Marketing Mix, Sustainability, and Competitive Advantage: The Case of Tengri

In 2013, social worker Nancy Johnston went to a post-redundancy trip to Mongolia. As with many
successful local entrepreneurs, she did not plan that trip to be a start of a sustainable luxury
clothing revolution. But later that year, she founded Tengri which in an elevator pitch she would
describe as ‘a brand built by people unwilling to settle for the status quo.’ We aspire to bring
noble fibres to the forefront of the fashion industry, helping to protect wildlife and support the
nomadic herders’ way of life, which is threatened by rapid industrialisation and land
degradation.’ (Johnston, 2016).

Today, British fashion brand and noble yarn technology specialist Tengri, has been named one of
the leading 100 sustainable global initiatives in the Sustainia100 list. It operated on the principles
of sustainable supply chain and marketing. Tengri noble yarns aims to provide consumers with a
sustainable alternative to the environmentally destructive cashmere industry through promoting
the use of yak hair. Tengri is represented by the fairshare business model with contributions by
industry leaders in fashion, textile technology, business, conservation biology, animal health,
manufacturing, research, academia, and media. This collective aimed at innovating the business
model with supply-chain provenance (Johnston, 2016).

The ‘fairshare’ business model of Tengri works as it supports over 1,500 nomadic herder families
in Mongolia. These families directly supply Tengri with hand-combed fibres yield from Khangai
yak species, indigenous from Mongolia. Furthermore, according to Johnston:
‘Tengri’s direct supply chain with herders takes forward the work of more than a decade’s
worth of conservation efforts and international research conducted as part of Mongolia’s
Green Gold project. The qualities of yak fibres are similar to cashmere but do not come
with the same environmental cost; cashmere goat overpopulation and overgrazing are
the main cause of environmental degradation in the Himalayas' cultivation regions. Our
international trading activity with nomadic herders has influenced the Mongolian
 government to grant land and herding rights to herder families involved with Tengri, rights
that were not previously recognised.’
(Johnston in Changemaker.org, 2016)

The ‘fairshare’ model is at the core of Tengri’s marketing strategy. It anchors on conscious
production and hence attracting consumers who share the same belief. In specifics, its marketing
mix is divided into: products, pricing, production, and promotion.

Primarily, the fashion brand offers woolen clothes produced from organic, locally sourced wool.
Tengri retails a wide selection of woolen clothes for both men and women produced using 100%
original yak wool. They promote their products to be ‘extremely warm and soft as cashmere.’
Products range, but not limited to, the classic ribbed scarves, hand knitted sweaters, fringed
blankets, hand knitted products such as throws, socks, and others. These are their basic products
with more selections depending on the season and if they have project collaborations.

With this range and variety of product offering and the premium put on it being a local sourced
sustainable company, Tengri prides itself as a luxury fashion brand and sell their products at a
premium price point. For reference price range per product are as follows: scarves at 350 pounds,
cashmere sweaters from 450 to 850 pounds, premium sweaters from 1150 pounds to 2100
pounds and beanies from 150 pounds to 165 pounds. With designer collaboration collections
selling at higher price points. Products from UK market competitors on the otherhand sell at
lower price points compared to Tengri (i.e. Bibico, Reve En Vert, and Merino).

Production of their products start from locally sourcing fibers produced from Mongolia in Khangai
Mountains. Tengri also has partnerships with other companies to design and produce for their
range using the company’s primary material, the organic yak wool. They also partner with
companies and brands for retail and distribution. Tengri also have designer collaborations for
their various product line and season collection.
Tengri promotes and sells their products primarily on their official website tengri.co.uk. The
selection from current and previous collections with respective prices and production
information can be viewed on this website and directly place an order through this e-commerce
platform. They also offer free shipping for all the products. Aside from their website, Tengri also
utilizes promotion via social media and other digital platforms. And it is ensured that their
marketing strategies is anchored on their ‘fairshare’, eco-friendly, and sustainable business
model narrative.

