SALES MANAGEMENT & NEGOTIATION SKILLS

CIA-1

MBA M5

Topic:
Market Size and Demand Forecast Report – AtZ automation

Submitted to:
Prof. Suresh A.S

Submitted By:

Group 4

Ranjay Chowdhury (2128024)

Anurag Basu (2127904)
Dindi Yaswanth (2128008)
Trishna Bharali (2128055)
Kashyap Sharma (2128013)
Akhilesh Jaison ( 2128064)

SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE

FEBRUARY 2021

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 Table of contents

S.no Topic Page number

1 Background 3
2 Product details 3
3 Product concept 4
4 Technical specifications 5
5 Marketing strategies 5
6 Pandemic impacts 6
7 Collaborations 6
8 Connected markets 7
9 Sales structure 8
10 Key developments 9
11 TAM 10
12 SAM 11
13 SOM 11
14 Customer segments 11
15 Aspects of forecasting 12
16 Market Mix 15
17 Business recommendation 15
18 PESTEL Analysis 16
19 SWOT Analysis 18
20 Consumer Research Data 20
21 Conclusion 22
22 References 22

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Background

Until recently, automatic doors were considered a luxury item in India. Automatic doors have
become one of the most important parts of energy conservation since the advent of the "green
building" concept. Automated Parking System Market Report Summaries Detailed
Information By Top Players As Robotics Parking system INC, Westphalia Parking, T2
systems Inc, Unitrans’s, Cleverciti Systems GMBH, Among Others. The installation of an
automated parking system is complicated and necessitates careful consideration of numerous
elements. The automatic parking system is comprised of both hardware and software
components. Any single system failure can result in the entire system failing. In several
circumstances, the automated parking system delivered the erroneous car to the driver. The
availability of space, in addition to the reliance on software and hardware technologies, is
critical in the creation of an automated parking system. Another important consideration with
an automated parking system is safety. Additionally, the rising disposable income of the
consumers with rise in preference for luxurious lifestyle and increase in the population is also
expected to support the growth of the market in the near future.
•Indians are very cost-conscious, hence they choose sliding doors, which are less expensive
than other automated door kinds. When compared to rotating and swing doors, they are also
easier to use. The expanding number of hotel and commercial buildings throughout India is
driving the market for automatic doors systems. By expanding into the healthcare and
residential sectors, the industry is likely to acquire traction and grow gradually.

Product details;

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 Product Feature Price(in rupees)

● Electric-based
Automated Garage ● 60% faster than Rs 1,20,000
doors. conventional gates.
● Auto-reverse Plus 5000 annual maintenance
function. costs.
● Mechanical release.
● Pressure sensors on
driveways.
● Motion sensors
using microwaves.
● Infrared beams.
● 30% more Energy-
efficient.
● Climate control
feature.
● Efficient AI system
to protect from
breach’s.

PRODUCT CONCEPT–

A wide range of automated entry and exit solutions to perfectly match the style of your
homes such as garage doors, sliding gates, swing gates, and other residential applications. It
has automation features such as rolling code remote control.
The gates are equipped with various sensors and AI tools for the smooth functioning of the
product All of your service maintenance and repairs are handled by a quick-response team.
To keep your system in excellent operating order, an annual maintenance contract (AMC) is
completed.
Regular servicing and maintenance for maximum performance are recommended for any
system with moving components, motor drives, cables, springs, and other mechanical
components. Automatic doors are usually equipped with safety sensors to prevent them from
clashing with a person or an object as they move through.

