Professional Documents
Culture Documents
Target Groups
Omnichannel Design
The omnichannel model is matched with the customer journey which is based upon the country analysis and the target groups.
Note: The company “Tatoo” is a popular online and offline retailer for outdoor gear in Peru.
Marketing efforts: Cooperation with Tour Guides (Peruvian Mountain Guide Association) to sponsor the VAUDE equipment, Peruvian
testimonials as brand multiplicator, SEO and SEA, Loyalty program e.g. VAUDE-Club with special customer support, free shipment,
early bird offers for new collections etc., own Peru collection with local materials (alpaca wool) and design.
Channel conflicts: Retailer Tatoo: VAUDE’s main competitors are also part of their online and offline concept. Tatoo and VAUDE are
competing with their online and offline model (compensation for Tatoo needed).
Collaborations: Local agent impersonating retail manager and freight forwarder, online purchase → check availability in nearby offline
stores (VAUDE or Tatoo store) and shipment fulfilment
Main Competitors: Patagonia, The North Face and Salomon (see Chapter 6)
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
APPENDIX
Table of Content
Table of Figures
A deep understanding of the strategy and the VAUDE approach is needed to create a suitable channel model which enforces their
existing tools and aligns with their business model.
Strategy of VAUDE
The strategy of VAUDE in this project context is based on two pillars, internal and external responsibility and sustainability in every
aspect of their business. This means in detail:
1) Responsibility for people and nature: fair wages, fair working conditions, social and environmental responsibility reflected in
product portfolio (Mountain Sports, Bike Sports and Packs ‘n Bags), family-run.1
2) Sustainability: environmental bluesign® standard since 2001 which ensures high standards throughout the entire textile
manufacturing chain, EMAS certification, product improvements to be produced according to the highest standards of environmental
compatibility, usage of sustainable material, resource-conserving manufacturing process, cooperation with WWF, sustainability report.2
Vision: VAUDE stands for a spirit of partnership with nature and with people. We have set our sights on becoming Europe’s most
sustainable outdoor brand so that future generations will still be able to enjoy the great outdoors with our products.3
What do they sell: they sell an outdoor experience promise for sustainable products for semi-professional sportive nature-lovers
(respect for nature, harmony with nature), no limit to gender or age, focus on high functionality4
History overview
The company was founded in Obereisenbach (GER) in 1974 by Albrech von Dewitz, who’s initials form the name of VAUDE. He made
his passion for mountain sports to his profession. Several product categories were added over the years, e.g. hiking and biking clothing
and equipment or backpags and bags. Since 2001, VAUDE also put a strong focus on sustainability about social and environmental
topics. From 2012 on, the headquarter and the local production is climate neutral.5
Products
60%
50%
40%
30%
20%
10%
0%
1
Cf. “Good reasons for VAUDE” n. y.
2
Cf. “Good reasons for VAUDE” n. y.
3
Cf. “Good reasons for VAUDE” n. y.
4
Cf. “Good reasons for VAUDE” n. y.
5
Cf. “History. VAUDE” n. y.
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
Sales Channels
80%
70%
60%
Specialized Shops - stationary &
multichannel (incl. vaude.com)
50%
Online Specialized Shop
40%
Retail - own outlets
30%
Retail Stores of VAUDE Franchise
20%
10%
0%
To get a deeper understanding of the country-specific context and pre-conditions within Peru, the project group did a PESTEL analysis
and identified relevant criteria for VAUDE’s market entry. They analysed the six main focuses politics, economy, sociodemographics,
technology, environment and legal. The derived information was the basis for the creation of the customer journey and the
omnichannel model.
Political Topics
Economic Topics
GDP per capita (in current prices in US $): 7,198.64 US $ (2018), growth trend for 2022 is 8,755.06 US $16. For comparison
the GDP per capita in Germany is 48,669.63 US $ (2018).17
Main trade partner for export (2017): China (26.5%), US (15.2%), Switzerland (5.2%), South Korea (4.4%), Spain (4.1%),
India (4.1)18
Main trade partner for import (2017): China (22.3%), US (20.1%), Brazil (6%), Mexico (4.4%)19
Inflation rate: 2.8%20
Economy growth: 5.6% (2009-2013) by exporting raw materials21
Unemployment rate: 6.9% (2017)22
OECD Country Risk Classification (2018): Classification 3 (0= no risk, 7= high risk)23
Economic sectors share of GDP: Service 59.9% (strongest branches are telecommunications and financial services), Industry
32.7%, Agriculture 7.6%24
Ease of doing business (2019): Rank 68 out of 190, scored 68.83 out of 100, especially low rating in resolving insolvencies,
enforcing contracts and protecting minority investors. 25 Compared to other South American countries is ranked the third best
after Chile (rank 56, 71.81 scores) and Columbia (rank 65, 69.24 scores).26
6
Cf. “The World Factbook. South America: Peru” n. y.
