PEPSICO

PEPSICO
y PepsiCo, is a American multinational

corporation headquartered in Purchase, New York, with interests in manufacturing and marketing a wide variety of carbonated and noncarbonated beverages, as well as salty, sweet and cereal-based snacks, and other foods. Besides the Pepsi brands, the company owns the brands Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella, Mountain Dew, Mirinda and 7 Up . y PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.

MARKET SEGMENTATION OF PEPSICO
y As we know that PepsiCo provides varieties of

beverages such as carbonated soft drinks, sport drinks, dairy-based drinks, energy drinks, fruit flavored beverages, ready-to-drink coffees, ready-to-drink tea, mineral water and frozen beverage. These products are marketed under brand as Pepsi, Mountain Dew, Gatorade, Lipton, Starbucks, Tropicana, and so on. With these products, PepsiCo aims to attract different groups of consumers. ‡

GEOGRAPHIC SEGMENTATION
WORLD REGIONSASIA
COUNTRIESPAKISTAN CITY-ALL MAJOR CITIES OF PAKISTAN

DENSITY-URBAN

CLIMATE-HOT AND DRY

DEMOGRAPHIC SEGMENTATION
AGE GENDER FAMILY SIZE FAMILY LIFE CYCLE INCOME OCCUPATION EDUCATION RELIGION
14-30 MALE,FEMALE 1-2,3-4,5+ MARRIED,UNMARRIED Rs.10,000 FROM MIDDLE CLASS TO UPPER CLASS SCHOOLS,COLLEGES,UNIVERSITIES ISLAM,CHRISTIANITY,HINDUISM AND SMALL PERCENTAGES OF OTHER RELIGIONS ASIAN PAKISTANI

RACE NATIONALITY

ER CLASS LIFESTYLEACT ALIZES.PSYCHOGRAPHIC SEGMENTATION SOCI CLASSI LE CLASS.EXPERIENCE S AKER S AND STRUGGLERS .B ELIEVERS.ACHIEVERSSTRI VERS.F LFILLED.

BEHAVIORAL SEGMENTATION OCCASSSIONSPARTIES.INTERESTED .SPORTS AND REGULAR OCCASSIONS BENEFITS-QUALITY TASTE LOYALTY STATUSFIRST TIME USERS USER STATUSSTRONG READINESSS STATUSAWARE.BIRTHDAY S .

Also.y PRIMARILY THERE ARE TWO LEVELS IN WHICH PEPSICO SEGMENTS ITS MARKET-: y ‡ Demographic y ‡ Niche marketing y Demographic y In focusing on the Pepsi-Cola beverage product. Pepsi s use this behaviorist segmentation has been a key to the company s success. Pepsi continually targets the college market in which they spend huge amounts of money to compete with Coca Cola in acquiring contracts with universities to have sold representation of their product distribution. PepsiCo has retained a long history of concentrating on youth as its main target market ± ³Generation Next!´ It has spent billions of dollars in trying to woo the young and nearly young. implying that Coca-Cola is for the older generation. Market segment profiles have shown that the majority of carbonated beverage drinkers are youth and middle age people. The reason why Pepsi-Cola has fiercely targeted this market is because it is the largest amongst its users. .

Pepsi One. To increase volume in order to counter flat coca sales. The success of Pepsi s Mountain Dew Code Red launched in 2001 was the most successful soft drink innovation in 20 years and has spurred even more niche product introductions for PepsiCo as well as other competition . PepsiCo has also tried to boost volume by introducing products that appeal to specific target markets that it currently is not reaching. and Pepsi Blue.y NICHE MARKETING y PepsiCo focused on varietal differentiation since 1990 by introducing a string of niche products. Finally. PepsiCo is countering declining sales of carbonated drinks through the marketing and distribution of Starbucks ready to drink products. PepsiCo introduced Sierra Mist in 2002-2003 to take the place of 7-up and go head-to-head with Sprite. PepsiCo has introduced Code Red and Live Wire. extensions of Mountain Dew. and the acquisition of SOBE and Gatorade.

Pepsi has been positioned based on the process of positioning by direct comparison and have positioned their products to benefit their target market.MARKET POSITIONING y PepsiCo plans to further create positions that will give products the greatest advantage in their target markets. .

