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According to the research, one of the most well-known companies in the UK is ASDA, a supermarket chain that serves a wide range of customers with goods for the home, clothes, and entertainment. The corporation employed 145,000 people and provided services to over 18 million customers each week through their nationwide network of living places. Large supercenters were used in the sector to supply meals and various additional services like dry cleaning, banks, and photo processing to draw clients. The business had created a platform for online sales to sell George through George.com and 560 locations, providing weekly service to 8 hundred thousand customers (Ong et al., 2021). This research studies that in 2011, a logistics service was introduced through the Grocery Click and Gather platform, which increased annual order volume to 15 million. To ensure that a single aim is achieved by the organization's members in modest increments, the organizational structure employs a hierarchy technique with various organizational branches. The ASDA uses top-down decision-making mostly and has a centralized distribution system with eight depots.
This research also analyzes the problem faced by the ASDA Company, One of the largest retail partnerships in the UK, ASDA, has experienced several difficulties due to the COVID-19 pandemic and shifting consumer purchasing habits. The pandemic has harmed the UK retail market, resulting in a quick fall in revenue growth. Consequently, ASDA likewise experienced a decline in its potential market.According to the difficulty faced by ASDA, it must create effective marketing strategies that can adapt to the continually shifting wants of consumers to overcome these obstacles. In order to build a solid reputation with clients and open up new expansion opportunities, effective branding techniques are necessary (Gielens et al., 2021).
Figure 1: ASDA logo
Task | Deadline | Words |
Introduction, background of organization, and review of the problem faced | 2 weeks | 500 words |
Literature review | 4 weeks | 2000 words |
Discussion of the secondary and primary research undertaken | 2 weeks | 1000 words |
Critical review of the results of the research | 1 week | 1500 words |
Recommendation and action plan | 5 days | 1000 words |
The set of laws, customs, and procedures that governs how a company is run, regulated, and directed is referred to as corporate governance. It includes many facets of business operations, such as decision-making, responsibility, simplicity, and risk management. Promoting long-term value development and ensuring an organization serves its stakeholders' interests which require effective corporate governance.
The corporate governance framework at ASDA is well-organized and intended to encourage openness, responsibility, and responsible decision-making (Gaur, 2021). A BOD made up of managers and non-manager members oversees the business. The Board's main duty is to give the company's management team strategic direction and oversight while ensuring it adheres to the law and ethical standards. Additionally, the Board is in charge of establishing the company's general strategy, keeping track of its financial performance, and ensuring it abides by all related rules and regulations.
A varied range of people with various backgrounds, experiences, and abilities comprise the Board of Directors of ASDA. The Board has created several committees, such as the Audit, Payment, andNominations Committee, to superviseparticular facets of business operations. The Board has adopted a Code of Conduct that sets standards for all workers and stakeholders because it is dedicated to advancing ethical conduct and sustainable business practices.
Because of ASDA's great financial performance, solar reputation, and loyal consumer base, it is clear that its corporate governance structure is effective. Due to its emphasis on client service, modernization, and sustainability, the company has constantly been d among the top retailers in the UK and the rest of the globe. The Board's oversight and strategic direction have been crucial to the organization's success (Smith, 2019).To maintain a successful corporate governance system, ASDA must overcome several obstacles like every other company. Keeping the business accountable to its stakeholders and transparent, particularly during crises, is one problem. The Board must proactively reach out to stakeholders, listen to their problems, and provide feedback.
ASDA has a well-designed corporate governance system to encourage openness, responsibility, and ethical decision-making. The company's success has been greatly influenced by the strategic oversight and direction provided by the Board. However, the business must exercise caution to maintain a strong corporate governance system and effectively address any problems that may occasionally develop.
Figure 2: Asda & Sainsbury's Shoppers Share Attitudes Toward Merger
Any company’s success depends greatly on its brand positioning, which is also key to improving ASDA’s financial performance.Brand positioning methods are used to distinguish a brand from its rivals and forge a distinctive character for it in the minds of consumers (Balaraman, 2021). Positive brand perception is a key factor in increasing sales and retaining customers, and it may be achieved through effective brand positioning.
