International Marketing Final Report- Maybelline New York

Professor:Professor:Shuling LiaoShuling Liao

Students:Students: 932930 Anthony932930 Anthony 967301 Claire967301 Claire 967305 Crystal967305 Crystal 967311 Joyce967311 Joyce

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IntroductionBackground reviewBrand performanceMarket analysis and competitor analysis Industry trend and global opportunity

huntingInternational/Global Marketing

strategies recommendation Reference source

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L’Oréal Overview€15.8 billion sales in 200627 global brands until 200660,851 employees in 58 countries40 factories around the world

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L’Oréal’s acquisitions since 1996

L’Oréal Overview

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L’Oréal OverviewNew brand acquired by L’Oréal

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L’Oréal Overview

ConsumerProducts

High technology products Mass-market retailing channels

GarnierL’Oréal ParisLe Club des CréateursMaybelline NYSoftsheen.Carson

Professional Products

A wide range of innovative products

Hair salons

L’Oréal ProfessionnelKérastaseRedkenMatrixMizani

• Five Dimensions:

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L’Oréal Overview

LuxuryProducts

Prestigious brands offer premium service

Department stores, specialty stores and travel retail outlets

LancêmeHelena RubinsteinShu UemuraGiorgio ArmaniRalph LaurenYue-Sai

ActiveCosmetics

Dermo-cosmetic products sold by pharmacists and dermatologists

Pharmacies and specialist retailers

VichyLa Roche-PosayInnéovSkinCeuticalsSanoflore

BiothermKiehl’sCacharelViktor & RolfDiesel

• Five Dimensions:

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L’Oréal Overview

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L’Oréal Overview

L’Oréal’s EPS compares with competitors

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L’Oréal Overview

The growth of L’Oréal’s EPS

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Maybelline Overview

1967Plough Inc. acquires Maybelline

1971Great Lash was born, with its candy pink and acid green tube

1915Maybelline Company was created as a family-owned business

1913T.L. Williams invented Maybelline Mascara (Vaseline jelly + coal dust )

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1990Maybelline acquired by the investor group Wasserstein Perella & Co

Maybelline Overview

1996L’Oréal USA, Inc. acquires Maybelline2000

Maybelline becomes the number one cosmetic brand in the USA 2002

Maybelline becomes the number one cosmetic brand in the world

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Maybelline Overview

2004Maybelline officially becomes Maybelline New York

Today• Maybelline New York is

the number one cosmetic brand globally across 90 countries

• Products can be found in major mass-market retailer including drugstores, discount stores, supermarkets and cosmetics specialty stores

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Brand performance under L’Oréal

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Brand performance under L’Oréal

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Brand performance under L’Oréal

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Brand performance under L’OréalProfessional Products

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Brand performance under L’OréalLuxury Products

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Brand performance under L’OréalActive Products

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Brand performance under L’OréalConsumer Products

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Product performance under Maybelline

Milestone Great Lash Mascara The #1 selling mascara in

the U.S. Great Lash has always stood

out for its radically different packaging

This unique color palette is now instantly recognizable and has come to symbolize a true cultural icon

In fact, one of the now famous pink and green tubes is sold every 1.9 seconds in the U.S.

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Product performance under Maybelline

Milestone XXL mascara Make eye lashes 40 percent

longer and thicker The mascara is formulated

from microfiber, vitamin B5 and extract of cornflower

The product can be used for up to eight hours, does not smudge or flake

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Product performance under Maybelline

Milestone

Latest Water shine lipstick Full of moisture Glazed Red Apple and Rose.

Scarlet and coral Natural range of colors to

complement their beauty

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Product performance under Maybelline

Milestone

Dream Mousse foundation Foundation with a powder

finish Good coverage with skin-

brightening effects It create a variety of

aesthetic illusions

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15.9 millionLips makeup

13 millionFace makeup

50.2 millionEye makeup

Product performance under Maybelline

Product Category Sales Volume

Face makeup 13.0 millionLips makeup 15.9 millionEye makeup 50.2 million

Source: 2007 Factiva, Inc.

