Social Media Marketing Plan for an Energy Company
The social media is one of the easiest channels through which an organization can make use of especially when they aim at marketing their products to a broad mass of people. Marketing is essential as it helps in countering the stiff competition that is prevalent in the market. Therefore, a marketing plan can be developed according to the specifications of the company and the budget as well. Powershop Company is an entity located in Australia and an affiliate of New Zealand based company that deals with the supply of energy. The organization uses online marketing as the basis of its sale of goods and services. Customers find it easier because all the services that they require can be accessed by just a click of the button. The industry comprises of some firms that deal in the same line of production hence the reason as to why Powershop seeks to market their products via social media to gain a competitive advantage over other firms in the industry. However, some factors affect the progress of the company which is under PESTEl. Implementation takes place after an evaluation and calculations of all the possible costs in the industry followed by a control measure that will be used to monitor the whole process until it succeeds
Marketing refers to the manner in which a company or organization familiarizes its products in the market for them to maximize profits. Many firms in the industry are profit oriented hence they will do anything possible to achieve a competitive edge over her competitors. Also, organizations are forced to conduct adverts because of the competition that they face from other companies that deal in the same line of production. In this case, each firm will undertake a strategy that will offer them a higher pay off in the market. The use of strategies in a competitive market is often referred to as game theory whereby a policy of one party has an effect on the other firm hence all companies will consider selling their products in the best way that they might be capable. Companies that fail to do adverts may end up making losses due to low returns regarding revenue hence leading to a closure of the business. The purpose of marketing an organization's product is to keep on reminding the customer of the existence of the product, changes in branding and prices, and when introducing a new product in the industry. Consumers will often buy good which they are entirely convinced that they will content them as to their expectations. Further, there are many ways in which a firm can market its products depending on the structure of the market, the targeted group and the cost of marketing. It is important to note that a company can only advertise at the appropriate time especially after reviewing the customer's comments on the organization provision of goods and services. However, market structures usually determine how a firm will conduct its adverts. In a monopoly market, for instance, an enterprise may choose to advertise in order to scare away new entrants in the industry. On the other hand, in perfect competition, organizations are forced to conduct adverts to be at par with other competitors. This is a marketing plan for Powershop Company located in Australia, and it entails the approach that they should apply to market their product via the social media especially in the Queensland market located in the South East.
Description of the Company
Powershop enterprise is an electricity retailer that conducts its business on an online platform. The company was originally founded in New Zealand but has expanded its operation in Australia. Over 51% of the organization is owned by the New Zealand and has been categorized as the first energy company where customers are given an opportunity to choose among the many brands that the organization has listed on its website and switch to any by just clicking on the button. The brands offered by enterprise come with different prices and benefits to the environment as well. Users have the option of logging in and taking advantage of the offers or allowing the system to purchase energy for them from the cheapest supplier. Previously, the company claimed that it would be offering the most affordable energy, but they letter dropped the claim because of market reasons. The consumers had enjoyed the services especially when they were provided at a reasonable price that that of the market rate. Therefore, the company mainly deals with energy products that are availed in the market by the customer's preferences. This has made the company famous in Australia because of its uniqueness in her products thus attracting scores of customers hence the high return of revenue annually. As a matter of fact, the company came up with the idea of establishing an online marketing platform that will make it easier for the company to sell its services at any given time and convenience of the customer. This is one way that the organization is trying to curb the market competition that is evident in the market as there are some firms in the same industry that compete for the same customers. In this case, the need is to ensure that the company adopts a better approach to market its product in the social media and learning how to encounter the challenges associated with the channel. This entails the better opportunities that should be utilized and making changes in the old methods that have not yet proved regarding performance. The company deals with three main products which are Everyday which is valid for 3 months and sold per kWh. The second product is that of Powerpacks that must be used later, and specials that are sold in blocks for one week. Consumers can access the above products at an affordable price and the quantity that they need.
