1.

0 Introduction
Our company, BestPack is born out of passion and desire to be our customer branded
leather bags expert. We will be a one stop online store for all types of bags. We provide wide
selection of bags brands due to customers preference. We will fulfil our customers needs and
wants and invite them to create a look that is effortless, fashion and uniquely to them.
Our product which is branded bags will bring to our customers an orchestrated selection
of major bags brands that focuses on design, functionality and craftsmanship. Our bags brands
separate in many categories such as women, men, sporty, kids, business and lifestyle. They
can expect to find luxury bags power houses like Bottega Veneta, Prada and Gucci, subculture
bags brands for the cool kids such as Disney, Nike, DJ and all sorts of carriers for our customer
lifestyle needs. We also have popular bags brands include Bellroy, Brooks England, Cote ET
Ciel and so on.
The reason of why our company create online business because we realise that the new
generation nowadays more prefer online shopping. Therefore, we use this reason as our
company goal to increase company profit, expand our marker and make our company wellknown.

2.0 Situational Analysis

2.1 Strengths
There are various strengths which our company has. First and foremost, our company provides
a very strong customer service to our customers. We have provided a return and exchange
policy to our customers for any defective items which have been purchased from us. Our
company is also efficient in responding to our respective customers after they have placed their
orders with us. When theyve placed their orders, immediately their orders will be captured into
our system and be processed efficiently. Next, our companys strength is also by providing a
high quality and authentic products. Our company is selling mainly original branded products
in the market and our customers do not need to worry about purchasing a pirated product from
us. All in all, our company is a trustworthy company. Our company has lower operational costs
than a brick and mortar company too. Since our company is an e-commerce company, we do
not require many costs in setting up a business. For example, we do not have to pay for a
building or involve many documents. Then, our customers even benefit from the 24-hour online
shopping experience too. It is because our company operates 24-hour per day and our
customers can shop with us anytime and anywhere. Apart from that, our companys strength is
also that we provide free shipping worldwide. We ship our products for free worldwide but
custom duties charges may apply for each country.
2.2 Weaknesses
However, our company has some weaknesses too. Our companys weakness is customers
inability to touch or feel our products. Since we are an E-commerce company, our customers
could only touch the products after theyve arrived at their door steps. Next, shipping time is
also our weakness too. It takes longer time for our products to arrive at the western countries
especially, and it normally takes maximum 14 working days. However, in the South East Asia
countries, it took up maximum 1 week for products to arrive. Next, fraud concerns are our
weakness too as some people may be reluctant to purchase from us. Our customers might be
concern about their financial and personal data when they are registered with us. Next, our
company does not allow for price bargaining to our customers too. Hence, our customers
may not purchase from us and eventually turn to our competitors instead.
2.3 Opportunities
The opportunities which could help our company to grow are the changes in technology and
market in our industry nowadays. It is because the daily numbers of internet users are
increasing daily. People can purchase from us conveniently and comfortably as they do not
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have to step into the physical store personally to purchase their desired products. Next, the
changing trends in the industry have helped our companys growth. As we are the e-commerce
company, our customers could make financial payments from any part of the world efficiently.
The changing trends have also caused the people of tomorrow to feel more comfortable to buy
our products through the internet. Apart from that, we have used social media as a free
platform for promotion and advertising purposes. Through social media, we could promote our
company and products to the world and reducing the costs at the same time too. For example,
we have use Facebook, Twitter, Instagram and Google+ to promote and reach more people
worldwide. Moreover, we could reduce local competition by providing online customer service
to our customers. Customers could reach us easily without meeting face-to-face with us
whenever they are encountered with problems regarding our products. With this, customers
could contact us by sending us e-mail directly to our company.
2.4 Threats
The threat which our company has encountered in this industry is the increasing number of
competitors. Many big companies have already stepped into the industry and have set a stable
market share in it. Our competitors in the industry are such as Reebonz and Zalora. Besides
that, our competitors activities are a threat to us as well. Our main competitor, Reebonz, is
currently having sales promotion up to 50% at certain hour at their website. This might cause
our customers to shift to them when purchasing their desired products. Next is the security
threat. There are many online hackers and credit card thieves out there who are looking for
every customers personal data. Therefore, we have used the Secure Socket Layer (SSL)
system to protect our customers privacy. Moreover, our next threat in the industry is the foreign
exchange rate changes. Because we are selling our products worldwide, declining in currency
will impact us and other businesses in our industry. It will eventually reduce our sales.
2.5 Ethical and Legal Issues
To start an e-commerce business in Malaysia, every business starters are compulsory to take
into account of few ethical and legal issues that could happen in the market. Those issues
include ownership of intellectual property rights and there are 3 laws which are protected
under this law which are Patents Act 1983, Trademarks Act 1976 and Copyright Act 1987. Since
our company is selling 100% authentic bags online, our company has complied with the
Copyright Act 1987 to ensure that no one will transform and sell our products for any other
means. If they do so, it is an infringement of copyright of our products. Next, the issue in the ecommerce industry is the consumer privacy rights and protection. Many customers are
reluctant to do online shopping because they are afraid of their financial and personal data
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being exposed to online hackers. Therefore, we have practiced the Personal Data Protection
Act 2010 in the business. This act is created to protect customers data especially when they
have performed any online transaction with us. Through this act, our customers can boost up
their confidence to shop and trade online with us always. Then, the ethical issue that normally
arises is also fraud. Fraud is normally used by online hackers to obtain profit through false
claims. Since we are selling our products online, the online hackers will normally try to
impersonate us and send e-mail to our customers. Therefore, there is a must for our company
to increase the security system to prevent this misconduct from happening. Through this, we
have complied with the Digital Signature Act 1997, whereby digital signature is an identity
verification that uses encryption techniques to protect against e-mail forgery. Moreover, the next
issue that happened frequently in the e-commerce industry is the e-mail spamming issue.
Spam is the mass distribution of unsolicited electronic mail. Therefore, we have complied with
the Communications and Multimedia Act 1998 in order to stop this from happening.

