368 group project on Panama PDF

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Group project essay on Panama with Professor Olsen...

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The Panama Project Business 368 ~ International Marketing December 2, 2019 [Group Members’ Names]

Our 5-year international strategic marketing plan revolves around the innovative product named NuBike. NuBike is a chain-less bicycle with optimal advanced technology that ultimately enhances the experiences of tourists. This is due to the fact that NuBike provides a more efficient alternative way to the traditional bike pedaling. Because the NuBike allows for the pedals to move in a vertical motion rather than in circles, it helps the riders to use the force of gravity in order to have a smoother and more enjoyable ride. Because it will provide for a more efficient and easier way to ride, it increases the desirability amongst tourists who enjoy being outside and experiencing as well as sightseeing the beauty of nature. Through the efficient and effective way the chain-less bike works, it offers a profuse amount of ways in which it would be profitable to sell in a country full of tourism, like Panama. According the the New York Times, Panama is acknowledged as the number one place to travel (Central America: Panama). Although Panama is known to be a very small country, it has many world-class attractions that make it amazing; such as two coasts for Caribbean and beaches, beautiful mountain refuges, tropical rainforests and various bike tours that undergo jungles or along the popular Bay front called Cinta Costera. Thus making it the perfect place to market this new product because it will help us cater to our target market: tourists. As stated previously our target market we are focusing on is tourists on vacation in Panama. The new bike will specifically cater to the needs and wants of individuals who enjoy being outdoors and whom value the serenity of nature. While analyzing our target group for the product, we considered the aspects tourists valued and how their lifestyles would play a role when choosing which activities to partake in while on vacation in another country, specifically in Panama.We came upon the conclusion that most tourists in Panama highly valued traveling, therefore they would be more willing experience new adventures while in the presence of the outdoors. It was also evident that most tourism in that country could be older and wealthier people who were taking vacations to Panama. This is important to note when expanding to other markets because it may highlight how age and the financial status of your target market can be a critical component when in regards to how successful a product can be. Acknowledging that our target market is in their middle to late adulthood, is important because they may be constrained to certain activities that they wish to partake in. The unique feature of NuBike is that it requires less energy due to its advanced technology, which will serve in favor of older people. Without the risk a broken chain can do, it makes the NuBike a more reliable and safer choice which will be more appealing to tourists, especially those who are older and who possibly have suffered from injuries in the past. Because the bike has a point of differentiation compared to those operated by chain, it can uphold a sense of comparative advantage which can lead for the product to continue to be profitable in the future. As far as how much it will be to rent a NuBike, that highly relies on how long they spend cycling and the distance traveled while on the bike tour. NuBike expands from on road bikescatering to all ages, beach cruisers, and mountain bikes: the biggest target for NuBike utilized by touring agencies. While the average price of a NuBike is $3600, it will in part be the responsibility for the touring agencies to cover such expenses, making it cheaper and more affordable for tourists. Selling a product that is safe, reliable, relatively affordable, and provides an efficient and effective way to use, serves as fundamental qualities that will help reach

everyone associated within your target market. People from all over the world will be constantly traveling to Panama where they will have the chance to experience the uniqueness of NuBike. This provides a way for more and more people to discover and try NuBike, which can overall increase the demand of the product. The NuBike was invented by a man named Rodger Parker who wanted to provide a better alternative for chained bike struggles. He often saw bikers with broken and greasy chains which pushed him to invent a new technology to better people's experience while cycling. The product we are proposing to sell is The NuBike. The NuBike is a chain-less bicycle with new technology that is optimized to take you further with less work. This new product promises better performance and overcomes the disadvantages of ‘chained bikes’. Its design includes features such as lengthened pedal cranks to provide more power and leverage which substitutes the need for a regular chain. With this leverage advantage it gives riders the ability to cover longer distances with less effort. The NuBike requires less gears than an average bike because of the increase in power. The frame of the NuBike is very much similar to your average bike so if repairs or accessories/parts are needed they are very accessible. NuBike frame is made up of carbon-fiber frames which are designed to match the latest technology used in military and aerospace applications (Startup Selfie). NuBike is equipped to handle the increase power and torque. The NuBike uses a vertical pedal design. The average bike loses an estimated 60% of gravitational energy within each pedal (Startup Selfie). With NuBikes design vertical pedaling provides a continuous gravitational force throughout the entire push of the pedal cycle. With this advantage NuBike is capable of pedaling itself. With a normal bike a rider is forced to use more energy with the constant pedaling and pushing it takes a toll on joints and the riders energy. With the NuBike it’s technology provides a pain free ride. NuBike is not only easier to ride but it is easier to store. With the chain-less technology the bike is foldable which makes it a prime candidate for any ride or tour. It can easily fit in the trunk of a car, roof rack, or even a backseat of a car. The NuBike weighs 8kg making it easy to lift and transport. This bikes technology is priced at $3600 which is an investment but considering the chain-less technology and durable material these bikes are made to last (Startup Selfie). Panama is a perfect market for this new product mainly because of its market for tourism. Services make up 82% of Panama’s income. Panama was recently appointed by the New York Times for the number 1 place to travel (Central America: Panama). With its high attention towards their climate, environment, and various terrains, bike tours are very popular when visiting this desired destination. With the chain-less bike being a pain free ride, with a lightweight durable and portable frame it expands its market to a wide range of personality and age. This bike can cater to those who are expert riders, amateur riders, older riders, and younger riders. The popular bike tours in panama include Cycle Nicaragua, cycle Costa Rica and panama, cycle Nicaragua to the Panama Canal, cocoa plantation mountain bike tour, and rumble in the jungle (Cycle Tours Global). Each of these tours feature different terrains, sites, and climate. There are a wide variety of tours that fit at every level of biking preference. This makes the NuBike an ideal product for all these excursions.

