Entrepreneurship

Entrepreneurship CIA 3 Feasibility Analysis submitted in partial fulfilment

of the requirements for the degree of Master of Business Administration

By

Pulkit Kaura

2127621

Under the Guidance of

Prof. Padmavathi Koride

School of Business and Management

CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE
JANUARY 2023

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 AquaMate - Hydrate your senses
Product Feasibility
AquaMate smart bottle tracks and optimises a person's water intake to make sure they are
staying hydrated and operating at their peak performance. Among other advantages, using
AquaMate will help to enhance mood and energy levels as well as metabolism to support
weight loss and skin complexion.
Features
 Sends smart and timely notifications to keep you hydrated throughout the day.
 Tracks your intake automatically and syncs data with the AquaMate app.
 AquaMate monitors and promotes progress over time.
 AquaMate focuses on individual daily hydration goal.

Advantages
 AquaMate Smart water bottles are ideal for health-conscious consumers who are
struggling with their diet or productivity due to a lack of water.
 AquaMate has a smartphone or computer application that is synced via their software
over a wireless connection (like Bluetooth).
 AquaMate makes information readily available so that recommendations or reminders
can be issued to adjust an individual's water intake to meet his or her needs.

Problem Solved by AquaMate

For many business owners, the fitness sector of the health and personal care sector may seem
like a new age industry. Every day, more people are becoming more health conscious. The most
recent studies and reports on water have been provided by the Hydration Council of many
nations. A daily loss of 1 to 2 percent of body weight can indicate mild dehydration and impair
mental clarity. We may experience headaches, fatigue, and dizziness as a result of dehydration.
The only liquid you need to drink to stay hydrated as part of a healthy lifestyle is water, which
has no calories, sugar, preservatives, or additives.
This has grown to be one of the main issues, and as society becomes more health conscious, a
fitness tracker that could be conveniently attached to water bottles and could be digitalized
would aid the general public in understanding their level of hydration and water intake. As a
result, we have developed a product called "AquaMate" as a solution to this issue.

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Customer Survey to analyse the Buying Intention
How old are you?
69 responses

How did you know about AquaMate?

69 responses

Have you ever used a fitness tracking device for hydration or water level intake?
69 responses

How is the durability of the other hydration level tracking devices that you use?

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69 responses

Do you drink enough water every day to keep yourself energetic and productive?
69 responses

Analysis
The survey was conducted to know more about the customers taste and preferences and to
determine whether AquaMate has effective demand in the market. Through the survey it was
found out that AquaMate had created a very strong demand in Personal care & fitness industry
through its word of mouth marketing and extensive referencing. 65.1% have not ever used a
fitness tracking device for hydration or water level intake which AquaMate can have an
advantage where they can actually become a first mover in the industry and revolutionise the
market.
It was understood through the survey that many individuals keep themselves energetic and
productive by drinking water at the utmost level but there are still 15.9% individuals who don’t
hydrate themselves and are in need of the product we are offering them. By conducting the
survey it was also analysed that the durability of the other hydration level tracking devices that
individuals use is average by 65.1% respondents agreeing that AquaMate can have a better
impact in the industry.

AquaMate Company Profile

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AquaMate sells equipment for health and fitness. In order to evaluate the viability and utility of
our product and business model, we have worked to design a prototype system and business
strategies, consulting with numerous academic and professional contacts.
The company's platform combines connected health and fitness equipment with software and
services, such as an online dashboard and mobile apps, data analytics, motivational and social
tools, personalised insights, and the provision of a smart bottle hydration tracker that functions
with your water bottle. It simplifies a person's life by enabling them to consume more water,
consume fewer calories, and improve their focus and productivity by preventing dehydration.
During the times of the day when a person is performing mental tasks, AquaMate was primarily
created to assist people in forming healthy habits.
AquaMate is currently working on an app that can be used on both iOS and Android. The
application would then be connected to the tracker and developed using cutting-edge,
economical technology to make the best use of all the resources needed for AquaMate's
development. The app analyses the measurements and can determine when and how much
water was consumed.

