MAKING IT IN MYANMAR - Worldwide | Nielsen it....3 Pioneer in research services in Myanmar Global...

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MAKING IT IN MYANMAR WITH CONSUMER FORESIGHT, MOBILE INSIGHTS 4 December 2014

Transcript of MAKING IT IN MYANMAR - Worldwide | Nielsen it....3 Pioneer in research services in Myanmar Global...

Page 1: MAKING IT IN MYANMAR - Worldwide | Nielsen it....3 Pioneer in research services in Myanmar Global brand of information and insights into what consumers watch and buy In-depth understanding

MAKING IT IN MYANMAR

WITH CONSUMER FORESIGHT, MOBILE INSIGHTS

4 December 2014

Page 2: MAKING IT IN MYANMAR - Worldwide | Nielsen it....3 Pioneer in research services in Myanmar Global brand of information and insights into what consumers watch and buy In-depth understanding

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Thurein Nyein General Manager Nielsen MMRD [email protected]

Sagar Phadke Executive Director Smartphone Analytics Solution Nielsen Southeast Asia, North Asia and Pacific [email protected]

YOUR PRESENTERS TODAY

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Pioneer in research

services in Myanmar

Global brand of

information and insights into what consumers watch and buy

In-depth understanding

of the Myanmar marketplace and

consumer behaviour

90 YEARS

OF INNOVATION 20 YEARS

IN THE MARKET

UNLIMITED OPPORTUNITIES

TIMELY JOINT VENTURE TO HELP YOU WIN NEW MARKETS, NEW CONSUMERS

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DISCOVER

the growth and opportunities in

Myanmar.

GAIN key insights into how to

connect and communicate with target consumers.

EXPLORE consumer attitudes that drive decisions on what

they watch and buy.

OUR AGENDA

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WHERE ARE THE OPPORTUNITIES?

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Volume of Foreign Trade FDI Trend in Myanmar

Source: Ministry of Commerce; Directorate of Investment and Company Administration (DICA)

Since 2009, import volume up 230% & FDI inflows up 30%

MYANMAR ON THE RISE

6,402 6,779 7,587

8,861

9,136

9,056

11,204

3,353

4,543 4,181

6,413

9,035

9,372

13,760

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000EXPORT (US $ MILLION)

IMPORT (US $ MILLION)

34

,53

5

34

,74

0

35

,72

5

36

,05

5

40

,69

9

42

,11

9

46

,22

6

434 442 447 454 467 561

684

0

100

200

300

400

500

600

700

800

-

10,000

20,000

30,000

40,000

50,000

VAULE (US $ MILLION)

NO. OF FDIS

Following the 2010 general election, a nominally civilian government takes the lead after 5 decades of military rule and begins implementing political and economic reforms that are met with an easing of trade and other economic sanctions by the international community.

Continued reforms and a new investment law make Myanmar an FDI magnet.

TOP 3 IMPORTS 1. Diesel 2. Automobiles 3. Iron & Steel

TOP 3 INVESTORS (by approved amount) 1. China 2. Hong Kong 3. Singapore WHERE IS IT GOING? Oil & Gas + Power

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MARKET ENVIRONMENT 2010 2011 2012 2013 2014F 2015F

Adspend(USDMillions) 57.0 77.7 118.2 151.7 210.8 294.6

Digital n.a. n.a. n.a. n.a. n.a. n.a.

TV/Radio 61% 58% 63% 64% 66% 67%

Retailsales(USDMillions) 8,537 9,575 11,030 13,200 15,246 17,612

MT 8.8% 9.5% 9.9% 10.0% 10.4% 10.8%

TT 91.2% 90.5% 90.1% 90.0% 89.6% 89.2%

MNCs 31.5% 32.6% 33.2% 35.0% 38.1% 39.7%

Local 68.5% 67.4% 66.8% 65.0% 61.9% 60.3%

GDP(MMKBillion) 39,847 44,279 45,779 49,853 53,742 57,933

Inflation 8.2% 4.2% 5.8% 5.5% 6.6% 6.9%

CCI n.a. n.a. n.a. n.a. n.a. n.a.

• Ad budgets continue to grow and TV dominates ad spends

• Modern Trade expected to continue growing – Key to long term relevance of Retail Index measurement

• Steady growth in MNC product sales

Source: Local Government statistics / ADB/ MRA/ Nielsen MMRD

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Here’s how…..

