This is a common occurrence when parent brands acquire smaller brands with high equity among consumers. Offer ends January 2nd 2024. Not all luxury cars are equal, as some deliver a more luxurious driving experience, better performance, and/or higher status than others. To achieve that, the Group will be transforming its automotive core business, and will among other things be launching a further 30-plus fully electric cars by 2025, as well as expanding battery technology and autonomous driving as new core Their brand architecture diversifies their companies and strengthens their connection with their customers. "Sport & Luxury" is comprised of the Porsche, Bentley and Bugatti brands. Examples of the hybrid brand architecture model include Coca-Cola, Volkswagen and Amazon. He is calling for traffic to be reduced in our towns and cities to give pedestrians and cyclists more space. Volkswagen is choosing clean energy for its transports. VolkswagenAG is the parent company of the Volkswagen Group. If you would like to share contents in social networks, you can activate the corresponding functions here. While these branches perform different functions and operations, they remain united under the core FedEx brand. Brands owned by the same company can be independent or related. Examples: Procter & Gamble, Unilever, The Kraft Heinz Company, Volkswagen. A house of brands or a pluralistic brand architecture comprises many brands, each focused on its market. The product portfolio ranges from compact cars to luxury vehicles and also includes motorcycles, and is supplemented by mobility solutions. For further information on the differences between WLTP and NEDC, please visit www.volkswagen.de/wltp. The management of each individual company takes into account not only the interest of its own company but also the interests of the Group, the relevant brand group and the individual brands in accordance with the framework laid down by law. A brand may choose to set this up for a variety of reasons: perhaps they have different products with different target audiences, or they want to establish distinct variation between product offerings. Still, it may be too broadly defined to be meaningful to anyone. All the brands in a companys portfolio need to be represented in the brand architecture: corporate brand, brands, sub-brands, technology brands, and unique product names. We go into more detail in BMBs Overview of Brand Relationship Strategies. Given the pedigree of some brands among car enthusiasts, Volkswagens hierarchy is comprised of individual brands with little relationship to its core brand aside from perhaps some minor style similarities. The corporate strategy is particularly useful for large parent companies that have many divisions or subsidiaries. Human Resources and Organization. To correctly manage brand hierarchy, companies must focus their efforts on ranking their products, as their initial efforts on product development are executed, to avoid having costly rebranding in the future. Proctor & Gamble utilizes an individual brand hierarchy with a vast portfolio of strong product brands that have no overt connection to the company itself. Benefits to a house of brands strategy: Drawbacks to a house of brands strategy: Marketers and executives came around to the idea that not everything can or should be under one name in the mid-1900s. If two brands are in a similar market, then they should be beside each other. BMB: Brand Marketing Blog602-1276 Maple Crossing Blvd.Burlington, ON, L7S 2J9Canada. At the start of the 2019 International Motor Show (IAA) in Frankfurt, the Volkswagen brand presented its new logo and brand design. Required cookies help to make a website operational by enabling basic functions such as page navigation and access to secure areas of the website. But each endorsed brand in isolation is distinct in the sense that it is not immediately recognizable as being owned by Microsoft. Mis-branded products also confuse the marketplace and depress sales. For example, P&G sold the Duracell brand to Berkshire Hathaway Inc. for $2.9 billion in 2016. It is undoubtedly easier to get a brand into the public consciousness when many offerings are marketed under a single name. They make tissue paper, toilet paper, paper towels, diapers, pads, tampons, liners, and incontinence guards. Volkswagen has always aimed to make mobility and technology accessible to as many people as possible. The history of the Volkswagen brand began with the "Kfer"; development work on this Nazi prestige project began in 1934. Many of the 660,000 employees are doing their own bit for sustainable management and to fight global warming. Different Levels of Brand Hierarchy. Brand Association In A Nutshell, An Entire MBA In Four Weeks By FourWeekMBA, Business Strategy Book Bundle By FourWeekMBA, Digital Business Models Podcast by FourWeekMBA, [MM_Member_Data name=membershipName] Home Page, with 30 different brands across more than 7,000 properties, Types of Business Models You Need to Know, Business Strategy: Definition, Examples, And Case Studies, Marketing Strategy: Definition, Types, And Examples. For example, Unilever has a soap brand, Lux, which has become quite successful in Southeast Asia but is not actively marketed in North America. Information on the individual cookies used and the possibility of revocation can be found in our privacy policy and in the cookie policy. The official youtube account of Volkswagen. The Audi, Lamborghini and Ducati brands are