Analysing Galeries Lafayette Doha Marketing Strategy
Assignment Brief and Guidance:
Continuing Scenario: In your role as marketing consultant for an organisation of your choice in AB1, you presented your MANAGEMENT REPORT #1 to its stakeholders. Your report highlighted your understanding of the overarching principles of strategic marketing management to aggressively expand the organisation’s operations to increase sales and attract a wider range of customers. In this Management Report #2, you are now asked to propose a marketing plan through the application of strategic marketing principles and techniques, and corresponding tactical decisions to keep your company in step with the digital age. Your report shall likewise respond to changes in the marketing environment. Your MANAGEMENT REPORT #2 will require you to cover the following
D. Be able to use strategic marketing techniques (LO3)
1. Use appropriate marketing techniques to discover growth opportunities for the organisation. (3.1) Your evidence for this must include real time data to support the
Techniques, viz: statistical data, current economic data, data from the organization
and data on markets.
2. Plan how to use marketing strategy options that are relevant to the organizational
context of your organisation. (3.2).
3. Create appropriate strategic marketing objectives for the market. (3.3)
Company Objective should follow logically from your research on the organization
and the selected market.
E. Be able to respond to changes in the marketing environment (LO4)
4. Report on the impact of changes in the external environment on a marketing
For this you need to report on the extent to which changes will impact on your
company’s marketing strategy.
5. Conduct an internal analysis to identify current strengths and weaknesses in a
marketing strategy for your company. (4.2)
6. Propose strategic marketing responses to key emerging themes (local, national or
global) in a marketing strategy. (4.3)
You will need to apply your understanding and propose strategic marketing
responses to emerging themes.
This report includes Galeries Lafayette Doha marketing strategy to manage several marketing tactics in the market. The strategic marketing process used to manage the needs and requirements of target customers and improve the overall growth of the business in the market. This company works in managing the luxury department store and brings the beauty and uniqueness of Fashion and Luxury to Qatar, and strategically positioned at a prestigious location between West Bay and The Pearl-Qatar.
The company uses several Galeries Lafayette Doha marketing strategy options to improve the overall growth of the market. The marketing strategies are responsible to increase the economy and statistics of the company and improve the overall profitability of the company (Burns, et al., 2014). This report will be discussed about the several marketing techniques that increase the growth opportunities of the company in the market. The different Galeries Lafayette Doha marketing strategy options will be described in the report.
The company needs to make the marketing objectives to analyse the options of the market by adopting effective Galeries Lafayette Doha marketing strategy. The several aspects related to the external environment and internal environment will be discussed in this report. The local, national and global aspects will be also included in the market process of the company. So, several emerging themes will be included in this report.
LO3 - Strategic Marketing Techniques
3.1 - Appropriate Galeries Lafayette Doha marketing strategy/techniques to discover growth opportunities
The several marketing techniques are used by Galeries Lafayette-Doha and these marketing techniques improve the overall growth of the company and its products in the market. The marketing strategies include as one of the important parts that are responsible to achieve the proper growth in the market that also improves the productivity and profitability of the market (Rollins, et al., 2014). The main marketing techniques used by Galeries Lafayette-Doha will be discussed below-
- Align sales and marketing
The company needs to manage sales and marketing properly so that Galeries Lafayette-Doha achieves immense growth in the market and improves better profits. The sales and marketing terms are interchangeable and they both highly contributed to the growth of the organisation (Mishra and Sharma, 2014). Selecting appropriate Galeries Lafayette Doha marketing strategy is one of the critical factors of the business that increases the financial success of the organisation.
- Expand the offerings of the company
Galeries Lafayette-Doha needs to expand the offerings so that customers get attracted to the organisation. These expansions in the offerings are a must for the overall process of the business. The customer and their needs are always evolving and these offerings maintain the needs of the customer.
- Focus on customer relationship management
Galeries Lafayette-Doha needs to manage its relations with the customer so that better profitability can be achieved by the business. It has been analysed while selecting Galeries Lafayette Doha marketing strategy that increasing customer relationships is responsible to increase the profits between some decided ranges.
- Develop the proper strategic partnerships
The organisation needs to maintain the proper strategic partnerships in the market so that they serve the larger customer and business opportunity together in the market.