3.0 Segmentation & Targeting

3.1 Segmentation
Our company, BestPack, sells product to consumer market, which is those who purchase
products for themselves rather than purchasing for government use or business use. We are
segmenting our market into 4 segments including geographic segments, demographics
segments, psychographic segments, and also behavior segments.
3.2 Geographic segmentation
BestPack is applying geographic segmentation, which also means dividing the population by
area. Since our company is based in Malaysia, the location we will be targeting is also Malaysia.
Although we sell and deliver our products to many other countries like China, Singapore,
Thailand, Taiwan and Indonesia, but we focus most on Malaysia. One of the reasons is that it
makes product distribution more convenient and cost saving. If we are to deliver our products to
places out of Malaysia, the postage will more costly and there will be more procedures to be
done. Moreover, the internet usage rate in Malaysia is rapidly increasing nowadays. We believe
that we can be exposed to many users as well as attract them to purchase from us. Other than
that, our companys website is using English as our main language and the reason why we use
only English is because it is the main languages used among the majority of Malaysians. By
doing so, the information and message we want to deliver are more easily understandable.

3.3 Psychographic segmentation

Psychographics or lifestyle segmentation includes lifestyles, activities, and interests. BestPack
is also targeting on backpackers, whose interest is to travel around the world. For any
backpackers, backpack is the most essential accessories they should prepare and use while
travelling. Backpacks are obviously more spacey for them to pack in everything they need and
convenience enough to carry all the way. Furthermore, there are a lot of people whose interest
is collecting branded accessories. BestPack offers big variety of branded bags and wallets that
these group of people desire. We have a big range of varieties for all the branded bags and
wallets so it will be the right place for them to shop. As for lifestyles, there is a group of people
who leads a sedentary lifestyle, who faces the computer every single day. These people rather
shop online than going to physical stores because they are either too busy or lazy to go out.
3.4 Demographics segmentation
They are targeting on users around age 20 to 35, some of them are college students and some
of them are working adults. The reason why we are targeting on college students is that they
buy backpacks as their necessities, as they need to use backpacks to college at least five days
a week. As for working adults, they also need to use branded bags to work so they can have a
good image built for themselves when they are around their colleagues. After some research,
we also found that this group of people has the highest purchasing power and willingness to
purchase bags online. In addition, young adults take up the most percentage among all the
internet users so we have a high possibility to be exposed to them. At BestPack, there is no limit
for gender as we target on both male and female. We have a big range of varieties of bags and
brands designed for men, women, and even kids. As for language, we focus mainly on people
who understand English. Most people can understand English because it is widely used all over
the world, including Malaysia.
3.5 Behavioral segmentation
Through behavioral segmentation, BestPack is dividing customer groups based on benefits
sought. There are customers who prefer shopping online but refuse to pay shipping fee when it
comes to payment. Shipping fee might cost around RM10 or even more if the destination is out
of the country range. They might think that even if the original price of the product is cheap, it
will automatically be considered expensive once the shipping fee is added. This group of people
often seeks for website that provides free shipping worldwide. Although BestPack is based in
Malaysia, but we have a very attractive benefit for all our customers, that is we deliver
worldwide without charging customers on the shipping fee.
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3.6 Targeting
After segmenting the groups of consumers that BestPack is going to sell our products to, our
company will have to decide on the targeting strategy that is most suitable to be used on our
target prospects. The targeting strategy that our company is going to apply is multi-segment
marketing strategy .By using this strategy, it also means our company is focusing on two or
more segments and wants to develop different strategies for them. BestPack is offering a big
