Tostitos Account Profile

Target Account Profile Tostitos

The journey to understanding Tostitos as a retail product begins here! As we start out on our quest for facts, lets first begin with key customer segments.

Identifying key customer segments involves a process that incorporates lifestyle, demographic attributes, and studying volume percentage, and indexes.

It is important to understand throughout out our journey our processes will involve total consumption of Tostitos. We want to know who is buying, who is buying more, and where we can gain market share.

Now that we are all on the same page, below is a list of content that we will cover Fast Facts Product Snapshot Consumer Profiles Targeting Local Markets Target Ranking Best Products The chart below indicates by household size and lifestyle of living that is buying and not buying.

Target Account Profile

Tostitos

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Part 1 :Identify key customer segment by Index… Heavy Customers Chart # 1

The areas in red index extremely highly which means these people are purchasing more units of Tostitos then average. If you closely, the areas that are the most important would be affluent suburban spreads, older bustling families, younger bustling families, small scale families, and start-up families—these are all Lifestyles.

Identify Core Consumers by Percentage Chart # 2

The data in Chart # 2 helps identify who are core consumers are by percentage. Affluent suburban spreads and comfortable country are key segments. Families are definitely are another key segment for Tostitos. Affluent suburban established couples are an area to keep in mind down the road.

Before we move on lets discus Demographic Skews that give us insight to household total consumption and index, and total persons/ total income indexes.

Target Account Profile

Tostitos

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Demographic Skews

Chart #3

All of the items under demographic skews index highly, but we also want to pay close attention to consumption.

Looking closely I would categorize anything that has a high index, which they all do and consumption percentage over 12% an important segment.

Consumption percentages mean that this person consumes a certain percentage of all units sold—for example, homes with incomes 100,000+ or more have an 18% consumption, which means that these home are buying 18% of all Tostito’s bags sold, this is an important key segment.

Also married couples with and without children index highly for composition total.

Target Account Profile

Tostitos

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Chart #4 in detail indicates the importance of demographic attributes.

Household Income 64.5 Household Composition Age of Person

50.0

49.4

Those are the top 3 ranking attributes to the Tostito’s consumer.

Next lets take a look at our consumers compared to the entire category.

Chart # 5

Chart #5 is telling us that affluent suburban spreads older bustling families and small-scale families are high indexing consumers.

Target Account Profile

Tostitos

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Customer Segments we should pay attention to in the future include small scale families living in comfortable country producing 2.5% total volume of tortilla chip and 39 times more likely to purchase tortilla chips than the average consumer.

Tostitos compared with all tortilla chips is our next topic….

Chart # 6

The first thing I notice is comfortable country and affluent suburban spreads are indexing very close to each other.

The second thing I notice is that older bustling families index the highest for the categories total at 174. Meaning they are 74 times more likely to purchase tortilla chips than the average consumer.

The highest individual ranking index is comfortable country older bustling families indexing at 190. They are 90 times more like to purchase tortilla chips than the average consumer.

Tostitos core customer compares closely by family type and slightly different by lifestyle of living.

In the next section of our journey, we will discuss tortilla chips key customer segments.

Chart #7

Target Account Profile

Tostitos

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Chart # 7 is telling us by volume percentages who the core customer of tortilla chips is. If you look closely—affluent suburban spreads and plain rural living are accounting for 20% of total consumption.

It is also important to note older bustling families, younger bustling families and established couples are a key segment to pay attention too.

As we continue our journey, lets talk about competitors. The chart below will help us determine who are a core competitor and heavy competitor are.

Chart # 8

Top 3 core competitors: Doritos, Private Label and Tostitos Scoops. Each of these competitors are indexing at least 120 and accounting for almost 20% volume sold in each of their categories.

Let take a look at the chart #9 on the next page to determine the Top 3 competitors based on similar heavy consumers.

Target Account Profile

Tostitos

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Chart # 9

Lets take a look at the chart above to determine the Top 3 competitors based on similar heavy consumers.

I would say that Private Label, Tostito Scoops and Doritos tortilla chips are the top 3 competitors brands based on heavy consumers because they index highly but do not contribute highly to volume sold.

After taking a look at all of the competitors of the category, I would say that Doritos is the number one top competitor to Tostitos based on two things.

Lets take a look at Chart # 10 below to better understand what I mean.

Very high percentage volume and index attribute to my theory that Doritos are the number one top competitor to Tostitos.