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Technical Specifications

● Usage of uPVC and WPC doors due to their advantageous properties including
enhancing strength, versatility, limited maintenance, high insulation.
● The product helps to increase 30% the energy efficiency rate compared to its
competitors.
● Open Style: Automatic
● Position: Garage
● Surface Finishing: Finished
● Type: Garage Doors
● Door Material: Steel
● Panel grain: wooden grain, stucco, smooth
● Standard color: white, grey, brown, silver, golden oak, mahogany, dark oak
● Special function: security, thermal-keeping, insulated and keep fingers safety
● Hardware: galvanized, powder coating.
● Force- 1900 NM
● Speed - 12 cm/sec
● Power - 110W
● Height - 10ft/20ft

Market Strategies

AtZ Automation bills itself as a provider of micro automation solutions. It solves the first-mile
and last-mile problems. It recognized a gap in inefficient automation and filled it with a long-
term, user-friendly advanced solution. It recognised and met the needs of its customers.
Consumers who are now seeking to implement sustainable practices in their lifestyles have
noticed the technology-friendly benefit of automated garage doors. The service's price range is
more acceptable in the Bangalore market since it balances quality and use case with cutting-
edge technology and high-tech security standards.

Automatic door solutions for accessibility or fire safety, window drives for natural ventilation
or smoke and heat extraction in the event of a fire, and digital networking of doors and windows
for building automation are all part of our service offering. Our goal is to design habitable
structures that provide the highest level of comfort and security for the people who live in them.

Video Ad:

The product was promoted through a series of video commercials that were successful in
touching people's hearts in an unusual way. This advertising helped the corporation create a
reputation as a warm, safe, and caring brand among the general public. The commercial helps
to depict the product as new, advanced, and safe for a variety of products in people's minds.
The product's actual application was depicted in the advertising.

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Social Media:

AtZ Automation is active on all social media platforms and has a devoted and specialized fan
base. To appeal to Bangalore's specialized market, the advertising promotes minimalistic ways
for residential garages. On social media accounts, it maintains its homey and caring image.
Customers' after-sales product experiences are shared, making the business seem more human
and approachable.

Banners and posters:

It is vital to first establish a presence in people's subconscious and conscious minds. Ads may
be found everywhere in Bangalore, including bus stops, metro stations, and areas near large
offices and wealthy neighbourhoods, which helps the brand establish a foothold.

Pandemic impacts:

Market size is growing at a moderate pace with substantial growth rates over the last few years
and is estimated that the market will grow significantly in the forecasted period i.e. 2022 to
2027. Moreover, the pandemic has also affected the production system and consumer buying
behavior of the product and services. The COVID-19 pandemic has had a huge impact on the
global economy. With the virus spreading, several businesses were shut down and many people
lost their jobs. The virus mostly affected small businesses, but large corporations also felt the
impact. The sudden outbreak of the COVID-19 pandemic had led to the implementation of
stringent lockdown regulations across several nations resulting in disruptions in import and
export activities of the Automatic Gate and Door Opening System.

In both residential and commercial settings, automatic door opening systems are required for
sliding doors, gates, garage doors, and shutters. In today's fast-changing technological
environment, the automatic gate and door opening system market is expected to grow at a
significant rate over the forecast period. On the basis of the Automatic Gate and Door Opening
System type segment, the market is segmented into Keypad Control, Remote Control, Face
Identification Camera Control, Iris Scan Control, and others. The Automatic Gate and Door
Opening System segment of the end-use industry are expected to grow at the fastest CAGR in
terms of value and volume during the forecast period.

Collaborations:

AtZ automation has partnerships with big brands such as Prestige group, Shobha, Falcon to
name a few. These collaborations help the customers to already make use of the product and
experience first-hand experience. In addition, they manage to create a sustainable lifestyle
together.

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Sales structure

Segment information:

In the Residential and automotive Industry, the manual charging sub-segment dominated the
global market by Mode of Charging in 2021, accounting for a value share of 67.1 percent, led
by automated.

Competitive Section:

Key players operating in the residential automated garage doors in competition with C4
automation, Gandhi automation, Ozone India crop, bright automation and l marks automation
.
Key Developments:

In order to widen the product portfolio, key players in the market are focusing on product
growth. For example, ATZ AUTOMATION has started providing smart garages which are
connected with the main server of the house and with AI help like Alexa and Google. Along

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with that there are also insulated garages for extra safety, which provides a hands-free
experience.
Large businesses are involved in product releases in order to gain a competitive edge in the
market. Automated garage doors, which were once considered to be an eccentricity, now
represent 51 percent of the automated garage doors and ATZ Automation accounts for 40
percent of that market. A commanding presence in the automated garage doors of ATZ
automation, a leader in this market in Bangalore.