variety of bags including bags for men, women, and sports lover, business use, and even for
kids. Moreover, customers can choose from more than 50 brands of bags on our website, which
is a big range of variety for every of our customers. This way, BestPack will have the ability to
serve different types of customers easily. As you can see, our company has so many different
types of bags designed to meet the needs of different types of market segments, this way, our
company will not have to be worried about customers switching to our competitors because we
are having a competitive advantage. BestPack can also sell to more customers by offering
different types of bags at different prices. For instance, we can set a higher price for luxury
brands and those people with high income will purchase from us while set an affordable price
for normal brands so people with middle income can purchase from us too. We believe that
using the multi-segment strategy, we will have a higher chance of exposure to the market. For
example, men who visit our website to look for bags for themselves will notice that bags for
women are available too. The next time he wants to purchase for women, he will remember
coming back to our website.

4.0 Differentiation & Positioning Strategies

4.1 Differentiation
Differentiation is the process of adding meaningful and valued differences to distinguish our
companys product from our competitors product. Using the dimensions and strategies, our
company will be differentiated from our competitors in a good way. BestPack will only be
focusing on some of the strategies.
4.2 Product Differentiation
Our company has the ability to differentiate ourselves from competitors through product
differentiation. Our strongest competitor, Zalora, is selling almost everything on their website.
They have products from apparels to accessories to footwear and more. At BestPack, we are
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focused mainly on bags so we have more choices of bags compared to our competitor.
Moreover, we are focused on the bags we sell so we offer only the best quality bags from
different well-known brands. This way, we can also guarantee that our products quality will meet
the promised specification and that the durability and reliability is strong. Not only we pick every
product of ours from well-known brand, we also consider the design of the product. Our
company specially picks those bags with good designs and features so we can attract and
retain more customers.
4.3 Service Differentiation
Service differentiation is very essential as we believe that providing customers with better
service than our competitors will make them visit us again. After some research, we found that
most of the online companies charge their customers for shipping fee. Even one of our
strongest competitors, Zalora, charges approximately RM5-10 of shipping fee if customers
purchase product that amount to less than RM75. The service differentiation of BestPack is that
we provide free shipping worldwide. Despite the amount of goods customers purchase and
where the goods need to be delivered, BestPack will definitely deliver the goods right to
customers doorstep in the shortest period of time possible, and most importantly, it is for free.
4.4 Personnel Differentiation
BestPack has very well trained personnel to handle customer service and take care of all our
customers. For instance, our well trained personnel will be thoughtfully answering the most
frequently asked questions by our customers to make sure they will not be confused about our
products, or services. If customers have further queries or they need assistance, just contact us
by e-mailing or giving us a phone call. Our personnel will be the most to assist you. Customers
will not have to worry about not being able to get assisted as our personnel will be giving
response straight away after the question is asked. We guarantee our customers that our
companys personnel are very well trained, friendly, have patience, and most importantly, they
are happy to help.
4.5 Site Environment Strategy
Our website is designed to be simple so it will not cause confusion to our customers. Using a
plain white colour background, we ensure that the pictures and fonts will be easily readable for
our customers. Furthermore, our websites navigation bars are all very neat and consistent.
Even though we have a wide range of products, we arrange them nicely, category by category.
This makes our customers shopping experience a lot easier and time saving. Although our
website is simple, but it never fails to be informative. The information on our website is always
7