Now that we know about our Competitors, where is there room for market share?

Target Account Profile

Tostitos

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Before we can move on to developing target segments, lets take another more in-depth look at demographics, census divisions and sales channels.

Tostitos 3 most important demographic criteria:

Chart # 11

Household Income Household Composition Number of Persons

Tortilla chips category 3 most important demographic criteria:

Chart # 12 Number of Persons Household Composition Age of Head of Household

Chart # 13 Competitor Doritos Number of Persons Household Composition Age of Head of Household

Target Account Profile

Tostitos

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Chart # 14

Competitor Private Label

Number of Persons Household Composition Age of Oldest Child

Chart # 15 Competitor Tostitos Scoops

Number of Persons Household Composition Household Income

After reviewing Tostitos most important demographic criteria compared to its competitors it is safe to say that Income and Number of persons is very important to the category as a whole.

Next, lets take a look at sales channels…

Target Account Profile

Tostitos

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Chart # 16 Tostito’s Sales Channels

Consumers who purchase Tostito’s prefer grocery stores followed by Mass Merchandise stores.

Next lets take a look at our competitor’s sales channels…

Chart # 17 Private Label Sales Channel

Target Account Profile

Tostitos

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Grocery strongest sales channel followed by club.

Chart # 18 Tostitos Scoops

Chart # 18 is showing us that Grocery followed by Mass Merchandise is key sales channels.

I find it interesting that both Tostitos and Tostitos Scoops have very similar sales channels.

Chart # 19 Doritos

Chart # 19 is showing that grocery stores attribute to most volume sold of Doritos.

Now that we know all of this, what does it mean? Consumers are buying tortilla chips through grocery store channels almost double than any of the other sales channels.

Target Account Profile

Tostitos

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Across the board in terms of sales channels we are seeing very similar numbers.

Now lets take a look at census divisions and see what geographic areas index highly for Tostitos.

Chart # 20

Chart # 20 is indicating by census division where most of our total volume is being sold. Looking at South Atlantic and East North Central divisions we see that those areas are totaling over 34% total sales volume. We will focus on East North Central due to Spectra availability.

An area that I want to focus on is East North Central because those consumers comprise a large total volume but are not indexing as highly. Right now they are at a negative four. There is room and means to raise that index above 100.

Chart # 21 Competitors Private Label Chart # 21 is telling us that consumers that purchase Private Label chips index highest and volume highest in the East North Central Division and the West South Central Division is a good core consumer for them also.

Target Account Profile

Tostitos

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Chart # 22

Competitor Doritos

Doritos highest volume East North Central and Index West North Central

Chart # 23 Competitor Tostitos Scoops

The chart above is telling us that Tostitos Scoops have the highest volume and index in the South Atlantic.

Target Account Profile

Tostitos

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Now that we have all this information before us, lets see if we can find any opportunities geographically.

The East North Divisions are producing a lot of volume for total consumption of tortilla chips.

I see room for development in the West North Central and South Atlantic census divisions. Why? 19.2% total volume is being sold for Tostitos in the South Atlantic division. We need to raise the consumer’s awareness of Tostitos and drive up their likelihood to purchase Tostitos over the competitors.

Taking a look at Tostitos Scoops we see that consumers are purchasing the most volume and also indexing the highest in that census division. There may be room for product tie ins and grocery store sales for consumers who may think about purchasing one bag Tostito scoops and one regular bag.

We already know that our core customers are families with large households. It might make sense for them to purchase one of each or focus more on swaying them over to regular Tostitos.

Next lets discus Cross Promotional Selling The charts we are going to examine next will tell us by geography, census division, household composition and income if dips/ mixes are a good cross promotional product for Tostitos…

I thought to myself let see whom the consumers are that purchase dip mixes in the United States. We are going to examine the profile of dip mix consumers in the US and see how well that consumer ties in with the Tostitos consumer.

Chart # 22 Consumers that purchase the highest volume of dip/ mixes in the United States do so at a rate of 74.4% through grocery

Target Account Profile

Tostitos

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store channels

Chart # 23 Demographic Skews Dip/ Mix Consumers

Consumers that purchase the highest volume of dip/ mixes in the United States are Married Families with Children accounting for 30% total consumption. I also find it interesting that households with 5+ people index the highest at 153.

Meaning that group is 53 times more likely to purchase dips/ mixes than the average consumer.

Chart # 24 Does Number of Persons matter?