7
Cf. Kusche 2018, p. 1
8
Cf. Kusche 2018, p. 1
9
Cf. Lopez-Ameri 2018, p. 1
10
Cf. Kusche 2018, p. 1
11
Cf. “Uhrzeit Lima, Lima, Peru” n. y.
12
Cf. “The World Factbook. South America: Peru” n. y.
13
Cf. Porter; Stern 2018, p. 5
14
Cf. “Corruption Perceptions Index 2017 - Peru” 2017
15
Cf. “Peru Information, Income Tax Peru, Agriculture Peru, Peru Import, Peru Export & Peru Employment Information” 2015
16
Cf. “Peru - gross domestic product (GDP) per capita from 2012 to 2022” n. y.
17
Cf. “Germany - gross domestic product (GDP) per capita in current prices 2022” n. y.
18
Cf. “The World Factbook. South America: Peru” n. y.
19
Cf. “The World Factbook. South America: Peru” n. y.
20
Cf. “The World Factbook. South America: Peru” n. y.
21
Cf. “The World Factbook. South America: Peru” n. y.
22
Cf. “The World Factbook. South America: Peru” n. y.
23
Cf. “Country Risk Classification” 2018
24
Cf. “Peru Economy - GDP, Inflation, CPI and Interest Rate” 2018; Cf. “The World Factbook. South America: Peru” n. y.
25
Cf. “Ease of Doing Business in Peru” n. y.
26
Cf. The World Bank 2018, p. 5
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
Social Topics
Inhabitants: 32,165,485 persons (2016), constant growth over past 70 years27, population growth per year: 0.95%28
Median age: 28 (2017)29
Population distribution: 77.9% urban30
Technological Topics
27
Cf. “Population, total. Peru” n. y.
28
Cf. “The World Factbook. South America: Peru” n. y.
29
Cf. “The World Factbook. South America: Peru” n. y.
30
Cf. ‘Peru Tourist Arrivals. 1980-2018’ n. y.
31
Cf. “The World Factbook. South America: Peru” n. y.
32
Cf. “Poverty and Inequality” n. y.
33
Cf. “Peru - GINI Index” n. y.
34
Cf. “The World Factbook — Central Intelligence Agency” n. y.; “Culture of Peru. Discover Peru” n. y.
35
Cf. “Culture of Peru. Discover Peru” n. y.; “Peru Outdoors” n. y.
36
Cf. “The World Factbook. South America: Peru” n. y.
37
Cf. “The World Factbook. South America: Peru” n. y.
38
Cf. “The World Factbook. South America: Peru” n. y.
39
Cf. “Peru Mobile Cellular Subscriptions” 2016
40
Cf. “Peru Mobile Cellular Subscriptions” 2016
41
Cf. “How much does your country invest in R&D?” 2017
42
Cf. “Peru STI Outlook 2016 Country Profile” 2016
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
Environmental Topics
Topography: Western coastal plain, high and rugged Andes in center, eastern lowland jungle in Amazonas basin47
Climate: varies from tropical in the East to dry desert in the West, temperate to frigid temperatures48
Elevation extremes: from 0 to 6,746m49
Environmental problems: Deforestation due to oil and gas exploration in the Amazon, water pollution due to mining of copper,
silver and gold, waste disposal50, Lima is one of the worst cities in South America regarding air quality = WHO rating of 38 PM
(concentration for inhalable particles) micrograms per square meter, this is more than three times the limit recommended by
WHO51
Laws & political efforts: First South American country with climate change law, signed in 2018. Aims are to reduce the amount
of carbon emissions and develop strategies to reduce harmful effects of climate change. 67% of disasters in Peru are because
of environmental issues.52
Infrastructure: Scored 62.4 points out of 100 in a global ranking regarding the quality of infrastructure in 2018, rank 87 out of
100 countries53. Big infrastructure problems that are even exacerbated by environmental issues like floods, in 2018 a big shift
took place: numerous infrastructure projects with a volume of 11 bn $ will be instigated, for example conduction for drinking
water in Lima. Interesting is, that sustainability aspects play also a big role regarding these investments, this means for
example that each project doesn’t have to have a negative impact on the environmental area, called green construction
projects.54
43
Cf. “The World Factbook. South America: Peru” n. y.
44
Cf. “The World Factbook. South America: Peru” n. y.
45
Cf. “The World Factbook. South America: Peru” n. y.
46
Cf. Dunnell 2017
47
Cf. “The World Factbook. South America: Peru” n. y.
48
Cf. “The World Factbook. South America: Peru” n. y.