DOING BUSINESS IN MYANMAR

MARKET ENTRY: 3 WAYS

REGISTRATION/PERMIT

NO INCENTIVE

START

PERMIT

INCENTIVES

START

PERMIT

INCENTIVES

START

MYANMAR INVESTMENT COMMISSION

(MIC)

SPECIAL ECONOMIC ZONE MANAGEMENT

COMMITTEE (SEZ MC)

DIRECTORATE OF INVESTMENT

AND COMPANY ADMINISTRATION

(DICA)

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Two-third of the population live in one-third of land

area

12.8%

18.6%

68.6%

Metropolitan Urban Rural

Stratum Population

Metro 6.60

Urban 9.55

Rural 35.27

Source: Nielsen MMRD Consumer Media View (CMV) 2014

Hilly

Dry

Plain

Delta

Coastal

Coastal

12.8%

24.9%

22.0%

14.5%

14.5%

11.3%

Metropolitan Hilly Dry

Plain Delta Coastal

Region Population

Metro 6.60

Hilly 12.79

Dry 11.31

Plain 7.43

Delta 7.45

Coastal 5.83

POPULATION IS URBANISING But Rural households still outnumber Metro 6 to 1

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STATE &AND REGION POPULATION (Million)

YANGON 7.36

AYEYAWADY 6.18

MANDALAY 6.15

SHAN 5.82

SHAN (N) 2.37

SHAN (S) 2.62

SHAN(E) 0.83

SAGAING 5.32

BAGO 4.86

BAGO (E) 2.89

BAGO(W) 1.97

MAGWAY 3.91

RAKHINE 3.19

KACHIN 1.69

KAYIN 1.57

TANINTHARYI 1.41

NAY PYI TAW 1.16

CHIN 0.48

KAYAH 0.29

Grand Total 51.42

MYANMAR POPULATION By state and region……

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Source: Nielsen MMRD Consumer Media View (CMV) 2014

A YOUNG POPULATION POISED FOR GROWTH

OLDER DEPENDENTS (60–65+)

OLDER INDEPENDENTS WITHOUT DEPENDENTS (50–59)

YOUNG INDEPENDENTS WITH DEPENDENTS (30–49)

INDEPENDENTS WITHOUT DEPENDENTS (20–29)

YOUNG DEPENDENTS (0–19) 38%

17%

28%

9%

8%

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Sources: MMRD Consumer & Media Index 2008, 2010 2012 & 2013; Nielsen MMRD Consumer Media View (CMV) 2014

Consumers are earning 90% more, spending 60% more than they were 6 years ago

NEW PURCHASING POWER AND RISING DISPOSABLE INCOMES

0

50,000

100,000

150,000

200,000

250,000

300,000

2008 2010 2012 2014

Avg HH Income Avg HH Expenditure

Average Monthly Household Income & Expenditure (2008-2014)

WHERE IS THE MONEY

GOING?

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WHO IS THE CONSUMER IN MYANMAR?

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Base: All respondents n=1400

Source: Nielsen EMI Survey 2014

FMCG ACCOUNT FOR NEARLY HALF OF MONTHLY HOUSEHOLD EXPENDITURE

65,000

15,000 12,000

Food & Grocery Household Products Personal CareProducts

AVG SPEND PER MONTH BY CATEGORY (MMK)

Food & grocery

33%

Health Care 9%

New Clothes 8%

Household Products

8%

Mobile phone 8%

Education 7%

Personal Care Products

6%

Utility bills 6%

Transportation 6% Eating out

3%

Entertainment 3%

House Rent 2% Loan

installments 1%

WHAT MYANMAR CONSUMERS SPEND ON

Average FMCG spend per month ~ 90, 000 MMK

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Base: All respondents n=1400

Source: Nielsen EMI Survey 2014

MOBILE NEW CLOTHES HEALTHCARE

EMERGING TRENDS BEYOND FMCG

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Yet much of the market for durables still to be realized

AIR CONDITIONERS

2014: 4% 2013: 4%

WASHING MACHINES

2014: 4% 2013: 4%

HOUSEHOLD MOBILE PENETRATION INCREASED BY TWO-THIRDS IN 2014

Base: 11.4M Households (2014); 11.2M Household (2013) Source: Nielsen MMRD Consumer & Media Index 2013 & 2014