accurate because we update our site very frequently. Once there is new promotion, event, or
news about our company, we will keep our customers updated immediately.
4.6 Build Trust Strategy
Trust is one of the most important keys to success in business. Customers will only stay loyal
and purchase from us again if there is trust between us. First, we provide our customers with
safe and secure payment by signing up a trusted online payment system widely recognized by
our targeted customers. For instance, we signed up for PayPal and Maybank2u. We ensure that
every payment process or transaction is encrypted so no third parties will be able to hack in to
get our customers information. Besides, we have a page for customers to leave comments
about the products that they purchased from us previously. From there, we can receive good
testimonials and comments about our website and product. Word of mouth is believed to be 10
times more powerful and convincing for customers to believe that our website is trustable.
4.7 Positioning
Positioning is the process of creating a desired image for a company and its product among
companys competitors in the publics mind. Our companys goal is to build a position on one
base that is relevant and important to the customers BestPack will not be using every
positioning strategy because if we want to be more focused on the one that suits our company
most.
4.8 Product or service attribute
The products that our company is selling are all well-known brands from all around the world.
Our products can be positioned as luxury product in customers mind as the brands we sell are
all considered famous and luxurious. When customers know that we sell branded stuffs, they
will automatically have the mind-set that the quality of the product is 100% assured and the
product will be totally worth the price. As the brands of bags we sell are already well-known
among customers, our website will automatically build a good image in customers mind. In
addition, our companys slogan, Travel with the best bag, will deliver the right message to our
customers. Not only that it shows the importance of good quality bags, it also tells our
customers that we offer bags with best quality on our website. By doing so, we can show how
much we care about our customers. With the aid of our slogan, our company will definitely leave
a good impression for our customers.

Product
With the rapid expansion of the internet nowadays, it has led to many technological, businesses
and social shift to networking. E-business and E-commerce have now become more common
and attractive way to operate businesses.
Our website, BestPack, is a famous E-commerce website that selling original branded bags for
all ranges of people such as women, men and kids. In the homepage, there is a big
automatically sliding advertisement that allows customers to know the new arrival bags at the
first focal point. Followed by the information about the company which is recommended
products, membership, mobile application and also contact us detail to let the users have a
clearer understanding with the products and services. Besides, there is navigation bars that
guide users to which categories and brands they wanted to browse. On the other hand, there is
also a listed of popular brands with images to let customers enjoy the e-shop easily.

The products that our website provided undoubtedly hundred percent original guarantees, it
also stated full description or history of the particular brands they selling. Besides, the products
in the website are all show in pictures and attach with the detail of the each bags such as name
or categories, prices, colours, material, height, length or width, depth, and some additional
descriptions when users click in to specific products page. The product image can be zooming
to see part by part clearer and bigger by the cursor. With all of these illustrates and functions,
customers will be able to get what products they need to satisfy their wants and more confident
with the website.

In our website, there are varies types of bags or wallets for each product brands that
allow customers from all ages range to have their own favourite style. For the products, we
provide few colour choices for customers too. The different colour of the same design will have
its individual webpage to avoid confusion or any mistake when purchasing. Beside the zoom in
function on the products image, the products also captured with different angles such as front
view, back view, top view or side view to let customers have a clearer vision on the product. In
addition, there is an image of a shaded model body using the products to show actual usage
look.

