2. Panama Connects Central America with South America 47,217 square miles 2.8 million people –37% are between the ages of 1 and 14 years –56% between 15 and 59 years –7% are 60 and older

3. Panama Cont’d. Literacy rate has reached 90 percent Languages spoken are Spanish and English –high volume of tourists –increasing rate of American expatriates

4. Panama cont. Current purchasing locations –Corner markets –food stands on the busy city streets Current types of snacks –local fruits and nuts –small pastries Closest Auntie Anne’s location –Venezuela

5. Power Distance: High ranking shows a high level of inequality of power and wealth – 95% Individualism: Very low ranking shows Panamanian society is group oriented – 11% Masculinity: Roles between men and women are fairly similar with a slight lean towards women – 44% Uncertainty Avoidance Index: High level of uncertainty reflects society’s unwillingness to change - 86% http://www.geert-hofstede.com/hofstede_panama.shtml

6. Do Have business cards and other material printed in Spanish as well as English Handshaking the custom; old friends embrace Use titles when addressing others in conversation Good conversation topics: family, hobbies, basketball, baseball Most North American gestures are understood, but be cautious Gifts are not normally exchanged when entertaining Avoid revealing clothing – mainly directed towards women Bad conversation topics: former Canal Zone, race problems, politics Don’t

7. Market Entry Master franchising system Reduces financial and political risks Franchises awarded in the provinces of Panama and Colon 57% of the Panamanian population 92% of tourist dollars 87% of foreign visitors 2008 est. market size: 2M

8. Supply Channels Wheat Flour –United States or Chile Local Suppliers Beverages –Coca Cola

9. Product Adaptation Pretzel –Keep original flavors Glazin Raisin, Cinnamon Sugar, Garlic –Hesitant to change Add domestic flavors – tomato –Locally grown fruit Papaya & Lime Drinks –Smoothie Possible new flavors: –banana, coconut, mango, papaya, and pineapple. –Coffee Iced coffee – tropical temperature Coffee bean locally grown

10. Promotion To incorporate culture: –Quetzal Print ads –English and Spanish Television broadcasts –average household in Panama has one or more televisions Sporting events –baseball, basketball, soccer, and boxing –signs / vendors

11. Promotion Cont’d. Radio broadcasting –over 200 broadcasting stations Sponsorship –name or logo on uniforms or hats School setting –Lunch room vendor Billboards –under construction for the next few years Keep current promotions –“buy 3 get 1 free”

12. Strengths Weaknesses Product and Service Size/Presentation of Store Drink Menu Pennsylvania “Dutch” Affiliation Low Costs and Prices Product Variation Originality of Products Lack of Spanish Influence

13. Threats Opportunities Indigenous Smoothie Flavors Introduction of Gourmet Pretzel Solely Novelty Products Creating Desire for Products Competition with Tourist Stops Uniqueness of Products Coca-Cola Partnership Tourism Hubs