Strength of the Business Idea

Low Potential Moderate Potential High Potential

Extent to which the idea:

• Takes advantage of an Weak Moderate Strong
environmental trend
• Solves a problem
• Addresses an unfilled gap
in the marketplace

Timeliness of entry to market Not Timely Moderately Timely Very Timely

Extent to which the idea “adds Low Medium High

value” for its buyer or end user

Extent to which the customer is Very Satisfied Moderately Not very satisfied
satisfied by competing products Satisfied or ambivalent
that are already available

Degree to which the idea Substantial Moderate changes Small to no

requires customers to change Changes required required changes required
their basic practices or
behaviours
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Strengths of AquaMate
 Social element
 Nimble
 First Mover Advantage
 Great Technology and Value
 Platform Openness
 Broad device portfolio
 Corp Wellness
 Wireless device, portable
 Many designs for the device
 Compatibility with other smart devices

Suggestions

 More options for customization

 Build richer data set
 Big data Analytics investment

Personal Care & Fitness Industry

The personal care industry manufactures consumer products used for beautification and
personal hygiene. Cosmetics and personal hygiene are personal care subsectors. Personal care
products include wet wipes, toothpaste, toilet paper, talcum powder, moisturiser, shaving
cream, and so on. The global personal care market is extremely diverse and can be divided into
personal care products and personal care appliances. Personal care appliances have grown in
popularity over the last few years due to the market penetration of new and innovative
appliances each year. Skin care, hair care, personal hygiene, oral hygiene, deodorants,
fragrances, shower and bath, and make-up are all part of the personal care product category.
A healthy lifestyle includes more than just eating the right foods and working out regularly; it
also includes beauty and personal care. Even though food can have a variety of effects on your
skin, you should still consider personal care products to keep your skin healthy. When we have
skin problems or problems with our hydration, we can only treat them with personal skin care
products or with products that help an individual be aware of his/her hydration level as well as
his/her water intake, so we must be careful about what we use.

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The fitness industry has evolved significantly, particularly with the introduction of Functional
Fitness Training, which has gained traction and attracted the attention of many fitness
enthusiasts.
Fitness has become a major market potential for the majority of entrepreneurs, and the market
potential of this industry is gradually being capitalised. With the advancement of technology,
the personal care and fitness industry has evolved at a rapid pace in recent years. Fitness
trackers are now industry leaders, with a massive market with enormous potential.

Target Market
Aquamate currently targets individuals 30 and up who need motivation to be active, those who
are overweight, and even those who are already active but want to track how much water they
consume and how much they accomplish while working out. Instead of targeting those over 30,
we believe Aquamate should reach out to the younger generation, including those graduating
high school, enrolled in college, and recent college graduates. Individuals who have graduated
from high school have free time over the summer if they are waiting to attend college or have
decided not to attend. Those currently enrolled in college are becoming more active, especially
if they attend a university with a free gym.
College graduates, on the other hand, don't get to experience the college lifestyle after work, so
they don't have much to do after work. These are all excellent places for Aquamate to promote
our products. It includes smartphone owners who are value conscious but have disposable
income and are comfortable with technology but are not necessarily experts. He or she should
be socially active and feel more at ease purchasing from well-known companies.
Our target market will be the youth population in India. The company will target all types of
people in the future. As we progress through the fiscal years, we will establish our own
production unit, which will reduce costs and allow us to supply people with low income as well.
Currently, the emphasis is on exercise enthusiasts and casual users, as well as untapped
markets, medical, and insurance fields. The information gathered could be used for research,
and doctors could provide more personalised care. Insurance companies may offer deductibles.

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Industry Challenges for AquaMate & its Assessment

 The main challenge is making it available to the intended customer base. In India, a
large number of people still lack purchasing power and knowledge of such products.

 The fitness tracker device industry is difficult to succeed in, maintain a competitive
advantage due to high rivalry, high buyer power, & high threat of substitutes.
AquaMate’s focus is on expanding total potential market share or offering new &
unique features beyond competitors currently offer to change the industry dynamics.