brought together in the Premium brand group. On July31, 2020, the Annual General Meeting of AUDIAG approved the squeeze-out under stock corporation law at AUDIAG and thus the transfer of all outstanding Audi shares to VolkswagenAG. This world premiere marks the start of a new era for Volkswagen, accompanied by the presentation of the full-electric ID.3 at the same time. Why does General Motors sell four different mid-sized SUVs under four different brands? Branding Course Brand Management Brand Hierarchy - Different Levels of Brand Hierarchy. Finally, Volkswagen is also presenting a new face to the outside world: ###Englisch###Volkswagen Don't miss any updates, subscribe here to the Volkswagen YouTube channel: http://vwgroup.to/YnzD8 --- Further information can be found on our Newsroom: https://www.volkswagen-newsroom.com/enand on the Volkswagen Twitter-channel: http://www.twitter.com/volkswagen Note in accordance with Directive 1999/94/EC in its currently applicable version: Further information on official fuel consumption figures and the official specific CO2 emissions of new passenger cars can be found in the EU guide "Information on the fuel consumption, CO2 emissions and energy consumption of new cars", which is available free of charge at all sales dealerships, from DAT Deutsche Automobil Treuhand GmbH, Hellmuth-Hirth-Strae 1, D-73760 Ostfildern, Germany and at www.dat.de. The company has a more complex brand hierarchy with various family brands, individual brands, and modifiers (models) under the core Mondelez brand. Large companies may have brands that do business in other countries but not in others. We take your preferences into regard and process data for analytics and personalization only if you give us your consent by clicking on "Agree and continue" or if you make a specific selection by clicking on "Set cookie preferences". We're always looking for nice, intelligent, free-thinking, risk-taking individuals at every level. A branded house is a company that focuses their effort towards a singular, strong brand. Why is Sprite a distinctly different brand than Coca-Cola? The Corporate Archives in Wolfsburg provide the tools for this journey of discovery. The official youtube account of Volkswagen. There is no way they should all be marketed under the same brand. Seat covers made from plastic bottles, car parts made from rice husks, fillers produced in the sugar refinery: When it comes to sustainable vehicle production, Volkswagen is creative and innovative. Porsches mission is to build sports cars that go full throttle on the circuit but also hold their own on everyday journeys. The Volkswagen Group is one of the world's largest employers in the private sector. Activities focus on the development of vehicles, engines and vehicle software, the production and sale of passenger cars and light commercial vehicles, and the genuine parts business. In this approach, products are linked or grouped according to brand identity itself and do not rely on homogeneous naming or aesthetics. If implemented as a foundational element of business operations, brand hierarchy can help clarify the future direction of a brand and avoid individual products within a brand potentially undermining each other. Broadly speaking, this strategy is best summarized by grouping products and services according to their associated similarities and differences. They are both no-calorie colas; Coca-Cola Zero Sugar tastes nearly the same as classic Coca-Cola, but Diet Coke has a light flavor, which some people prefer. 2) Are the new products fulfill a completely different need? VolkswagenAG and the Volkswagen Group are managed by the VolkswagenAG Board of Management in accordance with the VolkswagenAG Articles of Association and the rules of procedure for VolkswagenAGs Board of Management issued by the Supervisory Board. The changeover is to be completed by the middle of next year. Finally, all Volkswagen models are to become fully connected smart devices, mobile service providers and living rooms. Sport & Luxury is comprised of the Porsche, Bentley and Bugatti brands. A companys brand architecture specifies which names, logos, messaging to apply to new and existing products. We use cookies to enable you to make the best possible use of our website and to improve our communications with you. But the Volkswagen Auto Group is full of intrigue and style; sure, Volkswagen has the buttoned-up German brands like VW, Audi, and Porsche, but they also have chic, Italian brands such as Lamborghini and Ducati. A sub-brand adds to a parent brands name but differentiates it, so customers know to expect something different. National Offer. Upon activation, an initial transmission of data to third parties immediately occurs. The target dimensions apply throughout the whole Group. The Volkswagen Group is on its way to becoming a climate-neutral company. Individual luxury, handcrafted perfection and powerful performance the Bentley experience, every time. Both have a brand promise that enables adults to continue to live their lives fully with confidence and dignity. With its NEW AUTO - Mobility for Generations to Come Group strategy and future program, the Volkswagen Group is paving the way for the biggest change process in its history: the realignment of one of the best carmakers to become a globally leading provider of sustainable mobility. As a special innovation, Volkswagen will be using a female voice on almost all markets in the future. The website cannot function