The market for energy in Australia is dynamic because of the number of firms in the region that deal in the provision of different forms of energy across the country. However, some companies like Powershop have dominated a full range as it has attracted many customers who are willing to pay for their services because of their lower prices compared to other firms. However, competition is prevalent forcing the company to come up with unique products and services that will enable them to win the hearts of their customers. On the other hand, other firms are coming up with strategies that will allow them to increase their sales in the market. In this case, the market is regulated by the authorities to prevent exploitation of the consumer by the producers. This market can also be analyzed regarding profits made from the industry. Many firms seem to be making valuable profits hence their continuous operation in the industry. Also, there are some challenges that the market encounters from time to time. Regulation, for example, is one of the primary problem that energy markets face (Zarrella, 2010). This is because rules come with strict measures that must be followed failure to which organizations face the consequences. In some cases, the cost of production can be very high depending on the number of transactions that a firm may indulge itself in within a period. On the other hand, there are also competitors in the market that directly and indirectly affect the company's operations. Some of the examples include the Green Rock and Horizon power.
Competitions from other firms in the market are the primary threat for organizations in the industry. A company fears when there is massive competition which leads to the scramble of customers hence creating uncertainties about the future progress of the entity. In many cases, firms try to reduce prices and create suitable offers that will attract more customers. This is one action that the company has been using in the market especially when other firms are putting too much effort to increase their market share. In this case, the Australian market for energy cannot be predicted because the many firms have been applying different strategies. However, it is evident that the company is performing well despite the direct and indirect competition from other organization producing similar products. The other firms are also advertising hard their products just like Powershop which has chosen to conduct theirs on an online basis. Therefore, according to my view, the market is not stable because of the different prices offered by different enterprises. I recommend the management of the company to implement competition countering measures that will reduce the high competition and enable the company to create a wider market share compared to others (Samson 1985). Also, competition arises as a result of one or more weaknesses that develops in an enterprise leading poor performances in the long run. When dealing with direct competition, it is essential to study the trends and way of operation by other participants in the industry to implement better strategies that will earn them a better pay off in the short and long run. In the field of energy, for instance, it is best when Powershop develops an online platform where they can come up with a customer forum that expects every consumer of our product to comment on the services that are offered to them. In this manner, we will be able to establish some of the areas that we have failed to satisfy our clients thus proposing for possible solutions. Below is achart explaining the number of firms in the industries angaging the online marketing plartform.
A Distribution of Percentage of Firms in Accordance to their Marketing ways.
Data obtained from government online sources.
Direct competitors services Indirect competitors services
TECO Energy Energy supplier
Provides energy Waubra Wind Farm
Euro solar Wind power
Since the company is based in Australia, it will be prudent for the management of the organization to limit their target aroud Australia for the case of this branch of the company. This will mainly target the people in urban areas who are most in need of electricity and other energy services.
Demographics and Psychographics of South East Queensland
Population is very important when it comes to marketing in an organization. Thus, the company’s target population is the households who are most in need of the service. This will target mostly the urban area people who have access to internet connection. On the other hand, psychographics is quite similar to demographics but entails the behaviour of buyer and hobbies, spending habbits and even value. As a marketer I will advise the company to analyse the age group, income of households and even their marital status. This will provide the company with an idea of customers thinking on the good.
The table below shows the distribution of people in the South East Queensland
A PESTEL is an abbreviation of the important aspects of the business that should be considered even before one decides to indulge in a particular zone of business. Also. Such an analysis can be conducted as an entity deals with its operation in a particular area. The main aim is to establish whether the organization will be advantaged or disadvantaged if it continues with its activities. These elements may have a positive or negative effect on the society hence it is important to choose a business-friendly environment that will guarantee profits rather than losses in the future.
In this case, politics is a major factor when it comes to business. Politics can be generalized as the manner in which individuals and leaders interact in the quest of achieving a better society in the future. The political environment favors the way in which business are registered and how they undertake their daily activities. The political atmosphere refers to stability in the country and the friendliness that lies between politics and companies. A tranquil and peaceful environment is likely to the operation of Powershop hence the high sales. Australia is a peaceful nation because it has not experienced any instability in the future. Politically, Australia is a peaceful country that offers a friendly environment for companies operating within its boundaries. In this case, the stability will enable the firm to air its adverts through the social media where most of the people interact during their free time (Shankar & Carpenter, 2012). However, when the environment is friendly, other firms are likely to develop the interest to develop in such an area where they do need to fear about instabilities that happen in other governments. Therefore, about the marketing plan, leaders can put in place appropriate measures that will regulate firms in the best way and not restricting them in the manner that they are conducting their business. This being an imperative aspect of business because it enables a company to provide services to customers conveniently at the right time. Minimal regulations, in this case, will be better to enable the firm to remain stable all the time.