MOBILE PHONES

2014: 44% 2013: 25%

TELEVISIONS

2014: 60% 2013: 56%

MOTORCYCLES

2014: 49% 2013: 43%

REFRIGERATORS

2014: 17% 2013: 14%

+4% +19%

+3% +6%

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1,585 3,621 1,742

32,504

127,568

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2008-20092009-20102010-20112011-20122012-2013

NO. OF CARS (MYANMAR CUSTOMS DATA)

3% of Myanmar consumers are car owners

69% drive Toyota Honda

Mitsubishi Suzuki Mazda Nissan Others

Source: Nielsen MMRD Consumer Media View (CMV) 2014 & Myanmar Customs data

2010: Easier to get foreign cars into Myanmar.

2013: Consumers can buy new foreign cars.

Caveat: Not new cars

CAR OWNERSHIP IS SKYROCKETING

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Base: 10+ Population & Bank Users n=4570

Source: Nielsen MMRD Consumer Media View (CMV) 2014

1 in 10 use banking services

48% MONEY TRANSFERS

CONVENIENCE is key

33% Savings accounts

5% Credit accounts

4% ATM/MPU/Debit cards

Due to the lack of familiarity with banking services,

A result of longstanding lack of infrastructure, access and awareness

MAJORITY OF MYANMAR POPULATION UNBANKED

CONVENIENCE OF SERVICE is the most influential factor for consumers selecting a banking service or financial product

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MEET THE MYANMAR METRO CONSUMER

Base: All respondents (n=1400) Source: Nielsen EMI Survey 2014

Percentage of male and female respondents that agree with the given statements:

TECH ASPIRANTS

60% of men keep up with developments in technology

39% of men think it is important to be attractive to the opposite sex

GROOMING CONSCIOUS ON-THE-BALL BUDGETERS

54% of women are good money managers

78% of women enjoy the fun of shopping

RECREATIONAL SHOPPERS

(Female: 45%)

(Female: 24%)

(Male: 32%)

(Male: 33%)

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TOTAL

STRATUM GENDER

Metro Urban Rural M F

1,400 500 600 300 644 756

Able to spend freely 23 18 29 19 24 22

Live comfortably and buy some things just because I wanted to

35 43 34 24 35 35

Only enough money for shelter, food & essentials

42 39 37 57 42 42

NEW CLOTHES

TECH PRODUCTS HOLIDAYS

Base: Respondents who report some degree of luxury spending/disposable income n=813; All figures in % Source: EMI Survey 2014; Q3A “When you have spare cash on hand, what do you spend it on (Top 3)?”

RURAL & URBAN CONSUMERS READY TO SPEND 23% say they have room for luxury

TOP 3 ITEMS FOR SPARE CASH: (Across the board (age, gender, SEC, urbanisation)

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Source: Emerging Market Insights Consumer Survey,2011

I really enjoy doing the household grocery shopping (82%)

I usually

plan what I want to buy before I shop for groceries (77%)

I always prefer to shop in a

well-organised store (73%)

and near my home (62%)

I care about quality and am willing to pay more for quality products (59%)

I like to

take my time and browse all parts of the store or market I am shopping in (55%)

Although I plan I usually

end up buying additional grocery items (56%)

CONVENIENCE DRIVEN LEISURE MINDED

QUALITY CONSCIOUS

PLANNERS, BUT SUSCEPTIBLE TO IMPULSE

I do not buy brand imitation products to save money (64%)

Household shopper respondents: n=633 Source: Nielsen EMI Survey 2014

WHO IS THE MYANMAR SHOPPER FOR HOUSEHOLD PRODUCTS? Percentage of Household Shoppers that agree with the given statements

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25%

17%

11% 14% 12%

1% 0.1% 0.1%

23%

11% 9%

25%

10%

2% 1% 1%

17%

28% 27%

7% 5%

1% 1% 0.4%

Affordability Always buy thesame brand

I've tried itbefore

Recommendedby friends and

family

It is easilyavailable

Recommendedby trade/shopkeeper/sales

promoter

It is a newbrand/product

to me

It is offeringpromotions and

deals

FOOD/BEV/DAIRY

HOUSEHOLD CARE PRODUCTS

PERSONAL CARE PRODUCTS

Base: Users of respective categories (n=1,400) Source: Nielsen EMI Survey 2014

Single most important factor when purchasing respective categories

LEAST IMPORTANT

Affordability, familiarity and availability reign supreme

PROMOTIONS DON’T WEIGH HEAVILY ON DECISION MAKING

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Base: 44,530,467 Source: Nielsen MMRD Consumer Media View (CMV) 2014)

Weighted by: Population

% of Total Myanmar Population Media Exposure

In Past Month

VIDEO 62%

RADIO 43%

TV 51%

OOH 40%

NEWSPAPERS 13%

MAGAZINES 6%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

JOURNAL 26%

CINEMA 2%

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WHAT’S YOUR MOBILE STRATEGY?