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S.T.P Analysis of MaybellineSegmentation

Youngster: 16-25Office Lady: 26-35Career Women: 35 above

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S.T.P Analysis of MaybellineTarget Market :

Maybelline’s core target audience of 16- to 25-year-old women

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S.T.P Analysis of MaybellinePositioning

(Mass Market)

High Price

Inexpensive Price

Mature

Young

stila •• Maybelline

Revlon •L’Oréal Paris •

• Covergirl

• ALMAY

• Avon

• Integrate

• Majolica Majoroka

• Avon

• Avon

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Marketing Mix of Maybelline

Eye Makeup Lips Makeup

Four Product Categories:

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Marketing Mix of Maybelline

Face Makeup Nail Makeup

Four Product Categories:

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Marketing Mix of Maybelline

Product – Foreign Consumer Culture Positioning

(FCCP) Symbolic New York City imagery that

women everywhere can relate to

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Nail Makeup

Lips Makeup

Eye Makeup Face Makeup

$3.99~9.99 PRICE

Marketing Mix of Maybelline

$3.99~14.99

$6.99~24.50

$3.99~8.50

Source: Amazon. COM & eBay. COM

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Marketing Mix of Maybelline

Distribution: Build up outlet near or at college

campus mass market Retailing channels

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Marketing Mix of Maybelline

Promotion1: Special promotional events

Coupons Sweepstakes

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Marketing Mix of Maybelline

Promotion2: Online advertising

Glamourmagazine.com Getlippy.com Msn.co.uk MySpace profile

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Marketing Mix of Maybelline

Promotion3: Co – Marketing :

Apple MTV

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Marketing Mix of Maybelline

Promotion4: Co – Marketing :

Sponsor for Fashion show Wedding Essentials Magazine

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Marketing Mix of Maybelline

Promotion4: Advertising

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Marketing Mix of Maybelline

Promotion4: Advertising

Fashion Icon as Spokespersons

Olympic gold medalists

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Marketing Mix of Maybelline

Promotion5: Slogan & Jingle

Eyes that glow with enchantment Lipstick: The sidewalk is your

catwalk Maybe she’s born with it. Maybe

it’s Maybelline

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Marketing Mix of Maybelline

Promotion6: Free makeup consulting

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Marketing Mix of Maybelline

Promotion7: Upgrading the brand image

Redesign of product Packaging:

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Marketing Mix of Maybelline

Promotion7: Upgrading the brand image

social service Provide scholarship

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Marketing Mix of Maybelline

Promotion7: Holding contest and providing

scholarship

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Marketing Mix of Maybelline

Source: 2006 Annual Report L’Oréal

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Enhancing the capacity of Maybelline--- Problem shooting

Enhancement of the product mix - New product formulations to keep up with technological advances

and changing consumer preferences.

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Enhancing the marketing Mix of Maybelline--- Problem shooting

The use of innovation at the heart of value creation

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Enhancing the marketing Mix of Maybelline--- Problem shooting

Constantly improving industrial productivity

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Enhancing the marketing Mix of Maybelline--- Problem shooting

The reorganization of the supply chain

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Enhancing the marketing Mix of Maybelline--- Problem shooting

reduction of administrative and commercial costs

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Market analysisStrong growth in the cosmetics market

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Market analysisGlobal cosmetic share

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Market analysisDefinition of cosmetics industry

The U.S. FDA defines cosmetics as: "intended to be applied to the human body for

cleansing, beautifying, promoting attractiveness, or altering the appearance without affecting the body's structure or functions.“

The FDA specifically excludes soap from this particular category.

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Market analysis

PROCTER & GAMBLEPanteneOlayHead & ShouldersClairolHerbal EssencesNice’n EasyNatural InstinctsCover GirlSK-IIRejoice

Max FactorOld Spice Secret LacosteVidal SassoonAussieInfusium 23Noxzema Laura Biagotti Koleston Wellaflex Shockwaves Hugo Boss

GucciRochasEscadaPumaAnna SuiGhostYardleyBognerToscaMax MaraMexx

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Market analysis

L’oréal GroupConsumerL’Oreal ParisGarnier

Maybelline NYSoftSheen.C

MininurseYue-SaiLa Scad

ProfessionalL’Oreal Prof. Redken

Kérastase Inné

Matrix Mizani

Luxury Lancôme Biotherm Kiehl’s Laroche

Shu Uemura OicassoPaloma Parfums Guy

Giorgio Armani Ralph Lauren Fragrances

Active Vichy

Laroche-Posay La Roche-Posay

GaldermaInnéov

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Market analysis

Unilever PLCAxe/Lynx Impulse Rexona/Sure Degree Dove SunsilkOrganics

Lux Ponds Vaseline Suave Timotei FinesseSalon Selectives

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Market analysis

Colgate PalmolivePalmolive Skin BracerProtex

Mennen Speed StickCapriceLady Speed Stick Afta

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Market analysis

Estee LauderAmerican Beauty AramisCliniqueDarphinThe Fragrance Donna Faran FlirtGood Skin MACOrigins Prescriptives Rodan + Fields Tommy Hilfiger

