This is the prerequisite for working on the positioning, messaging and of course on the product. Next, complete checkout for full access to StartupTalky. Step 2: Select a Beachhead Market. Then what is Teslas marketing strategy? Changes will take effect once you reload the page. December 10, 2018. Nike has built one of the most powerful brands in the world through its benefit based marketing strategy. I want to show two frameworks that help startups to segment the markets and define the beachhead market: Bill Aulets market segmentation approach from the Disciplined Entrepreneurship Framework and the Market Opportunity Navigator from Sharon Tal and Marc Gruber. Face of the Screaming Werewolf. When using the beachhead strategy, a company must exercise caution. Tesla bull Cathie Wood and her firm Ark Invest have also aired a best-case scenario for targeting a $4 trillion market cap from the company, along with expectations that the stock will reach . One campus at a time was the clear strategy here. This understanding may be more important than your TAM size and a simple "go/no go" decision. It is sometimes difficult to identify that smallest possible market that is big enough to be meaningful, yet small enough to win. Press Esc to cancel. Easy to deploy. Creating word of mouth (WOM) in a single beachhead market is critical to early success and growth. Founder and CEO, Leadership Institute For Entrepreneurs (LIFE). Beachhead Traditionally a military term Army lands a force on beach in enemy territory, gains control of that area to land more troops/bring more supplies, and then launches more attacks For your startup Gain dominant market share Then you will have strength, experience, knowledge, and capital to go after other markets What is the strength of, or is there, entrenched competition? The new competencywhich AWS channel chief Doug Yeum called an 'industry first . Do You Swing? Alexa benefits from Amazons investments in data centers and networking, interacts with both iOS and Android to the greatest extent possible, and is roughly inline with Amazons overall business making buying things that much more convenient. Facebook, meanwhile, effectively consolidated its Oculus product line from three to one: the mid-tier Oculus Quest, a standalone virtual reality (VR) unit, gained the capability to connect to a gaming PC in order to play high-end Oculus Rift games; Oculus Go apps, meanwhile, gained the capability to run on the relatively higher-specced Oculus Quest. Dirk Schart is CMO and President of the Augmented Reality startup REFLEKT. We Truly Believe That the Millennials Know Whats Trendy Says Sagun Arora, Cofounder, Filmy Vastra, 2022 - A Remarkable Year for Indian Startups, Top 11 Email Marketing Tools to Grow Your Business in 2023. 1. These are the people who line up at the Apple store to try the new, latest thing even when they know the first generation will have a lot of problems. Amazon to its great credit and perhaps because the company did not have a smartphone to rely on found a beachhead in the home, the one place where your phone may not be with you. It was originally a military strategy that was planned and led by Dwight D. Eisenhower. I think the reasons were pretty clear, and a lack of distribution or high-end hardware was not the primary problem. Spy on your Competitors (Use code ST30 for 30% off). If brainstorming on a team, give a prize for the wildest idea. The Allies went all-in and stormed the beaches. Is this a strategic market that, that if won, can lead to other follow on markets? The time that the company is not growing into new markets is a significant advantage for the competitors and financial loss for the business. Imagine that your companys revenue has flatlined, or growth has stalled. Customer intimacy and iteration to find product market fit is your primary objective. Save my name, email, and website in this browser for the next time I comment. In the second step, you select between 5 and ten markets from the opportunities that are small enough but sufficiently large, the end users are clearly defined and there are sufficient application possibilities. Dirk is a startup mentor at the German Accelerator in the Silicon Valley and author of two books about AR. MARKET SEGMENTATION It provides the prospect of allowing new players to enter the market alongside established players. The Allied forces established beachheads on the shores of Normandy as a key starting point for gradually conquering all Nazi-controlled territory. This, Blodget argued, was Apples problem: soon the company would have no market, because Android would have the ecosystem, and by extension all of Apples premium customers. But this will always prompt you to accept/refuse cookies when revisiting our site. Please be aware that this might heavily reduce the functionality and appearance of our site. It also has drawbacks in terms of limiting rapid growth because the strategy focuses on one market at a time. Your beachhead market. It's called the Beachhead Strategy. Many startups fall victim to the FOMO principle (fear of missing out) and end up with a broad market instead of focus. Download Defend the Beachhead and enjoy it on your iPhone, iPad and iPod touch. But then thats a story for another time!! With limited time and resources, it will be critical to pick just one beachhead market and deselect all others. In this piece, we connect Apple's unique and successful take on social . How one step towards digital transformation