Total Available Market (TAM)

TAM is considered to be a reliable metric to analyze the total amount of demand that exists in
the market for a product. Before a company enters a new market, the marketer needs to
understand the total addressable market in order to forecast the revenue growth or measure
the profit potential of the company’s product. The total available market can also be referred
to as the total opportunity to generate revenue if a hundred percent market share was
achieved.
Measuring the total available market is worthwhile in multiple ways as it not only helps in
estimating the size of the market and the opportunities it holds but also assists in segmenting
and targeting the market. It guides the marketer to understand the market and put efforts into
the areas that provide maximum returns. ATZ Automation has entered the market with smart
garages, entered the Indian market with new levels of smart intelligence to improve the user
experience of automotive vehicles and parking. This makes the floor automotive market the
total available market for ATZ Automation.

TAM = The Total Available or Addressable Market (everyone the company wishes to reach
with your product)

It is said that the market is about to reach 9.8 M by the year from 2024 but it has already
reached the market of total 13.6M within 2021 due to the recent surge in advanced
technology. However, the total available market is different from the total market share of a
product. Unless there is a case of a monopoly, the total available market is to be shared by
different competitors and the portion of the total available market that the product has is

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called its market share. In the case of smart garages, the total available market is the complete
automation market but due to competition and the pandemic, the market share of ATZ
Automation is around 30%, which makes them one of the major players in the Indian
automotive garage market.

Serviceable Available Market (SAM)

The serviceable available market refers to the segment of the total available market. The
splitting of the total available market into various segments that the company caters to is also
known as the serviceable available market. While TAM helps in indicating the growth
potential of the product, SAM gives insights into the realistic amount of revenue that could be
generated. In the case of Roomba, the total available market can be divided into various
segments depending upon the application, operation mode, distribution channels, price, and
region. If we take India to be the total available market for smart garages and we divide the
Indian market of the automotive garage market into various geographical segments, like
Bengaluru, then the Bengaluru market could further be divided into segments based on
application, operation mode, etc.

SAM = The Segmented Addressable Market or Serviceable Market (the portion of TAM
company will target)

Segmentation of the Indian market can give the marketer a better understanding of the
revenue that can be generated from a particular segment. Thus, assisting the marketers in
formulating marketing strategies as per the segments or the serviceable available market. It is
crucial for any company to have proper strategies in order to segment the total available
market into serviceable available markets in order to generate profits and survive the
competition.

Serviceable Obtainable Market (SOM)

The serviceable obtainable market refers to the actual target customers or the part of your
serviceable available market that can be realistically reached. For a company to identify its
serviceable obtainable market, the marketers need to have a deep understanding of the local
market as well as a strong understanding of the company’s offerings. These two aspects are
crucial to bridge the gap between the needs of the customer and the product offerings and to
choose the right serviceable obtainable market for the company. In this case, the serviceable
obtainable market is that portion of the serviceable available market (Bangalore) that the
company aims to realistically capture.

SAM = The Segmented Addressable Market or Serviceable Market (the portion of TAM
company will target)

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 For smart garages, ATZ Automation aims at targeting the market of household cleaning.
This particular product that the company offers caters to providing a suitable solution for
cleaning houses. Smart garages provide Bangalore’s households with advanced technology to
get their cars safely with utmost comfort and convenience.

CUSTOMER SEGMENTS:

1st segment: COMMERCIAL

Top-Down approach

1st Filter: COMMERCIAL AREAS AND AUTOMOTIVE WORKSHOPS AND SHOPS.

