Six was significant in the name as the Persian herb formed the sixth principal ingredient and the basis for their secret formula! So, in 2003, Ravi and Keith formed the Zip-6 Corporation with each controlling an equal number of the firm’s shares and Ravi as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked adequate capitalization to allow it to manufacture and bottle the product, depending instead on other established bottlers to produce and bottle it for Zip-6. Nevertheless, the nascent business was able to generate $512,000 in first year revenues. More importantly, a number college football, basketball, and soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry of Nils Young, a wealthy venture capitalist into the firm. Young was impressed with Ravi, Keith, and Zip-6 and agreed to purchase one-third of the firm for $4.5 million, leaving Ravi and Keith in charge. This allowed the firm to purchase an existing manufacturing and bottling facility that had been previously used by a brand that had been purchased by a global beverage firm and merged into their existing manufacturing facilities. This finally gave Zip-6 a home of its own. The infusion of cash also allowed Zip-6 to mount its first serious national marketing effort. By the close of 2006, annual revenues were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S. sports drink shelves. Annual revenues stood at $5.7 million. Ravi, Keith, and Nils all felt that spending some of the firm’s retained earnings to purchase some prime-time advertising spots on the Super Bowl game that year would be a good investment and so $1.2 million was used to mount the firm’s first “big time” advertising campaign. The results were immediate and dramatic! Demand nearly doubled and two shifts were implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5 million on strong demand. There was however, one particularly troubling situation that had been building, and reached a peak in that year. The deteriorating political climate within Iran had all but stopped shipments of the Persian herb to Zip-6’s British importers of the product. Ravi and his father had earlier anticipated this problem and had attempted to cultivate this herb in the United States unsuccessfully. Their attention focused on the tiny island of Socotra in the Indian Ocean. This remote island, claimed by the nation of Yemen in the Indian Ocean was found to grow a native species of the Zip-6 secret herb, nearly identical to the rare Persian herb and fully suitable for use in the sports drink. A Yemeni herb trader was contracted to supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of Zip-6, were nevertheless candid about the product’s market position within the U.S. where the ma.
Six was significant in the name as the Persian herb formed the six.docx
1. Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
2. million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
3. So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
4. importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets
Following graduation in 1993, Ravi went to work at a global
beverage firm in Atlanta as a chemist while Keith settled in to
his new job with a large accounting firm in its Atlanta offices.
The two stayed in close contact over the next few years and
made it a practice to spend one evening each week visiting a
favorite sports bar and talking about sports and their futures. On
5. one such visit, Ravi excitedly confided to Keith that he had
discovered a formula for a sports drink that provided
exceptional hydration and energy but contained one ingredient
that had been banned by the FDA as potentially harmful. While
visiting his father in Dearborn for the Holidays, he discussed
this with him since Ravi’s father had been a college chemistry
professor in his native Iran. Ravi’s father quickly noted that an
ancient Persian herb could provide the same chemical properties
as the problematic ingredient without any of the potentially
unwanted side effects. Ravi discussed with his friend the
possibilities of offering this formula to his employer but
indicated he would rather like to develop it himself but lacked
the skills to do so. Over the next several weeks, Ravi and Keith
discussed this over a series of bar visits and finally decided to
launch Zip-6 as a startup venture brand. Six was significant in
the name as the Persian herb formed the sixth principal
ingredient and the basis for their secret formula! So, in 2003,
Ravi and Keith formed the Zip-6 Corporation with each
controlling an equal number of the firm’s shares and Ravi as
CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
6. infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
7. Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets.
Following graduation in 1993, Ravi went to work at a global
beverage firm in Atlanta as a chemist while Keith settled in to
his new job with a large accounting firm in its Atlanta offices.
The two stayed in close contact over the next few years and
made it a practice to spend one evening each week visiting a
favorite sports bar and talking about sports and their futures. On
one such visit, Ravi excitedly confided to Keith that he had
discovered a formula for a sports drink that provided
exceptional hydration and energy but contained one ingredient
that had been banned by the FDA as potentially harmful. While
visiting his father in Dearborn for the Holidays, he discussed
this with him since Ravi’s father had been a college chemistry
professor in his native Iran. Ravi’s father quickly noted that an
ancient Persian herb could provide the same chemical properties
as the problematic ingredient without any of the potentially
unwanted side effects. Ravi discussed with his friend the
possibilities of offering this formula to his employer but
indicated he would rather like to develop it himself but lacked
the skills to do so. Over the next several weeks, Ravi and Keith
discussed this over a series of bar visits and finally decided to
launch Zip-6 as a startup venture brand.
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
8. each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
9. anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets.
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
10. product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
11. found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets.