For the case of Tengri, it’s product marketing strategy primarily uses the eco-friendly strategy.
The ‘fairshare’ model to promote sustainability wherein the company pledges it’s contribution to
preserving and protecting the environment (Zia, 2013). As mentioned, their eco-friendly and
sustainable narrative is also embedded in the promotion strategy. Tengri uses Above The Line
Promotion strategy, aimed at reaching a mass audience and establish brand identity (Winterberry
Group, 2006). Tengri utilizes this strategy to reinforce emotional concepts surrounding a product
or brand which in this case is an appeal to conscious consumerism and production. It also utilizes
the Below the Line Strategy aimed at a smaller, more specialized audience sector through its
website and social media community (Winterberry Group, 2006).

In terms of distribution strategy, both Business to Business (B2B) and Business to Consumer (B2C)
is adopted by the fashion brand to market their products (Kumar, 2011). It’s collaborations,
production and distribution partnerships is a part of their B2B strategies while their B2C strategy
appeals to their target community of eco conservation advocates and allies who support
sustainable fashion whom they reach directly through their e-commerce platform (Kumar, 2012).

As mentioned, Tengri markets itself as a luxury sustainable fashion brand which means their
pricing strategy is offering high quality luxury products at the premium price points. Premium
Pricing strategy to offer the high quality products to their customers. As such, they are positioned
at a higher price points than their market competitors. Whilst competitors are known for low
quality and high price products or low price and high quality products, Tengri known for its high
price and high quality products.

Essentially, Tengri’s business model aimed at a sustainable and conscious supply chain
management. Supply chain management (SCM) is the process through which a company
manages the sourcing and procurement of inputs, the processing and manufacture of products
and services, and their delivery to the consumer (Gerrit, 2014).

Tengri follows not only sustainable production but also sustainable marketing. In a framework
presented by Gordon, Carrigan, and Hastings (2011), sustainable marketing could be achieved
through the contribution of three existing marketing sub-disciplines; green marketing, social
marketing and critical marketing. In the case of Tengri, it follows green marketing through it’s
eco-friendly and sustainable supply chain by locally sourcing its primary production materials. It
encourages social marketing through its ‘fairshare’ principle. Critical marketing is positioned as
challenging and innovative market strategies, and through promoting eco-friendly, sustainable,
and ‘fairshare’ products it amps it’s competitors and the consumers as well. Furthermore,
sustainable marketing is said to be at the core of building sustainable businesses (Noo-urai and
Jaroenwisan, 2016).

Recommendation and Conclusion

Conscious consumerism and sustainable production nowadays is at the forefront of emerging
brands and businesses. As environmental degradation and climate change are put at the center
of critical discourses in societies, consumers are leaning towards brands and businesses which
offers ‘greener’ and more eco-friendly options and solutions. In this field, Tengri has been
successful in forging a community of consumers who patronize their luxury products. They have
innovated supply chain management through locally sourcing it’s materials and contribute to the
livelihood development of herders in Mongolia. Furthermore, it breaks the harmful effects in the
environment of traditional textile production. It also involves other brands, companies, and
designers in their causes through collaboration and distribution partnership. Tengri utilizes
current trends in e-commerce through tengri.co.uk, efficiently reaching its niche market.

What Tengri is doing sounds good on the surface, however there as still critiques and areas of
improvement for the luxury brand to take into consideration. Such as a more personal customer
services mechanism or strategy in order to encourage customer repurchase and have a larger
community by encouraging more conscious consumers to buy their products. Additionally,
although it prides itself as a luxury fashion brand with higher price points it should utilize its B2B
connections by partnering with other brands who can produce or distribute materials at more
affordable price points to extend its market. I.e: retail stores, fast fashion brands, etc.,

Johnston built the Tengri brand in light of revolutionizing the luxury fashion industry through
sustainable production and marketing and encouraging conscious consumerism. The brand has
followed approaches and strategies anchored on their fairshare and eco-friendly narrative and
based on sustainable marketing models. It prides itself as a luxury fashion brand with high quality
products and high prices and at the same time promoting a sustainable livelihood to its partner
community in Mongolia. As of writing, it had stay true to it’s brand narrative and as with other
luxury fashion brands, perhaps the way to go is to increase market shares by continuing to
promote it’s advocacy and at the same time attempt at reaching retail markets.
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