- Develop new customer base
It has been analysed in this Galeries Lafayette Doha marketing strategy that selling to new clients is between 5 to 20 percent is successful. So, the business needs to attain new customers for using the services. Organisation should have an unlimited budget to market in order to find new customers and increase sales (Wasserman, no date).
For understanding the demand, organizations are required to identify the demographic trends in the market. According to Sarvari et al., (2016), demographic variable like gender, age, lifestyle, occupation and income hold significant clues regarding consumer behavior. Galeries Lafayette-Doha can analyze the demographic trends or characteristics shared by people that usually direct common purchase behavior. It has been identified that Galeries Lafayette-Doha possesses the opportunity to include celebrities in the marketing practices, as following the celebrities has become a growing demographic trend in the retail market.
- Direct Competition analysis
Apart from the analysis of the offerings, this Galeries Lafayette Doha marketing strategy illustrates that customer relationship management and strategic partnerships is equally important to concentrate on the analysis of supply. Galeries Lafayette-Doha is needed to know the existing players in the market in order to compete effectively with the identification of the growth opportunities. As explained by Sotiriadis (2018) It is essential to understand the brands and products offered by other market players and their value proposition and identify own competitive advantage. Competition in the retail market is a major threat for the company Galeries Lafayette-Doha as it can significantly impact the business growth in a negative way. Therefore, it is essential for the company to choose the correct and most effective Galeries Lafayette Doha marketing strategy.
By using these techniques in marketing, Galeries Lafayette-Doha gained several opportunities and achieve better growth in the market. This growth can be analysed by analysing the statistics data, economic data of Galeries Lafayette-Doha.
Figure 1: Galeries Lafayette-Doha Sell-Tru (Internal Source-Confidential)
The above data shows the continuously increasing revenue of the Galeries Lafayette-Doha and this becomes possible by using the proper Galeries Lafayette Doha marketing strategy/techniques to attract the customers and to improve the overall profitability in the market. From the first month, the Store continuously increasing its sales and it attains high sales in the beginning month of 2020.
Figure 2: GL-Doha Nationalities Review (Internal Source-Confidential)
This graph shows the situation of Galeries Lafayette-Doha in the market as almost all the nationalities present in the region adopted this Store and started taking services of this company in the retail industry. The major part of the services is attained by Local or Qatari, second by Kuwaiti and this increases the overall performance of the company properly which the main goal is to cater elite customers.
3.2 - Plan to use Galeries Lafayette Doha marketing strategy options
There is a proper plan that is decided by the company to develop the uses of Galeries Lafayette Doha marketing strategy options. The Galeries Lafayette Doha marketing strategy is one of the essential parts of the chosen business and this strategy can be maintained by adopting the proper options in the market. These options are responsible to achieve better growth in the market (Levens, 2010). By the use of Galeries Lafayette Doha marketing strategy options, the company improves the marketing strategies and increases the overall profitability of the company and attracts more and more customers towards the services. The Galeries Lafayette Doha marketing strategy options are discussed below-
- Set goals and objectives
It’s a part of the planning that needs to use in the options of the Galeries Lafayette Doha marketing strategy. Galeries Lafayette-Doha needs to set their goal and objectives in the planning of using options. This part is too essential to achieve better productivity and profitability in the market (Kanagal, 2015). The goals and objectives are needed to set the proper way of doing business.
- Analyse the proper situation
The organisation needs to analyse the proper situation of the business so that better options can be used in the marketing process. Marketing is one of the important processes to attract customers (Jarzabkowski and Kalpan, 2015). The situation can be analysed by using the SWOT analysis so that the strengths and weaknesses of the business can be analysed properly.
- Map the important messages
The messaging of the company is a part of the Galeries Lafayette Doha marketing strategy and the brand. To create a map of the message, the basic information of the business needs to be included in the process. These massages are also related to the mission and vision statement of Galeries Lafayette-Doha.
- Live-out the mission
Every business has pre-decided values that are used in the management of marketing. These values guide the organisation to work in some specific direction. Creating of a mission statement outline the values of the company and it is important for the business that persons who interact with the organisation need to be aware regarding the mission statement (West, et al., 2015).
- Outline your tactics
The tactics are one of the important parts of the Galeries Lafayette Doha marketing strategy and it includes online and offline both options. In the decision of tactics, the goals and targets need to be included. The tactics based on the Galeries Lafayette Doha marketing strategy need to be listed in the marketing plan and try to achieve these tactics for the betterment of the business.