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
12. soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
13. Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
The year 1996 was a watershed for the firm with the entry
of Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
14. purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By second quarter 2002, annual revenues were at $8.5
million on strong demand. There was however, one particularly
troubling situation that had been building, and reached a peak in
that year. The deteriorating political climate within Iran had all
but stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden.
Ravi and Keith, while pleased with the upward growth of
Zip-6, were nevertheless candid about the product’s market
position within the U.S. where the market was dominated by
several brands of sports drinks. In that same year, a new breed
15. of drinks was also beginning to rise in sales – energy drinks.
Zip-6 occupied a somewhat interesting position in this market
as it is a sports drink with some of the attributes of an energy
drink. They hired a market consultant who advised them that
market potential existed for Zip-6 outside of the United States.
Several potential foreign markets were identified. These were
Mexico, Brazil, and Korea. Zip-6 thus began a multi-year
journey from U.S. domestic sports drink manufacturer to Zip-6
Inc. a global sports drink manufacturer and bottler.
Today, ten years later, Zip-6 is a global sports drink
manufacturer with active global markets in Brazil, Korea, the
United States, and Mexico. The firm operates bottling and
distribution facilities in the U.S., Brazil, and Mexico. It
operates within Korea through a licensing agreement with Lotte
Chilsung, a leading Korean soft drink manufacturer and bottler.
It is pursuing exploratory research into additional South
American and Asian markets
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO.
Initial growth was slow the first year as the new firm lacked
adequate capitalization to allow it to manufacture and bottle the
16. product, depending instead on other established bottlers to
produce and bottle it for Zip-6. Nevertheless, the nascent
business was able to generate $512,000 in first year revenues.
More importantly, a number college football, basketball, and
soccer endorsements were secured throughout the South.
Six was significant in the name as the Persian herb formed the
sixth principal ingredient and the basis for their secret formula!
So, in 2003, Ravi and Keith formed the Zip-6 Corporation with
each controlling an equal number of the firm’s shares and Ravi
as CEO and Keith as COO Initial growth was slow the first
year as the new firm lacked adequate capitalization to allow it
to manufacture and bottle the product, depending instead on
other established bottlers to produce and bottle it for Zip-6.
Nevertheless, the nascent business was able to generate
$512,000 in first year revenues. More importantly, a number
college football, basketball, and soccer endorsements were
secured throughout the South.
The year 1996 was a watershed for the firm with the entry of
Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
17. dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
The year 1996 was a watershed for the firm with the entry of
Nils Young, a wealthy venture capitalist into the firm. Young
was impressed with Ravi, Keith, and Zip-6 and agreed to
purchase one-third of the firm for $4.5 million, leaving Ravi
and Keith in charge. This allowed the firm to purchase an
existing manufacturing and bottling facility that had been
previously used by a brand that had been purchased by a global
beverage firm and merged into their existing manufacturing
facilities. This finally gave Zip-6 a home of its own. The
infusion of cash also allowed Zip-6 to mount its first serious
national marketing effort. By the close of 2006, annual revenues
were $2.3 million and were growing at an annual rate of 26%.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product.
By 2000, Zip-6 was a well-established fixture on most U.S.
sports drink shelves. Annual revenues stood at $5.7 million.
Ravi, Keith, and Nils all felt that spending some of the firm’s
retained earnings to purchase some prime-time advertising spots
on the Super Bowl game that year would be a good investment
and so $1.2 million was used to mount the firm’s first “big
time” advertising campaign. The results were immediate and
dramatic! Demand nearly doubled and two shifts were
implemented in producing and bottling the product By second
quarter 2002, annual revenues were at $8.5 million on strong
demand. There was however, one particularly troubling
situation that had been building, and reached a peak in that
year. The deteriorating political climate within Iran had all but
18. stopped shipments of the Persian herb to Zip-6’s British
importers of the product. Ravi and his father had earlier
anticipated this problem and had attempted to cultivate this herb
in the United States unsuccessfully. Their attention focused on
the tiny island of Socotra in the Indian Ocean. This remote
island, claimed by the nation of Yemen in the Indian Ocean was
found to grow a native species of the Zip-6 secret herb, nearly
identical to the rare Persian herb and fully suitable for use in
the sports drink. A Yemeni herb trader was contracted to
supply Zip-6 through the port of Aden. Ravi and Keith, while
pleased with the upward growth of Zip-6, were nevertheless
candid about the product’s market position within the U.S.
where the market was dominated by several brands of sports
drinks. In that same year, a new breed of drinks was also
beginning to rise in sales – energy drinks. Zip-6 occupied a
somewhat interesting position in this market as it is a sports
drink with some of the attributes of an energy drink. They hired
a market consultant who advised them that market potential
existed for Zip-6 outside of the United States. Several potential
foreign markets were identified. These were Mexico, Brazil, and
Korea. Zip-6 thus began a multi-year journey from U.S.
domestic sports drink manufacturer to Zip-6 Inc. a global sports
drink manufacturer and bottler. Today, ten years later, Zip-6 is
a global sports drink manufacturer with active global markets in
Brazil, Korea, the United States, and Mexico. The firm
operates bottling and distribution facilities in the U.S., Brazil,
and Mexico. It operates within Korea through a licensing
agreement with Lotte Chilsung, a leading Korean soft drink
manufacturer and bottler. It is pursuing exploratory research
into additional South American and Asian markets.