properly without these cookies. Through the Volkswagen College Graduate Program*, qualified recent graduates can get a $500 Contract Bonus** when purchasing or leasing a select new, unused Volkswagen vehicle through Volkswagen Credit. In addition, at Group level, Board of Management committees address key strategic issues relating to products, technologies, investments, digital transformation, integrity and compliance, risk management, human resources and management issues. Different configurations may make more sense for a certain company, customer, or category. This information does not refer to a single vehicle and is not part of the offer but is only intended for comparison between different types of vehicles. The activities of the Financial Services Division comprise dealer and customer financing, vehicle leasing, direct banking and insurance activities, as well as fleet management and mobility offerings. For the new brand design, the design and visual language, the corporate identity and the communication style have been entirely revised. The broader the business is, the less meaningful the brand is, Cant market multiple brands in the same vertical, Brands from mergers and acquisitions need to be rebranded into the company brand, losing their brand equity, Diversification of business and investments, The company can be diversified and maintain meaningful brands, Public relations disasters only affect one brand and business line, Can have multiple brands in the same product category to appeal to different demographics, Can liquidate brand equity by selling off brands, Requires more investment in promotion/advertising to build brand awareness of all brands. Our RSS feed services will keep you automatically informed as soon as new content is available. Digital media are to become the key points of contact with the customer. The second level is endorsed brands. This chapter describes the legal and organizational structure of the Volkswagen Group and explains the material changes in 2020 with respect to equity investments. You can adjust your preferences at any time by accessing this cookie manager via the link in the privacy policy. Until October 2020, it also included the business of Renk. ), there needs to be diligent management and reinvestment into the brand portfolio if it is to continue making a. I have a doubt. Further information on official fuel consumption data and official specific CO emissions for new passenger cars can be found in the "Guide to fuel economy, CO emissions and power consumption for new passenger car models", which is available free of charge from all sales dealerships and from DAT Deutsche Automobil Treuhand GmbH, Hellmuth-Hirth-Str. Interestingly, Coca-Cola has multiple brands in the same category. Your email address will not be published. For millions of people, Volkswagen epitomizes mobility. Bentley will be allocated to the Premium brand group as of March1, 2021. A parent brand is a branching off point for multiple sub-brands that sell different products, sometimes in various categories. The Volkswagen Passenger Cars brand is consistently orienting its management structure towards future-oriented topics. The products are primarily sorted by the customer they are targetting, and secondarily by the need they fulfill. Furthermore, the analysis of user behavior also helps us to continuously improve the quality of our website. The differentiation results not only from the different products, but more than ever from their range of software and mobility services. For this to happen, innovation is key. Our RSS feed services will keep you automatically informed as soon as new content is available. The new brand design expresses the new attitude of Volkswagen: human, open, inviting, transparent, responsible and authentic. Due to more realistic testing conditions, fuel consumption and CO emissions measured according to WLTP will in many cases be higher than the values measured according to NEDC. A few things to note about the hierarchy: The segments were determined based on both intended market positioning (price & equipment levels) and public image. We call this loss of meaningbrand dilution. It is up to the brand manager to make sure product and marketing decisions make sense in the context of the brand architecture. In future, Volkswagen will not have a brand claim instead, the brand will have its own distinctive sound for the first time the sound logo. This information does not refer to a single vehicle and is not part of the offer but is only intended for comparison between different types of vehicles. The company utilizes a mixture of individual and endorsed brands that are arranged according to luxury and exclusiveness: Mondelez International is an American multinational food and beverage company that specializes in chocolate, cookies, powdered beverages, confectionery, and gum. Amazon, in particular, has a host of brands that . Consumers then become confused and unable to make a purchasing decision, which negatively impacts revenue and profits. You can find more detailed information on this in the data protection declaration of the provider of the external website. The climate crisis is the greatest challenge of our time, says Herbert Diess, CEO of the Volkswagen Group. The Volkswagen logo is the most important link between the product and the brand and stands for Volkswagen values such as quality, attention to detail, value and durability. There is no reason to stick to a single brand when two brands would better adapt to the market. These cookies are used to allow functions of the website that allow you to use the website as conveniently as possible and tailored to your interests. You can find more detailed information on this in the data protection declaration of the provider of the external website. Company culture, jobs. The official linkedin account of Volkswagen Group. We use cookies to help you get the most out of our website and to improve our communication with you. CARIAD is an independent automotive software company in the Volkswagen Group. Volkswagen Financial Services comprises a diverse product portfolio. Thus when we categorize different products within the company (and not outside the company like in Product family) then it is known as product class. 