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Dole. Tropicana juice drinks. juice based drinks. y PepsiCo makes products like Doritos. SOBE Life Water. Quaker oatmeal. and Aunt Jemina pancake mix . health drinks. Lipton read to drink tea. Propel. quality products and offers a diverse range of consumer products to meet everyday needs. Pepsico recognizes responsibility to consumers by providing safe. juices. Mountain Dew. Gatorade. snack foods. Starbucks ready to drink coffee. Aquafina. Pepsi. Lay's. Aunt Jemina pancake syrup. Tostitos. Sierra Mist. Smart food popcorn.PRODUCT LINE OF PEPSICO y Pepsico is one of the leading food and beverage companies in the world having a product portfolio ranging from carbonated soft drinks. Cheetos. packaged water and health cereals. Recognised as a leading company in areas such as corporate governance. Tropicana Pure premium. Sun Chips. Quaker Chewy granola bars. environmental stewardship and social leadership. Fritos. Cap'n Crunch. Rold Gold pretzels. Pepsico has always been a responsible corporation guided by their Worldwide Code of Conduct. Stacy's pita chips. Ruffle potato chips. Life cereal.

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PEPSICO BRANDS y PepsiCo owns 5 different billion-dollar brands. Mug Root Beer. Pepsi Max.S. Sierra Mist. These are Pepsi. Wild Cherry Pepsi. including Aquafina (Flavor Splash.S. Caffeine-Free Pepsi. Tropicana Twister Soda and Frawg. outside the USA) y Other U. y Pepsi. beverages. Propel Fitness Water. y Other U. Pepsi Twist and Pepsi ONE. carbonated soft drinks. The company owns many other brands as well. Pepsi Lime. AMP Energy. Caffeine-Free Diet Pepsi. Alive. and Gatorade. Quaker. and Twist/Burst). Diet Pepsi/Pepsi Light. Tava. Quaker Milk Chillers. Caffeine-Free Pepsi Light. Frito-Lay. including Mountain Dew. and Tropicana . Crush. Gatorade. SoBe. Izze. Tropicana. Dole.7 Up (Globally.

S. Loóza. Copella. San Carlos. Funyuns. Frui'Vita. Cheetos. Bocabits. Chizitos. Fiesta. Barcel. Mirinda. Fruko. Fandangos. and Wotsits . Munchies. Ivi. Teem. Doritos. Concordia. Sonric's. Tostitos. Fritos.y Beverages marketed outside the U. Cracker Jack. The Smith's Snackfood Company. Cheese Tris. Schwip Schwap. Miss Vickie's. Evervess. Gamesa. Ruffles Rustler's Meat Sticks. Sabritas. Rold Gold. Smartfood. Triple Kola. Sabritones. Kas. H2OH!. Tor-tees.: Alvalle. Junkanoo. and Yedigun. Walkers. Shani. Sun Chips. Quavers. Stacy's Pita Chips. Lay's. Go Snacks. James' Grandma's Cookies. Hamka's. Churrumais. y Frito-Lay brands: Baken-ets. Sandora. Munchos. Crujitos. Paso de los Toros (drink). Manzanita Sol. Ollie's Meat Snacks. Manzana Corona. Santitas. Kurkure. Radical Fruit. Chester's.

Chewy Granola bars. and Spudz y In 2005 PepsiCo launched Sting Energy Drink (carbonated) in Vietnam. Coqueiro. Quisp. Crisp'ums. Philippines & Malaysia. Cap'n Crunch. Oatso Simple. Nooyi spent $1. . Quake. King Vitaman. FrescAvena.3 billion on healthieralternative brands like Naked Juice. a California maker of soy drinks and organic juice. Cruesli. and in some Asian countries in 2010 including Pakistan. Life. y In 2007.y Quaker Oats brands: Aunt Jemima. Rice-A-Roni.