Unit 3 [220: Global Business]
19. Assignment Details and Rubric
The Political, Economic, and Technological Implications for
Business
Working with your Zip-6 Scenario: Foreign Business
Environment
Nils, the partner of Ravi and Keith at Zip-6, approached them
with an interesting possibility. A fellow
venture capitalist friend revealed to him that he and his partners
were acquiring a large family-owned
group of businesses in the South American country of
Colombia. Most of these family-owned
businesses are diversified manufacturing businesses in the
capital of Bogota, but there is one soft
drink bottling operation in the acquisition that does not fit
within their venture business plan and thus
they would like to divest (sell) this particular operation. Nils’
friend knew that Nils, Ravi, and Keith had
extensive presence in neighboring Brazil and thought that this
business in Colombia might offer Zip-6
an additional expansion opportunity in the region. Neither Nils,
Ravi, nor Keith have any knowledge of
this nation.
Your job in this Assignment is to conduct some basic research
into the country of Colombia (a
neighboring country to Brazil) and examine the most important
historical events (political, economic,
and technological) that might impact the country of Colombia’s
business climate for the future of this
investment by Zip-6. Review the full Zip-6 Scenario found on
the course page.
20. After researching the historical events in Colombia, write your
analysis in an informative essay
addressing all the checklist items and advising Ravi and Keith
on a recommended course of action
and your justification for such an approach. Be sure to reference
any sources used in your work using
APA formatting.
Web Resources:
Colombia:
1. Go to the C.I.A.’s World Factbook resource and search for
information on Colombia
2. Go to the U.S. Department of State website and search for
information on Colombia
3. Go to Michigan State University: globalEDGE™ website:
http://globaledge.msu.edu/Countries/Colombia
You may also use information from other sources that are from
governmental or educational sites as
well. Do not use Wikipedia!
http://extmedia.kaplan.edu/business/AC465/AC465_1405B/KU_
inform_essay.pdf
http://extmedia.kaplan.edu/business/AC465/AC465_1405B/KU_
inform_essay.pdf
http://globaledge.msu.edu/Countries/Colombia
21. Unit 3 [220: Global Business]
Checklist:
1. What events (political, economic, and technological) are the
most important in recent years
that might have impacted the business culture in Colombia?
2. Do you feel that the Colombian economy today is sufficiently
robust to support the growth of
the sports drink industry and Zip-6’s entry within the country
and why?
3. Write your original informative essay in Standard American
English. Please be sure to include
an Introduction, Body (addressing all the checklist items), and
Conclusion.
● Pay special attention to correct grammar, style, and
mechanics.
● Respond to the checklist items in a complete manner.
● Ensure that your viewpoint and purpose are clearly stated.
● Demonstrate logical and appropriate transitions from one idea
to another.
● Your paper should be highly organized, logical, and focused.
Draft your response addressing these points in a minimum of
500 words or more in APA format and
citation style and submit the file to the Unit 3 Dropbox before
the close of the unit.
22. Name your file: Your FirstName_LastName_Assignment_Unit#.
Unit 3 Assignment Rubric
Category Description Weighting Possible
Points
40
Points
Earned
Content Colombia:
• Go to the C.I.A.’s World Factbook
resource and search for information on
Colombia
• Go to the U.S. Department of State
website and search for information on
Colombia
• Go to Michigan State University:
globalEDGE™ website:
http://globaledge.msu.edu/Countries/C
olombia
Answer provides correct and
complete information demonstrating
critical thinking:
24. country and why?
80%
16
16
Grammar
and
Mechanics
3. Write your original informative essay in
Standard American English. Please be
sure to include an Introduction, Body
(addressing all the checklist items), and
Conclusion.
● Pay special attention to correct
grammar, style, and mechanics.
● Respond to the checklist items in a
complete manner.
● Ensure that your viewpoint and
purpose are clearly stated.
● Demonstrate logical and
appropriate transitions from one
idea to another.
25. ● Your paper should be highly
organized, logical, and focused.
Write a 500-word minimum informative
essay plus a separate title and a
reference page.
20%
8
Total:
100%
[40]
Possible
Points
[ ] Points
Earned
Additional Instructor Comments: