products is a bit high when compared to its competitors. Despite that, this has not affected their number of customers negatively. For instance, their high demand hand knitted sweater series ranges from 1000-2500 Euros. The pricing of their products is done on the basis of the cost of production and demand of the product rather than the prices of competitor firms and customer’s purchasing power. Tengri, being a sustainable industry focuses on the ‘good for all’ policy. So, they normally do not follow the price cutting policies to attract customers.

Place
Place is critical to transform potential customers into actual customers. Tengri started its operations in London on 2014. Since then, the company has extended its boundaries beyond the country. The products are available worldwide through online shopping through their official website. Apart from that, Tengri has collaborations with many fashion brands based in UK to improve the versatility in the products they launch. The major collaborations of Tengri are Harry Stedman, Huntsman, Nile and York, Savoir beds and Selfridges. The major distributors are based in London and some parts of Scotland.

Promotion
Promotion of a product incorporates advertising, publicizing, social media marketing and sky is the limit from there. Each touch point should be backed by an all-round positioned brand to increase the rate of return. Tengri does not have a Corporate social responsibility policy. They mainly focus on providing sustainable income to the herders in Mongolia rather than investing on other promotional activities. The concept of the organisation itself nullify the need of promotional techniques like advertisements. According to them, the amount saved on promotional activities can be properly utilized for the expansion of the firm in an ethical way. They believe that a brand like Tengri does not require any promotional groups for their assistance, as it is more of a collective venture.
SUSTAINABILITY IN TENGRI
Sustainable marketing is the latest concept in business and marketing, however it has turned out to have a distinct advantage. (study, 2018) Latest studies found out that more than 50% of the costumers are ready to pay higher prices for products that are focused on positive social and natural effect. However, they should be convinced that the product and administration have genuine societal and ecological advantages. (thehouseofmarketing, 2018) As society advances, marketers have discovered that there should be more reasonable marketing practices to maintain customer relationships. The standards of sustainable marketing are customer oriented, customer-value sense of mission, innovative and societal. (Carlymjones.worpress, 2018) Sustainable marketing should also try to achieve long term goals through proper promotion and branding. Considering the social and environmental aspects alone would not be enough to achieve long term goals. (digglescreative, 2018) Normally, marketing orientation focuses on functional management of a company. (Wikipedia, 2018) Sustainable marketing cannot be considered as a contemporary strategy for showcasing as it has been the answer for some business needs. Despite that numerous associations neglect to execute this showcasing system. The reason is that this idea isn’t that simple to be executed when contrasted with the others. It is more similar to that of green development in the field of business. (enotes, 2018)
From a report published in conservation biology (virgin, 2018), it was observed that many of the native species are getting endangered due to the Cashmere industry. The unsustainable levels of animals have lessened the measure of land to graze in Mongolia and the Tibetan plateau. The intensive grazing of the cashmere goats has led to use of almost 95 percent of the meadow. This has been resolved up to an extend by the yak fibre fabrics by Tengri. Tengri’s approach to sustainability can be eyed through the following lenses.

FairshareTengri considers the herders the major part of their supply chain system. They believe that it is not possible to grow without their resources. Hence, they have made a fair share benefit display, guaranteeing not just that the herders get reasonable income for the fibre they provide but also making sure that their operations do not contrarily affect the local market. The herder families are paid 1.5 times of the average market value and nearly 2% bonus in the years when they earn profit. A half of the deposit will be given in advance and the remaining will be paid out after the fibres are received.

Land degradation
Over the years, the areas around the Mongolian steppes got deserted due the excess grazing of cashmere goats. The land surpassed its conveying limit by almost 5 times of the total capacity of the region. Under the nature conservancy program, Tengri works with the herder families, wildlife experts and government to guarantee that the development would not be at the cost of damage to landscape, wild plants and creatures.