The platform will be developed to meet the needs of the shopping malls, commercial garages
for cars and also the shops keeping supercars etc. Considering the power of internet and
mobility nowadays we define the Total Available Market as

It is said that TAM = Consumers in Bangalore = 13.6 M

Use automated garage: 75%

Unsatisfied with current solution: 22%

SAM = 13.6M x 75% x 22% =2.24M

SAM= 2.24M (16.4%)

Bottom-up approach: how many consumers can they really serve?

Human resources capacity

They have just one 1 team dedicated to the application and at this point, the hardware would
not be an operational constraint.

2nd customer segment: RESIDENTIAL

Top-Down Approach

1st Filter: Residential people who are willing to use the automated garage at home.

We are expecting to provide the platform to the residential area. Because of the
characteristics of the platform and being coherent with the commercial area, we have:

TAM =RESIDENTIAL HOUSEHOLDS

TAM = 56,000 (Roughly)

2nd Filter: Residential households using normal garages.

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To define the SAM market in the institutional segment, we consider those people who use
normal garages.

SAM = 65% of the consumer and to learn a critical part of their strategy

SAM = 56,000 x 65% = 36.4000

Bottom-up approach:

How many households can we really serve and help with maintenance?

They expect to offer a fair and competitive price to the market, to define the fare.

SOM = number of consumers that can be realistically served with the resources

SOM = 100 consumers in Bangalore (1 % of the SAM)

SOM MARKET ANNUAL VALUE =1,20,000 (installation fee) * 5000(yearly maintenance)

* 100

SOM MARKET ANNUAL VALUE = 60 crores yearly.

India is the world's second-most populous country, and it is expected to overtake China by
2030. The need to build more dwelling units in rural and urban areas of the country to
accommodate the country's growing population will drive up residential product demand. The
development of social assistance schemes, together with the availability of subsidies for
residential construction, will have a favorable impact on demand. Considering the fact of the
growing population in Bangalore, a large no of builders project to be assumed in the SOM
value.

Aspects of Forecasting
Forecasting entails forecasting the product's future value. Forecasts are critical at every stage
of the supply chain to keep demand in check.

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 1. General Economic Condition

The economic condition of the country shows the growth in the gross income of every
individual which brings in a greater opportunity in the automated industry.

2. Consumers

In order to attract premium car owners, independent garages have increased their use
of authentic aftermarket products. Independent garages have become a favored option
for preventative maintenance such as routine repairs, oil changes, and other services
due to the use of authorized products and low labor costs. Furthermore, owners are
having their vehicles serviced by independent garages due to rising repair and
maintenance costs in OEM certified facilities. As a result of these trends, demand for
garage equipment for independent garages will rise.

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 3. Industrial Behaviours;

The installation of an automated parking system is complicated and necessitates careful

consideration of numerous elements. The automatic parking system is comprised of both
hardware and software components. Any single system failure can result in the entire system
failing. In several circumstances, the automated parking system delivered the erroneous car to
the driver. The availability of space, in addition to the reliance on software and hardware
technologies, is critical in the creation of an automated parking system. Another important
consideration with an automated parking system is safety.

Method to be adopted for Demand Forecasting: -

Means to reach a demand forecast for an automated garage would need to take inputs from
every forecasting technique listed above. Expert opinions made in the form of published
articles and on forums can be used as a guideline or basis to come to a demand forecast. A
logical and rational-based forecast can be arrived at by considering the number of households
available in the region of Bangalore and narrowing down the number based on various
assumptions to reach a demand forecast for the brand of ATZ Automation. The other
parameters which can be implied are the annual income distribution of the population of
Bangalore. Cross-referencing the data of the number of households in Bangalore with the
annual income distribution will help determine the buying power of the population of
Bangalore.

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Market Mix

➔Price

– high-end price

– one-time investment

– Includes 2 free service

➔Place (Distribution)

– collaborations with Reputed real estate developers

– Automation and technology expo’s

➔Product

– Automatic garage openers

– Uses GPS and motion sensors, Infrared beams

– 60% faster than conventional.