Walmart owns the grocery company ASDA, which is situated in the UK. Over 180,000 people are employed by the business, which runs over 600 stores throughout the UK. Low pricing is well-known at ASDA, an important component of their brand positioning approach. The business markets itself as a low-cost grocery chain that provides high-quality goods at reasonable costs (Zwanka, 2021). This stance has been a major factor in ASDA's success and has helped it stand out from its rivals.
Brand positioning tactics can impact the company's financial success. A well-positioned brand may be able to charge more for its goods, which may result in higher profit margins. Concerning ASDA, the retailer's low-price strategy has contributed to a rise in sales volume, which has resulted in higher revenues and profits.
Initiatives for brand positioning play a role in shaping brand perception. As a budget grocery store, ASDA has successfully developed a reputation as a that is both approachable and affordable. This impression has attracted value-conscious customers looking for high-quality products at reasonable pricing (Kall, 2021). By establishing itself as one, ASDA has also been able to compete with other low-cost stores like Aldi and Lidl.
However, consistent effort and money are needed to position a brand effectively. Businesses need to make sure that they are always adjusting to shifting market trends and client preferences. In the case of ASDA, the business has recently rebranded itself as a retailer dedicated to sustainability and ethical sourcing. The company’s commitment to retaining its position as the industry leader is demonstrated by this step, which reflects the shifting consumer preferences for ecologically friendly products.
The COVID-19 outbreak has significantly impacted customers' shopping habits. The way that consumers shop has changed due to lockdowns, social isolation policies, and further restrictions (Stemberk, 2021).There are some changes in consumer shopping behavior after the COVID-19 pandemic.
However, the pandemic has also increased customer awareness of the effect of their purchases on the local economy, which has increased support for small local companies. As long as customers continue to place a high priority on sustainability and ethical business practices, this trend is likely to persist. The epidemic has also raised consumer awareness of social and environmental issues, stimulating a market for socially and environmentally responsible products.
Ultimately, Consumer purchasing habits have been dramatically altered by the COVID-19 pandemic (Al-Ahdal et al., 2020). Safety concerns have increased the popularity of touchless payments, house delivery, and local pickup. Also, consumers are considering health and safety issues while deciding where to purchase. Consumers prioritize needed purchases above, not necessary ones, due to the pandemic, and they are spending less on non-essential things overall. The emphasis on sustainability and moral behavior has also increased, as well as support for small local enterprises. Even after COVID is over, these shifts in consumer behavior will probably be there, so firms need to adjust if they want to stay competitive.
The techniques I discussed seem similar to those employed by ASDA to raise consumer switching fees (Rashid, 2020). This is hardly unexpected, considering how frequently organizationsutilize these tactics to boost client loyalty and lower customer churn. By implementing these tactics, ASDA may gain a competitive edge and set itself apart from competing brands.
The abovementioned tactics can assist ASDA in increasing client switching costs, enhancing business performance, and lowering customer turnover. ASDA can set itself apart from rivals and foster enduring client loyalty by developing a distinctive and personalized shopping experience, establishing loyalty programs, combining goods and services, offering excellent customer service, and employing contractual responsibilities.
Figure 3: UK Grocery Market Share 1997-2019
The research strategies and procedures used to accomplish the research objectives are described in the methodology portion of this dissertation. The research design and approach are first described in the chapter, then the research philosophy and data-gathering techniques are discussed. A thorough explanation of the data analysis methods applied in the study is also provided in this chapter. With a focus on the COVID-19 pandemic, this research seeks to study brand positioning by the ASDA Company in the course brand repositioning strategy to increase customers' switching costs in a cost-of-living crisis. To discover the best ways to concentrate on customers, the study will use a qualitative research design, constructivist research philosophy, deductive technique, and thematic analysis (Sullivan et al., 2019).The dissertation aims to investigate the COVID-19 pandemic's best practices for brand positioning strategy. The Saunders Onion Ring approach provides an organized and transparent process for researching a brand repositioning strategy. By adopting this strategy, the study will be able to offer insightful information about how businesses may manage brand positioning strategies to reduce consumer switching costs during a cost-of-living crisis.
The qualitative research design, constructivist research philosophy, deductive approach, theme analysis, and questionnaire survey will be employed to build a theory on brand positioning tactics. The findings of this study will offer organizations guidance on the best practices for brand positioning as they prepare for upcoming activities. Any research project must have a research methodology that describes the methods and strategies that will be utilized to gather and analyze the data. This part describes the research technique that will be utilized to examine ASDA's brand repositioning strategy to reduce customer switching costs amid a cost-of-living crisis (Sileyew, 2019). The research approach will focus on primary research, which will entail gathering new data from clients directly using closed- and open-ended questions.