Aveda Bobbi Brown Bumble & bumble Donald Trump Estée Lauder Grassroots Jo Malone Kate Spade La Mer Michael Kors Stila

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Market analysis

AvonAvon Color Avon Solutions AdvancedAvon NaturalsMark Avon Wellness

Anew Skin-So-Soft Techniques Hair Care

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Market analysis

Beiersdorf AGNivea, 8×4, Atrix, LabelloMarlies Möller Eucerin

Hidrofugal La Prairie SBT Juvena Florena

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Market analysis

ShiseidoShisedo, Clé de Peau Beauté Carita Beauté Prestige International Parfums Issey Miyake Parfums Jean Paul Gaultier Oarfums Narciso Rodriguez Soka Mooka FT Shiseido Zotos

Serge Lutens Auprés D’ici là Ipsa Ayura Ettusais DecléorNarsZirh Fitit Kesyo-akusei Yuxia ZaSea Breeze

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Market analysis

Johnson & JohnsonNeutrogenapH5.5Retin-A Renova Ambi

Aveeno RoC Clean & Clear Biapharm SAS

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Market analysis

HenkelSchwarzkopf & HenkelSchwarzkopfBrillanceGliss Kur Taft SchaumaPalette Diadermine Fa

Schwarzkopf Professional Igora Sihouette bc Bonacure Seah Hairspa Osis Indola

Schwarzkopf & Henkel Inc.Dep L.A. Looks Citré Shine got2bSmooth ‘N Shine

Henkel Lion Corp.Paon Fresh Kight

MorrisSergio Tacchini La Perla

Genny Krizia Fiorucci Parfums Ferrari

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Competitors analysisMass-market product in America

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Competitors analysisMascara total dollar sales in America

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Competitors analysisMascara total unit sales in America

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Industry TrendNew target segment

SeniorsMen

Natural cosmeticsThe rapidly-growing areaGovernment regulation

Global expansionEmerging countries

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Industry TrendSeniors’ segment

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Industry TrendMen’s segment

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Industry TrendNatural cosmetics

Stricter legislation in E.U., U.S. and Canada. Phase out the use of chemicals linked to cancer,

birth defects and other health problemReplace them with safer alternatives

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Global Expansion

Industry Trend

Source: L’Oréal

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Industry TrendEmerging countries

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Opportunity Hunting

Trend Pros ConsSeniors’segment

Increase total sales Increase marketing and R&D expanse

Men’s segment

Increase total sales It’s not popular nowInconsistent brand imageIncrease marketing and

R&D expanseNatural

cosmeticsFollow government

regulationIncrease reputation

Increase marketing and R&D expanse

Global expansion

Increase total salesGrowing market

Unfamiliar with local countries

Increase marketing and R&D expanse

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Opportunity Hunting

Seniors’ segment Focus on over 35 years old

0 16 25 35

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Opportunity HuntingCompetitor analysis: 5Ps

Revlon MaybellineProduct Age Defying ® Instant Age Rewind® Price $17.98~$27.98 $17.40~$19.99Promotion Halle Berry Christy TurlingtonPlace Mass market Mass marketPositioning Over 35 years old Over 35 years old

Source: Amazon. COM & eBay. COM

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Opportunity Hunting

Natural cosmetics Maybelline is natural Multi- functional make-up

Global expansionEmerging countries in Asia and Latin

America

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Global marketing strategy - recommendation

Product

Natural ProductRelating packaging to

paper or organic ingredient

By using non-chemical constituent could get through the cosmetics legist ration.