Target Account Profile

Tostitos

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Chart # 24 is showing us that consumers that purchase dips/ mixes rank highest by larger household size. This is important to note because larger household sizes are a key segment consumer for Tostitos.

Chart # 25

Chart # 25 is looking at consumers who purchase dip/ mixes compared to what tortilla chips products they are purchasing.

Our competitor Doritos is consuming 44.2% of total dip/ mixes sold. Tostitos has a volume of 30% and index of 115.

There is room for improvement in this section and I believe cross-promotional selling with a brand of dip/ mixes will help bring our volume and index up.

Lets talk about brands with similar consumers that will offer the most potential for cross promotion with Tostitos.

Target Account Profile

Tostitos

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Chart # 26

Chart # 26 is telling us based on similar consumers that purchase tortilla chips and dips older bustling families account for 15.2% total volume sales in the United States. Furthermore, Affluent Suburban spreads in the same category account for 4.1% and index at 148. I see room to expand with Cosmopolitan Centers Older Bustling Families because they account for 2.1% total volume sold and index the highest at 165.

This all makes sense because families that are living in urban environments are looking for ease in the kitchen and especially when entertaining.

Lets take a look at which products could offer the best cross promotion within this category.

I began to think what products would be tie in with tortilla chips. I thought dip/ mixes, crackers, frozen pizza, frozen foods, and deserts.

Sabra Humus is a more recent product on the market.

Last summer there were many promotional street vendors giving away samples of Sabra with small bags of chips. I thought to myself, why not Tostitos? This will be a good promotional activity later on.

Target Account Profile

Tostitos

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________________________________________________________________ Section 2

Developing Targets

As our journey into Tostitos continues we are going to take a look at target segments.

By identifying our targets we will gain a large amount of insight into who are consumer is. We will also gain powerful information and be able to target and gain market share.

A good target should incorporate common behavioral characteristics.

Next a good target should share similar demographic properties. For example, I particularly paid close attention to consumption rates among lifestyles and found out affluent Suburban Spreads provide a large total of volume sold.

Lastly, size is an important indication of a good target. I wanted to make sure that my targets would be a good measure of households that are purchasing Tostitos and competitors products.

Follow me as we take a more in-depth look at developing target segments.

Target Account Profile

Tostitos

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Chart # 29

High Indexing Customer Segment

By looking at Chart # 29, we see high indexing customer segments for Tostitos.

Chart # 29 is telling me that affluent suburban spreads and comfortable country are a target segment that contains consumers whom are more likely to purchase Tostitos than the average customer.

By looking closer into Chart # 29, we can see that older bustling families and younger bustling families are a good representation of heavy customer segments.

Chart # 30 High Volume Core by % By looking at Chart # 30, we are given Tostitos high volume core customers by percentage.

Looking at the chart closely—High volume areas are again affluent suburban spreads; older bustling families and another key segment established couples, which will touch upon later in our journey.

Target Account Profile

Tostitos

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Chart # 31 Average Customer by Index

Lets take a close look at chart # 31 and determine who are average customers for Tostitos are.

Lets classify an “average” customer as a segment whose index is between 85110.

Senior couples and independent singles living in affluent suburban spreads are indexing between 87-93.

Young transitional are totaling 86 but higher at 116 in affluent suburban spreads lifestyle.

I want to make a mental note to remind us to pay attention to established couples because they are a segment that with some proper marketing could become a heavier consumer especially in the affluent suburban spreads market.

Lets recap! We have covered so far: High Indexing Target High Volume % Target Tostitos Average Customer Target

Target Account Profile

Tostitos

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Chart # 32

Tortilla Chips Category Heavy Consumer by Index

Lets take a look at chart # 32 and identify who is a heavy consumer of tortilla chips by category.

By taking a look at Lifestyle I am seeing more of an average customer by index because we are not indexing very highly. If I had to pick a heavy consumer I would say affluent suburban spreads and comfortable country.

Looking at household demographics, older bustling families, younger bustling families, small-scale families and start-up families are a good indication of heavy customer by index.

Overall, families are a heavy consumer with areas of improvement by Lifestyle.

On the next page, chart # 33 will take a look at volume percentage.

Target Account Profile

Tostitos

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Chart # 33

Tortilla Chips Heavy Consumer by %

Taking a look at chart # 33 we will begin to examine who is accounting for total bags of tortilla chips sold in the United States.