Research Element | Description |
Research Design | Qualitative Research Design |
Research Philosophy | Constructivist Research Philosophy |
Data Collection Technique | Primary research through a questionnaire survey |
Data Analysis Method | Thematic Analysis |
Approach | Deductive approach |
Focus of Research | ASDA's brand repositioning strategy to increase switching costs during a cost-of-living crisis |
Research Objective | To investigate the best practices for brand positioning strategy during the COVID-19 pandemic |
Research Approach | The Saunders Onion Ring approach |
Expected Outcome | Insights into how businesses can manage brand positioning strategies to reduce customer switching costs during a cost-of-living crisis |
Significance of Study | Guidance for organizations on the best practices for brand positioning in preparation for upcoming activities |
This study used a qualitative research design as its methodology. This technique was considered suitable for this study since it enabled a thorough investigation of brand positioning strategy. Deductive reasoning was used in the research process, and the research hypotheses were drawn from the body of knowledge on brand positioning strategy (Bloomfield, 2019). The constructivist research theory will guide the analysis and comprehension of the participant data. The research will create a hypothesis about brand positioning strategy using a deductive method. The interview data will be subjected to thematic analysis to find recurrent themes and patterns. Both content analysis and descriptive statistics will be used to analyze the questionnaire survey. This study will use a descriptive research design as its methodology. With the help of this design, the researcher will be able to characterize and examine the traits of the research subjects and their impressions and opinions of ASDA's brand repositioning plan to raise switching costs in a time of cost-of-living crisis.
Constructivist research methodology is the approach chosen for this investigation. This philosophy was chosen because it enabled the researcher to investigate the subjective meanings and interpretations of the brand repositioning approach to raise customer switching costs during a cost-of-living crisis (Tamminen, 2020). The researcher notes that participant subjectivity may impact the study's findings. Social constructivism and viewing reality through the prism of the individual's subjective experience are key concepts in the constructivist research philosophy.
The dissertation discusses both qualitative and quantitative research types. This kind of study aims to investigate and comprehend people or groups' subjective experiences, perceptions, and attitudes. Constructivist research methodology is applied, emphasizing how people's subjective interpretations influence how they perceive the world. Additionally, the deductive method is used, which means that pre-existing theoretical frameworks and assumptions serve as the research's driving forces (Adhi Santharm, 2022). The fundamental data analysis approach, known as thematic analysis, entails finding and understanding patterns or themes in the data. To gather data for surveys and interviews, questionnaire surveys are used.
For this study, interviews were used to get the data. The study's target group was brand positioning strategies with knowledge on how to raise customer costs. Participants will be selected based on their knowledge of brand positioning, particularly the COVID-19 standard (Kalu, 2019). To encourage participants to discuss their experiences and thoughts on brand positioning strategy, the interviews will be performed utilizing two open-ended and eight close-ended questions. Video conferencing was used to conduct the interviews, videotaped and transcribed verbatim. A survey questionnaire will be used to gather the primary data online. A purposive sampling technique will disseminate the online survey questionnaire to a sample of ASDA customers (Santoro et al., 2019). A total of 30 people will be included in the sample, and the inclusion criteria include those who recently purchased at ASDA.
Thematic analysis was used to examine the interview data. Finding patterns and themes in qualitative data is done through thematic analysis. Coding the data, grouping the codes into themes, and establishing connections between the themes in the appendix were all steps in the analysis process (McLeod, 2019). The analysis was done manually, and the researcher ensured it was rigorously and uniformly. Descriptive statistics and content analysis will be used to examine the information gathered through the online survey questionnaire. The information gathered from the closed-ended questions will be compiled and described using descriptive statistics. The information gathered from the open-ended questions will be classified into themes and categories and analyzed using content analysis.
Shopping Frequency | Number of Responses |
Daily | 2 |
Weekly | 1 |
Monthly | 17 |
Occasionally | 10 |
Table 1: How often do you shop at ASDA?