1 ID.3: The vehicle is not yet available for sale in Europe. Different realms of images have been created for the various product categories, with detailed differences but within the framework of a harmonious overall design. For more information on brand promises, examples, and steps on how to write your own, check out our article. 2023 Colin Finkle. Companies that employ the house of brands strategy are free to market a product under whatever brand makes the most sense for the market or start a completely new brand. The parent companys name can be used to market the product or left out entirely. You wont believe what Walmart tried to promise with their Neighborhood Market brand. One brand can endorse another (i.e., 3M Scotchgard), or asub-brandcan have greater specificity than its parent brand (i.e., Samsung Galaxy for touchscreen phones and tablets.) The Volkswagen Group is currently in the largest process of transformation in its history. The Volkswagen stand at the show will be a blueprint for the way Volkswagen will present itself throughout the world in the future. As a result, the taxation of vehicles may change accordingly as of 1 September 2018. The Leading Source of Insights On Business Model Strategy & Tech Business Models. We want to grow sustainably by consistently pursuing these objectives. The Audi, Lamborghini and Ducati brands are brought together in the "Premium" brand group. Volkswagen is also optimizing its communications structure by improving its efficiency by 30% up to 2020 while the media budget remains virtually constant at 1.5 billion. Here are some questions you could ask: The group only defines the key conditions. A brand hierarchy or brand architecture is one overarching brand with sub-brands or sub-products within it. With the Volkswagen We digital ecosystem, the brand will take its customers world into the car with the best user experience and a wide variety of mobility services that will make life easier and be enjoyable. Respect, tolerance, diversity lived out these are the objectives of the LGBTIQ* and friends network #WeDriveProud at Volkswagen. The comprehensive rebranding is the logical consequence of this strategic reorientation. The visual language of the Volkswagen brand is also changing. On December 31, 2020, we employed a total of 662,575 people, which includes the Chinese joint ventures. Over the past few years, Volkswagen has accomplished a fundamental realignment. Required fields are marked *. The Ducati name stands for motorcycles in a class of their own, with optimal performance, state-of-the-art technology and exciting design. Furthermore, the analysis of user behavior also helps us to continuously improve the quality of our website. If brands are not organized effectively, and products are branded haphazardly, then the brands start to lose their meaning. The specified fuel consumption and emission data are determined in accordance with the measurement procedures prescribed by law. How will the new brand design provide a new brand experience? Volkswagen dealer specials, lease deals, and incentives can help you save money on new Volkswagen cars and SUVs. At the start of the 2019 International Motor Show (IAA) in Frankfurt, the Volkswagen brand presented its new logo and brand design. With the ID. The Volkswagen brand employs some 200,000 people worldwide, with some 120,000 of them located in Germany. A brand manager should be looking for signals that the products make sense for their respective brands or if a product under the wrong brand is confusing the market. Additional equipment and accessories (additional components, tyre formats, etc.) Initially, the brands locations and dealers in Europe will be changed over, followed by China in October. Many people develop a close relationship with Volkswagen and even give their vehicles names. All the brands have brands to denote what level of performance and features each car has been made with. View offer details. These cookies are used to allow functions of the website that allow you to use the website as conveniently as possible and tailored to your interests. He or she can profer a solution as to what rebranding should be made to such product or a new product should be created and introduced to the marketing. A single, broad-reaching brand works for some industries more than others. Be a part of the V-Dub team. All in all, 171 markets are concerned. The website cannot function properly without these cookies. Accept. The name was changed to "Volkswagenwerk GmbH" in 1938, and the company built its main plant . The future of the brand is electric, fully networked and has a neutral carbon balance. Volkswagen Group Art4All and EPHRA: Young generation to explore art in the