. discontinued after PepsiCo bought 7up. Tangerine Citrus. Passion Orange and Guava Berry. a clear version of Pepsi-Cola. y All Sport. were available in Hawaii only. y FruitWorks: Flavors were Strawberry Melon. Pepsi's answer to Sprite and 7up.y Discontinued lines y Teem. and the brand was sold to another company. y Aspen Soda. and Pink Lemonade. All-Sport was lightly carbonated. a line of sports drinks. rivals Gatorade and Coke-owned POWERade were non-carbonated. in contrast. an apple-flavored soft drink (late 1970s-early 80's) y Crystal Pepsi. Peach Papaya. The 2001 purchase of Quaker Oats (in effect acquiring Gatorade) made All Sport expendable. Apple Raspberry. Two other flavors.

replaced by Sierra Mist. Dragonfruit Potion. "with Guarana." the first energy drink launched by a major soft drink company in the US. y Storm: launched March 15. y Miranda Lime: Launched in the second half of the 1990 decade(in India) but failed . 1998. Magic Mombin. y Pepsi Blue. a flavored milk-based drink. blue version of Pepsi-Cola. a mid-calorie version of Pepsi-Cola. y Pepsi Kona: launched 1997. a coffee-flavored version of Pepsi-Cola. a berry-flavored. Green (SoBe) y Patio (soda): line of flavored drinks (1960-late '70s) y Pepsi Edge. y Matika: Run in August 2001. sweetened with cane sugar & containing Ginseng. y Smooth Moos: launched 1995.y Josta: launched 1995. Mythical Mango. Skyhigh Berry y Mazagran: launched 1995 y Mr. Rising Starfruit. it was a tea/juice alternative beverage.

pp. adds more than 200 product variations every year. PepsiCo." The company believes that consumers are looking for innovation. 54-56). has dealt with changes in consumer taste: . PepsiCo. Here are some examples of how PepsiCo. is not obsessed with protecting the market share of its flagship brands (Pepsi and Lay's potato chips) but is concerned with "understanding and catering to changing tastes. 2004.STRATEGY OF PEPSICO y According to Business Week (June 14.

y (b) For those concerned with obesity-. SoBe Synergy (50% juice targeted to school-aged children). .y (a) There is a growing market for New Age beverages-- Pepsi acquired SoBe Beverages and has used brand extensions to add such products as SoBe No Fear (energy drink). and Tostitos.natural and organic chips. y (c) For those concerns with health -. vitamin-enhanced water).Frito-Lay offers low-fat chips and is developing low-Carb Doritos. Cheetos. and SoBe Fuerte (Hispanic Market). Also introduced Propel Fitness Water (flavored.

The company.Company brought four popular brands from a Mexican subsidiary (e. This is a good example of ETHNIC MARKETING.g. Since these new brands were positioned as ethnic specialty not a line extension of Frito-Lay and were therefore able to get more shelf space. . There was a Fear that these brands might CANNIBALIZE existing US brands.. therefore. limited distribution of the products to mom-and-pop bodegas in Mexican-dominated neighborhoods.y (d) For the huge Hispanic market-. Baritones Chile and Lime puffed wheat snacks).

The days where cola beverages dominate the soft drink market may be over. Many young people would rather drink water. sports drinks. not as protecting flagship brands. . or tea than cola beverages. In fact. Is this a good idea? Yes! This is one way of ensuring that a company's products have appeal to young people and not only appeal to older consumers.y The Pepsi Cola Company has defined its COMPANY MISSION as serving customers. Coca Cola is promoting POWERADE (I happen to like POWERADE ZERO) and even has soda machines for it.

PepsiCo. caffeine-free.PRODUCT DEVELOPMENT PROCESS IN PEPSICO y For Pepsi Cola Ltd. low in sodium. marketing opportunity analysis is a continual and ongoing process. wishes to create a clear cola that is 100% natural. and reinstate their position as a product innovator. the company expects such benefits as: improved teamwork. . uses the newproduct strategy to realize their ambitions to both defend their current market position. hopes is to usher in a new era. They will call it Pepsi Au Natural. earlier detection of likely failure. less re-working. Coca-Cola. and higher success rates. By following closely the six steps of the new-product development process. and to give them a clear-cut advantage over their rival s. PepsiCo. and still maintains the flavor of its original cola. PepsiCo.