49
Cf. “The World Factbook. South America: Peru” n. y.
50
Cf. “Peru Environmental Issues & Resource Extraction” n. y.
51
Cf. “Unlikely Solution Reducing Air Pollution in Peru” 2018
52
Cf. Frances 2018
53
Cf. “Quality of infrastructure: countries with best infrastructure 2017” 2018
54
Cf. Penaranda 2018
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
Legal Topics
55
Cf. “Judicial system - Peru” n. y.
56
Cf. “Peru creates legal framework to close infrastructure gap” n. y.
57
Cf. “Peru - Import Tariffs” 2017
58
Cf. “European Commission. Trade. Policy. Countries and regions. Andean Community” 2018
59
Cf. “Peru creates legal framework to close infrastructure gap” n. y.
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
To understanding the purchasing behavior, the project group analyzed the way and channels Peruvians do their shopping to identify
the best product placement possible.
78 shopping centers throughout Peru (2017)69, 50% of Peruvians go shopping there, mainly in large cities70
Most popular shopping center Jockey Plaza (Lima)71
Companies need to comply design standards set by the shopping mall operators72
60
Cf. “Peruvian Market: Consumer” n. y.
61
Cf. “Peruvian Market: Consumer” n. y.
62
Cf. “Peruvian Market: Distribution” n. y.
63
Cf. “The influence of CSR on purchasing behaviour in Peru and Spain” n. y.
64
Cf. “E-commerce business in Peru grew 198% in the last two years” n. y.; “Peru - ECommerce” 2018
65
Cf. “E-commerce business in Peru grew 198% in the last two years” n. y.
66
Cf. “E-commerce business in Peru grew 198% in the last two years” n. y.
67
Cf. “Peru - ECommerce” 2018
68
Cf. “E-commerce business in Peru grew 198% in the last two years” n. y.
69
Cf. Lopez 2018, p. 7
70
Cf. Lopez 2018, p. 8
71
Cf. Lopez 2018, p. 13
72
Cf. Lopez 2018, p. 13
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
textile
sales price
shirt design
trouser design
brand
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
73
Cf. Fernández Pazos; El Saleh; de Bustos 2017
74
Cf. García Jerí n. y., p. 21
75
Cf. Gonzalez Litman 2016
76
Cf. “Mercado de servicios y productos deportivos crece hasta 30% anual” 2018
77
Cf. García Jerí n. y., p. 21
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
5. Customer Analysis
The project group identified two major customer group with different interests and preferences. The detailed description of both
personas can be found below. To have a more detailed approach, a deeper customer analysis with a higher granularity is
recommended. To address the two customer groups perfectly, the omnichannel model was created to identify the best way to get in
interaction and to identify intersections.
Urban inhabitants, live in the large cities → they have the time to do sports (39% of population)78
Favour fashionable Western clothes to differentiate from rural inhabitants79
Higher income level: to be able to afford the clothes
More likely to be the younger generation
Growing customer base due to economic stability
Strong relationship to nature because of Inka heritage, therefore CSR is very important and there are likely to spend more
money on sustainable/environmental-friendly products80
E-commerce81
Sportive & nature-lover
quality oriented
buy online and offline in shopping malls
high usage of social media (90%)82, most popular channels 2016: Facebook (51%), WhatsApp (35%), YouTube (30%), Twitter
(12%), Instagram (10%), Snapchat (3%)83
commercial district of Gamarra (Lima) or shopping malls (26%)84
Total Number of Tourists 2016: 4,575,753 persons85, expected forecast for 2027: 6,496,000 persons86 → continuous growth of
eco-tourism boom87
Most visitors come from Chile, US and other South American countries, but also from Spain (4%), France (2.9%), Germany
(2.2%) and Japan (2.4%)88
41.6% of all tourists visit Machu Picchu, 8.2% Colcca Valley, which is also a natural site, as well as the Paracas National
Reserve and the Titicaca National Reserve
Total contribution of Travel & Tourism to GDP was PEN 66.2bn (USD19.6bn), 10.1% of GDP in 2016, and is forecast to rise
by 4.4% in 2017, and to rise by 5.3% pa to PEN115.8bn (USD34.2bn), 11.7% of GDP in 2027.89
Revenue from ecotourism and its activities is 40 x bigger than the investments made by the state in the protected resorts.90
Tourists are attracted by the variety of natural sites which they can’t find somewhere else.91
Eco-Lodges are experiencing a boom (40 -50 Lodges only in the Peruvian Rainforest), especially in the rainforest areas.
These Lodges aren’t cheap and are still well booked (e.g. 8-day trip from London to Lima: $4,260 per person)92
78
Cf. “Peru - Cultural institutions” n. y.; “Solo 39% de peruanos practica deporte, la mayoría dice no hacerlo por falta de tiempo” 2016
79
Cf. “Peru - Cultural institutions” n. y.