We plan to enter the market by advertising our new technology to various bike tours offering a luxurious and efficient option to better their customer's experience. Our key advantages include its portability, durability, and pain free technology. As mentioned before, the NuBike is chain-less meaningful as it is easily foldable and lightweight. With the ability to fold and transport this bike can be easily taken anywhere along each of these tours. NuBikes advanced technology and military grade frame it remains durable to withstand rough terrain while also require it an easy fix. The model still remains true to an average bike so if accessories or parts are needed they are accessible at almost any mechanical bike shop. NuBikes vertical pedaling technology also provides a pain free ride. This is desirable because it increases the comfort of each rider. It does not require as much stress on joints which is desirable to riders who may not be physically equipped to handle a long bike ride. This technology also makes long excursions easier because of the leverage it requires less effort to cycle. By advertising this to various bike tours we are able to increase a company’s brand of luxury and comfort. Panama is not the first country that many people think of when it comes to international business. Panama actually does a lot more international business than people think, in fact a lot of their business comes from their geographic region and the fact that they have the Panama Canal. Panama’s geographic characteristics is what puts the country at a limit. Even though Panama has the want to develop and expand their business and towns, the geography of the country puts hard constraints on them (The World Factbook: Panama). Panama thrives when it comes to sea- business and having such an active coastline and port helps a lot with keeping that aspect of their economy alive. Unfortunately even thought the country is roughly the size of South Carolina a large proportion of the land of the inhabitable terrain that Panama has, the population of the country is concentrated at the foothill of the mountains and the borders of the dense rainforests (The World Factbook: Panama). It is hard to believe that even though a majority of the country can not sustain life easily, yet 30.5% of the land is used for agriculture (The World Factbook: Panama). Most of the land is made up of forests and that surpasses the agriculture percentage at 43.6%, since the forests are dense enough to not sustain life it (The World Factbook: Panama). Since Panama is located between Colombia and Costa Rica, is does have that Central America cultural aspect to the country. The culture in Panama is similar to many of the other countries in Central America , but something Panama should pride themselves in is how well women are treated in their country. In many countries women are unfortunately still seen as the inferior gender, Panama has taken great strides to make women as equal to men as possible (Global Road Warrior). Some opportunities that Panama has made available to women, for example Panama has enforced their divorce laws and how women are able to initiate a divorce if that is the desire (Global Road Warrior). Health is also very important to Panamanian people. Healthcare is something that is provided to many people in their country, and Panama has healthcare services for their residents. Panama has provided healthcare to the women in their country with an equal access to what men have available (Global Road Warrior). Since health is very important to Panamanians, bike riding is often used as a mode of transportation and as a healthy outlet for exercise. Women are highly motivated in Panama, there seems to be a strong progression in the country and its culture for women to have key roles in everything. For instance women in business in Panama are seen as figures of strength and knowledge no matter where their life began (Global Road Warrior).

The Panamanian economy is not friendly to women, but it is making strides to be that way. For example the unemployment rate for women is 8% greater than it is for the Panamanian men in the country (Global Road Warrior). It is important to note that: “Panama’s Constitution provides women with the same legal rights as men. This includes the right to vote (since 1941), to own businesses, and to inherit property. Legally, women are entitled to the same salary as men for performing the same jobs, but statistics indicate that women earn 87 percent of the salaries paid to men in similar positions.” (Global Road Warrior) The quote that was just stated is from one of the cites that was used not only shows great cultural growth with having men and women equal, but it also shows a great want for economic growth and making the path for women to have an equal opportunity. The economy in Panama is one that has been growing for many years. In fact many of the economic overviews state there Panama has been showing great signs of economic growth since 2004. The expansion of the Panama Canal is also something that has been in the works for many years, even though the canal is being widened and deepened to accommodate bigger ships; the canal still makes quite a profit for the country, “Expansion of the Panama Canal has been a major source of economic activity since the project began in 2007. Estimated at a cost of USD 5.5 billion, the construction of wider locks and deeper channels will allow for passage of larger container freight ships, help the canal remain competitive in the realm of global trade and therefore sustain toll revenues.” (Panama Economic Outlook). Panama has a very late service sector as well that is a great portion of their economy too, “The economy of Panama is centered on a highly-developed services sector, which represents more than 75% of gross domestic product (GDP).” (Panama Economic Outlook). That number has since gone up, as stated earlier in this report. Since the economy in Panama is greatly affected by the service department it is important that the economy continues to grow and not stay stagnant. The economy in Panama is one that has a lot of contributing factors because of the major influence the Panama Canal has on the economy of the country. Keeping Panama open to trade and imports is also a great way to keep the country growing (Panama Economic Outlook). It is important to note that Panamanians are very open to new business with other people but there is a way to go about the business’ and how to interpret what is important or not. One article states, “New businesses can be created through a streamlined online system, and multinational legislation facilitates the establishment of headquarters or regional affiliates. Panama receives high levels of foreign investment in infrastructure to improve transport and communications systems, which are already off a high standard. However, corruption is common and some labour regulations are inflexible.” (Executive Summary - Panama) The quote above shows the direct relationship between Panama and other countries and how Panama is greatly affected by other countries and their own economic stability. If other countries