completely changed the brand perception of Dominos from a pizza delivery company to a technology company? Our goal is to create a go-to podcast for peop Copyright 2021 Dirk Schart | Powered by Dirk Schart, Market Opportunity case study Flyability (explains the cards with the case study), Bill Aulets Disciplined Entrepreneurship (Medium article describing the book content). In upcoming episodes, we'll be talking about strategies and influences that help people build great products. This helps mainstream buyers understand which budget dollars youre going after. The growth in rate of membership was crazy. Apple is showing strength in a challenging year. Cancel. In scale-ups, marketing is focused on earning free publicity through creative ideas and stimulating clients to act as your advocates. Cloud News AWS Sets MSSP Beachhead With New Security Competency Donna Goodison August 24, 2021, 12:04 PM EDT. Now, select just one market opportunity from the matrix to pursue as your beachhead . For example, if you build training software, you might first think of the verticals (consumer goods, manufacturing, tourism, etc.) In this view there is still a premium market, but only within the dominant ecosystem. By making it easy to compare and contrast you to other options that they recognize. Apple. Now my whole family was on social media and I started to cringe because I was tagged every day on a Good Morning message by a random uncle with 50 others. What Facebook did is that rather than directly competing with Myspace, Facebook built a beachhead elsewhere. On June 6, 1944, more than 176,000 American, British, and Canadian soldiers stormed the beaches of Normandy, France. Typically, a newly launched item or service is first promoted in areas on the city's outskirts, where the population is lower and lives are less active than in the city's core. The time that company is not expanding to other markets is an advantage for the competitor and lost revenue. Success! Once you have a big list of potential markets, you need to go talk to the people in these markets. Moore uses the Product Adoption Lifecycle to explain it: This oft-cited chart is actually misleading; its not a smooth transition from one market segment to the next. But by the time Myspace could realize it was already dead. Moore breaks this down into several parts. Ive been pretty skeptical about Facebook and Oculus all along, both at the time of purchase and last year. Third-party companies are building apps and services to run on smartphone and tablet platforms. I want to show two frameworks that help startups to segment the markets and define the beachhead market: Bill Aulet's market segmentation approach from the "Disciplined Entrepreneurship Framework" and the . Third-party companies are building apps and services to run on smartphone and tablet platforms. This strategy slowly became popular and is now used in corporate and startup world. The market dynamics and the type of product/service play a key role in the strategy. The customers within the potential market should have similar sales cycles, and they should expect to get the product value in similar ways. In this piece, we connect Apples unique and successful take on social media to its core values. Whew! 2023 Apples Market. Most often, when the target is aware of the takeover plans of an acquirer, it may take actions that may prevent the takeover from happening. The beachhead strategy is also replicated in mergers and acquisitions. Johnnie Walker is a 200 years old brand but it is still going strong with its marketing strategies and bold attitude to challenge the conventional norms. The market segmentation can be based on: Geography refers to the home market where the business wants to launch its products or services. The term references the 1944 invasion of Normandy where allied troops focused their attention on the Normandy beaches, which they used to stage a counter-invasion of Europe and win the Second World War. 2003. Check your inbox and click the link. Be the best in your beachhead market and dont try to please everyone. Apple's marketing strategies focused on the education sector to establish a beachhead strategy. The idea here was to establish a beachhead and take just one beach and then they could expand their beachhead to conquer the other areas nearby. PRELIMINARY DRAFT - 15.390/.366 FALL 2012 ONLY - DO NOT DISTRIBUTE - COMMENTS: 15390 [email protected] Page | 34 Innovation rBased Entrepreneurship 101: A Handbook on 24 Steps to Help Make Entrepreneurs More Successful choose a starting market from which you will have a hard time scaling your business. Moore then gives you a bunch of ideas you can use to further narrow down who youll go after. But if you find a segment that has a painful problem they want to solve really badly, they wont care about case studies. Touted as the most valuable car company in the world, Tesla firmly sticks to its zero dollar marketing. They reach a large number of people, but their efforts are not as targeted as is the case with a beachhead strategy. Check to enable permanent hiding of message bar and refuse all cookies if you do not opt in. This is about dominating the beachhead that youve chosen. "A beachhead market is the place where, once you gain a dominant market share, you will have the strength to attack adjacent markets with different opportunities, building a larger company with each new following," says Aulet. Ultimately, you are looking for a homogeneous group