Social impact
Tengri had a huge positive social impact by giving decent prices for the goods. Moreover, they are helping the herders to improve their quality of life allowing them to live the life with the herds but with all the benefits associated with the modern world. This includes availability of solar energy, study materials, etc. They work with the herders to identify their needs and solving it thereby helping them to lead an independent life.

Partnerships for development
Tengri’s policies are much more that sufficient pay for herders. They don’t normally outprice the local markets as it would make a negative impact on the economy. Rather, they focus on collaboration with small and medium sized ventures to help shape the market and make an aggregate development.

Technology
Khangai fibre is a sustainable and all characteristic material which is new to the market. The advantages of the fibre are still unexplored. Tengri works with the latest innovations like green technology with the help of different facilities so that the fibre gets fully utilized. The innovations are done making sure that it would not have any adverse environmental impacts.

Innovation and Education
Modern designers should be aware about their influence on the fashion supply chain. The knowledge of how design has a major impact on the production process is a key part of pushing the business forward. Tengri gives away the Textile talent award for encouraging innovation in the textile field. Tengri along with its partners educates about the different supply chain practices to make a space to support innovation.

POSITIONING ANALYSIS OF TENGRI
Positioning analysis is the manner in which an organization’s image fits into targeted market fragments with respect to its competitors. (smallbusiness.chron, 2018) Companies adapt different marketing tools to stand out from their competitor in the market. To analyse the market of Tengri, the best way is to check the points of parity with its competitors. Even though there are not many competitors for Tengri in this field, there are many cashmere clothing brands which can be taken into consideration for the analysis. The major brands are Jennie Liu, Christopher Fischer, Kinross, Johnstons of Elgin and Sofia. (cashmeremania, 2018) Kora is the only Yak wool clothing company which makes similar products as that of Tengri. Although, the products are similar, the marketing techniques implemented by both the organizations are totally different. The primary factor to be considered for comparison is the quality of raw materials used. Tengri uses a special Yak fibre from Yaks found in the Khangai mountains. These fibres have unique textures as Mongolia is rich in mineral resources, which cannot be matched with other Yak fibres. Tengri partners with traditional manufacturers based in UK and Italy so that their competitors cannot maintain the same level of quality. The standard of the Yarns in Britain is also incomparable. Unlike other brands, Tengri has a transparent supply chain system. The products are diversified into two- lifestyle and fashion. Tengri has two noble yarns trademarked in their name. The competitors whereas has create a new brand and embrace considerable marketing to be successful in the luxury market. Potential contenders should endeavour some innovative marketing techniques for that. Tengri has not even spend a bit for advertising till date. Many large brands are choosing Tengri over its competitors to become their supplier. The carrying capacity of the Mongolia plateau has not even reached. Only about 20% of the resources are being utilized. The quantity of fibres combed can be increased from the current capacity of 20 tonnes to 100 tonnes. Apart from this, Tengri gets offered from different co-operatives based in Mongolia, Tibet and Nepal. The competitors mainly get the fibre from Nepal, Tibet and some parts of South America but they are not that effective due to harsh environments, lack of logistics and infrastructure. The trade system supported by efficient government policies make Mongolia stand out in the world luxury fibre market. Tengri has plans for expansion by manufacturing leather goods which will be included in the lifestyle section. According to the COE (Nancy Johnston, 2018), Tengri will be planning for an investor exit in almost 5 years. They also have plans to divide the company into three- Fashion, furniture and Yarn. It is quite understandable from this analysis that Tengri is much established when compared to its competitors.

CONCLUSION
To conclude, Tengri can be considered as a perfect example of an ideal sustainable marketing model. According to the analysis done, it is very much evident that Tengri closely follows Sustainable and eco-friendly practices which has in fact positively affected their growth as an organization. Tengri has shown the world how to conquer the market with ethical sustainable marketing rather than mere promotional activities. They can become a tycoon in the textile industry by expanding their international market. The main aim of Tengri is to enlighten the society about the importance of sustainability in the current world. Their official motto says it all- ‘Our business is good business’. (Tengri, 2018)
REFERENCES
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