ySTAGE ONE: GENERATING NEW-PRODUCT IDEAS The first step Pepsi Cola undertakes is to generate ideas for the new product. as they ultimately are the ones who you are trying to satisfy. . Brainstorming is possibly the best method known to man to devise ideas or strategies. There are many different alternative ideas available to help PepsiCo. They use input from their Sales team. and suppliers to help with new-product ideas. Their customers prove an extremely useful source of information and ideas. through this process. customers.

in order to determine the viability of further study of each respective idea. operational or legal risk. The process of screening eliminates all ideas that are not viable due to unacceptable levels of competitive. in this case. Pepsi Au Natural.ySTAGE TWO: SCREENING AND EVALUATING IDEAS This is where PepsiCo. . evaluates all of their ideas. or ones that simply don t comply with the company s overall position or strategy.

. This consists of three steps: identifying product features. Management undergoes Concept Testing.ySTAGE THREE: BUSINESS ANALYSIS For Pepsi Au Natural to survive through this stage. Management assign s more responsibility for study to further examine Pepsi Au Natural s feasibility. it developes into a concrete business proposal. or PreTesting of the product idea. estimating market demand. and establishing a program for which to further develop the product. competition and the product s viability.

Prototypes or pilot models are manufactured. along with laboratory tests amongst other technical evaluations to further determine product feasibility: can Pepsi Au Natural be made to meet the quantity and quality standards required of it? .ySTAGE FOUR: PROTOTYPE DEVELOPMENT Pepsi Au Natural now develops into a physical product.

Pepsico. where samples of Pepsi Au Natural are given to the public at sample stalls. Any necessary fine-tuning of the design and production variables. runs a series of market tests to examine consumer interest in the product. .ySTAGE FIVE: MARKET TESTS Pepsi Au Natural now faces it s last test before it has made the cut and can be officially launched. and Test marketing where Pepsi Au Natural is placed on trial sale in certain geographic areas. They conduct strategic marketing ploys including product sampling. and Management is now faced with the question of whether or not to proceed to market Pepsi Au Natural commercially. due to results of the Market Tests shall now be conducted.

y .ySTAGE SIX: COMMERCIALISATION In this. It is no longer at the mercy of Management. and Pepsi Au Natural is now ready to be officially launched and released to the market. rather to the external competitive environment which shall manipulate and control the destiny of Pepsi Au Natural. production and marketing programs are put in place. the final stage of the new-product development process.

meanwhile. TANGIBLE VALUES y HYGIENE VALUE-: y PepsiCo. y PepsiCo is to place more emphasis on producing products "backed by science" under its plans to create a nutrition business unit to develop new products in a series of food categories. . dairy and functional foods.PEPSICOS VALUES AND PHILOSOPHY y PepsiCo says-:Our Values & Philosophy are a reflection of the socially and environmentally responsible company we aspire to be. They are the foundation For every business decision we make. is to set a dedicated "nutrition unit" and is eyeing fruit and veg.

the head of health policy at the company said today. y PepsiCo s goal is to delight & nourish consumers with products that range from treats to healthy eats y Provide clear nutrition information to consumers. amid tightening restrictions on the marketing of 'junk foods' to children. including consumers in regions where nutrition information is not required. y PepsiCo stands to benefit from "significant" investment in functional and healthy products. .y PepsiCo is to create a nutrition business unit to develop new products in a series of food categories.

y As PepsiCo products are readily found in Supermarkets. . in any shop or confectionary or any retail store where there are grocery items kept. Especially so for Vending machines. accessible and nutritionally sound food and beverages to our consumers in developing countries. It is easy and accessible for anyone to get products like Pepsi. which can be found in most buildings or public places. etc. You can get PepsiCo's product in any part of the world. Convenient Stores and Vending machines. it is very accessible and convenient for consumers to purchase these products.y CONVENIENCE VALUE-: y As one of the world s leading food and beverage companies we believe it is our responsibility to provide affordable. anywhere at any nook and corner of any place. Dew.

yECONOMIC VALUE-: y Indeed. . PepsiCo has also built leadership positions in RTD coffee and tea categories by building partnerships with Unilever and Starbucks. As part of its wider reach. PepsiCo is a true business conglomerate. rather than try to center its effort behind one brand. both alliances have kept it ahead of its chief rival in these parts of the cooler by building a horizontally integrated portfolio rather than one centered around just one or two top brands. When it came to energy drinks. comprised not just of beverage brands but companies like Frito-Lay and Quaker that play in snacks and breakfast foods. PepsiCo built a suite of products to build up share.