 The hydration tracker industry, on the other hand, is open to virtually any company with
access to tracking technology or software. This is exacerbated further by the absence of
proprietary technology on hydration tracker devices. As a result, new low-cost entrants
will force us to change our pricing structure in order to remain competitive.
 Alterations in internal and general legislation as well as Compliance and
implementation.
 Changes in global conditions, level of protection, and protected area boundaries as well
as impact of pollutants and noise on the ecosystem, land, water, and air.

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 Fig. 1: Porter’s five forces for External Industry Analysis

External Industry Analysis: PESTEL Framework

Group Factor
 Changes in development policy within the fitness and health care system
Political  Government initiatives towards Health care industry
 changes in the system's economic and financial conditions as well as the
Economic global plan
 cost of system construction and reconstruction
 maintenance costs of the water intake (hydration) tracker system, application
and channel network
 economic development of the environment, and new activities influenced by
the system
 Alterations in social conditions within the fitness and health care system, as
well as in the environment
Social  Increase in the number of employees in the system and their educational
structure

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  Overall social development of the region's local communities
 Preventing the region's population from leaving, increasing employment in
other sectors, and improving the educational structure
 Capacity of the system for water tracking and notification sending tracking
Technological system quality employee qualification structure 
 General technical and technological changes
 Data Analysis Using Artificial Intelligence

Legal  Alterations in internal and general legislation 

 Compliance and implementation
 Dehydration tracking application licensing
 reduction of mud in the water intake system and channel network
 increase of dissolved O2 in water
Environmental  changes in global conditions, level of protection, and protected area
boundaries
 impact of pollutants and noise on the ecosystem, land, water, and air

Industry Related Survey Analysis

Low Potential Moderate Potential High Potential
Number of Competitors Many Few None
Stage of Industry Life cycle Maturity phase or Growth phase Emergence phase
decline phase
Growth rate of industry Little or no Moderate Growth Strong growth
growth
Importance of industry’s products “Ambivalent” “Would like to have” “Must have”
and/or services to customers
Industry Operating Margins Low Moderate High

Target Market and Customer Related Issues

Low Potential Moderate Potential High Potential
Identification of the target market Difficult to May be able to Identified

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 for the proposed new venture identify identify
Ability to create “barriers to Unable to create May or may not be Can create
entry” for potential competitors able to create
Purchasing power of customers Low Moderate High
Ease of making customers aware Low Moderate High
of the new product or service
Growth potential of target market Low Moderate High

Analysis
We can see that the company is in a good position and that the market is open to capturing the
target audience in terms of industry and target market attractiveness. However, in terms of
market timeliness, we can see that it needs to be very carefully planned as a slight delay would
result in a huge loss for the business as they would lose their competitive advantage.
Moderate Suggestions for improving industry/market feasibility include conducting more
market research to determine the ideal time to enter the market and maintain a competitive
edge.

Competitive Advantage of AquaMate

USP- The unique selling proposition is user friendliness. Our product is unique and has first-
mover advantage. It will increase the efficiency and effectiveness of the customers. Also, the
product is convenient enough for both the customers and Fitness Enthusiasts. Our product will
give a new experience to the customers.
Positioning: Sequence (Trust, Try, and Buy): Aquamate would stand out from its current
competition if they decided to have an Aquamate store or have displays inside our current
distributors, this way our customers would be able to try the product before purchasing it.
Although purchasing things before seeing them these days is a new trend, it’s different when
you are spending over Rs 3400 on a product.
Integration (CRM & D/Base):  Aquamate has potential with health insurance. If it were to sell
its data to health insurance companies, these companies could lower rates for those who are

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active and take care of their body. In turn, this would benefit Aquamate as a company because
those individuals who want to save money on health insurance would purchase an Aquamate.
Implementation of Business Idea

In order to identify patient needs and what information needs to be tracked, Aquamate will
conduct market research. To learn how to improve current products or broaden product lines to
meet these needs, invest in R&D. Being a "one-stop shop" for customers who need to track a
variety of health-related data should be the ultimate objective. Research and development
efforts should concentrate on how to monitor this data in a way that is user-friendly but still
provides adequate feedback. It ought to concentrate on improving the calibre of its data.