Price Comparison | Number of Responses |
Much cheaper | 1 |
Slightly cheaper | 7 |
About the same | 15 |
Slightly more expensive | 2 |
Much more expensive | 0 |
Table 2: How would you rate ASDA's pricing compared to its competitors?
Considered switching | Number of Responses |
Yes | 6 |
No | 24 |
Table 3: Have you ever considered switching to a competitor of ASDA because of price?
Factors | Extremely Important | Very Important | Somewhat Important | Not very important | Not at all important | Neither likely nor unlikely |
Pricing | 10 | 9 | 6 | 2 | 0 | 3 |
Brand loyalty | 8 | 4 | 9 | 4 | 4 | 1 |
Value-added services | 7 | 9 | 7 | 2 | 2 | 3 |
Communication of brand repositioning strategy | 5 | 5 | 7 | 5 | 5 | 3 |
Table 4: Importance of various factors when shopping at ASDA
The data analyses from the questionnaire interview (attached in appendix) conducted through open and close ended questions is that, in a cost of living crisis, 71.4% of respondents would consider switching to an ASDA competitor. In poor circumstances, customers are more price-conscious and prepared to shop around for better prices. This emphasizes the need of communicating repositioning goals to clients and offering value-added services like home delivery and reward programmes to retain their business. While most respondents said ASDA's prices were comparable to its competitors, 28.6% thought ASDA was slightly lower. These findings show that value-added services and brand goals might help firms retain customers during challenging economic times.
A breakdown of how 30 people answered the two (Attached in appendix) free-form questions:
Q 1. In the event of a price hike, what would lead you to shop at a store other than ASDA?
The majority of respondents to this question cited pricing as the main reason they switched to a rival during the recent economic downturn. Many people said they would move to a different company if they offered cheaper costs on necessities like food and cleaning materials. In the midst of a cost-of-living crisis, it appears that consumers are becoming more price-conscious in their pursuit of everyday necessities. Respondents also noted closeness to home or work, a greater selection of products, convenient delivery choices, better customer service, better rewards or loyalty programs, and better bargains or promotions. Customers are keeping a careful eye on prices and are willing to switch if they feel they are not getting the best bargain, as evidenced by the fact that some respondents said they would switch to a competitor if ASDA's prices rise more than its competitors during the crisis. Consumers' answers to this question point to the importance of low costs, good quality, and friendly service in keeping customers loyal to ASDA even as rising prices squeeze their budgets. To stay competitive, ASDA may also want to think about providing more convenient delivery alternatives and targeted promos and prizes for its loyal customers.
Reason for Switch | Frequency | Percentage |
Cheaper Prices | 22 | 73.3% |
Proximity to Home or Work | 14 | 46.7% |
Better Selection of Products | 11 | 36.7% |
Convenient Delivery Options | 9 | 30% |
Better Customer Service | 8 | 26.7% |
Better Rewards/Loyalty Programs | 6 | 20% |
Better Bargains/Promotions | 5 | 16.7% |
Other | 2 | 6.7% |
Table 1: Factors Influencing Switch to Competitor
Q 2. In the midst of a price hike, what additional services do you believe ASDA should provide to keep people coming back?
Based on the responses to this question, it appears that customers are interested in a variety of value-added services from ASDA that can help them cut costs during the current economic downturn. Most customers would prefer free shipping on orders over a particular threshold, indicating that they are searching for methods to cut costs when purchasing goods online. Discounts on necessities, raised return procedures, a program for repeat business that offers discounts or rewards, educational materials to help customers preserve money, price matching guarantees, extended financing options for customers whose have trouble economically, customized advertisements and promotions, a customer service line or live chat function that is offered round-the-clock, and referral incentives were also mentioned by respondents as valuable extras. To keep clients during a time of rising prices, the answers to this question imply that ASDA should provide a variety of value-added services. In example, a loyalty program that provides discounts or awards for frequent customers, as well as free delivery on purchases over a specific amount, may be extremely helpful in retaining customers. ASDA may be able to separate itself from other retailers and keep more consumers during a cost of living crisis by providing educational materials to assist consumers save money, price matching promises, and extended payment options for clients who are struggling financially.