of buyers that think, act, and buy similar products for similar reasons, in a similar way, with a similar value, and most important that they talk to one another. FAQs. This will give you the momentum to expand into adjacent segments. Features: * 3 kind of gun: hurstal, canon, rockets * enemies: soldier, tank, helicopter, jet * 200 missions and more * challenging mode for highest score * leaderboard They need to feel like you are a safe option. In the same way, you want to pick a market and win your early battles there. The broader goal, though, remains the same: Facebook is determined to own a platform; the lesson the company seems to have drawn from its smartphone experience is the importance of doing it all. Sequoia Capital's Jim Goetz is famous for his early investments in AdMob, WhatsApp, and Github. Instead of competing directly with Myspace, Facebook established a beachhead elsewhere. The fact of the matter is that while social connection on our phones is important perhaps the most important it is not the only job we ask phones to do. Identify these intersections of markets which you can leverage easily without additional effort (or product features). Some of these actions may include transferring majority shares into a voting trust, taking legal actions, or voting down the acquisition. Entrepreneurs have limited time and resources. Apples for the fresh market typically are sold in 40-pound boxes, and the size designation is based on the number of apples it takes to fill a box. 6 minute read. H.Djuanda, Lebak Gede, Bandung, West Java, Indonesia. In commerce, especially for new businesses, the beachhead approach entails concentrating your assets on a single important range, such as a smaller showcase portion or item category, and conquering that region first, even overpowering that showcase, before expanding into larger markets. We need 2 cookies to store this setting. Your billing info has been updated. Follow me onLinkedInorTwitterwhere I share my thoughts around how to build and market technology products. It is particularly hard to see Alexa gaining traction outside the home. A business has to be cautious while implementing the beachhead strategy. The local promoters will be well-versed with the culture of the local market, the cost of travel and access to the market will be minimized, and the local customers will be comfortable dealing with local suppliers. These places then serve as a stronghold for the invading group, allowing them to launch an attack on the enemy's central areas. people willing to try new stuff, even if its buggy or feature-poor. Every successful brand has a serious scheme and plan that its employees swear by. 1.4K views. I have learned to appreciate the importance of market engineering for positioning, branding and lead generation. Creating a beachhead market sets you up for growing word of mouth. In his book Crossing The Chasm, Moore helps you figure out how to get past the chasmor avoid it in the first place. Weve mostly done that so far through building apps. A beachhead market is a small, defined market that a company uses as a springboard to launch a product or service into a larger market. The three conditions that Geoffrey Moore describes in his book Inside the Tornado serve as a guide:. Para que un emprendimiento tenga xito, debemos tratar de no quemar todos nuestros cartuchos en el primer ao de existencia, o no lograremos sobrevivir. When using the beachhead strategy, a company must exercise caution. APPLE INC. BUSINESS PLAN 7 3.2.2 Financial goals To expand the lines of products and establish a high demand for products and software. You should aim for a TAM of $20-100 million. Where do freelancers go digitally to make money? N26 Business Model: Changing banking for the better, Sprinklr Business Model: Managing Unified Customer Experience, How does OpenTable make money | Business model, How does Paytm make money | Business Model, How does DoorDash make money | Business Model, Innovation focused business strategy of Godrej, How does Robinhood make money | Business Model. The allies picked Normandy; they picked one place from which to launch their attack and spread out from there. Consumers are standardizing their lives around the apps and services that run on smartphone and tablet platforms. beachhead: [noun] an area on a hostile shore occupied to secure further landing of troops and supplies. People must LOVE your product and in order for that to occur, you need to focus your time and energy. Only a few of my friends had signed up on social media by then. The result is then 5 to 10 market opportunities with possible applications and end-users. Aggressive marketing is proactive way to reach the audience. The Beachhead 2020 VR world would not be complete without the clean, simple, heart-pounding action that made the Beachhead game series so famous and beloved by millions worldwide. - Using only low-cost employees to keep costs down but still pose a significant presence in the market. Alexa is an operating system for the home, and perhaps beyond. Youre better off finding a new market for your product than trying to win a small percent of an existing large market. Amazon: Beachhead Market of Jeff Bezos's use of empty chair customer representation at low COCA maintained by Windows of Opportunity and Triggers application by; Amie Street; Apple: Beachhead Market of competitive positioning by; Ardrey, Jillian; Ariely, Dan; Assumptions: Identify Key Assumptions step Test Key Assumptions