Additionally, Aquamate should look to collaborate with insurance providers, medical practises,
and device manufacturers. This would help us become even more ingrained in our customers'
lifestyles and would help doctors collect and keep track of patient data. Customers who own an
Aquamate may qualify for insurance discounts, and the Aquamate app allows for the syncing of
medical devices like glucose monitors. Aquamate can further set itself apart from the
competition and maintain its competitive advantage in the market by improving the features and
utility of their product.

Management Prowess - Entrepreneurs Profile

Name Pulkit Kaura

Age 25 years

Gender Male

Email ID pulkitkaura6@gmail.com

Mobile No. +91 9910258011

Permanent K - 4/4, Upper Ground floor, Model Town II, New Delhi - 110009
Address
Temporary House no. 15, 2nd floor, 4th Cross, SG Palya, Bangalore, Karnataka –
Address 560029
Educational Pursuing Masters of Business Administration from CHRIST (Deemed to
Qualification be University), Bengaluru
About the He is a confident person, who always works diligently, earnestly and to

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 Entrepreneur the best of his ability in whatever he does. He believes in the quote that
"Positive thinking will let you do everything better than negative thinking
will." As well as “It’s not about ideas. It’s about making ideas happen.”

Confidence in Business Idea

Fitness under the health and personal care industry may seem like a new age business for many
entrepreneurs. People are getting more health conscious day by day. Hydration Council of many
countries have provided latest research and reports on water. A 1 to 2 percent reduction in body
weight over the day can signal mild dehydration and reduce our ability to concentrate.
Dehydration can leave us feeling tired, dizzy and suffering from headaches. Water is the only
fluid you need to hydrate as part of a healthy lifestyle and contains zero sugar, calories,
preservatives or additives. This has become one of the major problems and as people are
becoming more and more health conscious a fitness tracker that could be easily attached to their
water bottles and could be digitalized so it would help the masses to know about their hydration
and water intake level. That’s why, we have come up with a solution for this problem in the
form of a product, known as ‘AquaMate’.
Target Market Understanding

 Currently, Aquamate targets individuals 30+ who need to find the motivation to be
active, those who are overweight, and even those who are already active but want to
monitor how much water intake they have and how much they accomplish while
working out.

 Instead of Aquamate targeting those who are 30+, we also believe to reach out to the
younger generation such as those graduating high school, enrolled in college, and even
recent college graduates. Our target market will be youth population throughout India.

 In the future, company will target all types of people. As we progress through various
financial years, we will set up our own production unit, which will reduce the costing so
as to supply to the people with low-level income as well.

 Currently focus on exercise enthusiasts and casual users and untapped markets, medical
and insurance fields.

Training procedure and Implementation of employees

The engineers involved in developing our various products will be trained by Mr. Venkatesh
who has an experience of 7 years in the electronic field.
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Management structure

 Sales will be handled by Nikunj Pachisia

 Finance and strategic management will be taken care by Pulkit Kaura

 The General Manager will be in charge of various operations of the company like
purchase, production, storage and distribution

 Receptionist 1 will attend the calls and customers. Receptionist 2 will be in charge of
the inventory and the receipts and issue of raw materials and finished products

 The engineers will be engaged in assembling of the components to develop the product

Factors of Management Prowess Low Potential Moderate Potential High Potential

Passion for the business idea Low Moderate High
Relevant industry experience Low Moderate High
Prior entrepreneurial experience Low Moderate High
Depth of professional and social Low Moderate High
network
Creativity among management Low Moderate High
team members
Experience and Expertise in cash Low Moderate High
flow management