- Makeproper timeline
The time is too precious for the business so the Galeries Lafayette Doha marketing strategy needs to make a proper timeline for each goal and objectives that need to be achieved. Timeline is based on the goals and objectives and it cannot be delayed in any situation. Timeline can be made by using project management software.
Strategic marketing planning process is explained as the process to develop, implement maneuvers for obtaining competitive advantage in a selected market (van Scheers and Makhitha, 2016). It has been previously identified within this study of Galeries Lafayette Doha marketing strategy that growing competition in the market is a major threat for the concerned organization and therefore it is necessary for the company to implement a strategic marketing planning process. However, it has been identified that the strategic marketing planning process emanates from different strategic corporate direction that have been explained below:
- Company vision and mission
As explained by Taiwo et al., (2016), the vision statement relates to the future-oriented declaration of an organization regarding its aspirations and proposes. It has been also identified in this study of Galeries Lafayette Doha marketing strategy that the vision statement of an organization reflects the way in which based on the purposes, an organization states its overall aim. In other words, it can be explained that the marketing strategies must be developed in such as way so that the achievement of the company vision is ensured. On the contrary to the vision statement, the mission statement of a business organization states the reason behind the development of the business and the way in which it is aimed to serve the key stakeholders of its business. Therefore, it is clear that mission and vision play essential roles in business organization by communicating the purpose of the organizations, by informing the strategic developments and the objectives and goals of the business.
The vision of the organization Galeries Lafayette-Doha can be “To recognize the expectation of each customer and treat them in special form while they visit to the stores”. This particular vision statement based on the Galeries Lafayette Doha marketing strategy would help the organization to gain significant interest from the customers as well as the partners and major focus of the company is stated to be the fulfillment of the desires of the consumers. Additionally, the mission statement of the company can be “to celebrate the desire for creativity and newness by providing unique products to every customer”. This specific mission statement explains the focus of the company on innovation to meet consumer needs and thereby can serve as the basis for the marketing strategies.
- Organizational competencies
Core competencies of a business relates to the unique skills and resources such as technologies, knowledge, employable skills that are able to create distinct value for the customers. In the view of Rana et al., 2017), Capabilities and resources of an organization is buiding block based on which the company can develop and implement value-adding strategies for gaining reasonable returns and strategic competitiveness. In strategic marketing planning process, the organization Galeries Lafayette-Doha is therefore, required to identify its own core competencies to ensure that the market strategic plan is realistic and achievable on the basis of its core competencies. The core competencies of the business should be the talented and skilled human resource. Additionally, the ability to innovate products can also be another core competency for the Galeries Lafayette Doha marketing strategy to meet the customer demands and develop its marketing strategies.
- Company values
Company or corporate value is regarded as the fundamental beliefs of an organization based on which the business as well as its functions, and behavior are framed. Company values also serve as guiding principles that are used by a business for managing different internal affairs and the relationship with the consumers. Hence, the values defined as important by the company can gauge the development of marketing strategies (Spry et al., 2018). So, the Galeries Lafayette Doha marketing strategy must follow or originate directly from the company values. By emanating strategies from the organizational values can help a business to ensure the long term success of the strategies. The organizational culture, customer focus, employee satisfaction and innovation can be proposed as the core company value of the concerned organization to guide the strategic marketing planning process.
- Organizational preparedness
Organizational preparedness explains the extent to which an organization is prepared to cope up with certain changes or challenges. The skill sets and knowledge of the organization and the individuals within it strengthens the organizational preparedness (Mohsenzadeh and Ahmadian, 2016). Hence, the success of the implementation of a particular strategic marketing plan depends highly on the preparedness of the organization as well as the employees of the organization. It can be proposed that the concerned organization can train its employees for being prepared to accept and act in regards of the changes in the strategic marketing plans or Galeries Lafayette Doha marketing strategy to ensure its long term success.
3.3 - Strategic marketing objectives for the market
Marketing objectives are the goals set by the business for achieving a high position in the market. These objectives are used in the process of promoting products and services. The marketing objectives are the marketing strategies that set to achieve the different objectives of the organisation (Aghazadeh, 2015). The marketing objectives of Qatar are set as the marketing strategies and these needs to be used in the defined process of the business.