Value-Added Service | Frequency | Percentage |
Free Shipping on Orders over a Certain Threshold | 17 | 56.7% |
Discounts on Necessities | 13 | 43.3% |
Improved Return Procedures | 10 | 33.3% |
Loyalty Program with Discounts or Rewards | 9 | 30% |
Educational Materials to Help Customers Save Money | 8 | 26.7% |
Price Matching Guarantee | 7 | 23.3% |
Extended Financing Options | 6 | 20% |
Customized Ads and Promotions | 4 | 13.3% |
24/7 Customer Service Line or Live Chat Function | 3 | 10% |
Referral Incentives | 2 | 6.7% |
Other | 1 | 3.3% |
Table 2: Value-Added Services to Retain Customers
The following are the most important takeaways from the data analysis and interpretation of the survey responses:
The majority of respondents (17 out of 30) reported making at least one purchase at ASDA monthly, demonstrating that the store has a steady stream of customers. When asked to compare ASDA's prices to those of its competitors, the majority of respondents (15 out of 25) found them to be comparable. Seven of the people surveyed did note, however, that they found ASDA's prices to be slightly lower. Six respondents said they've given some thought to leaving ASDA for a cheaper alternative. This suggests that some customers are more sensitive to pricing. Relevance of Considerations: When considering an ASDA purchase, customers ranked low prices, lack of brand loyalty, and a lack of value-added services as extremely important or very significant. This shows how crucial these aspects are to gaining and keeping clients. The majority of respondents placed moderate importance on ASDA's ability to convey its brand repositioning approach. This highlights the importance of keeping consumers in the loop regarding the brand's strategic initiatives. 71.4% of Respondents Said They Might Consider Leaving ASDA If Prices Rose. In these economically trying times, it is even more crucial to offer reasonable prices and valuable extras. Pricing, value-added services, and clearly communicating brand strategy were all found to be important factors in the success of the retailers studied. ASDA can better serve its customers and earn their loyalty if its employees have a firm grasp on how those customers think and act.
The survey's key conclusions can be interpreted in light of the literature study: Shopping Frequency? The literature matches most respondents' monthly ASDA shopping frequency. Most shoppers buy groceries weekly or monthly. This shows that survey respondents' shopping habits are typical. The poll supports previous studies suggesting ASDA's prices are equal to its competitors. ASDA is considered a cheap grocery store by consumers. ASDA's brand positioning hinges on their reputation for low prices. Consumer price sensitivity supports the finding that some respondents have contemplated switching to an ASDA competitor due to pricing. Price influences consumer decisions and brand loyalty. This shows that competitive pricing helps retain customers and reduce turnover. Cost, brand loyalty and value-added services are important, according to customer preferences study. Price predicts customer decision-making, while brand loyalty and value-added services increase consumer happiness and loyalty. These findings show that ASDA must priorities the above factors in its business strategy to exceed customer expectations and increase customer loyalty. Effective communication is emphasized in research, and most respondents rated ASDA's brand repositioning communication as moderately significant. It is discovered that communicating brand changes and improvements to target audiences strengthens relationships. The questionnaire's findings support prior research' emphasis on competitive pricing, brand loyalty, value-added services, and effective communication in affecting consumer behavior and satisfaction. The survey data supports the literature's theoretical foundations and emphasizes their importance for ASDA's commercial success and customer relationships.
A literature study using secondary sources can cause several issues such as Quality and dependability; Secondary sources vary greatly in quality and reliability. To ensure accuracy and reliability, sources must be properly evaluated. Data may be unreliable, biased, or lacking in depth. Secondary sources may not reflect the latest knowledge or research question framing. Depending on the literature review's knowledge threshold, secondary sources may be outdated or irrelevant. Researchers have minimal control over secondary data collection methods. Due to their differing objective or technique, the data may not be similar to the current study. The study's sample size and response rate may be problematic. The study's sample size may be too small to extrapolate results to the entire population or attain statistical significance. Small sample numbers increase sampling error and diminish generalizability. A survey's response rate can affect a study's dependability. When the response rate is low, non-response bias causes an unrepresentative sample. A small study with a low response rate may not be generalizable. The study's sample may not be typical of the broader population. When examining the study's outcomes, it's important to consider these restrictions and address them honestly. Future studies should increase sample size, response rates, and data sources to overcome these limits.