Resource Sufficiency
Rating Factor of Resource Sufficiency
3 Office Space
3 Lab Space, Manufacturing Space or space to launch a service business
4 Contract manufacturers or outsource providers
5 Key management employees (now and in the future)
5 Key Support Personnel (now and in the future)
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 4 Key equipment needed to operate the business (computers, machinery,
delivery vehicles)
4 Ability to obtain intellectual property protection on key aspects of the
business
3 Support of local and state government if applicable for business launch
5 Ability to form favourable business partnerships

At Vasavi Plaza, 2nd floor, 4th Block Jayanagar, Bengaluru, Karnataka - 560011, we will be
renting out one floor of a building.
1500 square feet of the floor will be divided into six main sections. The board room, where all
necessary meetings and discussions for the improvement of the company will be held, will take
up the majority of the available space. There will be a reception desk at the front of the office
where both receptionists will be working. On the same floor, each Partner will have their own
private cabin. Additionally, the General Manager will have a private cabin. The general
manager will be in charge of the organization's various operations, including procurement,
production, and storage.

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Conclusion
The Management Prowess of the firm is majorly moderate as they do not seem to have an
industry experience and are new to the field of business even if they have the theoretical
knowledge that they have acquired from their formal educations. Through their networks they
seem to have developed a moderate Resource Sufficiency and as they continue to remain in
the business, they will be able to increase their resource sufficiency hence achieving the
economies of scale.
Organisational feasibility – Moderate
Suggestions for improving the organisational feasibility
Work on developing their creativity among team members to increase their reach with
regards to the resources that they need to create the product and sell it in the market.

Major Human Resources Required

Sl No. Position Head Count
1 Managing Directors 1
2 Operational Manager 1
3 Technical Manager 3
4 Administration Manager 1
5 App Developers (One time) 1
6 Accountant 1
7 Support Staff 2
8 Receptionist 2
9 Assistant 2
10 Regional Managers 1
TOTAL 15

No. of production line (if any)

There will be only two production lines i.e. Assembly line and production of various parts of
the tracker which cannot be supplied such as Solenoid valve, digital screen plate, E-ink
display modules etc.

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Key Resources:

 Havantage Accelerometer Tracking Technology

 AquaMate Application
 Data Base Management System (DBMS) & Data Analysis

Technological Feasibility
The technology will come from Hvantage Technologies Inc., which offers top-notch
software solutions and support services that are specifically tailored to the needs of clients
around the world. Currently, they are based in Los Angeles, California, and have an offshore
development centre in Indore, India. The technology for the tracker will be purchased directly
from Indore. We will purchase the technology for the AquaMate application from ANGLER
Technologies in Coimbatore, Tamil Nadu, India.
We will purchase the display modules for our tracker from Zhuhai Eastsun Technology Co.
Ltd. Our value proposition is to offer our potential customers a digital water hydration level
tracker that is reasonably priced.
Product technology will be outsourced, and product components will be made and assembled
directly in India. Depending on the market's growth and the demand for the product, the
product will then be exported to other nations.

Financial Feasibility
The company will use a cost plus pricing strategy, in which a certain amount of profit will be
added to the cost to determine the selling price. The initial price for our product will be Rs.
2800. Promotional strategies that will be included for Cost strategy:
 Free shipping
 Money-back guarantee for 45 days
 365-day limited warranty
Technology Software Cost (Research & Development)
Sl. No. Particulars Note Yearly Cost (Rs.)
1 Hvantage Technologies Inc. 1 3,15,000
2 ANGLER Technologies 2 4,35,000
Total 7,50,000

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 1. Hvantage Technologies
The Technology for the tracker will be sourced from Hvantage Technologies Inc. They
currently operate from Los Angeles, USA with offshore development centre at Indore, India.
We will be sourcing the technology for the tracker directly from Indore.