The proper marketing objectives of Galeries Lafayette Doha marketing strategy are discussed below-
- Marketing mix of Galeries Lafayette-Doha
The marketing mix of GL-Doha included the 4 p's of marketing that includes the product, pricing, place, and promotion.
The product element of the Galeries Lafayette Doha marketing strategy `needs to be reflected the needs of the customer and the value of being a luxury store. So, GL-Doha always designs unique products to stand in the competitive market. The concerned organization GL Doha is recommended to use the digital technologies like social media to gain knowledge regarding the recent trends in the fashion industry and allow its R&D team to conduct detailed research on the market utilizing the digital technologies and design innovative products that are able to satisfy the customers.
The proper evaluation is needed for the targeted customers so that the defined value can be analysed. The pricing strategy of Qatar includes the credit terms, setting the list price, discounts, and other payment methods. The company needs to set a reasonable and attractive price as compared to its competitors, for which the company can follow the penetrative pricing strategy as well as competitive pricing strategy, depending on the product on sale. Apart from the utilisation of a reasonable pricing strategy for an effective implementation of Galeries Lafayette Doha marketing strategy, the organisation GL Doha is also recommended to utilise digital technologies such as mobile payment options to make the payment process easier for the customers.
The distribution plan of GL-Doha needs to consider some other process to achieve a better position in the market. the company needs to make the products and services available for the targeted customers (Hajli, 2015). The distribution of the company needs to be direct. Though, GL-Doha located in a perfect spot, but the company should always review the traffic from time to time. It has been identified in this study on Galeries Lafayette Doha marketing strategy that people in recent times are becoming more and more dependent on e-commerce websites for purchasing fashion apparels and accessories. Therefore, utilising the digital technology to provide the online shopping option to the customers can be an emerging opportunity to GL Doha, apart from its brick and mortar store.
This included as the most essential element of the Galeries Lafayette Doha marketing strategy as promotion helps the company to achieve all the marketing objectives. Qatar needs to craft the message to the customers so that better advantages can be achieved. Also, the company should review competitor’s offers at always to monitor how the promotion strategy may apply. Social media marketing is an emerging opportunity for businesses operating in the retail sector in Qatar. Different social media marketing strategies such as celebrity endorsement and social media influencer enhance the organisation's sales and market share in the long term.
- Customer Analysis of Galeries Lafayette-Doha
The customer analysis of the Galeries Lafayette-Doha is included as one of the important marketing objectives as without analyse the customer needs, the organisation cannot achieve a better position in the market. The organisation need to clearly define the potential customers and dived them in the segments for better profitability.
- Segmentation of Galeries Lafayette-Doha
The segmentation is also important objective of marketing that needs to be attained by the company (Varadarajan, 2015). Segmentation helps the company to understand the buying behaviour of customers. The segmentation process helps the company to decide the specific customers of the market. In order to effectively segment the market in Qatar, GL Doha can utilise the digital segmentation technique wherein the internet is used as the media to collect information regarding the behaviour pattern and purchase decision-making process of the customers. The digital segmentation techniques can easily track the likes and dislikes of the customers on an ongoing basis and therefore, is highly recommended to the company (Pitt et al., 2017).
- Targeting and positioning of Galeries Lafayette-Doha
This objective is also important for the Galeries Lafayette Doha marketing strategy because targeting the customers helps the business to meet the needs of the customer. The company needs to target the segments and identified the proper potential of the customers. This objective is much more responsive to achieve the needs of the customer. To increase the sales and profitability and increase market share, GL Doha is highly recommended to use digital technologies in targeting a particular market segment and position its products in front of the customer. For positioning the products the organisation can utilise digital technologies like the internet, mobile games, mobile applications and other similar applications. Similarly, social media can also serve as a medium to position the products of GL Doha.
LO4 - Respond to Changes in the Marketing Environment
4.1 - Impact of changes in the external environment
The external environment provides a great impact on the changes occurred in the Galeries Lafayette Doha marketing strategy as the external environment affects the different marketing strategies. The external marketing environment includes social, demographic, political, economic, legal and competitive. It has been analysed that the changes in the external environment impact the target market of the company (Wilson and Gilligan, 2012). For analysing the impact of the external environment, the pestle analysis needs to be conducted.
Pestle Analysis of Galeries Lafayette-Doha
The political changes affected the overall Galeries Lafayette Doha marketing strategy as the most recent political developments include the travel ban and it creates several diplomatic tensions in the market in which deliveries of imported products will be delayed. This affects the marketing strategies properly (Frue, 2020) The political bodies set several rules and regulations that affect the consumers as well as business. The changes in the political context and trade laws and rules have a negative influence on the business of GL Doha. As a result of the delay in the delivery of the imported products, the customers of GL Doha are likely to shift toward the other businesses that offer classy products. So, GL Doha is likely to encounter depression in its sales and profitability.
In business, marketing managers face different economic views. This directly impacts the marketing plan. Sometimes the news also provides a better advantage in marketing like improving the economy, unemployment declining, and several others. The declining level of the unemployment rate is a significant opportunity for the business of GL Doha as with the growing rate of employment more people are likely to purchase the luxury fashion apparels and accessories sold by the company. Therefore, the economic factors have an overall positive influence on the business of GL Doha.
The marketers are also aware of the socio-cultural factors as they directly affect the sales of the company (Kozenkow, 2018). Society includes the consumers and this gives the proper information regarding the needs of the consumers so Galeries Lafayette-Doha maintains their needs by the analysis of the social factors. But sometimes the views of society affect the Galeries Lafayette Doha marketing strategy. Following the celebrities regarding different products and services has become one of the socio-cultural trends and utilization of celebrities in Galeries Lafayette Doha marketing strategy can impact on the purchase behavior in the retail market in a positive way (Li et al., 2017). The perception of the society regarding the advertisements of the fashion-related products can be negative force acting on the business of GL Doha. This particular socio-cultural factor is likely to decline the level of sales and therefore can be regarded as a threat to the business.
Technological trends are increasing continuously in the market and these changes impact Galeries Lafayette Doha marketing strategy by making the overall process easier. Several new technologies are responsible to transform the marketing mix and this improves the sales of services in the market. The advanced technologies have also stimulated the competition among the organizations in the retail market and therefore the growing competition is a emerging issue for the concerned organization. Technologies such as the internet, mobile applications, e-retail options and mobile payment options are changing the way in which retail organizations operate (Ismail, 2018). The advancements in digital technologies are highly beneficial for GL Doha. Based on the emerging technologies GL Doha can use e retail options and process the internet orders to meet the consumer demand regarding the purchase of the product at any time and from any location.
The laws and regulations give a great impact on marketing as there are several regulations made by the government to manage the marketing aspects of the business. These legal factors make the barrier in managing the marketing strategies but this is also used to manage the competition in the market. The legal factors directly impact the use of marketing aspects in the services of Galeries Lafayette Doha marketing strategy. The laws relating to the limitations regarding advertisements prevent the company to apply its advertisement strategies in the country. Therefore, the organisation cannot experience the expected level of return from the market with the implementation of a limited advertisement strategy.
The environment is a major part of the business as the customers as well as employees are related to the environment itself. The overall environment affects the marketing aspects and improves the marketing needs of the retail business (CRC, 2017). The customer requirements can easily analyse by using this process of the external environment. As the consciousness regarding environmental issues is rising among the customers, it has become important for the company to include environment-related concepts in advertisements and product development. Although it is a great opportunity for the business to increase its reputation and brand awareness, it enhances the operational cost of the business and therefore is a major threat for GL Doha.
4.2 - Internal analysis to identify current strength and weakness
There are several aspects included in the identification of strengths and weakness as this analysis provide several solutions to improve the overall process of Galeries Lafayette Doha marketing strategy as well as business. SWOT analysis is the strategic planning that helps the business to fight with competition and also helps to maintain project planning. The business needs to analyse the positive and negative attributes within a single analysis (Mirkovic, 2019). The current strengths and weaknesses help the organisation to maintain its business properly.
SWOT analysis is one of the best strategies that improve the several activities of the business. SWOT Analysis of Galeries Lafayette-Doha are discussed below-
· The other main strength of GL is recognition of trends which helps in analysing the comparison among different organisations.
· The other main strength of GL is the strong backing of management which improves the leadership process in the business.
· The organisation needs to be cultural consciousness which increases the diversity in the business.
· The several political changes in Qatar industry is also a major weakness in the business.
