Coventry University Market Place Analysis Applied Advertising Fiona Oudeman 0 Faculty of Business Environment and Society Contents INTRODUCTION ................................................................................................................................... 0 CHOCOLATE CONFECTION IN THE UK ........................................................................................ 1 STP .......................................................................................................................................................... 2 Segmentation ......................................................................................................................................... 2 Targeting ................................................................................................................................................. 6 Positioning .............................................................................................................................................. 8 Competitive Perceptual map: ............................................................................................................... 8 BCG MATRIX MODEL (UK based) ................................................................................................... 9 USP ........................................................................................................................................................ 10 Cadbury Crème Egg USPs: ............................................................................................................... 10 Snicker’s USPs: ................................................................................................................................... 11 AD ANALYIS FOR CADBURY CRÈME EGG ................................................................................ 13 AD ANALYSIS FOR SNICKERS ...................................................................................................... 17 Consumer Behaviour Theory ......................................................................................................... 23 LEVEL OF INVOLVEMENT ............................................................................................................... 23 DMU ....................................................................................................................................................... 24 DMP ....................................................................................................................................................... 24 External Influences ........................................................................................................................... 25 APPENDIX ........................................................................................................................................... 26 REFERENCES ..................................................................................................................................... 29 INTRODUCTION This report will analyse and criticise how two main chocolate confectionery brands have targeted its market place. Including their STP process and strategies, the consumer’s perception of the brand, their unique selling points used to differentiate themselves from competitors, an analysis of a recent campaign and how they’ve approached their target market with it, media consumption, consumer behaviour and how it influences the brand and also influences from the outside. Mondelez: Cadbury Crème Egg Due to the wide range of Mondelez products, in this report we’ll mainly focus in Cadbury Crème Egg and Bournville & Silk. With these two products we’ll be able to compare and differentiate their target markets more easily. Mars Incorporated: Snickers This report will be mainly focused of Snickers chocolate bar and also Galaxy to compare and discuss their target market. CHOCOLATE CONFECTION IN THE UK The chocolate confectionery market has been growing fast in the last ten years (Ford, R. 2014). With a 25.7% growth from 2008 to 2013 it expects to still growing modestly in between 2013 and 2018, probably because of its popularity as a treat amongst consumers. Leading brands & product: Mondelez Cadbury Dairy Milk Mars Galaxy Mars Mars Mars Maltesers Nestle Kit Kat Mars Snickers Thorntons Thorntons Table 1.Richard Ford. (2014). Chocolate Confectionery - UK - April 2014.Available: http://academic.mintel.com/display/702913/. Last accessed 18 Feb. 1 STP Segmentation Dibb et al. (2014) defines segmentation as a process that divides the population into smaller and more homogeneous groups with similar likes and characteristics. Behavioural: Purchase Occasion As we can see in Figure 1: Easter is the second most popular occasion where chocolate is purchased as a gift-giving ritual (Ihekweazu, V. 2010). Cadbury Crème Egg can be purchased as an impulse throughout the year or as a gift for special occasions (Mainly