Social Network Title

Growing TenTree (TT)SOCIAL ENTERPRISE, SOCIAL MEDIA & ENVIRONMENTAL SUSTAINABILITY

Group membersPIRASANNADEVI SIVAKUMAR MBS141021

RASIKA PRIYA RAMACHANDRAN MBS141020

JAISRI KARUNANITHI MBS141019

POOWESNA S.R.PERUMAL MBS141022

SRI MANUVIDYAA SWAMINATHAN MBS141074

KAITHIRI MORGES MBS141016

INTRODUCTION TO THE SOCIAL TEAMINTRODUCTION TO THE SOCIAL TEAMSocial Network: A network of social interactions and personal relationships. A dedicated website or other application which enables users to communicate with each other by posting information, comments, messages, images, etc.Social Networking: The use of dedicated websites and applications to interact with other users, or to find people with similar interests to one's own.Social Enterprise: Businesses that trade to tackle social problems, improve communities, people's life chances, or the environment. They make their money from selling goods and services in the open market, but they reinvest their profits back into the business or the local community.Social Commerce: A subset of electronic commerce that involves social media, online media that supports social interaction, and user contributions to assist online buying and selling of products and services.Social Media: Computer-mediated tools that allow people to create, share or exchange information, ideas, and pictures/videos in virtual communities and networks.

ContTYPES & EXAMPLES OF SOCIAL MEDIA

TYPES & EXAMPLES OF SOCIAL NETWORKING

TYPES OF SOCIAL ENTERPRISE

EXAMPLES OF SOCIAL ENTERPRISETYPES & EXAMPLES OF SOCIAL COMMERCE

PROS OF SOCIAL MEDIA

CONS OF SOCIAL MEDIA

Growing TenTree: Social Enterprise, Social Media and Environmental SustainabilityDescription

Two friends have launched TenTree (TT), a Canadian entrepreneurial venture that sells an environmentally sustainable and trendy brand of apparel. For every product sold, TT plants 10 trees in locations around the world. Although TT is still in its infancy, it is already experiencing huge growth. The entrepreneurial founders now face several challenges: how to keep pace with the growing demand; how to plant as many trees as they can while staying true to their sustainable, environmental philosophy; how to break into the U.S. and other markets; and where to source their product.

Learning objective:To explore the creative use of social media and Internet, especially in new ventures.To understand the demand for sustainable products and supply of a sustainable business model for a cause and a for-profit company. To illustrate how entrepreneurs can ascend learning curves, leverage networks, and exploit Facebook and other social media to drive traffic to their website. To discuss the conflict between commercial imperatives and a social mission.Case Study SummaryFounder of TenTree

The Ten Tree management team: (from left: Kavin Emsley (CFO), David Luba (Founder) and Derrick Emsley (Founder)

THE TENTREE

Website Link for all the social mediahttp://www.tentree.com/https://www.facebook.com/tentreehttps://twitter.com/tentreehttps://www.youtube.com/user/TenTreeApparelhttps://instagram.com/tentreehttp://www.tentree.com/blog/

THE APPAREL INDUSTRYKey facts of North Americas apparel industry included the following:

Apparel imports to Canada had grown consistently from 2004 to 2008. China represented the major source of this import growth. During this period, purchases from China rose from $2 billion to $4.2 billion. At the same time, Canadian exports to the United States lost market share, dropping from 2.2 per cent in 2004 to 1 per cent in 2008. Canada and the United States had experienced a significant crowding-out effect from import penetration in a market that was increasingly sensitive to product pricing. The overall number of apparel-producing firms had decreased over the past decade, with surviving firms actively exploring and adopting new strategies designed to take advantage of the paradigm shifts resulting from the increasing impact of global value chains.

On the retail side, trends showed massive consolidations that led to a global marketplace with a high concentration of large and powerful apparel firms involved in the following activities:

Augmenting their global sourcing capabilities, thereby increasingly sourcing product directly from offshore factories and eliminating North American apparel suppliers from the supply chainBuilding global brands that often excluded North American apparel suppliersDeveloping their own private-label lines rather than supplier-controlled brands, thereby reducing suppliers profitability and suppliers importance to the retailer and consumerExerting tremendous price and performance pressures on traditionally smaller apparel companies

THE APPAREL INDUSTRYForcing consolidation and vertical integration within the retail market space (e.g., many retail chains being owned by larger companies)Retailers refusal to take inventory risks and demanding, instead, that manufacturers produce shorter runs with shorter lead times, higher customization and better qualityIncreasingly levying charge-backs on suppliers, requiring payments for a percentage of the cost of unsold product, whether or not the item was returned to the supplierThe sharing of advertising costs between retailers and producers/distributors (i.e., co-op advertising)and the negotiation of other discounts, such as volume rebates or discounts tied to new store openings.CONTTentrees Learning CurveTrade Show:Learned that wooden hangers were the industry standard, so they ditched their plastic hangers to avoid embarrassment. Billabongs display was a massive spectacle that involved entertainment, plush carpets, food, drink, models and an impressive display of the companys logo and TenTrees display had little to none of this splash.