We are seeing heavy volume by Lifestyle in the following areas affluent suburban spreads, comfortable country and plain rural living.

Taking an even closer look—older bustling families and younger bustling families are accounting for high total volumes sold.

Earlier I mentioned to pay attention to established couples. We can see that they are accounting for 12.0 % total volume sold of tortilla chips.

Bright Idea!

Established Couples is ranking high on my list of target segments to focus on down the road.

Target Account Profile

Tostitos

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Next lets talk about our competitors heavy customer segments by index and volume.

Lets first take a look at our competitors Chart # 34

Doritos Heavy Volume by %

Taking a close look at chart # 34 we see that most of the high volume is coming from affluent suburban spreads, comfortable country, and plain rural living.

Taking an even closer look at chart # 34 lets examine heavy volume categories based on Lifestyle. We see that families grouped from the top four lines in blue are heavy volume producing segments. Again, it is important to note established couples because they are an important segment that has room for growth.

On the next page we will examine chart # 35 and determine by high index numbers Doritos heavy indexing target.

Target Account Profile

Tostitos

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Chart # 35 Doritos Heavy Customer Targets

After taking a close look at chart # 35 it is important to note that the overall Lifestyle totals are indexing at an average rate.

Heavy customer targets for Doritos would be small-scale families, younger bustling families and older bustling families. Bottom line, Families.

I find it interesting that established couples rank as an average consumer for Doritos.

Moving forward—lets still pay close attention to established couples.

Before moving onto our next competitor lets recap!

Affluent suburban spreads; comfortable country and plain rural living are Lifestyle segments that are important for Doritos.

Target Account Profile

Tostitos

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Chart # 36 Tostitos Scoops Heavy Index Targets

Taking a look at Chart # 36, Lifestyles that index highly are affluent suburban spreads and comfortable country.

Important BehaviorStages to pay attention to are; small scale families, younger bustling families, older bustling families and established couples.

Empty nest couples I would consider an average customer where there is room for market growth.

Chart # 37

Target Account Profile

Tostitos

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Chart # 37 is showing us Tostitos Scoops by volume percentage target customer segments.

Looking closely at Lifestyles—affluent suburban spreads, comfortable country and plain rural living are high volume segments.

Looking closely at BehaviorStages—older bustling families and established couples are ranking highest in consumption of all bags of Tostitos Scoops sold. ________________________________________________

Lastly, lets take a look at Private Label. The chart below is an indication by index of heavy customer segments.

Chart # 38

Private Label High Indexing Segments

Taking a look at chart # 38, we see by index families are a key segment. Looking first at Lifestyle totals affluent suburban spreads and comfortable country are average/ high indexing targets.

Taking a closer look at BehaviorStage, older bustling families, younger bustling families small scale families and start up families are high indexing total target segments.

Bottomline—families are a key target for Private Label.

Target Account Profile

Tostitos

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Chart # 39

Private Label High % Volume Target

Looking at chart # 39 lets talk about key targets by Lifestyle. Affluent suburban spreads, comfortable country, and plain rural living.

Looking at chart # 39 lets take a closer look at BehaviorStages—older bustling families, start-up families and younger bustling families are a key target segment.

Established couples are an average consumer that has room for growth. __________________________________________________ Now that we have all the information on targets by examining the previous data, it is important to understand why each target has been selected and the methods that were used I wanted to select a target group that was not already indexing very highly in addition to accounting for a large % of total volume.

Throughout the rest of our journey I want to focus on Established Couples because they are an average customer across the board but it does not look like other competitors have placed emphasis on that segment.

Target Account Profile

Tostitos

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As we continue on our journey, we will begin to understand our target on a much more in-depth scale.

Targeting Markets will include: Zip Code

Radio

Store

Television

Demographics

Magazines

Recreational Activates

Thank you for taking the time and embarking on this product report for Tostitos.

In the final section of this case study, we are going to have a full circle understanding of our target customer segment.

We are going to take a look at our target as it ranks by zip code, sales channel, cross promotional products, media outlets and key census divisions.

Targeting Local Markets by Zip Code.

We will find out which markets offer the most potential to reach our target.

In addition we will discus which types of marketing programs to develop in order to strengthen our target.

Target Account Profile

Tostitos

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Lets begin by looking at the zip codes that offer potential to reach my target.

Chart # 40 Zip Codes

Lets pay attention to zip codes 60604, 46610, 43035, 60503, 47943, 54141 and 46162.