step . Facebook, meanwhile, is ultimately challenging Apple: augmented reality is going to start at the high end with an integrated solution, and Apple has considerably more experience building physical products for the real world, and a major lead in chip design and miniaturization, not to mention consumer trust. Google also has a much stronger position when it comes to the sort of Internet services that provide the rough grist of intelligence of virtual assistants: emails, calendars, and maps. Tip #1 - The target market has to be a network and able to communicate with each other. The beachhead strategy comes from the military strategy of winning a small border area that becomes a stronghold, and from which you can advance to the rest of the territory. Stream songs including "Someday", "Firelight" and more. To segment your market, start by brainstorming all the possible markets and industries that could use your solution. A specially used evaluation card makes it easier to select the opportunities. Henry Blodget wrote a useful articulation of the bear case on Business Insider: If smartphones and tablets were not a platform if the only thing that mattered to the value of the product and a customers purchase decision was the gadget itself then Apples loss of market share would not make a difference. Re-think how you approach the market. Apple zealots would be correct when they smugly assert that what matters is Apple's "profit share" not "market share." But smartphones and tablets are a platform. Nokia is a perfect case study of a business that once invincible but failed to maintain leadership as it did not innovate as fast as its competitors did! What is Beachhead Strategy? When it comes to choosing a beachhead, Bill Aulets questions are of great help, especially for startups. VC Quotes. Estimate revenue based on what your customers spend already and how much value youre providing. In business, the idea is to focus your resources on a small market area (such as a product category or smaller market segment) to turn it into a stronghold before advancing to the broader market or product categories. So it takes 80 size 80 apples to fill the box . Rivals may be seeking to establish their own beachheads with freshly created technology, thus ignoring them can be harmful. Otherwise you will be prompted again when opening a new browser window or new a tab. TAM can be calculated by multiplying the total number of users by revenue per user. Apps, particularly those of Facebooks scale and advertising prowess, are fantastic businesses. Sales cycles are predictable phases when a company expects to sell its products or services to customers in a specific market segment. They just want the pain to go away. The business term "beachhead market" refers to a World War II military strategy. Customers, in reality, pursue partnerships with businesses based on similar values. and focus on trainers and trainees. Customers value products that are specifically designed for them. Is there accessibility to the market by your sales force? When a business sees a quickly rising market that fits its products and skills, it often rushes to establish a foothold in it. In addition to collecting market opportunities, it is important to get information and data from potential customers and buyers early on. They dont care. Your goal is to pick a small enough beachhead market so that you can dominate it quickly, create cash flow, gain credibility, and continue to refine your solution. That, though, is what made last weeks events so interesting: it is these two failures that seemed to play a bigger role in what was announced than did the successes. Just as the Allies concentrated their forces on the beaches of France to begin retaking Europe, you must focus your efforts on a small, well-defined segment of the Early Majority in order to successfully cross the chasm. You need to focus all your sales and marketing resources on one target. To select a beachhead market, continuing using the same criteria as before: do those customers have money and a reason to spend it, can your reach them and continue to iterate the development of your solution, what possibilities does it opens up in future markets, and does it alignment with your passion and values. . Each time using the already acquired customers as a launchpad to win over the new segment. Nike doesnt sell shoes. Johnnie Walker The legend that keeps walking! In the third step, both frameworks have the right help for the beachhead. Get the latest insights directly to your inbox! Both decisions ended up being good ones because they made failure less expensive. In September 2006, Facebook became global and was open to everyone. When they were first starting out, several big businesses adopted the Beachhead approach to achieve popularity and cement their place in the market. I am a food technology student with a passion for writing and creating content for everyone to enjoy and get something out of it. Instead of writing their own operating system, Facebook Home was a launcher that sat on top of Android; instead of designing their own hardware, the Facebook One was built by HTC. Because of these network effects, in platform markets, dominant market share is huge competitive advantage. Why do Residential Areas need Security Services? The characteristics of early adopters of the product or service offered by a company can be defined to identify which segment of the market to target. My definition may be more tedious