Price

Slightly higher than mass

Natural cosmetics - Maybelline is natural

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Global marketing strategy - recommendation

Promotion

Upgrading brand image by against animal testing

Emphasizing on environmental protection

Celebrity influence

Distribution

First test marketed in Mature Market. North America and Europe

Mass Market: drugstore, retailing merchants, and grocery store

Natural cosmetics - Maybelline is natural

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Global marketing strategy - recommendation

Product

Centering on sophisticated looking package

Multi- functional make-up Ultra-coverage pigment

moisturizing (Hyaluronic Acid )

Anti – aging (Pro-Xylane Collagen

Price

Higher price

New target segment-seniors

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Global marketing strategy - recommendation

Promotion

Giving you younger-looking skin instantly

Using Senior models or celebrity as spokesperson

Distribution

First test marketed in Mature Market, such as North America and Europe

Mass Market: drugstore, retailing merchants, and grocery store

New target segment-seniors

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Global marketing strategy - recommendation

New target segment-seniorsNew products in 2007

Instant Age Rewind® Double Face Perfector

Christy Turlington

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Global marketing strategy - recommendation

Global expansionFocus on emerging countries and set up

subsidiariesChina→ L’Oréal China Co. LtdIndia → L’Oréal India Private LtdRussiaBrazilMexico → L’Oréal Mexico S.A. de C.V

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Global marketing strategy - recommendation

Global expansionProduct

Focus on whitening and anti-UV product

Have more shades to meet consumers’ need

PromotionTake a famous person in host

countries as spokesperson

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Reference Source Books1. 何琦瑜（民 94）。就是要美麗：全球第一大化妝品集團 L'Oréal 打造魅力品牌的故事（ 1 版）。臺北市：天下雜誌。 Newspaper1. Eye makeup emerges as the star performer. (2006, September 11). Chain

Drug Review, P.1 Research Report1. Merrill Lynch, Pierce, Fenner & Smith Incorporated (2007). L’oréal (Rep. No.

10648500). United Kingdom. Unpublished.2. ODDO Securities Corp. (2007). L’oréal. Paris, France. Unpublished.3. Christine Bittar. (2004, June 21). Amid changing demos, a burst of skin

tones, colors. Superbrands, s344. Tim Little, Sanford Lewis, Pamela Lundguist (2006). Beneath the skin –

Hidden liabilities, market risk and drivers of change in the cosmetics and personal care products industry. Virginia, U.S.: the Investor Environmental Health Network.

5. Bear Stearns & Co. Inc. (2007). L’oréal. London, United Kingdom. Unpublished.

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Reference Source Internet1. Heather Michelle. (Jul 30, 2006). Associated content. Top mascara under

10 Retrieved December 21, 2007 from the World Wide Web: http://www.associatedcontent.com/article/46830/top_mascara_under_10.html

2. Susan Antonelli. (Oct 18, 2007). Associated Content, Inc. Mascara Review: Millions to Chose From, Are They so Different?. Retrieved December 21, 2007, from the World Wide Web: http://www.associatedcontent.com/article/411784/mascara_review_millions_to_chose_from.html?page=2

3. Christine Bittar. (Jan 3, 2000). CNET Networks, Inc. En La Familia - Procter & Gamble's Cover Girl cosmetics brand targets Hispanic market - Brief Article. Retrieved December 21, 2007, from the World Wide Web: http://findarticles.com/p/articles/mi_m0BDW/is_1_41/ai_58586525

4. L'Oréal USA, Inc. (2007). Maybelline New York. Our History. Retrieved December 21, 2007, from the World Wide Web: http://www.maybelline.com/aboutus/our-history.aspx

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Reference Source5. The History of Maybelline. (2002, July19). Nzgirl Online. Retrieved

December 21, 2007, from the World Wide Web: http://www.nzgirl.co.nz/articles/1193

6. Maybelline New York. (2007). MAYBELLINE - HISTORY. Retrieved December 21, 2007, from the World Wide Web: http://www.maybelline.co.uk/about_us/l282l283.htm

7. L'Oréal USA, Inc. (2007). L’Oréal: cosmetics, beauty, perfumes. Our Brands. Retrieved December 21, 2007, from the World Wide Web: http://www.loreal.com/_en/_ww/index.aspx

8. Wikimedia Foundation, Inc. (2007). Cosmetics. Retrieved December 21, 2007, from the World Wide Web: http://en.wikipedia.org/wiki/Cosmetics

9. Amazon.com, Inc.  (2008). Health & Personal Care. Retrieved January 15, 2008, from the World Wide Web: http://www.amazon.com/

10. eBay Inc. (2008). Health & Personal Care. Retrieved January 15, 2008, from the World Wide Web: http://www.ebay.com/

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Q & AQ & A