Easter) (Mintel Oxygen 2010). Figure 1: Chocolate confectionery purchase occasion 2010. Source: Mintel Oxygen In case of Snickers, their purchase occasion is not seasonal. And it is seen as a product consumers buy for themselves rather than to give to anyone on a special occasion. This means the purchase occasion can be on an impulse throughout the day, which explains why Snickers are available in any convenience store and in the exit of any supermarket (Snickers.com 2015). Benefits sought: The benefits expected from a Cadbury Crème Egg anytime of the year, is an immediate satisfaction of any craving or need of snacking or sweets, which will also find satisfaction and joy in it (Price, A. 2012). From a parental perspective and applying the theory of classical conditioning (Pavlov 1902) in consumer behaviour, parents might look in Cadbury Crème Egg a way of rewarding its children for their good behaviour. (Rescorla, R. & Holland, P. 2004) 2 The benefits expected from Snickers would also be the immediate satisfaction and stressrelease after a tough day (Snickers.com 2015). Snickers want the consumer to know they are available for them to relax and enjoy of a nice and tasty chocolate bar when hungry or in a rush. With its chocolate bar the consumer can “chill and calm down” when stressed and moody. But as we can see in Figure 2, the benefits of both are not just satisfying a chocolate craving or the joy of it. It also satisfies the ritual of gift-giving and pleasing a friend or relative. This ritual is more emphasised with Cadbury Crème egg than Snickers (Ihekweazu, V. 2010). Figure 2: Gift-giving ritual in the chocolate market 2010. Source: Mintel Oxygen Usage: The frequency of Cadbury Crème Egg’s usage is narrowed to a once a day or once in a while treat, also depending on the rate of impulse of each individual (Wong, H.; Tu, Y. & Lin, M 2010). This can also be applied for Snickers, as a once a day treat to eat in between meals. It is basically, a little snack to keep going when hungry. Although Cadbury Crème Egg can be impulsive purchased any time of the year, it is mainly and most of all purchased on Easter. Cadbury takes Easter as an advantage to launch a wide variety of Cadbury´s chocolate eggs: from Cadbury egg’n’spoon (more targeted to families), Cadbury egg head (to younger kids), mini crème eggs to also Cadbury Easter bunnies and caramel eggs (See figure 3). Which will be used more as a gift to children for Easter rather than an impulsive once in a while buy (Cadbury.co.uk 2015). 3 Figure 3: Cadbury Creme Egg expands range of products for Easter (Cadbury.co.uk/products) Snickers also diversify its variety to make it more appealing and also to keep on trendy and innovating. From their latest Snickers bites, peanut butter and EGG to Almonds and even Ice Cream (See appendix 4). Demographics & Geo-Demographics: Cadbury Crème Egg segments children and also young teens from 16 to 21 year olds from areas and regions where snacks are more predominant as a gift-giving ritual (Ihekweazu, V. 2010). Families might purchase it to remunerate children or younger teens, while young adults (aged form 16 to 21) might buy it as an impulse purchase (which is why we can find the product in convenience stores and in the exit points of supermarkets) (Cadbury.co.uk 2015). Snickers is a good case of how a brand can position itself and differentiate from other chocolate bars with their gender segmentation to young males. It segments males from 18 to 24 years old from a middle class and education who are used to snack in between meals and were they buy by impulse rather than by rational purchasing behaviour (Rook, D. & Fisher, r. 1995). Geographics: Cadbury Crème Egg can be found in Asia pacific, Eastern Europe, Middle East and Africa, Europe, Latin America and North America (Cadbury.co.uk 2015). In within the UK, Crème Egg is normally sold in areas where snacks and junk-food are more predominant, and where consumers tend more to buy by impulse or by the gift-giving ritual (Wong, H. et Al. 2010). Snickers can be found in over 74 countries all over the world. The product is quite homogeneous and it is sold in the same package internationally (Snickers.com 2015). In comparison with Crème Egg, Snickers is more predominant as an impulse purchase rather than as a gift (Wong, H. et Al. 2010). 4 Psychographics: Loyalty: Seen the high level of competition in the chocolate market, Cadbury Crème Egg seek not just new costumers but also to retain the ones it already has with offers and games leading the consumer to play and enjoy the experience more (Cadbury UK 2015). For example Cadbury crème egg also has a collectable Cadbury Crème Egg Corgi VW Van (See Figure 4) which is a fun and effective way to engage and entertain their youngest target (Cadbury.co.uk 2015) Figure 4: Crème Egg Collectable Corgi VW Van (Cadbury.co.uk) In case of Snickers, it also plays an important role in getting new customers and retaining them. Their strategy is to use celebrity endorsement (with celebrities such as Mr. Bean, Rowan Atkison, Mr. T.; Aretha Franklin and plenty more) in order to engage with the audience and retain them for longer (Byrne, A. et Al. 2003). Figure 5: Snickers Celebrity endorsement with Mr. T 2006 Source: Snickers.com Lifestyle & Personality: Cadbury Crème Egg identifies an active out-going lifestyle of fun and young teens. The product encourages joy and fun when cherishing great moments of life (Wong, H.; Tu, Y. & Lin, M 2010). Snickers is mainly segmenting young males with a strong character. They are segmenting pip group leaders who are social, out-going and very influential with a strong made opinion (Snickers.com 2015). 5 Targeting Targeting is the process of selecting a segment and serving it with the company’s marketing mix (Jobber 2009). As said before Cadbury Crème Egg differentiates its market making it more approachable to tweens, teens and generation Y (16 to 21 year old). Their product can be aimed to children who will convince their parents to buy it (T. Balcarová ; J. Pokorná. 2014) and also aimed to teens from generation Y who will buy it as an impulse. Product packaging and features are well targeted and appealed to tweens, teens and young generation Y. Figure 6: Cadbury Creme Egg Product (Source: Cadbury.co.uk/products) 2015 Cadbury also targets other segments with different products, for example, to make sure they reach a higher class; Cadbury has its´ finest Bournville and silk chocolate, which is more expensive and targeted to a higher wealthier class. The looks and packaging transmits more seriousness which is appealing for a generation X of wealthier higher class. Figure 7: Cadbury Bournville & Silk chocolate (Source: Cadbury.co.uk/products) 2015 6 Snickers target a differentiated market of young males in between 18 and 24 years old who will purchase the product by impulse or craving. As seen in Figure 8 Mars Incorporated uses Snickers to segment their male target audience while they use Galaxy to segment their female market (See figure 9) (Mars Incorporated 2015). This way the brand can approach both markets under different sub-brands. Figure 8: Snickers Chocolate Bar (Source: Snickers.com/Snickers) 2015 The colours and typography reflect well how they have targeted to young males (18-24 year old). Figure 9: Galaxy Chocolate Bar (Source: Mars.co.uk/products) 2015 The typography is smoother and more delicate which reflects that is female oriented. Observations: Although the colour is lighter, it doesn’t necessarily reflect a female market (It is quite standard and neutral). 7 Positioning Ries & Trout (1981) defined positioning as “not what you do to a product; but what you do to the mind of the prospect.” Cadbury Crème Egg Positioning Snickers Positioning Cadbury Crème Egg positions itself as joy. The consumer perceives the product as synonym of fun, cheerful and joyful moments of life. Cadbury tries to engage with the target in a friendly approach, with vivid advertising campaigns and fun typography which engages and makes the relation more interactive! (Including QR Codes, the “personalise your own Cadbury Crème egg heads!” and even doing contests of the fan of the day) (Cadbury 2015). In case of Snickers, they position themselves as rough, masculine, tough and even angry (Mars Incorporated 2015). The brand tries to engage with the male market reflecting what a man is expected to be, using factors of masculinity, attitude, confidence and the stereotypical image of a tough man. This can be quite sexist due their defined stereotypes and gender differences (Waxman, O. 2014). This position of Snickers is very well reflected in the product packaging, the typography, the way of communicating the product in the adverts and the promotional offers given (As an example giving tickets to football matches) (Snickers.com 2015). Competitive Perceptual map: HIGH QUALITY LOW PRICE HIGH PRICE LOW QUALITY 8 BCG MATRIX MODEL (UK based) Cadbury’s Star: Cadbury Crème Egg Mars Inc. Star: Galaxy Nestle: Chokito (Not successful here in the UK but it is in other countries). Cadbury’s Cash cow: Cadbury Dairy Milk Mars Inc. Cash cow: Maltesers, Kit Kat, Mars & Snickers Cadbury’s Dogs: Cadbury Double Decker Mars Dog: Topic 9 USP Any product has a unique selling point. What most companies want is to be unique, to offer customers something valuable that competitors don’t have (MacMillan, I. & McGrath, R. G. 1997). Cadbury Crème Egg USPs: Cadbury as a whole has one mainly USP which makes it instantly recognisable and differentiates it from competitors: its colour and typography (Cadbury World 2015). Cadbury’s products are purple, and thanks to its powerful advertising campaigns the brand has attached itself in such a level than consumers can link the brand just when seeing the colour purple (This follows Pavlov’s’ theory of Classical conditioning 1902). But what makes Cadburys Crème Egg special and different compared to the other products of Cadbury? Cadburys crème egg is recognisable because of its purple and yellow colours, its typography and rounded packaging, which makes it very appealing to its target market and is also used to differentiate the product and make it more “fun” (Cadbury.co.uk 2015). Colour: Purple (USP of the brand) Yellow & Red (USP of the product) Typography: Vivid colour, curved and different sized (Makes it informal, more joy and “have fun” ideal) Packaging: Rounded (Differentiates product from most competitors and also makes the product more fun). Cadbury knows how to differentiate each of its products and make them more appealing to their target. For example their Bournville & Silk Chocolate comes with a more traditional package and more subtle and clean typography, giving a more high standard and classy image which will be more appealing to their target. Colour: Black (Makes it more serious, clean and classy) Typography: Clean, straight and smooth (Gives an extra classical view) Packaging: Traditional Chocolate packaging (Good for their target) 10 Snicker’s USPs: Mars Incorporated has a strict and strong belief in responsible marketing (Mars Incorporated 2015). As an example the first announcement that pops-in the screen of the website is to check the age of the user to make sure there’s no under 13 year olds (See figure T) Which is as they call it “Our promise”. Figure 11: Snickers under-aged policy of responsible marketing protection (Source: Snickers.com) 2015 Snickers uses its’ responsible image to differentiate the brand from its competitors and to show to the public that it “matters” for them. Mars Incorporated uses a special colour and typography for Snickers, so that differs from the other brands and its competitors (Mars.com 2015). (See Figure R) Colour: Dark Brown with blue letters (These colours can be defined as very masculine) Typography: Blue Caps-Lock (Which can be interpreted as outloud aggressive and strong attitude typography, which is good considering their target). Packaging: Standard plastic and thin packaging (Easy to rip, but not specially used as an USP for Snickers) Extra observations: Maybe they could change the package to add and differentiate their chocolate bar from competitors. 11 Mars uses their corporate image to develop a clean and more responsible image that benefits their sub-brands (Snickers Included); they call it the 5 principles: “The Mars Five Principles of Quality, Responsibility, Mutuality, Efficiency and Freedom are the foundation of their culture and approach to business”. Figure 12: Mars Incorporated 5 Principles (Source: MarsIncorporated.co.uk) 2015 12 AD ANALYIS FOR CADBURY CRÈME EGG Cadbury Crème Egg approaches their target market mainly through TV and Social Media, and then reinforces their message with outdoor media, printed media and also a good PR (Cadbury.co.uk 2015). To approach teenagers and generation Y they have made a recent advertising campaign called “Have a fling with a Crème Egg”. The main objective of the campaign is to make the customers perceive the product as “loved”. TV Ad http://www.youtube.com/watch?v=rDURT0Nrm_4 The Main TV advertisement lasts 30 seconds and contains a flirty conversation in between a young man with a poster of an egg. Objective: Product association with humour, love, funny, unexpected and surprise (Classical conditioning, Pavlov) Target audience: Young generations (Gen Y and teenagers) Appeal used: Humour USP: Out of standards, different way to approach the audience. Plays with appealing the humorous and comic audience, and associate the product with it. Figure 13: Screenshot of Cadbury TV advert (YouTube Cadbury, 2015) th Here ‘til 20 April: Reminder of its’ seasonal nature and takes it as an advantage: urges purchase 13 Colour: Yellow (Such as the product) Typography: Caps Lock (Which shocks more and emphasizes the urgency) Links: Facebook (Social Media share and comment) Extra observations: The advertisement doesn’t show the actual product, just the image of it. This is due that their objective is to attach humour to the product and not to sell the product itself. TV Ad 2 http://www.youtube.com/watch?v=-WBBft0klzM The second TV advert is 10 seconds long and shows a young girl not wanting to accept she has to finish her relation with a Cadbury Crème Egg. It follows the same patterns as the initial advertisement. Extra observations: The clothes she is wearing are a reflection of the audience targeted (Young teens, fun, social individuals) Also the fact that she has to “end up” their relation can indirectly emphasize in the urge of purchase because of its’ seasonal nature. Figure 14: "Have a fling with a Crème Egg" Cadbury Crème Egg Ad Campaign (Source: Youtube.com/Cadbury) 2015 Objective: To reinforce Ad1 and the main objective of associating humour, love and unexpectedness with the product. (She is in “love” with the product) Target Audience: (Same one) Gen Y and Teens Appeal: Humour USP: Different and unexpected. 14 SOCIAL MEDIA Social media is the second main platform used for the campaign. The TV ad links their official Facebook page, and once inside the Facebook page we can see their Twitter, YouTube channel and other different media platforms which makes it very approachable and closer to their target market (Generation Y are very attached to digital and social media) (Cadbury.co.uk 2015). Figure 15: Cadbury Crème Egg Official Facebook Page (Source: www.facebook.com/cadburycremegg) 2015 Figure 16: Social Media used for Ad campaign "Have a fling with a Crème Egg" (Source: Cadbury.co.uk) 2015 Merchandising: Pillows, cups and bracelets featuring a photo in a heart shaped mosaic with the person and a Cadbury Egg in it (Humorous appeal of the love relationship in between customers and the product). Social platforms, shares, and interactive communication. Also a Crème Egg App, games and gifts. 15 OUTDOOR Objective: Remind and reinforce the urge to purchase the product. Remind to take action immediately. Target Audience: Generation Y and teens Appeals: More straight forward, more informational and letting the consumers know there is no time to loose. USP: Colours used are Purple and yellow as the products colours. Extra observations: Typography used is in Caps Lock which shocks more and emphasizes the “time” factor. The advertisement gives the message a sensation of on a rush, without time to loose, take action immediately. PR Press Release announcing a consumer changed his second name to “Crème Egg”. Positive advertisement to enhance the level of attachment in between consumers and the product Figure 17: Cadbury Crème Egg advertising poster 16 AD ANALYSIS FOR SNICKERS Snickers advertising campaign analysed is called “You're not you when you're hungry” which is mainly focused on TV and Social Media, and it’s reinforced by outdoor media and also some printed media. The main aim of the campaign is to remind and persuade users to consume Snickers when they’re not feeling themselves, when they’re grumpy and moody, which aim has been reflected in a very impressive way throughout their advertising. TV http://www.youtube.com/watch?v=L4mP9pR-mzU The main TV advert is 30 seconds long and it features Stephanie Beacham as celebrity endorsement. Objective: Product reminder and association with humour, attitude in some way also unexpectedness (Classical conditioning, Pavlov). Also product differentiation. Figure 18: Advertising Campaign of Snickers "You're not you when you're hungry" featuring Stephanie Beacham (Source: Youtube.com/SnickersBrand) 2015 Target audience: Male in between 18 and 24 Appeal used: Humour USP: Out of standards, different, male oriented, humorous and innovative reminder. Figure 19 &Figure 20: Screenshots of advertising Campaign of Snickers "You're not you when you're hungry" featuring Stephanie Beacham (Source: Youtube.com/SnickersBrand) 2015 17 Figure 21: Screenshot of Logo and advertising Campaign of Snickers "You're not you when you're hungry" featuring Stephanie Beacham (Source: Youtube.com/SnickersBrand) 2015 Colour: Dark Blues and browns (Such as the product) Voice: Male voice in a relax and tender tone as giving advice Links: Facebook and Twitter (Social Media share and comment) Extra observations: Might be offensive for women. The ad communicates men should avoid being in a moody way by referring to women as annoying and divas. This can be interpreted the wrong way. PR Snickers has taken advantage of the media and placed their adverts in Daily Mail UK and other news platforms which news of misbehaviours of losing control go perfectly well with the advice of “you’re not you when you’re hungry. Have a snickers” - clever. Figure 22: Snickers Advertisement placed in UK Daily Mail Online (Source: DailyMail.co.uk) 2012 18 Social Media & Outdoors Social platforms and outdoor media were used to remind the product and create awareness of the campaign. The main platforms used are Facebook and Twitter. And outdoor media were banners in public places and ads in magazines and newspapers read by mainly men (Snickers.com 2015). A very useful link to understand the impact of the campaign throughout social media: http://bcove.me/zrv3iaru Snickers launched different labels throughout the web and media platforms with fun and tricky images of how moody faces became happy from another perspective (Turn around the advert). Figure 23: Snickers promotional banners and website labels throughout the web promoting Advertising Campaign (Source: www.Snickers.com/youarenotyou) 2012 The “You’re not you when you’re hungry” will show the moody and grumpy face while the smiley and pleased face will be facing the Logo of Snickers. 19 Extra Campaign promotional material: These banners were not just in social media but also in Newspapers, Magazines and outdoor streets and public places (To remind in a humorous way to the consumer to buy snickers). 20 Media Consumption The most effective way to reach teens and young adults is within a range of exposure of three times to ten. This amount of exposures will enable the brand to remind and reinforce the product without overexposing it (Campell et Al. 2003). TV As seen in Figure 24, Adults in between 16 to 24 years tend to watch TV for 2hours and 47 minutes a day (BARB 2012). Cadbury Crème Egg advertisements need to ensure a plot in the right channels (which have to be appealing to teens) and in the right times to make sure the advertisement reaches the target in within these 3 hours of exposure (BARB 2012). Snickers follows the same rules: Because of their main advertisement is based on TV platforms, they need to make sure their advertisement is placed on peak hours in between programs and channels mainly viewed by men (For example in between a football/rugby match) (Ford, R 2014). Figure 24: Average daily hours of TV viewing (Source: www.BARB.co.uk 2012) As seen in Figure 25 the most viewed channels by the general audience are BBC, ITV, Four and Sky (BARB 2012). Cadbury Crème Egg needs to specify which from these channels is the most viewed by young adults, and for Snickers which the audience is mainly men. 21 Figure 25: % Share of TV audience for all broadcaster groups with at least 1% (Source: www.BARB.co.uk 2013) SOCIAL MEDIA As seen in Figure 26 teens in between 13 and 19 use social media on a daily basis (Mintel Oxygen 2012). From social platforms such as Facebook and Twitter to videos in YouTube, games and blogs. Cadbury Crème Egg as well as Snickers, covers the most visited and used platforms by this audience (Facebook, twitter, YouTube, online games, mobile devices apps and entertaining sites). Figure 6: Internet sites accessed by users aged 13-19 (Source: Mintel Oxygen July 2011) Consumer Behaviour Influence 22 Consumer Behaviour Theory Utilitarian vs. Hedonic (Motivational needs) Cadbury Crème Egg as well as Snickers promotes its product as hedonic, satisfactory and followed by the need of satisfaction and belongingness. Each individual has the need of fulfilment and feeling self-motivated throughout the day (Montero, E. & Chavez, R. 2012). Freudian Theory of the ID With this we can also apply the Freudian theory of the ID. Consumers seek to please themselves and balance their EGO and Superego with an ID: Which would be Cadbury Crème Egg/Snickers. This means they seek instant gratification by treating themselves with a snack (ID). Maslow’s hierarchy of psychological needs Also Cadbury Crème Egg plays with the role of being “trendy, in the vibe, social” and a “must” to fulfil the need of Maslow’s belongingness to feel part of a society that has fun and enjoys. Which makes users buy Crème Egg as the occasion of Easter and also as it’s the trend to buy it (Nemati, B. 2013). The self and Ideal self In case of Snickers the need is to feel manly and to feel part of it. They promote themselves as the “cool” guys with such a strong temperament and attitude, which will instantly persuade male consumers to be willing to be like that as a role model. Role models can be defined using celebrity endorsements (Byrne, A. et Al 2003). Here we can apply the theories of the self and the ideal self in consumer behaviour. Where the consumer will seek to fulfil their actual self and at the same time approach their ideal self. They will compare themselves with their role model and try to be “as cool” as they are (Byrne, A. et Al. 2003). LEVEL OF INVOLVEMENT Cadbury Crème Egg as well as Snickers are seen as a low involvement product as it’s low cost and doesn’t represent much risk when purchased. This means Cadbury and Mars Inc. needs more innovation and the “unexpectedness” factor to get into consumers mind and reinforce their awareness. They need to seek good strategies in order to be remembered which also means be exposed repeatedly and on a daily basis (Khalique, M. et Al. 2012). Purchasing a chocolate treat might also be seen as a high involvement case from a psychological perspective, due that the consumer does think of the health risks of buying it (Putting on weight) or which one to buy (Due to the large amount of competitors) (Ford, R. 2014). (Positioning in the FCB Grid see Appendix5). 23 DMU DMP 24 External Influences 25 APPENDIX Positioning map used as reference: Figure 10: Positioning map quality/price of chocolate confectionery (http://www.learnmarketing.net/perceptualm aps.hthttp://www.learnmarketing.net/percept ualmaps.htm) Extra material used to understand Cadbury Crème Egg Campaign (Love relationship): 26 Geographical understanding of Social Media reached by Snickers: Figure 7: Geographical map with the number of times the hashtag #EatASnickers was used throughout the World Cup and other events (Source: Simonovski, F & Mazzini, D. (2014). World Cup Hashtag Marketing: Lessons To Learn. Available: http://blog.hashtagify.me/2014) Snickers Idea went wrong!!! 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