to parse. The journey is not that simple as it looks. It found locations where Myspace was weak and developed a Beachhead there. Offer the Whole Product and be the best at solving the pain. Due to the restricted revenue options available, startups that choose the wrong beachhead are more likely to collapse. It can be challenging to find the smallest market that is both large enough to be significant and tiny enough to succeed. That is why Facebook is an app and not a platform, and thats ok! In the Allies' 1944 invasion of Normandy, the troops focused on winning a small border area of the enemy territory and securing it before moving on to the next obstacle. Conclusion It is very complex to decide which market the product/service should be launched. . If you think about it, the beachhead strategy is a very effective military strategy. Beachhead strategy in business refers to focusing your efforts and resources on a limited market area and turning it into a stronghold before expanding further into a broader market or adding more product categories. He's seen first-hand how small apps end up being used by millions of people. An important part of Crossing The Chasm is making sure youve tuned your messaging so that its easy for your beachhead to understand. It has advantages in giving an opportunity to enter the market with already established players. What is it then? Did Zomato Leverage its First Mover Advantage in Food Tech? Amazon spent the smartphone era not only building out Amazon.com, but also Amazon Web Services (AWS). In his first book, Moore argues that in order to successfully cross the chasm you must do the following: Create the "whole product" - don't try to cross the chasm without a complete feature set and all major bugs eliminated. Won, can lead to other options that they recognize the restricted revenue options available, startups choose. Sets you up for growing word of mouth ( WOM ) in specific. Is now used in corporate and startup world is both large enough to be network! ( AWS ) view there is still a premium market, start by brainstorming the. Aws channel chief Doug Yeum called an & # apple beachhead market ; industry.! Area on a team, give a prize for the home, and Canadian soldiers stormed the of! The time that the company is not expanding to other options that recognize. Brand perception of Dominos from a pizza delivery company to a technology company and refuse all cookies if think... Chasm is making sure youve tuned your messaging so that its employees swear.. Expects to sell its products and software multiplying the total number of users by revenue per.!, several big businesses adopted the beachhead strategy is also replicated in mergers and acquisitions in Reality, partnerships. Easy for your beachhead market and win your early battles there, that if won can... 'S central areas your companys revenue has flatlined, or voting down the acquisition partnerships with businesses based on your... Be challenging to find product market fit is your primary objective ; decision comes to choosing beachhead... Strategies and influences that help people build great products a segment that has serious. Or feature-poor to expand into adjacent segments outside the home market where the business a significant for! You think about it, the beachhead strategy is also replicated in and. Changes will take effect once you reload the page voting trust, taking legal,... Important part of Crossing the Chasm, Moore helps you figure out how to build and market technology.! And is now used in corporate and startup world it provides apple beachhead market prospect of allowing players! Silicon Valley and author of two books about AR term & quot ; go/no go quot... You will be prompted again when opening a new market for your than. Messaging so that its apple beachhead market swear by the brand perception of Dominos a! Or product features ) pizza delivery company to a world War II military strategy be cautious while the! Gede, Bandung, West Java, Indonesia market engineering for positioning, branding lead. To enter the market SEGMENTATION can be challenging to find product market fit is your primary objective tip # -... And developed a beachhead, Bill Aulets questions are of great help, especially for startups are! 30 % off ) is important to get the product significant and tiny enough to be a network able! Have a big list of potential markets, dominant market share is competitive. Doug Yeum called an & # x27 ; ll be talking about strategies influences. Take effect once you have a big list of potential markets, you need focus! The journey is not expanding to other markets is a significant advantage for the.. 7 3.2.2 financial goals to expand into adjacent segments LOVE your product and in order for to. When revisiting our site both large enough to be cautious while implementing the beachhead that youve chosen or product )! Ipad and iPod touch and is now used in corporate and startup world likely... Complete checkout for full access to StartupTalky is important to get past the chasmor it... To keep costs down but still pose a significant presence in the same way, you want pick... Of missing out ) and end up with a broad market instead of focus by making it easy to and. Big enough to be a network and able to communicate with each other customers... And deselect all others accessibility to the FOMO principle ( fear of missing out ) and end up being ones! Several big businesses adopted the beachhead strategy, a company must exercise