The financial performance in a country is very essential to the businesses taking place. This is because economies run the operations of the countries thus a collapse of the same might lead to dire consequences to the citizens living in that particular nation. It is important to analyze the economy when planning to invest more in an individual business especially during the market period. The economic performance in a country has the direct impact on the operation of business. For example, in a competitive nation where the economic situation is relatively small, there is a higher likelihood of poor performance in companies offering services to clients in the government(Partridge, 2011). This is usually characterized by payment of heavy taxes thus reducing the number of profits in business. The Australian economy has been performing well since the Powershop started its operations. Weak economies are characterized by poor performances in the firm that often record losses. Considering that many companies in Australia are performing well, it is important for the business to maintain the same trend over the year thus guaranteeing stability regarding the economy. Strengthening the economic situation of a business is by building on the main pillars of business that protect it against any harm especially the losses (Albadri, 2013). The marketing plan will consider the economic aspects that mainly contributes to the overall performances in the country. Therefore, as the head of marketing in the organization, I will ensure that the goals of the company are given priority than any other goal.
Social cultural refers to the social and cultural background of a person or a group of individuals. The social status in the society is never equal, and individual's capability tend to vary from one person to another hence the gaps that we always create on each other. On the other hand, talking about culture refers to the manner and style that was previously used by a company to undertake its activities. Culture can drive an organization towards a particular direction because they are used to such ways when it comes to performing their activities hence the socio-cultural aspect is imperative to companies that seek to increase their production and play better through embracing new methods that have come with the new digital error (Allen, Kania&Yaedal, 2001). In fact, if the company has been just advertising online only, it is high time that it looks at other social media platforms like the Facebook and Twitter which are used by a majority of people in Australia and across the world. Thus using these channels will increase the number of customers because individuals can interact and market the organizational products in a more easy way compared to the usual manual ones.
The use of technology among firms across the world is becoming the order of the day as many organizations are embracing new technology for them to increase their efficiency in their performance. Technology refers to the use of different machines in undertaking activities hence making it easier compared to the manual manner that is time-consuming and costly. There are varying levels of technology used in organizations depending on one's capabilities and their ability to implement and pay for the same. Example, an organization making use of machinery is likely to perform more tasks compared to that which is dormant and does not accept the usage of machines. In this regard, to market Powershop's products, the management is required to select a team of individuals that are conversant with a computer and other online techniques. This group will be used as the foremost marketers of the company's products. As in this case where the corporation deals with three products, it will be prudent for the teams being divided into small subgroups, and each mandated to address the marketing of a single product. Tools that might be used in this kind of technology include a laptop or phone that can access the Internet and connect with the social media hence informing the public about the existence of the product and changes regarding branding and prices as well. Technology might as well change the market pace and with the flexibilities and comfort of workers using the method (Australian Government, 2015a).
Technology has often been categorized as the most convenient way that which can be used to usher changes in organizations. This is because technology is dynamic and may come in different forms and innovation that might benefit the organization positively at the end of the project. It is important to ensure that the technology used is pocket-friendly In terms of affordability that is in line with the budget of the company(Partridge, 2011). This is because implementing a technology that is costly might lead to losses in the future especially if it fails to apply as it had been earlier expected. Thus it is always better when we analyze each strategy before taking action on the same. For the case of our company, I will give technology priority reason being that our organization is online based thus it is inevitable to evade the use of technology in performing various activities of the organization. This should be time-bound and should give particular results at the end. Setting up a specific time for analysis will be better because it will enable the organization to evaluate itself regarding performance over time. This will give us a chance to conduct an evaluation of the efficiency of the machines that we use to deliver our adverts to our customers. Also, marketing comes in different levels depending on the way an entity likes it. Thus the best way should be chosen, and the activities commenced with immediate effect.
Organizations must undertake the legal method in performing any activity to abide by the law and avoid being listed on the list of violators. Therefore, when organizations ensure that they have followed the law to the letter, they are always confident in the market, and there is no fear of their operations being stopped by any individual who may feel that the organization is not acting as expected. The matter of legality in business is broad hence in this regard I will focus on the marketing legal issues that we should follow as we aim to achieve a high market end in the industry (Blick, 2011). This encompasses if the organization is recognized by the states and if it observes ethical conduct when it is marketing its product. Ethical behavior is an issue of discussion when it comes to social media channels of communication. This refers to the manner in which organizations present themselves to the public. This is very crucial because some information given to the public from various agencies might fail to meet the ethical standards hence this might lead to enforcement of the law. The online platform is being used by different groups from the old to the young in the society. Therefore, the government expects organizations to communicate in a decent manner that will not raise eyebrows from the stakeholders whenever information is released on the internet(Partridge, 2011). Illegal ways of informing the public are always treated in a different ways and organizations are always penalized for such actions. As a marketing officer, I will advise the management to consider the selection of a team whose will be analyzing information about the company before it has been shared to the public hence this will avoid any cases of misuse of the social media. In this way, Powershop will increase its market value and conduct its business continuously without any disturbances from the authorities.
This refers to the environmental impact created around by implementation of s particular action. In many cases, information might not be environmental friendly especially if it id restricted from a particular age group. Thus manager plans should always entail the environmental value of the message. This helps in maintaining sanity in the industry.
Below shows the strength of every aspect in PESTEL
The Table below is a Description of Various Aspects in PESTEL in South East Queensland
Considering that competition is inevitable in the industry, one way of dealing with the situation is doing a thorough analysis that will show the market position of the organization compared to other agencies in the industry. Also, a SWOT gives the company an idea of the areas that need corrections and the opportunities that societies have. The analysis comprises of the strengths, weaknesses, opportunities and finally the threats that an organization faces. A good marketing plan should identify this and come up with a solution to counter any obstacle in the industry (Blythe, 2005). The challenges faced are often categorized as the strengtheners of the organization because of the role they play in ensuring that the business is running in a reasonable manner.
It is one of the vital areas that an organization needs to enhance its market performance. A company that lacks market forces is vulnerable to the collapse of its operation in the long-run. Some of the strengths that can be observed in the group are the uniqueness in their products that offers them a competitive advantage over other firms operating in the market. The organization has come up with a variety where customers can choose their preferred services. Another one is the issue of online which is a strategy used by a few firms established in the industry. Investing in the social media will help the organization gather more customers to their product and offers. This is categorized as the strength due to the impact that it has on the profitability of the business (Zarrella, &Zarrella, 2011). Furthermore, it is one of the cheapest methods used by the organization to market their products compared to other systems of marketing used in the industry. The company is stable as it has established branches in other countries hence this assures the management of an increasing level of performance in the future.
They are the main disadvantages that firm faces in the market and many cases lead to losses or failure at the end. Weaknesses are similar to threats that an organization may be facing. In this case, firms often try to establish the weaknesses that lie on their competitors to take advantage of the situation. Therefore, many companies will remain numb and never speak loud about their shortcomings. Dealing with an online platform is sometimes risky hence possess some challenges to the management of an organization. As a marketing manager, it is important to be aware of the vulnerability of the online system that might collapse at any given time hence causing inconveniences to the customers. For example, when developing a base where customers may communicate with the management via a live chat on the organization's website. At times hackers may enter the systems and tamper with them causing inconveniences in the delivery of services hence this might lead to losing of potential customers. Dealing with this kind of weakness requires funds and commitment from the workers especially those from the information technology department (Evans, 2012). In this regard, I will mandate the workers to develop control measures that will enable the company to secure its website free from the hackers who may tamper with the daily business activities.
This is the things that emerge in the market and might benefit the company in the long run. It is often said that opportunities are best when utilized to the maximum level. Also, it is the duty of the management to establish the opportunities available in the market and use them to the maximum before other firms take advantage of the same. One of the possibilities that Powershop has is the customer loyalty that they have developed on their clients making it possible for them to experience continuous sales throughout the year. This has been as a result of their cheap products that are pocket-friendly and come up with a variety of packages that suit the consumer tastes and preferences. On the other hand, another opportunity that the company has is the wide market share that they have been able to achieve in the recent because of the expansion to other states like Australia where the business did not exist before (Farrell & Hartline, 2014). This is an indication that the company is experiencing growth at a fist rate hence some benefits are accompanied by the increase as well. Therefore, when in the position of advising the company, I will propose that they be keen on their opportunities and ensure that they utilize them well whenever they come about.
Risks in a business can be classified as the disadvantages that an organization faces in the industry. They are the future uncertainty about the market. Considering this to be a competitive industry. It is evident that the market changes are inevitable in the future hence it is advisable for a company to keep up with the changes and to ensure that they are ready to implement their strategies in case the changes occur or other firm undertake policies that might affect them directly. One of the threats is competition from new entrants in the market. This is companies that might show their interest for the market because of the lucrative profits that are available in the industry. In this case, competition may affect the operation of the company if other firms decide to join the market. For this reason, it is crucial for the organization to increase their level of advertisement so as to discourage any new entrant from getting into the market. When a firm decides to maximize on adverts, this increases its market share in the market because every individual will be aware of their products and services and in turn will opt to buy from such a firm that has already been established compared to new entrants that have little knowledge about the market. Therefore, this strategy is better since it will ensure that the organization remains relevant in the market (Partridge, 2011). However, if they fail to implement the strategy, there is a higher likelihood that their sales might be pushed down because of the many firms that will enter the industry to scramble for the few customers available.
Strengths - Uniqueness of the product
- Stability of the company
- The online platform
Weaknesses - Vulnerability of the company website
Opportunities - Wide market share
- Customer loyalty
Threats - Competitors in the market
- Future market uncertainities
This can be defined as the manner in which consumers react to the products of the company in the market. This behavior is paramount as it aids in determining the extent to which an organization has developed and created a relationship with their customers. This helps an organization to up their game in their marketing strategies used in the market. This entails how the consumers think about the product in particular and their other alternative brands in the market. Also, when looking at their behavior, it is important to study how they make their market decisions. In an analysis of the behavior of consumers in the energy field, it is evident that different consumers behave differently when making decisions on which products to buy from the organization(Gunasekaran, 2008). In this case, for instance, one of the findings in this involve their decision to select the offers provided by the company. One of the main factors that affect their decision is the fact that income is the primary determinant of consumer behavior in a competitive market. This can be explained as the capability and willingness to purchase a particular service. In this case, consumers prefer buying cheaper and quality products from the organization. This is because they are limited to an individual budget of income hence the case (Kelly & Perkins, 2012). However, Powershop continuous to provide relatively cheaper products that are pocket-friendly to the customers. Therefore, the consumers, in this case, are the ordinary individuals in the market who are constrained by other factors to make purchases of the company products. This is also the market that the entity is targeting to sell its products.
Intergrated Marketing Communication
The intergrated marketing communication (IMC) is an approach used by organizations to aid them in attaining their marketing promotion. It is a coordinated use of diverse promotional approaches that are meant to blend together with each other. it acknowledges the value of a plan that evaluates the role of the communication aspects that include, personal selling, advertising, public relations and sales promotion and reinforces them together to have clarity, a communication impact and consistency in the market. The following are some of the components that I will emphasize the organization to focus most on when implimenting their IMC.
This entails conducting an analysis of the target market and the product as well. The marketing department will have to understand the brand and the customers to the product. Thjis will include the attitudes from the clients, their needs and future expectation from the company. As a company, we will establish and keep close watch on our competotors in the market especially the close ones. This will be conducted through an online plartform where consumer needs and expectations will be established by conducting a survey that will include the customers feedback.
Branding is very crucial in an organization. In this case, this will be a way of communicating to the customers about the aspects of out products. Further, I suggest that we keep on changing our branding techniques in order to keep reminding the customers about the existence of our product. This will also communicate a message to the market about the difference between our products and that of our competitors.
The link that is created between the company and the consumer is very essential in any industry. This refers to the type of communication that exists between the two parties. The organization will come up with an avenue where the customers will be required to respond about a certain product provided by our company in the market. The information collected from the consumers will include their notion on our packaging methods. In mant cases, most will admit that they selected certain products because of their appealing branding.
Communication to the customers will be done using a number of models. This includes conducting of advertisements via the social media avenues like facebook and twitter. There will be direct selling to the clients that will approach the company for specific products.
Promotion, just like advertisements should be conductes on a regular basis in order to retain the current customers and attract the new ones as well. This will be conducted via trade promotions that will be advertised online and on the compabies website to enable easy acess by its users. This will be focused to promote the strength that exists between the company and the customers.