80
Cf. “The influence of CSR on purchasing behaviour in Peru and Spain” n. y.
81
Cf. “Peruvian Market: Consumer” n. y.
82
Cf. “Las cinco principales tendencias del consumidor peruano” 2017
83
Cf. “Penetration of social networks in Peru 2016” 2016
84
Cf. “Gamarra es el principal canal de compra de ropa en Perú” 2018
85
Cf. “Peru Tourist Arrivals. 1980-2018” n. y.
86
Cf. Turner; Freiermuth n. y., p. 5
87
Cf. Cave 2018
88
Cf. “Tourism” n. y.
89
Cf. Turner; Freiermuth n. y., p. 1
90
Cf. Zuazo 2018
91
Cf. Schaaf 2017, p. 8
92
Cf. Cave 2018
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
The project group had a deeper look at the local and international competitors in the gear market to understand their strategies and
locate their shops. This is very essential to create a unique business model to diversify from competition.
In detail: Patagonia102
Peruvian customers are served by the US homepage
US prices
Two languages theoretically available: Spanish & English
Shipping rate to Peru: $75, 4-7 days delivery time
Payment methods: credit card only, credit card company will calculate the exchange rate
Different web layout, different product categories, different product range
Return policy: in-shop or $5 shipment
No app
Store in Cusco sells experience of „Inca adventure“
Some clothes are only available in the store (exclusively)
Tatoo is one of the largest online and offline retailers for sports gear in the Peruvian market. They were founded in 1992 as a small
family business in Chile, nowadays they have between 51-200 employees working in Chile, Peru, Ecuador and Columbia.106 In Peru
they have three offline stores located in Arequipa, Lima and Cusco and of course the online shop.107 Their vison and mission are based
on their passion for outdoor activities and their pledge towards the surrounding communities and the environment. They want to assist
all outdoor lovers with their sharp focus on quality brands and products, so that everyone can enjoy the outdoor experiences as good as
possible. Beside the retail business with international and regional brands for camping, climbing, cycling, hiking and travel, they also
produce their own line of apparel.108
93
Cf. “The North Face: Tiendas” 2018; Cf. “Tatoo Marcas - Perú” n. y.
94
Cf. “Zapatillas Salewa - Ropa y Accesorios en Mercado Libre Perú” n. y.
95
Cf. “Shipping & Delivery” n. y.
96
Cf. “Tatoo Marcas - Perú” n. y.
97
Cf. “Larcomar: Salomon” n. y.; Cf. “Tatoo Marcas - Perú” n. y.; Cf. Gonzalez Litman 2016
98
Cf. Gonzalez Litman 2016
99
Cf. Gonzalez Litman 2016
100
Cf. Oblitas 2017
101
Cf. “Everlast planea abrir un nuevo local por año en el mercado peruano” 2017
102
Cf. “Patagonia Outdoor Clothing & Gear” n. y.
103
Cf. “Peru - ECommerce” 2018
104
Cf. “Peru - ECommerce” 2018
105
Cf. “Peru - ECommerce” 2018
106
Cf. LinkedIn n. y.
107
Cf. Tatoo Adventure Gear Store n. y.
108
Cf. LinkedIn n. y.
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
Therefore, the project group identified Tatoo as an interesting and competent partner for going into the Peruvian market. To get to
know the market place better, the homepage was analysed, the following facts, challenges and opportunities were identified.
Latin-American platform, available in Chile, Peru, Columbia, Ecuador → possibility to get access to other south American
countries in the future (Waterfall-Approach)
Special platform for outdoor clothing and equipment → only high-quality brands and products are offered, this fits to the
approach of VAUDE as being seen as a special and high-quality brand
Homepage design and structure → important for the quality of the purchase experience for the customers, using a foreign
channel than a VAUDE owned means giving up a little bit of control and therefore it impacts how the brand is perceived
o Navigation is clearly structured: choose between gender or activities
o Well-arranged landing page: Slider of Labels / Cycle Equipment / Nutrition advise / clothing
o Selling many competitor’s brands
o Product ratings (stars) are possible
o They charge for delivery, depending on the destination
o Buying as a guest is possible but registered clients get benefits
o No double opt-in when registering, you get directly to payment details
o Online-payment and credit card are available
o Shopping app available → registration with email is mandatory
VAUDE goes PERU One-Page-Strategy Paper Nicole Burtscher, Antonia Herwegh, Franziska Wild
8. Sources
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Kusche, Jutta (2018): Wirtschaftsdaten Kompakt - Peru. GTAI (= Wirtschaftsdaten Kompakt), p. 6. Available at: URL:
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