· The competition from low-cost stores also affects the business of GL.
· Growing environmental consciousness
· Declining unemployment rate
· Online retail functions and mobile payment options
· The legal changes regarding advertisements.
· Limitations on export and import activities
· Inefficient organizational competencies.
4.3 - Strategic marketing responses to key emerging themes
The strategic market responses are used to implement the changes in the market. Strategic marketing includes the knowledge of the market to develop a customer-based strategy and approach so that the organisation achieves its goals and objectives. The emerging themes are essential for the overall organisation and this shows the proper market in which the services in the retail business are used (Kahungu, 2018). The emerging themes of Galereis Lafayette-Doha are local, national and global. These three are the markets in which the proper services are used.
The local aspect includes the local market, the national theme includes the national market and the international theme includes the international market wherein Galeries Lafayette-Doha caters online shopping sites too. These market needs to be followed some strategic responses to manage the overall process of the company (Revella, 2015). These themes are used in the improvement of Galeries Lafayette Doha marketing strategy and increase the marketing process in the company.
The strategic marketing responses include several aspects related to marketing as these responses applied to the emerging themes itself. Aslocal market uses different ways of business, national market uses different ways and international market uses different ways. All three themes are essential in the process as these three markets manage the services provided by the company (Sillani and Nassivera, 2015). The strategic marketing responses to the themes used in the business that involves the least resistance, dynamic response, and proceeding with caution. The least resistance is a passive approach that some business maintains and it helps the local business to survive in the market and improve the growth of Galeries Lafayette-Doha. The national market also sustains with the least resistance and survives in the working areas of retail and it reflects on Galeries Lafayette Doha marketing strategy. The changes are reacted in this business and the particular changes in the environment help to maintain the goals of the business.
The other strategic response is a dynamic response that manages all the three themes in the business and improves several strategies of marketing. The companies that use the dynamic response are powerful and they implement several changes in the business (Indris and Primiana, 2015). The local, national and international all the themes can be managed properly.
The other important strategic response is proceeding with caution which says that the organisation precedes the work with proper caution (Hueske, et al., 2015). In this response, the analysis of the external environment also matters which increases the overall process of the business.
The increasing traffic in online shopping for fashion products is an emerging theme for retail businesses based in Qatar (Sabri, 2018). It has been identified in this study on Galeries Lafayette Doha marketing strategy that in recent years the trend of shopping from online retail stores has greatly enhanced among the customers. In addition to it, following the social media influencers and celebrities is another emerging theme in the fashion industry. Therefore, based on these key themes, GL Doha can be suggested to focus on the development of the e-retail segment. In addition, an adequate promotion of the e-retail segment can be achieved through digital marketing techniques like social media platforms, website, Search Engine Optimisation (SEO), and social media optimisation techniques. For the promotion of the products through social media platforms, the company can utilise the influencer marketing technique by contracting with social media influencers and celebrities. Another key emerging theme in relation to the Galeries Lafayette Doha marketing strategy is the growing preference of people regarding Dubai as a tourism destination (Zaidan, 2016). The increased tourism in Dubai can be used to develop strategic marketing plans for GL Doha. In this context, the organization can utilize the digital technologies social media platform, online retail system, and mobile payment systems to promote the popularity of the brand among the tourists.
From the above report, it has been concluded that there are several aspects used in the strategic marketing of Galeries Lafayette-Doha. The company uses several marketing strategies to improve the overall growth of the market. The different Galeries Lafayette Doha marketing strategy options will be described in the report. The company needs to make marketing objectives for proper growth. The various marketing techniques are used by the company to growth opportunities.
The company needs to manage sales and marketing properly so that Galeries Lafayette-Doha achieves immense growth in the market. Galeries Lafayette-Doha needs to manage their relations with the customer so that better profitability can be achieved. The marketing strategy is one of the essential parts of the business and this strategy can be maintained by adopting the proper options in the market. The organisation needs to analyse the proper situation of the business so that better options can be used.
The Galeries Lafayette Doha marketing strategy objectives of the market has been discussed in the report. All the information is related to the Galeries Lafayette-Doha that works in the retail industry. The customer analysis of the Galeries Lafayette-Doha is included as one of the important marketing objectives. The pestle and swot analysis of Galeries Lafayette-Doha has been described that gives information related to the environment of the company.
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