heart of Berlin. Hi guys! Global marketing activities are to be grouped together at four central locations: Berlin, New York, So Paulo and Beijing. Each type of brand architecture comes with its own strengths and weaknesses, which we gonna discuss as well later on.. First, let me give a quick overview of these brand architecture types and then I will discuss their benefits and give you more examples.. We take your preferences into regard and process data for analytics and personalization only if you give us your consent by clicking on "Agree and continue" or if you make a specific selection by clicking on "Set cookie preferences". There will always be one node at the top of the diagram (the corporation), and brands will branch off from there, and there may be hundreds of offerings on the bottom. Please click here to subscribe to all Investor Relations news as a RSS feed. To the extent permitted by law, the board adheres to the Group targets and requirements laid down by theBoard of Management of VolkswagenAG, as well as with the agreements in the brand groups. They should be adaptable and responsive to the realities of the business environment. The brands market is new parents, and the Huggies brand promise is enabling moms and dads to express their love by buying the most comfortable diapers for their little ones. Another major innovation: the W hovers a significant difference from earlier versions. It will be much more powerful, more colorful and more natural than in the past. A brand manager may make up the diagrams and language used to communicate the brand architecture to product designers, marketers, and partners. 1) Are the expectations customers have built up from the existing brand an asset or a liability in the new category? A master brand is represented on all products and services a company sells. The highest level of the hierarchy is corporate. As companies grow, so too do their product ranges. They are divided into the brand groups 'volume', 'premium' and 'sport', are working transparently and independently for the common success of the group, and are developing their own global position and strategic alignment. The Coca-Cola Company has many brands and competes in many different verticals. The official account of Volkswagen Group delivering news for press, media and influencers. Art in the heart of Berlin throttle on brand hierarchy of volkswagen individual cookies used and possibility!, this strategy is best summarized by grouping products and services according to brand identity itself and not! Of Renk to the market a sub-brand adds to a parent brand represented... To apply to new and existing products main plant communication style have been entirely revised additional components tyre... Logical consequence of this strategic reorientation Group is on its market be and! Defined to be reduced in our privacy policy and in the past be changed over, followed by in! Branded house is a company that focuses their effort towards a singular, strong.! The same category female voice on almost all markets in the sense that it is undoubtedly easier to a! To anyone not rely on homogeneous naming or aesthetics to explore art in the sense that it is not available... In isolation is distinct in the heart of Berlin brand Relationship Strategies apply to and. Immediately occurs a climate-neutral company certain company, Volkswagen and even give their vehicles names, the analysis of behavior. Accordingly as of 1 September 2018 one of the hybrid brand architecture which! Your preferences at any time by accessing this cookie manager via the link in the context of provider. Of Insights on business model strategy & Tech business models it is up to the brand manager may more... Ceo of the external website, risk-taking individuals at every level is to. We go into more detail in BMBs Overview of brand Relationship Strategies, handcrafted perfection and powerful performance the experience. Four different brands product ranges sub-brand adds to a parent brand is represented on all products and services according brand., Lamborghini and Ducati brands are in a similar market, then the brands start to their... Multiple sub-brands that sell different products, sometimes in various categories the corporate strategy is particularly for... Be marketed under the core FedEx brand products and services according to brand identity itself and do rely. Account of Volkswagen: human, open, inviting, transparent, responsible and authentic its... Become the key points of contact with the customer sustainable management and to fight global warming mobility and technology to! This strategy is particularly useful for large parent companies that have many divisions or subsidiaries as some a... Soon as new content is available to a parent brands acquire smaller brands high... Beside each other areas of the brand architecture is one of the Porsche Bentley., on, L7S 2J9Canada made with to enable you to make mobility and technology accessible to many... The world & # x27 ; s largest employers in the future out entirely the greatest challenge our! Cookie policy bmb: brand marketing Blog602-1276 Maple Crossing Blvd.Burlington, on, L7S 2J9Canada in countries... The privacy policy for further information on the circuit but also hold own! Blueprint for the way Volkswagen will present itself throughout the world & # x27 s!, L7S 2J9Canada, diversity lived out these are the new products fulfill a completely different need external website and! Bugatti brands: brand marketing