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Source: Nielsen Smartphone Insights 2013, 2014

62% 90% 52% 49% 34% 23%

38% 10% 48% 51% 85% 77%

Myanmar Malaysia Vietnam Thailand Philippines Indonesia

Smartphone Non-Smartphone

42% 100% 97% 88% 86% 78%

58% 3% 12% 14% 22%

Myanmar Malaysia Thailand Indonesia Vietnam Philippines

Mobile Phone Ownership Non Owner

MOBILE PHONE OWNERSHIP SMARTPHONE OWNERSHIP

MOBILE PENETRATION REACHING CRITICAL MASS IN MYANMAR Smartphone ownership among mobile users in line with Southeast Asia

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YOUNGER CONSUMERS ARE DRIVING ADOPTION IN MYANMAR

Source: Nielsen Smartphone Insights 2013, 2014

Myanmar Malaysia Vietnam Thailand Philippines Indonesia

16-24yo

62% 90% 52% 49% 34% 23%

ADOPTION DRIVEN BY

16-34yo 25-34yo 16-34yo 16-24yo 16-34yo

SMARTPHONE PENETRATION AMONG MOBILE USERS

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10 UNCOMMON INSIGHTS

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WOM IMPACTS MOBILE DEVICE SELECTION Critical for brand marketers to invest in building emotional connection with consumers

Source: Nielsen Smartphone Insights 2013, 2014

1

MYANMAR

1…FRIENDS/COLLEAGUES/ RELATIVES 2…STORE

MALAYSIA

1 FRIENDS/ COLLEAGUES/

RELATIVES 2 REVIEW AND BLOG

ONLINE

THAILAND

1 FRIENDS/COLLEAGUES/ RELATIVES

2 PHONE SALESPERSON

INDONESIA

1 FRIENDS/COLLEAGUES/

RELATIVES 2 ADVERTISEMENTS /

MAGAZINES /PAPERS PHILIPPINES

1 FRIENDS/COLLEAGUES/

RELATIVES 2 STORE

VIETNAM

1 FRIENDS/COLLEAGUES/

RELATIVES 2 STORE

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2

Source: Nielsen Smartphone Insights 2013, 2014

MYANMAR

VALUE FOR MONEY

INDONESIA

OPERATING SYSTEM

MALAYSIA

DESIGN/STYLE

PHILIPPINES

Wi-Fi CAPABILITY

THAILAND

EASE OF USE

VIETNAM

DESIGN/STYLE

MYANMAR CONSUMERS MORE VALUE CONSCIOUS Top device selection criteria

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EVERYONE WANTS TO OWN THE LATEST Myanmar consumers share the same desire as their counterparts in Southeast Asia

Source: Nielsen Smartphone Insights 2013, 2014

3

MYANMAR

“TO OWN THE LATEST PHONE”

INDONESIA

“TO OWN THE LATEST PHONE”

THAILAND

“TO OWN THE LATEST PHONE” PHILIPPINES

“WANT TO TRY DIFFERENT OS”

VIETNAM

“TO OWN THE LATEST PHONE”

MALAYSIA

“TO OWN THE LATEST PHONE”

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4

MYANMAR

PHILIPPINES

MALAYSIA

INDONESIA

VIETNAM

THAILAND

20%

40%

20%

15%

15%

10%

1 IN 5 CONSUMERS RECEIVE MOBILE PHONES AS GIFTS Opportunity to promote mobile handset for ‘special occasions’ targeting young, senior and female consumers