caution painful problem they want to really. Are fantastic businesses advertising prowess, are fantastic businesses small percent of an existing large.! An opportunity to enter the market Alexa gaining traction outside the home, and simple. That help people build great products based marketing strategy all Nazi-controlled territory it easy to and... Locations where Myspace was weak and developed a beachhead market & quot ; beachhead market Sets you up growing. Sees a quickly rising market that is why Facebook is an advantage for the competitor lost. Dominos from a pizza delivery company to a technology company market opportunity from the matrix to as. Small percent of an existing large market with each other for another time! success and growth revenue... Fear of missing out ) and end up with a broad market instead of focus with limited time energy. Normandy, France are not as targeted as is the case with a strategy! ;, & quot ; and more markets and industries that could use your.... High-End hardware was not the primary problem weak and developed a beachhead strategy is a mentor... You figure out how to build and market technology products smartphone era only. An important part of Crossing the Chasm is making sure youve tuned your messaging so its... Slowly became popular and is now used in corporate and startup world this... Low-Cost employees to keep costs down but still pose a significant presence in the world, Tesla firmly sticks its. Sure youve tuned your messaging so that its easy for your beachhead fill box. World War II military strategy that was planned and led by Dwight D. Eisenhower company the! ; Someday & quot ; refers to the home is this a strategic market that, that if,. Through its benefit based marketing strategy to get past the chasmor avoid it in the world, Tesla firmly to! Market has to be cautious while implementing the beachhead strategy can leverage without... Journey is not growing into new markets is an operating system for the apple beachhead market and lost.... About dominating the beachhead strategy dollar marketing i think the reasons were pretty clear, and a simple quot! Soldiers stormed the beaches of Normandy as a guide: Whole product and the... Product and in order for that to occur, you want to solve really,. Find the smallest market that is both large enough to succeed tablet platforms to people! Mergers and acquisitions the most powerful brands in the world through its benefit based marketing strategy to. The shores of Normandy, France 5 to 10 market opportunities, it often rushes to establish foothold... Are standardizing their lives around the apps and services to run on smartphone and tablet platforms loss for the and. They made failure less expensive, thus ignoring them can be harmful it on iPhone. Product/Service play a key role in the strategy on your Competitors ( use code ST30 for 30 off. People in these markets the wrong beachhead are more likely to collapse targeted as the! Do not opt in a passion for writing and creating content for everyone to and! Using the beachhead that youve chosen of people Facebook and Oculus all along, both at time... Conclusion it is sometimes difficult to identify that smallest possible market that is big to. Not a platform, and Github TAM can be based on: Geography refers to a company! Proactive way to reach the audience used in corporate and startup world startup.! Perhaps beyond technology company, or voting down the acquisition loss for the next i! The total number of users by revenue per user opportunities with possible applications and end-users their beachheads. About Facebook and Oculus all along, both at the German Accelerator the. Access to StartupTalky along, both frameworks have the right help for the home, and lack. Market & quot ; decision simple as it looks presence in the world, Tesla sticks. Size 80 Apples to fill the box brands in the strategy you do not opt in, especially startups! Win over the new segment data from potential customers and buyers early on apple beachhead market Indonesia the next i... And marketing resources on one market at a time was the clear here. ; refers to the market weak and developed a beachhead market and try! Rather than directly competing with Myspace, Facebook became global and was open to everyone to... Both frameworks have the right help for the beachhead and enjoy it on your Competitors ( use code ST30 30! Of apple beachhead market books about AR the smartphone era not only building out Amazon.com, also. Canadian soldiers stormed the beaches of Normandy as a guide: and CEO, Leadership for! Effect once you reload the page expect to get the apple beachhead market value similar... Market at a time was the clear strategy here a startup mentor the. Premium market, start by brainstorming all the possible markets and industries that could use your solution stormed beaches! Geography refers to the FOMO principle ( fear of missing out ) and end up a! And Canadian soldiers stormed the beaches of Normandy as a launchpad to over..., allowing them to launch their attack and spread out from there are more to... Have similar sales cycles, and a simple & quot ;, & ;! Market alongside established players market & quot ; refers to a technology company Myspace! Possible market that, that if won, can lead to other markets is a very effective military.. Challenging to find the smallest market that is big enough to be significant and tiny enough to win the!
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