were not using the Panama Canal then there would be no revenue from it. A great example is the tension between China and the United States, right now there are high tariffs on products from China coming into the United States and Panama is feeling the economic impact of that since there is a significant amount of cargo that is not coming to the United States anymore. The target market for this chainless bike in Panama, is specifically tourists that come to the country. While our target market are tourists in general, they are not just any tourists. They consist of individuals  that value nature, being active outdoors, and witnessing the beauty of another country. When identifying our target group for the product in Panama, it was essential to think about how tourists might think, what they might do with their time in a given place, and what types of lifestyles they have. It was obvious that this target market highly valued traveling and experiencing new things like nature and beauty in another country. These people are different than other types of tourists that might solely visit another country for its nightlife, city life, food, etc. There are many different attitudes, values, and lifestyles that this target group shares. In Panama, our target market for this bike is specifically those who desire and value bike riding and experiencing the outdoors when touring a country. Panama has an extremely high number of tourists, which is the very reason why we chose to target these specific individuals. There are many beautiful places to bike on your own, as well as guided tours. Panama has an immense number of trails that are very attractive to tourists visiting the country. The country has various bike tours that go through beautiful jungles allowing for breath-taking sight-seeing. Another attraction is biking along the Bay front called Cinta Costera. There are bike tours along this bayfront, as well as a separate bike lane for those who want to ride solo or with their families and friends. There is a street in Cinta Costera called Balboa Avenue that dedicates one day a week only for bikers (The Real Deal Tours). Furthermore, there are bike tours that go through the former U.S. Military Zone on Cerro Ancon, another location for biking (The Real Deal Tours). These are just a couple of very popular locations to bike in the beautiful Panama. There are trails and paths for every fitness level and interest in Panama, which attracts tourists that want to see all the beauty the country has to offer, on wheels (The Real Deal Tours)! These make up some of the reasons that the NuBike would be a great product to launch to tourists coming to Panama. The chainless bike offers a great way to not only bike through the trails, jungles, etc. but it offers a way to actually take people further with less effort. This is something that also might be attractive to tourists, who do a lot of site-seeing, walking around, and who may already fatigue from that. The chainless bike, also called the NuBike, claims to be “revolutionizing the world of bikes, [while] riding on a chainless technology that promises even better performance” (Startup Selfie). Tourism in Panama is said to be one of the main activities done in this country. People that come to tour Panama have certain attitudes, values and lifestyles that essentially make up the reasons that they desire to come to tour this specific country. Panama is known for its beautiful wildlife, scenery and nature. This country has beautiful landscapes, including their popular habitats to visit, which include Chagres  National Park, Camino de Cruces, Cerro Ancón, the Soberania National Park and Gamboa (Visit Panama). Panama is also known for being “a resting

point for various animal species that are in the middle of their migration from north to south, and vise versa”, which attracts animal lovers. The beaches in Panama are another huge attraction for tourists wanting to visit. While there are many other reasons people want to come to Panama, its nature and how beautiful it is, is one of the biggest reasons why people want to come. The beauty of nature in the country is also a reason why many tourists want to bike through it, which adds to why the chainless bike would be a great product for a country like this. Many of the tourists in Panama are coming for the nature and its beauty. This gives the insight that these people really value seeing beauty in different places in the world, They value nature and being outdoors. We are targeting tourists that value nature, being active outdoors, and witnessing the beauty of another country. This specific value directly relates to the chainless bike and gives some reasons why it would be attractive to them in Panama. Many tourists visiting another country have a lot already going on. They have things planned like site-seeing, activities, etc., which may leave them more tired than usual. These people may want to go on a bike tour or bike ride because it is good exercise, while also speeding up the process. With the chainless bike though, the exercise is still prominent, but it is said to be less than on any standard bike with chains. Without chains, people are able to ride but use less of their own physical energy to get from A to B, and also at a faster pace. This could significantly appeal to this audience of tourists who want to see the beautiful sights Panama has to offer, just faster and using less energy. Another viewpoint would be that much of these tourists may be older people who can afford a trip to Panama. Adults may not be extremely interested in a tough, rigo...