➔Promotion

– Target Advertisement

– Collaborations

– Luxury-oriented influencers

Business Recommendations

● Consumers are particularly hesitant to go out and especially touch foreign objects,
therefore the company is likely to notice a drop in sales during the pandemic lockdown.
As a result, it would be great if the company engaged in innovative and adaptable
marketing by educating its clients on the importance of maintaining a safe distance from
people and avoiding touching unnecessary objects such as gates, doors, and other such
items.
● Commercial partnerships and collaborations would be extremely beneficial to the
company in terms of increasing revenue channels and increasing awareness.

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PESTEL Analysis:-

PESTEL Analysis is a strategy framework that breaks down possibilities and hazards into
Political, Economic, Social, Technological, Environmental, and Legal elements in order to
evaluate a company's external environment.

PESTEL Analysis is a useful tool for determining the benefits and drawbacks of a business
strategy in corporate strategic planning. The PESTEL framework is a variation on the PEST
strategic framework that adds a consideration of environmental and legal variables that can
affect a company.

Political:-

After a new government gets elected on a platform to impose regulations that would negatively
influence the company's core activities, a company decides to relocate its operations to a
different state.

Political variables are important in understanding the aspects that can affect Smart Parking
Limited's long-term profitability in a given country or region. Automatic Garage door company
operates in the Technology Hardware & Equipment sector in over a dozen countries, exposing
itself to a variety of political risks and political systems. Diversifying the systematic risks of
the political environment is necessary to accomplish success in such a dynamic Technology
Hardware & Equipment industry across multiple countries .Company should closely analyse
risk of military invasion, level of corruption, intellectual property protection, pricing
regulations, taxation, wage legislation and other political factors before entering the market.

Economic:-

Economic factors consider the numerous parts of the economy and how the prognosis for each
sector may affect your company. Following the announcement of a rate reduction, a corporation
decides to refinance its debt.

The aggregate demand and aggregate investment in an economy are determined by

macroeconomic factors such as inflation rate, savings rate, interest rate, foreign exchange rate,
and economic cycle. Microenvironmental elements such as competition standards have an
impact on the firm's competitive advantage. Automatic Garage door companies can forecast
the growth trajectory of not only the sector name but also the organization by using countries'
economic factors such as growth rate, inflation, and industry economic indicators such as
Technology Hardware & Equipment industry growth rate, consumer spending, and so on. And
the economic factors that should be considered are exchange rates, infrastructure quality in
technology, discretionary income, unemployment rate, interest rates.

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Social:-

PESTEL analysis also takes into account social aspects that are linked to societal cultural and
demographic trends. Consumer behaviour is heavily influenced by social conventions and
influences. Because of changes in society's perceptions of health and wellness, the number of
Americans who smoke has fallen since the 1970s.

The culture and way of life of a society have an impact on the culture of an organisation in a
given context. Shared ideas and attitudes of the population play a significant part in how
Automatic Garage door company marketers comprehend clients in a given market and how
they build marketing messages for consumers in the Technology Hardware & Equipment
industry. Social factors that should be considered are demographic and skill level of the
population, leisure interests, attitude, cultural and education level as well.

Technological:-

Technological aspects are linked to industry innovation as well as overall economic innovation.
Being out of touch with current industry trends can be immensely detrimental to business
operations. A corporation decides to digitise its physical data files in order to provide faster
access to company data.

Various industries are being disrupted by technology at a rapid pace. A notable example of this
is the transportation business. The sector has changed at a breakneck pace over the previous
five years, leaving established players with little time to adapt. Players such as Uber and Lyft
currently dominate the taxi sector. The automotive industry is rapidly heading toward
automation, with companies like Google leading the way, while production is being disrupted
by Tesla, which has declared an electric car revolution. Impacts are recent technological
developments, technology impact on product offering, rate of technological diffusion.