and therefore resulted in losses." . Pepsi has also made several losses in taking risks. Though lowering the price would attract customers. They're going to save the points up and send the points in and get terrific stuff. y The basic proposition is that (when consumers) go to where they purchase Pepsi products. with hip fashion. they have a choice between one soft drink or another. However.y Unfortunately. PepsiCo wasn t able to cover up the cost incurred in production. The beauty of the program is in its simplicity. It has universal appeal and a youthful edge. and has covered all its losses and is growing at a rapid rate. They are going to say `I want that Pepsi Stuff' and will purchase Pepsi instead of something else or purchase Pepsi more frequently. Consumers drink Pepsi and get Stuff. PepsiCo is now a full-fledged and growing company. The Stuff is high quality and current.

" . Get Stuff' . geographically and across consumer groups.. and the logo and designs are done with a hipness and subtleness that's terrific.y Pepsi's penetration is universal.. It provides value and excitement and interest every time you purchase . (It) has a particularly strong appeal . for youth. The merchandise is geared.. (It's) as good as anything you're going to find in a high-end retail outlet. I'd like to go back to Pepsi's heritage and say the designs are all `young-at-heart' and all 'contemporary... to be interesting and to appeal to everyone. The merchandise is designed to be as cool as anything out there. with a level of quality not seen in any (other) kind of promotion. both as to the items that we're offering and their design..'" y `Drink Pepsi.

yFUTURISTIC VALUE-: y PEPSICO is committed to delivering sustained growth through empowered people acting responsibly and building trust. y Sustained Growth is fundamental to motivating and measuring PepsiCo s success. Their quest for sustained growth stimulates innovation. It is about the growth of people and company performance. places a value on results. . and helps them understand whether today's actions will contribute to their future. It prioritizes both making a difference and getting things done.

They must earn the confidence others place in them as individuals and as a company.y Responsibility and Trust form the foundation for healthy growth . they strengthen that trust by walking the talk and following through on their commitment to succeeding together. .PepsiCo hold s itself both personally and corporately accountable for everything it does. By acting as good stewards of the resources entrusted to them.

Without reservation their confidence helps ensure the quality of their products. .for keeping them more enthusiastic and more refreshing.INTANGIBLE VALUES y STATUS VALUE AND SOCIAL VALUE-: y Sell only products we can be proud of. This also accounts for the social value as major proportion of the population or almost 75% of people all over the world prefer Pepsi over coca cola s products. from the moment they purchase ingredients to the moment it reaches the consumer's hand. The true test of PEPSICO S standards is their own ability to consume and personally endorse the products they sell. The products are generally for the youth . For PepsiCo the prime thing is to maintain the status of their target group of people and let them keep high.

customers are aware of the different ranges of PepsiCo products. This creates a perception of a young and cool image for the brand. Newspapers and Events. .yBELIEF OR IMAGINED VALUE-: y Through various medium of Advertising such as TV advertisements. We are committed to creating communication that is clear. y PepsiCo has long been a promoter of responsible advertising to all consumers. Posters. to identify. which is easy for PepsiCo s target market Teenagers and Young Adults. age-appropriate and truthful. PepsiCo has also made used of several celebrities such as Britney Spears to market its product.

y At PepsiCo. encourage responsible marketing practices and support programs that motivate consumers to adopt healthier. bringing increasing proportions of the industry into the fold. we actively lead and engage in key PrivatePublic partnership to improve diet.y PEPSICO S aim is to globalize individual company and regional measures to ensure responsible marketing and advertising of foods and non-alcoholic beverages to children. more active lifestyle. .