TenTree team was introduced to the two-season cycle:All the other companies at the event were presenting long-sleeved garments, jackets and winter gear, while TenTree had brought tank tops and were attempting to sell a month and a half in advance.They later discovered was that retailers placed orders that would then be delivered four to six months later to allow companies sufficient time to efficiently set up their production runs.

CONTSales Aspect:

TT hired sales representatives in different parts of the country as managing a start-up required their attention to more important tasks other than bringing in sales. In an attempt to sell as much as they could, TT set an ambitious target of being represented in 100 stores by the summer of 2012.The result was that TT products moved through sub-optimal sales channels where product was often placed in retail outlets that did not fit TTs image or brand. Some products ended in shops that became notorious for holding back payment or for placing orders and then disappearing, making it difficult to predict cash flow.New sales representatives were quickly brought on board.

CONTConsumer Behaviour: Small details such as the weight and grade of a paper tag were often associated with the quality of a product. so TenTree moved to heavier tags.The team also began to notice overall apparel trends and this observation kept them mindful not to over-specialize their brand image to fit a particular existing niche market.

Supply Chain:TenTree team recognized the value of using consolidated warehouse distribution for both retail and online sales. As a result the company adopted an integrated approach that matched demand more accurately to supply.Evolved information systems and control systems gave the company more flexibility and lowered the risk associated with new product lines. They were able to forecast each seasons product demand, the number of production runs needed, the faster- and slower-selling products, and the amount of cash they needed on hand and when.Offering to plant 10 trees for every product sold To inspire consumers to purchase in an ethical mannerTo encourage people to enjoy and appreciate the outdoor environment

The Environmental & Social Cause

Social Cause collaborations with non-profit organizations:

Canadian Wildlife Federation (CWF) + TenTree (TT)Represent similar mission values of informing, inspiring and educating across wildlife conservative issuesTo attract younger generations

WeForest (WF) + TenTree (TT)To restore environment on an international scale through targeted permaculture (ecological engineering to develop natural ecosystem) and silvaculture (practise of controlling quality of forest) projects.By partnering with WF, TenTree could participate into wide range of global projects that offered benefits beyond planting trees such as promoting food security and restoration of failing ecosystems.

The Environmental & Social CauseAdditional benefits of partnerships:Able to sustain as eco-friendly products by using green energy sources Free from associations with sweat shops (workplace that has socially unacceptable working conditions)Disadvantage of using high quality manufacturersPush the product points higherCost of trees planted raisedHowever, TenTree team did not concern about competitive positioning as they believed they were selling more than T-shirts, they did not have any direct competitors as well.

CONTEnter The DragonsCanadian Broadcasting Corporations popular reality television show: Dragons DenSeries of reality television programmes featuring entrepreneurs pitching their business ideas in order to secure investment finance from a panel of venture capitalists.TenTree team decided to try out for the show, by appearing on Dragons Den could help to promote their environmental message and secure their growth capital and in overall will help them to plant more trees.TenTree team enlisted help from bankers, financiers and local entrepreneurs. Their episode aired in October 2012, received overwhelming and national scale.Not wanting to lose the momentum gained from the reality show exposure, the team leveraged their new fame by launching a new, improved and innovative social media campaign.

Social mediaFor many new ventures that depend on the Internet for sales, bring in their business to a website represents a major challenge.

TenTree was aware of this challenge early on and quickly developed a wide range of social media tools to achieve their objective.Each social media tool was found to have a specific use. YouTubeTwitterInstagramHowever, all of the social media platforms available, by far the most effective was Facebook.

