Finshots Profile picture
21 Nov, 6 tweets, 1 min read
For over 70 years after its inception, Coca-Cola was sold at 5 cents ($0.05). This price remained constant even after the beverage gained popularity.

Well, it all lies in a business decision made by the then President of the company- Asa Candler. Back in Candler's time, Coca-Cola was mostly sold through soda fountains. But in 1899, two lawyers had a bright idea- they wanted to sell Coke in pet/glass bottles.
So they approached Candler to buy the bottling rights. Candler thought the idea would never really take off, and agreed to sell the lawyers the syrup at a fixed price- forever. They, however, could sell bottled Coca-Cola at any price they deemed fit.
To Candler's surprise, bottled Coca-Cola soon took off and its price started inching up. However, the company still made only a fixed few cents on every bottle sold, as per the contract. But they wanted more.
They realized they could capitalize on demand- make more money through more bottle sales. And the way to sell more bottles was to keep the price low. However, they couldn't decide the price themselves. So they resorted to other tactics.
They launched a massive ad campaign proclaiming- "Drink Coca-Cola, 5 cents only".

The idea was to tell consumers the actual price of the beverage, so the bottlers couldn't increase it. And it worked! The prices came down, more bottles were sold, and Coca-Cola made more money.

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More from @finshots

15 Nov
Since RCEP is trending right now, we thought we could whip up a quick explainer on the subject matter and maybe tell you why India decided to walk out of the agreement last year
The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement between the 10-member Association of Southeast Asian Nations and a few other partner countries. But it's mainly spearheaded by China
So with the RCEP, Indian manufacturers could have shipped certain goods and sold them elsewhere without having to worry about, say a 30% tariff. This way our prices could've remained competitive & domestic manufacturers would have actually had a shot at selling their goods abroad
Read 14 tweets
12 Nov
Chinese tech giants lost ~$260 billion in market cap in just two days after news broke that the Chinese Govt is trying to clamp down on tech companies.

So, why is the Chinese govt doing this?
China’s authoritarian Govt is notorious for keeping an uncomfortably tight grip on the country’s economy. However, it has more or less given free reign to sprawling businesses like Alibaba and Tencent, that dominate China’s internet, e-commerce, and digital finance industries.
These companies have been free to explore new ventures, invest in multiple startups, amass huge swathes of customer data, and set whatever prices they like for their services. And as a result, they have become way too powerful.
Read 8 tweets
3 Nov
The Association of Sugar Mills wants you to eat more sugar. But why?

“Avoid sugar!” It's the first advice most of us receive whenever we raise concerns about our health. But curiously, that’s not the mantra that ISMA (association of India’s sugar mills) wants us to follow.
So much so that it has launched a knowledge portal to educate masses about the benefits of sugar consumption. This whole exercise is quite elaborate and mills have begun an online campaign in order to boost domestic demand, involving workshops and webinars
But why are they are doing it all of sudden? Well, we can largely attribute it to the fact that India has excess stockpiles of sugar.

See, the production of sugarcane attracts farmers because of the relatively high minimum support price (MSP) for the crop
Read 7 tweets
3 Nov
The Pepsi Challenge

In 1975, Pepsi ran an advertising campaign in which they presented a bunch of people with two cups- one filled with Pepsi, and the other with Coca Cola, without revealing which was which.
The blind tasters were asked which one they preferred. Surprisingly, more than half chose Pepsi, even though Coke had a much higher market share.

This disparity was baffling, so in 2003, a neuroscientist called Read Montague decided to get to the bottom of it.
He assembled some test subjects and recreated the blind taste test while monitoring their brain activity. His findings were in line with the TV campaign- Pepsi produced stronger responses in the reward center of his subjects’ brains.
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22 Oct
The Indian government is considering formally entering into a trade deal with Taiwan. And China is agitated about this

To understand why this is a big deal, we need some background on the relationship between Taiwan and China. So sit tight, because things are about to get bloody
The story begins with The Republic of China. No, we are not talking about the country. But a government set up by Chiang Kai-shek’s Kuomintang (KMT) party. Chiang's party had seized power across China. And during World War II, they served as an important American ally.
Then, in 1945, the allies had a victory over Japan, forcing the nation to surrender Taiwan - which Japan had colonized. And once they claimed victory, the US government offered the region to KMT's government. This proved most opportune for KMT.
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21 Oct
Why is the US govt suing Google in the biggest antitrust suit in decades?

A thread
Of late, Google’s enormous size and market dominance has been of grave concern to the US Govt. The behemoth’s consumer offerings include a ubiquitous search engine, widely used maps, a popular video platform, and an Android operating system used in about 90% of all smartphones.
1) Web Searches:

In the US, Google is responsible for 90% of online searches. Competitors have accused Google of displaying search bias. Google likes to put its own products, like local business listings,at the forefront of search results so that it appears before that of rivals
Read 9 tweets

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