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yNOSTALGIC OR SENTIMENTAL VALUE y Pepsi-: y Yeh Dil Mange More campaign was again a great success.it being a preferred thirst quencher . The company however failed to maintain the trend and leverage it. this was also one of the longest campaigns carried out by Pepsi. Instead of moving on to a complete emotional appeal platform. the principal focus is on the product . Featuring Sachin Tendulkar and many other leading stars at that point of time. the company decided on a product based promotion campaign. Though there is still some amount of emotional appeal to its campaigns. having balanced the emotional as well as the functional appeal of the product.

emotional level. . with changing times and a contextual difference in India.y 7 UP y In its early days. Hence the appeal was at a more subtle. which was targeted primarily at the youth and the teenager segment. The recent campaign of Bheja Fry essentially leverages on the same emotional appeal where the Keep It Cool campaign has been somewhat tweaked to have a local appeal. This led to the Keep It Cool campaign. a much more focused campaign was required. 7 UP inherited the global Fido-Dido campaign for promotion in India as well. which was meant to convey a potential lifestyle statement. However.

The initial campaign was unclear in terms of its appeal and the target segment. . However. the brand directly competes with Thums Up from the Coca Cola Stable. The campaigns launched include Do the Dew and Dar Ke Aagey Jeet Hai. as a result of which the brand suffered some jolts in the beginning.y Mountain Dew y Mountain Dew is the latest entrant in the product portfolio. In this sense. This product too has the appeal of being the drink of a daredevil or the No Fear personality. the latest campaign captures the No Fear or the Macho Man image.

Offering a Free for All y This shows that PepsiCo products hold an unique image not only in India but also in America and likewise many other countries. which no other company guarantees. PepsiCo assures its products to be original and safe. this is the unique aspect of PepsiCo.yUNIQUENESS AND NOVELTY VALUE y RECENT PRESS RELEASES SHOW THIS TAGLINE FROM AMERICA y America Says. . 'I Want a Soda That Has Nothing Artificial' Sierra Mist Natural Answers the Call.

Here he writes about how PepsiCo has responded to the expectations of Indian citizens -. a global first for the company. to the point where PepsiCo now says it has a positive water balance in India.yHISTORIC VALUE-: y Sanjeev Chaddha. the chairman and CEO of PepsiCo India joined the company in 1989 as part of the team that brought Pepsi products to India and while the brands are doing well.by both reducing its own water use and helping communities do a better job of gathering and storing water. they have been controversial because of their impact on water in a country where water shortages are an issue. .

g. signs. and select between different alternatives (e. reason.g. y The psychology of how the consumer is influenced by his or her environment (e. y The behavior of consumers while shopping or making other marketing decisions. products. feel. and retailers). culture. .. family. brands.CONCLUSION OF THE MARKETING ACTIVITIES WITH RESPECT TO SEGMENTED PRODUCT VALUES y The study of consumers through the marketing process and segmentation helps firms and organizations improve their marketing strategies by understanding issues such as how-: y The psychology of how consumers think. media)..

Not so long ago. PepsiCo s executives were surprised by these accusations. they continued to improve efforts to reduce water use in our plants and took additional action to provide local communities with the clean water they need. We launched a country-wide effort to achieve a Positive Water Balance in India by 2009. as it is due to irreplaceable nature of water. PepsiCo took this a step further. environmental activists in India targeted PepsiCo and other beverage companies operating in India for consuming excessive groundwater in local communities. its healthy and trustworthy to use PepsiCo s products. as they work to employ safe water and bottling practices in PepsiCo facilities around the world.y This tells that PepsiCo is focusing on water conservation and uses fresh and pure water in its products. In 2003. y PepsiCo. In response. . As you can imagine. takes these issues very seriously and is actively making a difference.

The consumers get what they desire. The main purpose is solved as the target group of audience is decided and the correct customer is being provided with the values they desire in the products. and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. so that they get only that which they aspire to have. How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer.y Limitations in consumer knowledge or information y y y y processing abilities influence decisions and marketing outcome. the appropriate product is assured to enter the stores for easy accessibility of products to the customers. .

. PepsiCo is the brand who catches the hearts of consumers and the attention of the youngsters.y PepsiCo has a long standing FINALLY commitment to protecting the consumers whose trust and confidence in its products is the bedrock of its success. In order to ensure that consumers stay informed about the global quality of all PepsiCo products sold in world. PepsiCo commitments are to deliver sustained growth through empowered people acting with responsibility and building trust. PepsiCo products carry a quality assurance seal on them.

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