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After customers chosen their products, there is a shopping bag button that will lead user
enter into the log in or register webpage. Our website recommend customers to sign up as
membership to enjoy our special rewards and easier to store their information instead of
repeating the same steps on the next purchase. As customers done the registration, customers
will have their own profile that listed all their personal details. There are My Account, My Order,
My Wish List and other function bars in the customers profile too. We also have Todays Events
which is the news of all the brands and add or search friends section that allows customers to
have connection with friends.

Last but not least, customers added the products into the shopping bag, it goes to
webpage that show all chosen shopping products image, description and price. Customers can
check and confirm the products they want and then click the checkout button. After provide all
the information needed like name and shipping address, customers can proceed by choosing
the payment types and also double confirm on the products they purchase. That will be free of
charge on the shipping cost and with only 3 easy steps to complete the payment.
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6.0 Pricing online

12

Our company, BestPack is using the fixed pricing which means we provide a product price to
customers and if the customers want to purchase the product, they have to pay the same price
of the product no matter what status they are. Under the fixed pricing strategy, weve used the
promotional pricing.
The promotional pricing of our company is we provide a lower price to our customers who
have joined our membership. Instead of paying the original price, the members get to pay at a
much lower price to obtain their desired products. Of course, the new arrivals are sold at original
prices. However, our customers can earn some points in return when they have shopped with
us. For example, our customers get to earn 1 point for each dollar spent.
Furthermore, our company is also using the geographic segment pricing. Although our
company is based in Malaysia, we do ship worldwide too. However, tax applicable may vary
accordingly to different countries. This is because of the difference in currency rate.
Lastly, our company has also used value-based pricing. Our company, BestPack is selling
original and branded bags for our customers. Therefore, because of our products value, our
customers are willing to pay for the amount no matter how expensive they are.

7.0 E-communication & Promotion

7.1 Contextual advertising
We are using contextual advertising in promoting our website. When a related keyword is typed
in Google search, the advertisements directing to our website appear.
Contextual advertisements of our website can be found on Google search engine. At Google
homepage, the advertisements located below the search box and above search results are
generated based on users current search term. For example, when the word bags is searched
from Google search engine, the advertisement of our website is generated based the keyword
bags. This is because our website is known for selling bags and fashion online. Therefore, the
word bags is a keyword for our website. Our advertisement on Google search engine is
displayed in website title, website URL and a brief website description. (Refer to Appendix 10.1).
When clicked, the page will be directed to our website and the hyperlink will turn purple

7.2 Social Media

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Besides that, our advertisements can be found in Facebook website. In Facebook website,
advertisements are placed at the right side. With Facebook Adverts or Sponsored Stories,
advertisers can define the target audience based on location, sex, age, likes and interests,
broad categories, relationship status, workplace or education. For example, when a user
searches mens bag in the search box, the advertisement on the right side shows our
advertisement and mens bag page are complementary in the sense that both are related to
fashion. A user who goes to mens bag page is most likely to be attracted by our advertisement
because the page can lead to online shopping and shopping online at BestPack.com is just a
click away. The advertisement has saved the users time on searching for online shopping
website and it is very convenience to the user in term of opening a new browser and typing the
URL. (Refer to appendix 10.2). It contains a text link Shop at BestPack Now! and our website
URL. A product image is above the website URL. If a user is interested on the product, the user
can clicks on any part of the advertisement, then a new window directing to that particular
product page
7.3 Mobile Application
With this the released Mobile Shopping application, our company found that there is an increase
of 25% that people purchase via mobile apps rather than the website it is. Through our website
homepage, customer could easily to found that there are two type of system can download our
Mobile Shopping Application (Refers to Appendix 10.3), these two type system which are
Android and also Apple IOS system. Basically, this application provides the users with two main
capabilities which are the shopping and support features Shopping features includes all the
products information for examples all kind of variety bag which can be sort by price or relevance
as well as the customer product reviews. While support features contain order status that
helps tracking your order details, forum-based community, image, videos, and help topics and
contact us for instant click-to-call feature. (Refers to Appendix 10.4)
With our Mobile Shopping Application, user can buy our product at anytime and anywhere, just
a few step of click and login into the Mobile Shopping Application, pick their product and lastly
purchase. The product will deliver to their home within a few days of working days.
7.4 E-mail Advertising
The purpose of using e-mail advertising is because we found that e-mail advertising is the least
expensive but efficiency type of online advertising.
Customers who register to become our member will receive our monthly e-mail advertising and
latest news of our product for example, latest promotion and new stock arrival. It brings our
14