Environmental:-

Environmental factors are concerned with the effects of the environment on business.
Businesses must plan for how to adapt to changing weather conditions as they become more
regular. As indicated by the increase of Corporate Sustainability Responsibility (CSR) efforts,
it is becoming increasingly important for organizations to be environmentally friendly in their
operations. Carbon footprint reduction efforts and migrations to renewable materials and
energy sources are examples of CSR projects.

Varying markets have different norms or environmental regulations, which might have an
impact on a company's profitability. Even within a country, states can have disparate
environmental and liability legislation. In the United States, for example, Texas and Florida
have separate culpability rules in the event of an accident or an environmental disaster.
Similarly, many European governments provide beneficial tax incentives to businesses that
invest in the renewable energy sector. Before entering new markets or starting a new operation
in an existing market, a company should thoroughly assess the environmental criteria that must

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be met in those markets. Environmental factors that should be considered are weather, climate
change, recycling, laws regulating environmental pollution, Waste management in technology
hardware,

Legal:-

In the context of a PESTEL analysis, there is sometimes confusion about the difference
between political and legal variables. Any legal elements that define what a firm can and cannot
do are referred to as legal factors. The link between business and government is a political
aspect. When governmental authorities create legislation and regulations that affect how
corporations function, political and legal elements might collide.

Legal frameworks and institutions are not strong enough to protect an organisation's intellectual
property rights. Companies need to consider carefully before entering such a market. Doing so
can steal the secrets of your organisation and lose your overall competitive advantage. Legal
factors that should be considered are discrimination law, copyrights, patents, employment law,
health and safety law, and data protection.

SWOT Analysis

Strengths

● High barrier of entry

● Highly experienced owner- operator
● Limited Competition in the South Indian Area

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 ● Very High gross margin
● Ability to sell products online
● Highly visible website

Weaknesses

● Competitors can offer similar products quickly

● High Transportation Cost
● Limited flexibility in pricing

Opportunities

● Continued expansion for online sales

● Affiliate relations with related vendors
● Development proprietary products
● Development of wholesale distribution relationship

Threats

● Products are already sold by competitors

● Increases in price inputs can cause upward pricing
● High maintenance required due to AI integration
● Hydrogen-Powered garage doors are also a threat to the product

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Consumer Research data

30% of the respondents are not driving the four wheeler and 70% of the respondents are
driving the four wheeler. By this we can say that number of people driving four wheeler are
more then those who are not driving.

Remote control can be the order wining attribute as 35% of the respondents are wiling to have
remote control on automatic garage door. And voice recognition would be second winning
attribute as it is been liked by 30% of respondents.

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As 80% of the respondents are agreeing that automatic garage door can add value and makes
their job easier this product can have a good market potential.

50% of the respondents had given 4 rating as automatic garage doors are giving value tom them
in terms of money.

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Conclusion

AtZ Automation is a rapidly expanding brand with a strong sense of social

responsibility and a mission to provide safe, cutting-edge technology for both
safety and convenience. It is the brand of the future, necessitating the use of
alternative energy sources.

We may deduce from the demand estimate that the number of Smart garages will
continue to grow dramatically in the future.

The customer research questionnaire validates the previous findings, as most

customers have a good attitude toward AtZ automation, which is in line with the
demand projection.

Given the current social climate, it is almost certain to be a success. Although,

due to the ongoing pandemic, the pace of success may have been slower. Smart
garage is more likely to break out of this funk and perform well.

REFERENCES

https://www.marketsandmarkets.com/Market-Reports/garage-equipment-
market-27815176.html

https://www.researchandmarkets.com/reports/4899223/india-automotive-
garage-equipment-market

https://www.statista.com/search/?q=Bangalore+population+&qKat=newSearch
Filter&sortMethod=idrelevance&isRegionPref=356&sortMethodMobile=idrele
vance&statistics=1&forecasts=1&infos=1&topics=1&groupD=1&groupA=1&g
roupB=1&groupC=1&cmo=1&dmo=1

https://www.marketresearchfuture.com/reports/digital-door-lock-systems-
market-5135

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