Hey, folks.
Itās D-Day. Itās the final of the Cricket World Cup. And thatās all weāre going to say about this right now. Know why? Well, #OreoBolaMatBol (Loosely translated into Oreo telling us āshhhhhā). If you havenāt seen the biscuit brandās ad with MS Dhoni, it has hit nearly 13 million views already on YouTube. And can I just say itās my favourite ad of the season?
But while we wait for the day and night to unfold, thereās a winner already at the World Cup. Weāre talking about Disney+Hotstar. The streaming platform had a concurrent viewership of a whopping 5.3 crore people during the India vs New Zealand semifinal. And theyāve left Jioās earlier IPL record of 3.2 crore million concurrent viewers in the rearview mirror. Looks like the viewership promise they made to advertisers has come good.
But the question still remainsāāāwill this make Hotstar a hotter property for someone to buy them out from Disneyās stable now? Or will Disney try and salvage the situation and hold on to it?
You tell us
Sidebar: The ad is in Hindi and there are no subtitles. Also, this isn't a sponsored post. We just liked the ad and it fits the mood.
Hereās a soundtrack to put you in the mood šµ
Mokto Kore Dao by Arijit Singh
A few things that caught our eye this week š
Oreoās shenanigans
Talking about Oreos, the worldās best-selling cookie has found itself in the midst of a scandalāāācall it shrinkgate, if you will.
Now, just in case youāve never seen an Oreo beforeāāāletās paint a picture. You have two dark discs of biscuit, the colour of dark chocolate, and in between those you have a nice, thick smear of white cream. Or at least, it used to be thick. Apparently, Oreo has been cutting costs by quietly reducing the amount of cream in the cookie.
This folks is classic shrinkflation. Itās a term to highlight the tactics used by companies to combat rising costs for their raw materials. So assume that a typical packet of cookies costs ā¹5 to make. And it sells at ā¹10. But now, the raw materials costs have gone up and it costs ā¹6 to make. Itās quite unlikely that they can command the same margin and sell the cookies at ā¹12. People might baulk at the price rise and cut back on spending. Especially since ā¹10 is quite a sensitive price point. So what will the company do? They might reduce the grammage of the cookies. Instead of the pack being a 30g pack, it might drop to 26g. Itās a subtle change that could well go unnoticed by the consumers. And the company could salvage the impact on profit margins.
So yeah, if Mondelez, the company that makes Oreo, wants to cut costs, reducing the amount of cream seems to be an easy way out!
But Mondelez has denied these allegations. It says it hasnāt messed with the cookie-to-creme ratio and that doing so would alter the taste. That it would be quite suicidal for the brand.
So yeah, maybe your Oreo hasn't changed all that much. Maybe it's all in the mind.
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The Everything Store now sells Hyundai cars
Want to buy a Hyundai but too lazy to trudge to the showroom?
Well, if youāre in the US, youāll just have to fire up your Amazon app, choose the car, fiddle around with the colours, narrow down on financing, and hit buy. The car will arrive at your doorstep and you neednāt even step out of your door.
Yup, people are so used to the convenience of online shopping these days that even carmakers want to tap into this buying behaviour and boost sales. But will it work? Weāre not quite sure. Because it does seem farfetched to think that the impulse purchase behaviour found on e-commerce platforms will find its way to cars that cost thousands of dollars.
Also, letās get one thing straight, this isnāt actually removing the middleman or the dealer. Itās not like Hyundai is selling the cars straight from its own factory. If it did, that wouldāve brought down car costs by at least $2,000. But here, itās the dealer inventory that will be listed on Amazon. So the traditional structure isnāt really changing here except for the ādigitalā aspect of the buying process.
But waitā¦does that mean the cost of the car will go up now since Amazon needs a cut too?
Well, Amazon hasnāt said how itāll make money yet. But Hyundaiās probably not going to risk tacking on an extra āe-commerce chargeā to the car. Itāll defeat the very purpose of online sales. And Hyundai has said that the dealers wonāt have to bear the cost either.
So guess itāll be Hyundai which will find itself making lower margins? Thatās the very opposite of why companies opt for online channels, no?
Money tips š°
Think back to your first income straight out of college. And now think about how much you earn today. Iād imagine itās quite a bit higher today, right?
Now with a higher income, youāve probably upgraded your lifestyle through the years. Maybe youāre eating out at fancier restaurants more often. You see yourself constantly checking tickets to international destinations. The mobile in your pocket gets more expensive every year.
But are you truly happier? Or are you stuck in the race doing things that social media throws at you?
Now the reason Iām asking you this is because a tweet by Ramit Sethi, a popular personal finance guru in the US with his own Netflix show, caught my eye recently. He said that in his experience, when people cross the $150,000 a year income bucket, they donāt often realize how much money this really is. They donāt step back and celebrate what their new āRich Lifeā is. They simply slide into the next phase of their lives pretty much on auto-pilot.
But waitā¦what does he mean by Rich Life?
He calls a Rich Life as the ideal life you see yourself living. It could be being able to pick your kids from school everyday. Maybe itās buying organic grocery without worrying about costs. Or it could even be taking your parents on that international trip theyāve always dreamed about.
That sounds a lot like goal setting. And itās quite specific goal-setting. If you step back and think about your goals and how you can use the higher income to pursue stuff that actually makes you happy, then maybe you can design the life you truly want. And sometimes that might mean cutting back on stuff that doesn't give you so much joy. Stuff that you could probably do without. For Sethi, he drives a Honda because expensive cars and driving them donāt give him joy. But he does spend on luxury hotels and business class flight tickets. Thatās his Rich Life.
So, take a moment to think about your individual āRich Lifeā too?
Jargon of the day āļø
Readers Recommend šļø
Creativity Inc. by Amy Wallace and Ed Catmull
This book recommendation is courtesy our reader Anuvrat Pandey who says that Ed Catmutal, the co-founder of animation studio Pixar, talks about growing a great team and being a leader through his personal anecdotes.
Finshots Weekly Quiz š§©
Itās time to announce the winner of our previous Weekly Quiz. And the winner isā¦š„
Ashima Setia! Congratulations. Keep an eye on your inbox and weāll get in touch with you soon to send over your Finshots merch.
Now if youāre wondering whereās the quiz for this week, hop on over to our weekly wrapup. Answer the question correctly and check back in next week to see if you got lucky.
Until then, donāt forget to tell us what you thought of todayās newsletter. And send us your book, music, business movies, documentaries or podcast recommendations. Weāll feature them in the newsletter! Just hit reply to this email (or if youāre reading this on the web, drop us a message: morning@finshots.in).
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