SOCIAL MEDIA TOOL The content posted on the TenTree Facebook page came from three sources: content aligned with its social message created by TT designers, content received from its users that reflected positively on their brand or message and popular content found by searching the Internet. After that, Facebooks sponsored, paid ads. Facebook represented one of TTs marketing pathways. TT collected information about customers from several sources, using tools such as Google Analytics. TT currently generated a significant amount of its revenues from advertising through affiliates. CONT The interaction between TenTree website and Facebook

The system interaction between the TT website and the TT Facebook page was complementary.Knowing that the sales needed to meet their social objectives, TT used a more sophisticated process to "soft sell" to people who visit your websiteAfter implementing automated processes emails always thank users for their support and invite them back to the TT website or Facebook page to "like" TT or part of the contents. Feedback for e-mail users are very positive. Link to a website that has been adapted to obtain more information from the user and to educate consumers about the environmental benefits of trees are planted.

While this tactic is not new or innovative ways to get more consumer information, it is different from the tactics used by other companies by offering to plant trees regardless of the purchase, instead of offering incentive-related purchases

CONTPoised For GrowthTT founders candid their objective of creating a man-made forest.

Their apparel shelves was more than 300 Canadian stores.

Offshore Production of clothing line to keep this demand.

To maintain the ethical environmental standards consistent with TTs eco-friendly brand.

TT was unable to source higher-ticket items.

In, generally higher average quality was available in North America. TenTree charged higher price for its clothing than comparable products for the extra costs of planting trees.

To find manufacturing capacity in North America that could produce TenTrees clothing while satisfying all the criteria of ethics environmentalism and efficiency.

In addition, overseas production was challenged by increasing number of factories in China

Critical Issue Early On their VentureTenTrees social mission element might be jeopardized if, manufacturing was moved to offshore.

TenTree did not want to be perceived as profiteering if, its products were made outside of North America.

Furthermore, middle East and South Asia being externally audited and approved by WRAP (Worldwide Responsible Accredit Production

CONTThree Choices that TT team Consider and BelieveAdvantagesIt s easy to market business with the quote Made in America

DisadvantagesTT faces economic issues due to maintain customization flexibility.

The problem they foresaw in Pakistan were less precise stitching and limited flexibility of mixing and matching colors

Production to China would have faces fewer problems with stitching quality but it requires higher minimums to production processes for dyeing, cutting and sewing.

The facilities in China offered one- stop shopping to all the service requirement.

Chinese manufacturers had better social and environmental practices but were not as inexpensive as the Middle Eastern options

The Popularity Growth of TTs

TenTree could not survive a customer service shock and could not afford to take a hit to its reputation as a bona fide social cause company.

This risk was balanced by the possibility of new customer interest and further growth potential in the US and other markets.

To building a new product via new ideas such as hats, backpacks and cellphone covers branded with the TenTree logo.

Moreover all associates to plant 10 trees for each item sold

Questions for Social Networking Sites Case Study

Question 1 Does TT have a sustainable business model, as a high-cost producer with social mission? Or its business model just an easily imitated fad cannot ultimately survive competitive marketplace?

Sustainable business, orgreen business, is an enterprise that has minimal negative impact on the global or local environment, community, society, or economy. Often, sustainable businesses have progressive environmental andhuman rightspolicies. In general,businessis described as green if it matches the following four criteria:

It incorporates principles of sustainability into each of itsbusinessdecisions.It suppliesenvironmentally friendly products or services that replaces demand for non-green products and/or services.It is greener than traditional competition.It has made an enduring commitment to environmental principles in its business operations.

SUSTAINABLE BUSINESS MODELThe Answer is.. YESTenTree Apparel is a clothing company based North America with a unique promise to its customers, this company plants Ten Tree[s] for every item sold. Trees are planted through a company founded by the same entrepreneurs in Ten Tree, as well as through WeForesta company that plants trees in developing countries such as all areas of Canada, UK, Netherlands, and France.

We can determine that TenTree has a sustainable business model by considering its social mission strategy, brand of the product and social media networking sites that bring the uniqueness of TT business model. These three factor has become the harness of sustainability and global citizenship of TT in selling apparel products even at a high cost.

Currently, TenTree has a great sustainability business model and the environmental mission will not fad easily in the North America market. Those customers buying clothes from TenTree Apparel gains happiness not only for own needs , but from the positive impact theyre having on the earth. Essentially, this unique business model is able to empower consumers through the purchase of their clothes, giving more incentive to continue buying their products in terms of the quality, .

Ten Tree Apparel has combined fashionable clothes with an increasingly important global issue of saving the environment.,

By addressing this global competition through cost and other factors, this company might have some obstacles to maintain their business model and an environmentally sustainable in future. The reasons are: Process and product innovation alone aren't enough New business models always transform industries Business-model innovation catalyzes broader systems change

The TT team clearly needed to identify their key success factors and use them to shape a strategy that could help them sustain into market form long term and also achieve growth consistently

Question 2Could TT achieve the same success if it were organized as a not-for-profit rather than for-profit enterprise?