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5

Source: Nielsen Smartphone Insights 2013, 2014

MY

AN

MA

R

81%

24%

24%

IND

ON

ESIA

MA

LAY

SIA

73%

81%

94%

PH

ILIP

PIN

ES

70%

64%

28%

THA

ILA

ND

VIE

TNA

M

99%

79%

81%

61%

52%

33%

91%

69%

49%

CHAT APPS SOCIAL NETWORK SHORT MESSAGING SERVICE

INCIDENCE IN LAST 30 DAYS

SMS IS POPULAR, BUT CHAT AND SOCIAL NETWORKING CATCHING UP

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ANDROID RULES

6

Source: Nielsen Smartphone Insights 2013, 2014

Android Penetration

MYANMAR

ANDROID 95%

MALAYSIA – 69%

PHILIPPINES – 80%

THAILAND – 44%

VIETNAM – 47%

MYANMAR

ANDROID 95%

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CONSUMERS ARE DATA HUNGRY

7

Source: Nielsen Smartphone Insights 2013, 2014

Huge opportunity to drive data in and out of home

8% 17%

51%

76%

55% 64%

20% 28%

34%

77%

40%

58%

92% 83%

49%

24%

45% 36%

80% 72%

66%

23%

60%

42%

AT HOME OUT OF HOME

Wi-Fi Cellular Data Wi-Fi Cellular Data

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26% 32%

12% 16% 16%

36% 38%

57%

4% 12%

7% 7%

VIETNAM THAILAND PHILIPPINES MALAYSIA INDONESIA MYANMAR

66%

9% 12% 10% 12%

38% 34%

39%

6%

19%

8%

29%

Source: Nielsen Smartphone Insights 2013, 2014

VIDEO/MOBILE TV

FM RADIO ONLINE MUSIC STREAMING

PICTURES DOWNLOADS

8 MULTIMEDIA ACTIVITIES ARE RESTRICTED TO FM RADIO Increasing access to data and content likely to change the habits

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9

1. YOUTUBE 2. GOOGLE 3. FACEBOOK 4. TWITTER 5. THAITV3

1. GOOGLE 2. YOUTUBE 3. 24H.COM.VN 4. VNEXPRESS 5. TUOITRE

1. FACEBOOK 2. GOOGLE 3. TWITTER 4. YAHOO 5. YOUTUBE

1. FACEBOOK 2. YOUTUBE 3. GOOGLE 4. GOOGLE PLAY 5. YAHOO

1. GOOGLE 2. FACEBOOK 3. YOUTUBE 4. YAHOO 5. MUDAH

1. FACEBOOK 2. THITHTOOLWIN 3. GOOGLE 4. MYANMARNEWS 5. G-TALK

MYANMAR INDONESIA

THAILAND PHILIPPINES VIETNAM

MALAYSIA

FACEBOOK DOMINATES BUT CONSUMERS ARE NEWS HUNGRY

TOP 5 WEBSITES

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MOBILE ADVERTISING IS IN NASCENT STAGE Once received, consumers are receptive just like in other Southeast Asia countries

Source: Nielsen Smartphone Insights 2012/2013

Click frequency includes sometimes and always click

19%

45%

81%

44%

47%

89%

Myanmar

Indonesia

Malaysia

Philippines

Thailand

Vietnam

CLICKED RECEIVED

56%

56%

84%

48%

53%

81%

Myanmar

Indonesia

Malaysia

Philippines

Thailand

Vietnam

10

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I am ok with advertising if it means that I can access content for free

I am more likely to click on an ad that does not take me outside of the application to another website

75%

40%

57%

67%

37%

36%

Myanmar

Indonesia

Malaysia

Philippines

Thailand

Vietnam

53%

26%

51%

51%

31%

29%

Myanmar

Indonesia

Malaysia

Philippines

Thailand

Vietnam

10

FREE CONTENT IS KEY TO MOBILE ADVERTISING

Page 39: MAKING IT IN MYANMAR - Worldwide | Nielsen it....3 Pioneer in research services in Myanmar Global brand of information and insights into what consumers watch and buy In-depth understanding

WINNING STRATEGIES

BROADEN THE MARKET INTELLIGENCE

UNDERSTAND CONSUMER ACTIVITIES

ON MOBILE

KNOW IT. EVALUATE PLATFORMS TO

INVEST IN GAMES, MUSIC, VIDEO,

CHAT?

INVEST IN IT.

CONSIDER VARIOUS SCENARIOS AND OUTCOMES.

BUILD FLEXIBILITY AND ADAPTABILITY.

BE READY TO CHANGE IT.

CONTINGENCY FOR TALENT – ADOPT BEST PRACTICE.

BUILD CAPABILITY THROUGH RELATIONSHIPS.

PLAN FOR IT.

39

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