The reviews and feedback from the customers are vital because they explain the progress of the company in provision of quality goods and services. As the chief marketer for the Powershop company, I will create a Customer Relationship Mnagement software (CRM) which will be used in the evaluation of the intergrated communication tools.
A Marketing Plan
Developing a marketing plan for products produced in an added advantage for the firm because it can conduct a forecast on the future trends of the product and how consumers are likely to react towards the product. To begin with, in an analysis of the product, it is clear that most users love the company's product because it has many brands and comes in different packages at an affordable price. This is an added advantage to the enterprise because branding is one way of distinguishing one's products from those of other firms in the industry hence this attracts consumers to buy that particular product to them to experiment the goodness in it. The company has been developing some brands over time so as to keep on holding on their customers and avoiding losing them to other market participants(Gunasekaran, 2008). Therefore, the company is trying its best to increase their number of clients to match their supply in the in the industry. Secondly, pricing strategy is vital when it comes to the selling off the company produce. Pricing refers to the allocation of prices for the different products that are availed in the market. It is important to quote prices that consumers can afford to pay for whenever they are in need of the services from the company. Pricing may also vary depending on the policy used by an organization. In this case, Powershop has come up with a variety of products in the market hence they are being sold at different prices hence enabling the consumer to choose the one of their preference. The prices keep on changing over time because of the increase and decrease in the cost of production. This implies that the firm has been decreasing its prices whenever the production cost was down and on the other hand increasing whenever there are increases in the process of production. Thus, there is no long-term fixed prices for the products in the market.
On the other hand, distribution is important since this is the second step after goods have already been priced. An organization might decide to distribute its products in different locations of the city depending on the amount of population and the area available to showcase their products. Distribution is mandatory because consumers expect the products to reach them during the appropriate time (Gunasekaran, 2008). The company has been availing their product online making it easier for the consumers to access them at any given time of the day or night just by clicking on a button. This is one of the key advantages that the firm has created for herself in the industry hence giving them an opportunity to earn more despite the competition posed by other firms in the industry. On the other hand, the company works with a group of employees who are mandated to perform some tasks. This ranges from the experts, managers, junior staffs among other whose primary goal is to work towards achieving the organizational objectives and ensure that the performance of the company is high always. They make use of some processes that aid a lot in ensuring that goods and services reach the market and are sold as expected by the management. However, there is the need for the organization to implement other processes that will act as alternatives to the one that is being used currently. This is to ensure that there is another option whenever one fails to work in accordance with the expectation of the management. Therefore, processes might work or fail to work depending on the manner in which they are implemented by the organization (Blick, 2011). On the other hand, physical facilities in an organization comprise of machinery and other items that are used to aid the operation. Investing in the physical facilities like computers, creation of websites will enable the company to market their products in the social media.
Financial and Operational Plan
Activity Associated cost Description
Creation of a website ( July- September) $ 20,000 This will be the first step that will entail coming up with a substancial budget that will enable the company to outsource services that will help them come up with a suitable website.
Buying of Computers (October- December) $ 10, 000 After the creation of the web is complete, I suggest that the company orders for computers that will be used to access the website and aiding in online marketing
Expertise Skills (jan- march) $ 10,000 This stage will entail recruiting web experts that will be in charge of contols and repair incase of any inconviniences caused by online rigidities.
Social Media Marketing (April) $ 5, 000 This will arise after everything is set well. Thus, the organization will commence marketing its product on a regular basis.
Branding (June) $ 5, 000 Brandig will be conducted on the products to increase the chances of the company products to be sold in quantity.
Below is an analyses of the projected sales, gross margin and operating expenses.
Implementation and Control Strategy
This is the final and crucial moment of finalizing a project and ensuring that everything has been put in place as planned before. Implementing requires a lot of time and money and because of the high risk that is associated with this process, it is always important to come up with a control strategy that will ensure that the whole idea is manned and every activity is conducted following the previous plans and strategies that were put in place. Also, different employees will allocate the task of monitoring the whole process and will be answerable to the managers of the organization as the implementation process continues (Blythe, 2005). In this case, they will be required to submit reports on the progress and the challenges that they face. The manager will be able to evaluate them and offer a possible solution. In summary, marketing has proved to be essential in need of increasing the sales of the organization and revenue as well. This can be done better on social media and in particular for a company like Powershop that has previously been selling its product on an online platform.
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