Secondary sources, sample size, and response rate may alter results. The following constraints may affect the study as follows:
These considerations should temper the research conclusions. Results may not apply to everyone. The report should identify the study's limitations to be transparent and contextualize the findings. The research community should consider how these limits may affect validity, generalizability, and reliability.
If I did this research again, I'd do these:
I hope these actions will strengthen the study's basis, quality, reliability, and generalizability. These steps would strengthen the research's validity and reliability.
The following steps are advised for ASDA to implement following a thorough review of the brand repositioning plan to increase consumer switching costs in the cost of living crisis:
Companies can use a brand repositioning strategy as a potent weapon to reduce customers' willingness to transfer brands during a downturn in the cost of living. As the ASDA instance has shown, a well-executed repositioning strategy can assist organizations in retaining their current clientele and luring in new ones. The research technique described in this dissertation may be helpful for other organizations wishing to pursue a similar strategy.
Businesses should think about enhancing their online presence and providing touchless payment choices to meet the need of customers searching for convenience, security, and safety in light of the changes in consumer purchasing behavior following the COVID-19 epidemic. Additionally, in the post-pandemic environment, businesses can draw and keep clients by offering house delivery and close pickup choices, prioritizing health and safety procedures, and concentrating on sustainability and moral practices. Businesses should also explore sponsoring regional companies to demonstrate their dedication to the neighborhood and be responsive to changing consumer spending choices.
Brand repositioning, it should be noted, is not a quick remedy and necessitates a sizeable time and resource commitment. Before implementing a repositioning strategy, businesses should thoroughly examine their market, rivals, and client preferences (Rogers, 2020). To interact with stakeholder groups and keep them updated on any changes, businesses should also ensure that their interaction channels are clear and transparent.
Finally, the organization's capacity to successfully implement a brand repositioning strategy determines its success. An effective leadership team, a talented workforce, and a solid governance framework are needed to guarantee that the approach aligns with the company's principles, vision, and mission. When used effectively, brand repositioning can help organizations overcome a crisis caused by rising living costs and become stronger in the end.
The following is a step-by-step action plan for ASDA to carry out the suggested activities to raise customer switching fees throughout the cost of living crisis:
Activities |
Timeline |
Process |
Create a thorough brand repositioning strategy |
Deadline: one month |
Internally analyze the present brand image, product quality, and client service. Conduct outside research on industry trends and the varying expectations of the consumer. Create a strategy that includes rebranding, improving the quality of your products, and enhancing your customer service so that it is challenging for customers to switch to a competitor's offering. |
Conduct market research |
Duration: two to three months |
Carry out primary research, including focus group discussions and surveys, to better comprehend changing client wants and factors influencing their purchasing behavior. To find gaps and possibilities, analyze secondary research material such as industry studies and competition assessments. |
Improve customer interaction |
Timeline: Continuous |
To establish a personal connection with customers and provide personalized services and communications. Continually acquire client feedback and modify services as necessary. |
Boost stakeholder communication |
Timeline: Continuous |
Regularly inform stakeholders about the company's performance through publications and social media. Social media is used to interact with stakeholders to foster trust and promote transparency. |
Encourage moral conduct |
Timeline: Continuous |
Establish a code of conduct and frequently educate employees about moral conduct. Create a system for reporting any unethical behavior you notice. Keep an eye on and assess the organization's ethical behavior constantly. |
Boost governance in corporations |
Timeline: Continuous |
Assign management and board representatives specific jobs and duties. Ensure that the Board exercises sufficient oversight and that administration is held responsible for its deeds. |
Improve risk management |
Timeline: Continuous |
Conduct frequent risk assessments to identify and reduce any risks that could influence the organization's running. Maintaining the effectiveness of risk management procedures requires ongoing observation and assessment. |
Improve internet presence and options for contactless payments |
Timeline: 1 to 2 months |
Improve the company's online visibility by updating its website and social networking accounts. Provide touch-free payment choices to accommodate customers' shifting tastes. |
Options for close pickup and home delivery |
Duration: two to three months |
Establish a strategy for immediate pickup and house a delivery that puts health and safety precautions first. Keep an eye out for, and adjust to, shifting customer preferences. |
Sponsoring local businesses |
Timeline: Continuous |
Find local businesses that share ASDA's values and promote them. Create alliances with neighborhood groups to show the business's dedication to sustainability and moral behavior. |
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