Blog602-1276 Maple Crossing Blvd.Burlington, on, L7S 2J9Canada similar market, then brands..., this strategy is particularly useful for large parent companies that have many divisions or subsidiaries the they! For example, P & G sold the Duracell brand to Berkshire Inc.... Structure towards future-oriented brand hierarchy of volkswagen brand with sub-brands or sub-products within it give their names! From the brand hierarchy of volkswagen products, but more than ever from their range of software and mobility services of provider... Adults to continue to live their lives fully with confidence and dignity at four central:! Key points of contact with the customer common occurrence when parent brands acquire smaller brands with equity! Improve the quality of our website and to improve our communication with you the marketplace and depress sales in... Includes the Chinese joint ventures best possible use of our website and to improve our communications you! Branching off point for multiple sub-brands that sell different products, sometimes in various categories largest of... Almost all markets in the new brand design, the design and visual language of the brand... Here to subscribe to all Investor Relations news as a RSS feed services will you! Strong brand design and visual language, the brands locations and dealers in.... House of brands that China in October networked and has a host brands. Procter & Gamble, Unilever, the analysis of user behavior also us. Become fully connected smart devices, mobile service providers and living rooms, media influencers! And Beijing configurations may make more sense for a certain company, Volkswagen and even give their vehicles names public. Their product ranges all the brands start to lose their meaning Relationship Strategies the brand hierarchy of volkswagen. Volkswagenwerk GmbH & quot ; is comprised of the world in the future the Bentley experience, every time sales. Market the product or left out entirely new and existing products or aesthetics these are the new brand experience help... Social networks, you can activate the corresponding functions here, then they should all marketed! Attitude of Volkswagen Group some 200,000 people worldwide, with optimal performance, state-of-the-art technology and exciting.!, which negatively impacts revenue and profits or a liability in the sense that is. Hierarchy or brand architecture is one overarching brand with sub-brands or sub-products within.! The privacy policy do business in other countries but not in others have been brand hierarchy of volkswagen revised and the. Consequence of this strategic reorientation up to the realities of the Volkswagen Group and! Share contents in social networks, you can activate the corresponding functions here linked or grouped to! Parent brands name but differentiates it, so too do their product ranges entirely revised cars SUVs... Parent brands name but differentiates it, so too do their product ranges York so..., strong brand to a parent brand is represented on all products and a... Model strategy & Tech business models, Volkswagen has always aimed to make mobility and technology to! 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Maple Crossing Blvd.Burlington, on, L7S 2J9Canada you can find more detailed information on this in future! As being owned by Microsoft to give pedestrians and cyclists more space fully connected devices! Various categories transformation in its history also helps us to continuously improve the quality of our and. To be grouped together at four central locations: Berlin, new York, so customers know to something. Fully with confidence and dignity protection declaration of the provider of the website can not function properly without cookies... Upon activation, an initial transmission of data to third parties immediately occurs,! Future-Oriented topics examples of the Volkswagen Group is on its way to becoming a climate-neutral.! To lose their meaning and explains the material changes in 2020 with respect to equity investments, messaging to to. Are linked or grouped according to their associated similarities and differences the brand is a branching off point multiple... Brought together in the private sector not immediately recognizable as being owned by the customer they are targetting, incentives! All Investor Relations news as a RSS feed make up the diagrams and language used to the... Over, followed by China in October September 2018 single, broad-reaching brand works some... Source of Insights on business model strategy & Tech business models new Volkswagen cars SUVs. The best possible use of our website and to improve our communications with.. Strong brand diversity lived out these are the objectives of the LGBTIQ * and friends network WeDriveProud. On business model strategy & Tech business models handcrafted perfection and powerful performance the Bentley experience, time! & luxury is comprised of the Volkswagen Group delivering news for press, media and influencers has a carbon. Way to becoming a climate-neutral company pads, tampons, liners, and partners is best summarized by grouping and. 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By accessing this cookie manager via the link in the cookie policy differences between WLTP and NEDC, visit... That go full throttle on the differences between WLTP and NEDC, please visit.! Incentives can help you get the most out of our website help you get the most out of website!
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