users the faster and easy way to know about our product and company. Furthermore, the e-mail
advertising was efficiency is because, e-mail that send from us to Internet users are direct
marketing, not advertising. User can be straight purchase our product through e-mail with lesser
the step to open another internet browser. Besides that, there is no postage or printing cost like
flyers and banner, it also save a lot of money and sources in creating e-mail advertising. E-mail
advertising can be automatically individualised by user, for the users who only want to receive
promotion e-mail advertising, they can customise it and if they dont wish to receive our e-mail
advertising, users can unsubscribed our e-mail advertising in order to prevent the annoyingness
that bring to the users.
7.5 Membership Rewards
Every customer who register to become our member have the chance to collect point which we
called it idollar, the more customer gain the idollar the more experience point(xp) customer
can collect. Also, the more experience point customer collect, the more level will be increase
and high level will gain high benefit as well. But how can customers can earn the idollar? It
easy to earn idollar by spend RM1, each RM1 customer spend, customer will earn 1 1dollar
and 1 xp, it totally easy and simple. There are six level that customer can raise, each level of
benefit will be unique and the high level customer are, the high benefit customer can enjoy.
(Refers to Appendix 10.5)

8.0 Conclusion
In this assignment, we had able to know how to analysis the situation, for example, we know
what is the strength and opportunities which make our business growth and attract customer to
visit our company. But, on the other hand, we know how to prevent the threat and how to
reduce our weakness in order to bring the best and efficiency of product and services for our
customers. Besides, every country has each own ethical & legal issue which make us must
obey the law and follow the rule so we will not be concerned with illegal act or operation.
After that, we have also able to split the consumer market into many segments such as
geographic, psychographic, demographics and behavioural segmentation. It makes us know
about what are the things that the customer most need and want and also help us target the
right customer and potential customer. In addition, we also have the ability to differentiate
ourselves from competitors which make our company position the different place in our
customer mind. The differentiation strategy we using are product, service, personnel, site
environment, and build trust strategy. After that, product or service attribute and competitor
15

positioning are our positioning strategy that we using in this assignment. Through the market
strategy we are using, we are more confident that we will bring a better ways of product and
services to our customers.
Last but not least, we also get to know what the e-communication & promotion strategies are
much more effective and efficiency to our target customers nowadays. Follow by the improving
of technology, we found that flyer and banner are become insufficiency and cost a lot of money.
After this assignment, we found that social media, e-mail advertising, mobile application and
contextual advertising are the ways that suit to nowadays technology which save a lot of money
and sufficiency.

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Strauss & Frost, 2014, International Edition: E-Marketing Seventh Edition, Pearson Education,
Harlow.
Armstrong & Kotler, 2013, Marketing: An Introduction Eleventh Edition, Pearson Education,
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Keegan & Green, 2014, Global Marketing: Global Edition Eighth Edition, Pearson Education,
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< http://www.marketingteacher.com/pricing-strategies/>
MindTool, 2014, SWOT Analysis: Discover New Opportunities, Manage and Eliminate Threats,
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< http://www.businessnewsdaily.com/4245-swot-analysis.html>
Business Dictionary, 2014, Using SWOT Analysis to Develop a Marketing Strategy, viewed on
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Ruzaini Zul, 2011, A Students Perspective: Legal Education And Professional Ethics, viewed on
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<http://www.loyarburok.com/2011/01/21/a-students-perspective-legal-education-andprofessional-ethics/#sthash.QQxlRgg5.dpuf>
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< http://repo.uum.edu.my/4525/>
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10.0 Appendix
Appendix 10.1

Appendix 10.2

19

Appendix 10.3

Appendix 10.4

Appendix 10.5

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