Tentree Case Study Debate

hank you!

T

Competitive

Advantage

Michael Porter's Generic Strategies

Differentiation Focus

Source: Porter, Michael E., "Competitive Advantage". 1985

Innovative

Niche Market

High Quality Products

Green Marketing Approach

• Employee standards

• WRAP (Worldwide Responsible Apparel Production)

Tentree and Social Media: Key to Success

• No traditional advertising to sell tangible product
• No advertising in the content – instead interactive, engaging and interesting social platforms
• Platforms and their content aligned with TT’s culture, attitude and philosophy: clear focus on communicating TT’s social mission more than anything else
• Both truly authentic and is proving to be a great sales tactic

Why Social Media?

• Social media is the driving change in CSR
• Changes perception
• Bridges the gap between marketing and sustainability
• There's no place to hide...

Source Nielsen Global trust in advertising survey q1 2015,

http://www.nielsen.com/uk/en/insights/news/2015/ads-with-impact-what-messaging-themes-speak-loudest-to-consumers.html

TENTREE AND SOCIAL MEDIA: APPROACH

• Platforms developed and mapped to a specific use
• Content aligned with TT’s social message
• Platforms to fit TT’s message: fresh, innovative and meaningful

1,2M

Followers

315,8k

Followers

2,5M

Views

23,5k

Followers

2,3k

Followers

• VISIBILITY

• ENGAGEMENT

Most Effective Marketing Channels and Strategies Worldwide

• Go above and beyond ordinary CSR

• Connecting people with the impact, making sure the customer is informed about the impact they are making.

• Making customers know they did more with their money than just buying a trendy apparel – engage, communicate, share.

Source: www.statista.com

Power of Social Media

Social Media and #Sustainability

Social media is now driving change in the world of CSR …

• changes perception
• bridges the gap between marketing and sustainability
• sparks global debates
• there's no place to hide...

Social Media and Green Marketing

3Ps unpacked: Profit

Revenue Growth 2011-2015

¹ Stuart L. Hart, Mark B. Milstein and Joseph Caggiano. 2003.

The Academy of Management Executive

• Founded in 2011 by 2 friends
• Started as experiment by selling 100 shirts and planting 1,000 trees
• Reputational benefits of eco-friendly production come at a high price
• Business model: development of strong brand identity
• Premium pricing strategy to cover manufacturing and trees planting:
• T-shirt $32
• Shirt $55
• Hoodies $60
• Exponential sales growth
• App. 250% y-o-y

• “A sustainable enterprise is one that contributes to sustainable development by delivering simultaneously economic, social, and environmental benefits-the so-called Triple Bottom Line (TBL)”¹
• TBL dimensions commonly called 3Ps: people, planet, profit
• TBL captures the essence of sustainability by measuring the impact of an organisation’s activities on the world.
• So how do we measure Tentree’s TBL?

Tentree is a model of sustainable enterprise

• Strong links with local communities to ensure a lasting impact
• Provide seasonal employment to locals
• Only work with socially and environmentally responsible factories:
• Fair hours of work, no child labour, fair compensation, a safe and healthy workplace
• Factories agree to yearly unannounced audits and abide by Tentree Code of Ethics
• Educational role of tree planting for future generations

3Ps unpacked: Planet

3Ps unpacked: People

• Environmental impact of a single T-shirt vs 10 trees:
• Produces: 100 kg of CO2
• Absorbs: 220 kg of CO2 and produce 1,180kg of O2
• Total: 120 kg of CO2 absorbed and 1,180kg of O2 produced
• Trees live 20-30 years and propagate seedlings which in turn grow into more trees.
• Partnerships with numerous renowned green NGOs

• Tentree is “first and foremost a tree planting company”
• Reforestation revitalizes dry arid soil and provides O2 supply
• How much does it cost the planet to produce a T-shirt?
• Over the whole life-cycle of the product, from manufacture to disposal: 10 kg of CO2 emissions (Worldlife)
• How much does the planet gain from Tentree’s production?
• A single mature tree can absorb 22 kg CO2 and release 118 kg of O2 each year, i.e. enough oxygen back into the atmosphere to support 2 human beings (Canada's National Environmental Agency)

CASE STUDY DEBATE

By: Estela, Yelena, Emanuel, Meran

Tentree has a sustainable business model (TBL) and this is a source of competitive advantage; social media has been key to their success.

MISSION STATEMENT

To provide consumers with quality clothing and accessories. They try to inspire a new generation of consumers who are passionate about the environment and willing to make a change to the world and their life style.

Ten Tree vows to keep loyalty and faith where,

“When customers buy one tee,

we plant ten trees”.

"People don't buy what you do; people buy why you do it."

-Simon Sinek, TED speaker