The Answer is..TenTree might not achieve the same success if it were organized as a not-for-profit enterprise;

There are so many existing not-for-profit organizations, TenTree presented itself uniquely for-profit organization.

Not-for-profit organizations cant spread the message as fast as TenTree did because they need lots of funds and supports from other for-profit enterprise to create social awareness.

Even though TenTree collaborate with not-for-profit organizations yet they have their own unique mission and objectives compared to normal not-for-profit organizations partnering does not affect their mission and objectives in any way and it also help not-for-profit organizations to create awareness about their organizations.

Tentrees objective and mission is different than the normal not-for-profit organizations, two fold objective:To purchase in an ethical manner and also to encourage people to appreciate and enjoy the outdoors

TenTree spread the message quickly through their brand image and online apparel sales and they do not have any direct competitors as well.

TenTree do not need any extra fund to create awareness and to achieve success, yet they only need extra capital when their business started to boost up so that they can supply enough apparel according to their customers demand and forecast.

CONT

Question 3How has TT innovatively exploited social media?The Answer is..TT is distinguished from all its competitors is that it does not use traditional advertising to sell tangible products.Link to a website that has been adapted to obtain more information from the user and to educate consumers about the environmental benefits of trees are planted. Developing their own brand private label lines rather than supplier controlled brand, thereby reducing suppliers profitability and suppliers importance to the retailer and consumer.

CONTTT is distinguished from all its competitors is that it does not use traditional advertising to sell tangible products:Instead, TT used social media such as Facebook to share its message, providing compelling content and build communitiesTo do this, TT-themed content recorded in accordance, which aims to get users to "like, share or comment." Such actions effectively linked Facebook page that the user to the Facebook page of thousands of fellow users. These partners will also be prompted to visit TT Facebook page. The visit provides "edge ranking," the TT can then check to assess whether they have been in the content stream.CONTLink to a website that has been adapted to obtain more information from the user and to educate consumers about the environmental benefits of trees are planted.

The program also helps TenTree to further develop and update the preferred customer profile, which can then be uploaded to other platforms such as YouTube and Facebook.

Developing their own brand private label lines rather than supplier controlled brand, thereby reducing suppliers profitability and suppliers importance to the retailer and consumer.

While this tactic is not new or innovative ways to get more consumer information, it is different from the tactics used by other companies by offering to plant trees regardless of the purchase, instead of offering incentive-related purchases.

Question 4How has TTs use of social media contributed to its success to date?

52TenTree with strategic approach to social media have a competitive edge. They're tapping into customer information available in social networks, engaging with customers more quickly than their competitors, building business models successfully.

TenTree team embraced the social media like Facebook, Google, You Tube, Twitter, Instagram as platform for their business modal with social mission. TenTree realized that the social media is not about pushing out promotional materials to their audience. It's about having collaborative interactions with customers, prospects and even employee, allowing these TenTree to gain valuable insights, solidify long-lasting relationships and customer loyalty.

The Answer is..Therefore, TenTree use the social media in many way that driven them to achieve a successful business model :

1. Customer support thru social mediaTenTree received a lot of customer questions and feedback over its social channels for each item that promoted. Therefore, TenTree provide excellence customer service thru social media by comment box and also message box. TenTree give a feedback to comments and questions that asked by customer and guide them for those customer need any assistance.

2. Integration of all social media (Diagram Exhibit 2)TenTree has integrated social media into almost every aspect of their website. Theyve created a social network on their site thats completely linked from other social networks like Facebook, YouTube, Instagram, Twitter and Google.

3. Posting image TenTree used photo galleries for all their product which is a active across most major social media platforms with product-specific presences. Not only can the TenTree also watch the progress in pictures where by the social medial followers can share their excitement about the product with their family and friends on social networks that enhance the brand name. This is a great strategy for TenTree, to gain excellent social proof and even more visibility online via these photos as seen thru social media. For example Facebook, Instagram , twitter.

CONT4. Link to shopping pageWith innovative business modal, TenTree linked the shopping page thru social media page that help customer gain a good purchasing experience with the simple step. For example, thru Facebook, customer can purchase the product, by clicking on the shopping icon that will bring to the online shopping page automatically.

5. Like and follower of social mediaTenTree has used one-click like process or be a follower to join the TenTree follower group thru social media . This method make TenTree easy to educate about the environment and at the same time offered a discount to all new members with their promotions. In fact, TenTree also collect and keep all followers profile information as customer database. CONT

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