2. ANGLER Technologies
For the AquaMate application we will source the technology from ANGLER Technologies in
Coimbatore, Tamil Nadu, India. ANGLER Technologies is offering us a 1 year membership
with them as a contract for developing products as well as our E-commerce portal will be
developed by them.
Fixed Assets
Sl. No. Particulars Note Cost (Rs.)
1 Land 1 6,00,000
2 Plant & Machinery 2 21,97,500
3 Licensing 1,50,000
4 Insurance 1,50,000
5 Furniture 6,50,000
7 Equipments for Assembling 3 5,13,067
8 Technology Software 4 7,50,000
Total 50,10,567

Operational Expenses
Sl. No. Particulars Note Cost per Month(Rs.) Yearly Cost (Rs.)
1 Raw Materials 1 3,05,073 36,60,876
2 Utilities 2 48,000 5,76,000
3 Other Contingent Expenses 3 30,000 3,60,000
Total 45,96,876

Capital expense (CAPEX) include land, equipment, installation, etc. up to the commissioning
of the facility. Direct capital costs include the investment for Equipments Required for
Assembling of the products, Hardware materials, electrical materials and pneumatics.

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 Marketing Expenses
Sl. No. Particulars Note Cost for 8
months (Rs.)
1 Billboards, Posters, Other Techniques 4,25,000
2 Lifestyle Representatives 85,000
3 Let’s move campaign 1,23,000
4 Charitable Causes 1 1,78,000
5 Digital Marketing Techniques 2 4,72,000
Total 12,83,000

Estimated Turnover Per Annum by Sales

Stock for the 1st year
Products Purchases Sales Closing Stock
Units Price Total Units Price Total Units Price Total

A 2400 2800 67,20,000 2050 3200 65,60,000 350 2950 10,32,500

Direct Expenses and Credit Sales and Credit Purchases:

Products Direct Expenses Credit Purchases Credit Sales
Units Price Total Units Price Total Units Price Total
A 2400 275 6,60,000 215 2800 6,02,000 180 3200 5,76,000

Revenue Streams
1. Paid Apps: AquaMate falls under the utility, productivity app model, it is a candidate
for monetization via a one-time payment model. The fee charged for AquaMate app to
access all features is around Rs. 175 /- where major features can be accessed and
utilised.
2. Feature Subscription: For a recurring fee, AquaMate users can subscribe to specific
features such as daily notification and proper consultation. Because AquaMate is new
to the market, it can quickly build a large user base and provide an excellent free
experience. It will aid in the mixing and matching of in-app purchase types in order to
better meet the needs of AquaMate subscribers.

3. In app advertising: AquaMate's future revenue will come from different app

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 developers displaying ads inside their apps. Advertisers pay AquaMate for each ad
that is displayed. This mobile app advertising revenue has virtually limitless
potential. Advertisers will want to buy the ad space because AquaMate users will
spend enough time in our app due to its uniqueness and essential dehydration (water
level) tracking.
4. Tracker devices selling through website: Devices will be sold through the in house
AquaMate website as well as through partnerships with Amazon and E-bay.
Financial Feasibility Analysis
Low Potential Moderate Potential High Potential
Initial Capital Investment High Moderate Low
Number of Revenue drivers (ways in One Two to three More than three
which the company makes money)
Time to break even More than two One to two years Less than one
years year
Financial performance of similar Weak Modest Strong
business
Ability to fund initial product Low Moderate High
development expenses from personal
funds or via bootstrapping.

Overall financial appeal of the proposed business venture

Since the company's costs and revenue would continue to be essentially equal for the next
few years before they can break even, the overall financial of the proposed venture appears to
be of a moderate nature. We will conduct our business through electronic commerce, and our
initial state-level leaders will be responsible for advancing it and liaising with clients. Yes it
is true that Initial Capital investment is high because AquaMate is purely into manufacturing
and as its own retailing and distributing. The costs are high due to excessive outsourcing, but
these costs of fixed assets or initial capital expenditures will give a very good return in the
long run. The business has major potential because the entrepreneur has high ability to fund
initial product development expenses from personal funds or via bootstrapping but the
concern is majorly of breakeven which is occurring after 3.5 years.

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