Why? A good target should have at least 20% penetration of the overall group for reasons of size. The mentioned zip codes are a good indication of our target group’s representation and also they are high indexing.

Now that we have our zip codes, lets think of marketing programs that will help strengthen Tostitos and target audience.

As we continue along we will discus strategies for making Tostitos shine in the eyes of our target.

Target Account Profile

Tostitos

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Marketing Programs

Valpak’s Coupon Mailers

We have the zip codes…

Mailing out promotional coupons is a great way to reach our target.

Promotional coupons… we know where our target is shopping. Lets use that to our advantage.

Target Account Profile

Tostitos

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In store displays… Make Tostitos stick out

Team up with a fast food chain such as Taco Bell who uses tortilla chips daily with many of their items.

Our target is an eco friendly consumer, Tostitos and a similar community or city based give back program.

Branding Tostitos as an ecofriendly brand would definitely reach our target in a positive way.

Target Account Profile

Tostitos

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Top Magazines based on Target Chart # 41

Chart # 41 is looking at books and magazines that my target is buying/ more likely to buy. The following magazines are high indexing for my target.

ABC Soaps

Target Account Profile

Life&Style

Tostitos

First

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Soap Digest

Glamour

Cooking Light

Better Homes and Gardens

Target Account Profile

Tostitos

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Sports Illustrated

Cosmopolitan

Martha Stewart Living

After reviewing chart # 41 I wanted to focus on magazines that measured high in both index and target measure.

I also wanted to make sure not exclude men due to the high indexing amount of predominately woman based magazines.

I also wanted to make sure to incorporate magazines that focused on eating and lifestyles.

Target Account Profile

Tostitos

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________________ Magazine Marketing Programs Utilizing the magazines that focus heavily on food and cooking, it would make sense to have some of those magazines near Tostitos in the retail grocer.

On the same note, it would make sense to place adds for Tostitos in those magazines along with manufacturer coupons.

Since we know our target enjoys soap operas, it would make sense to try and push our product in those magazines but also on soap opera programing,

Lets take a look again at our top three categories for cross promotion.

Sabra Humus Dips/ Mixes Tostitos and Sabra Humus make for a great cross-promotional Item. In store promotions or street vendor promotions.

Freshetta Pizzas

I thought the consumer that purchases Tostitos also would enjoy the convenience of a great quality pizza.

This would be great for sports parties where our customer maybe more inclined to entertain.

Nabisco Crackers Utilizing in store demos, pairing crackers and chips as a tie in product along with dips and mixes makes sense to me.

Target Account Profile

Tostitos

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Lets Recap! We now know what types of marketing campaigns to utilize by where our target lives.

We know what the top ten magazines are and how to effectively utilize them.

I think it is important to note that established couples probably include a large number of women who do not work. This will become more important as we move on and talk about media marketing in the last section.

Top 5 Radio Stations Oldies Contemporary Talk Radio WLS WKQR

Top 5 Entertainment/ Recreation Activities Visiting the movies at least once a month was popular across my divisions.

Gardening ranked over 50 % target penetration across my census divisions.

Sporting events also ranked highly across my census divisions.

Participating in eco friendly activities ranked highly across all divisions.

Home Improvement/ remodeling in addition ranked highly across all divisions.

Target Account Profile

Tostitos

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A Day in The Life of My Target Customer

6 am to 12 pm frequent radio listener of Oldies, Contemporary and Talk Radio

Reads the Sunday local/ metro paper

Most frequent shopper of Target, Meijer, Kohl’s and Wal-Mart.

Target Account Profile

Tostitos

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7 pm to 11 pm Primetime, TNT, and History Channel

Travels domestically to Chicago, Michigan, Florida and Las Vegas.

Travels internationally to Mexico.

Commutes via car daily for work.

Buys books, clothes and event/ airline tickets online.

Is an average online shopper and visits Google, Yahoo, Facebook and Amazon most frequent.

Target Account Profile

Tostitos

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Top 25 stores identified by grocery sales channel After I did some research and found the shopping and lifestyle patterns of my target, I then sorted through a list of retailors.

I decided to focus on target % as a good indicator of grocery stores that my target would most likely frequent.

Chart # 42 Top 25 Retailors

Chart # 43 Geographical Map of Target Stores

Target Account Profile

Tostitos

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Chart # 44 Map of Target Ranking by Region

Target Account Profile

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