Sunday, January 25, 2015
Zach Newton, Chapter 1, Question 6
I found the opening passage of this chapter to be extremely interesting. I had no idea that the Coca-Cola company used bypassed the Berlin wall to give out Cokes; however the more interesting thing here is why they did it. It struck me as a very similar tactic to what drug dealers use when hooking someone on their product. Give it to them for free, and wait for them to come back for more, slowly driving up the price as their need (demand) increases. I found this especially intriguing since Coca-Cola actually had cocaine in it at some point in its early history as a soft drink. It would be very interesting to me to see a number of how much profit was made by giving out all of those free Cokes, with the cost of the free Cokes subtracted from the profit of course. Judging by the given statement that the Coca-Cola market in East Germany grew to that of West Germany, an "already strong market", it must have been a fairly successful campaign.
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That is an extremely interesting connection with the drug deal tactics and the old Coca-Cola formula. It also seems like that in that in a drug deal scenario, it is most often the supplier that is first used that will continue to be used so giving the people free Coca-Cola would increase the chance that they stick with Coca-Cola in the future.
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