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Individual Integrated Assignment – I

June 2014 Examination

Post Graduate Diploma in Marketing

Sri Lanka Institute of Marketing

Assignment

Topic

Grab-a-GRUBWAY Today!

Student name A.Mohamed Azhar

Reg. No. 0000016630

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Table of Contents 1. Executive summary ..................................................................................................................... 4

2. Introduction ................................................................................................................................. 5

3. Marketing .................................................................................................................................... 6

3.1 Restaurants in Sri Lanka ....................................................................................................... 6

3.2 Micro environment................................................................................................................ 6

3.2.1 Company ........................................................................................................................ 7

3.2.2 Competitors .................................................................................................................... 7

3.2.3 Customers ...................................................................................................................... 8

3.2.4 Suppliers ........................................................................................................................ 8

3.2.5 Marketing Intermediaries ............................................................................................... 8

3.3 Macro environment ............................................................................................................... 9

3.3.1 Political environment ..................................................................................................... 9

3.3.2 Economic environment ................................................................................................ 10

3.3.3 Social cultural environment ......................................................................................... 11

3.3.4 Technology .................................................................................................................. 11

3.3.5 Ethical environment ..................................................................................................... 12

3.3.6 Ecological environment ............................................................................................... 12

3.3.7 Legal environment ....................................................................................................... 12

3.4 Marketing Strategy (Segmentation, Targeting and Positioning) ........................................ 13

3.4.1 Segmentation................................................................................................................ 13

3.4.2 Targeting ...................................................................................................................... 13

3.4.3 Positioning ................................................................................................................... 14

3.5 Marketing mix ..................................................................................................................... 14

3.5.1 Product ......................................................................................................................... 14

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3.5.2 Price ............................................................................................................................. 15

3.5.3 Place ............................................................................................................................. 15

3.5.4 Promotion ..................................................................................................................... 16

3.5.5 People ........................................................................................................................... 16

3.5.6 Processes ...................................................................................................................... 16

3.5.7 Physical Evidence ........................................................................................................ 16

4. Consumer behavior ................................................................................................................... 17

4.1 Customer value and satisfaction ......................................................................................... 17

4.1.1 Customer value ............................................................................................................ 17

4.1.2 Customer satisfaction ................................................................................................... 17

4.2 Brand personality ................................................................................................................ 17

4.3 Perceptual map .................................................................................................................... 18

4.4 Consumer attitudes and affect the growth of Grubway ...................................................... 19

4.4.1 Consumer attitude of fast foods ................................................................................... 19

4.4.2 Affect the growth of Grubway ..................................................................................... 19

5. Findings & Conclusion ............................................................................................................. 20

6. Recommendation ...................................................................................................................... 21

7. Reference .................................................................................................................................. 22

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1. Executive summary

The market analysis is very important to Grubway foreign restaurants. The analysis explained

about the marketing and consumer behavior. The small micro environment of forces are five

major forces of company, competitors, customers, suppliers and marketing intermediaries

otherwise the macro environment analysis the seven major forces political, economic, social &

culture, technological, ethical, ecological and legal.

Market segmentation, targeting and positioning analysis marketing tool with the help of which

marketers differentiate, attract, retain and grow customer base for their future business activity.

As well as the marketing mix analysis organizer those product or services, place, price and

promotion.

The consumer behavior analysis should be considered as implement of restaurant consumer’s

customer value & satisfaction, the brand personality addressing to the Grubway, the existing

perceptual map. The perceptual map will find the competitor’s brand. All the consumer behavior

analysis should evaluate the future growth.

According to above consideration has to more attention on good opportunity identification of Sri

Lankan restaurants. This marketing analysis could be successfully initiated through Grubway

restaurants hence the best restaurants in Sri Lanka.

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2. Introduction

Many restaurants lunched long periods in Sri Lanka. This means consumer may eat chickens,

vegetable, snacks and etc to away their home. Food should be nutritious and also help to meet

the social, cultural and educational needs of consumer.

In these types of restaurants the food is prepared on the vehicle itself and is served to the

customers at the particular time. Consumers are a very important part of any business. They play

every important role in the business’ success. So, consumer satisfaction very important when

restaurants managing the restaurants.

The customers’ food habits are being developed. Most consumers have formed lifelong eating

pattern are changed. It is an important opportunity to towards which will fulfils the best

satisfaction on maintaining good health in the long term.

Grubway had plant to open new restaurants in Colombo and Kandy areas. It is expect the

successful restaurants market situation in Sri Lanka. I submit the report of Grub-a-GRUBWAY

Today to director board through the marketing director. I am approached to submit the report

about organizational macro environmental factors, micro environment factors, STP, marketing

mix, customer value & satisfaction and etc of restaurants food products. Under this topic there

are more details about possibilities in Sri Lanka.

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3. Marketing

3.1 Restaurants in Sri Lanka

Fast food restaurants know flavor food and quick serve restaurants. It prepares foods to

customers in return for money, it is commonly served and eaten on premises all food items, but

many restaurants also offer takeaway and food delivery services. Restaurants vary greatly in

appearance and offerings, including variety foods. There are many restaurants are available in Sri

Lanka.

In Sri Lanka, Many more foreign and local restaurants are provide the fast food, home food, hot-

dog, burger and sandwich to consumer. Restaurants offer primary, secondary foods and style

food. The restaurants are separately has food services otherwise it is joining with hotel. The

customer easily finds the restaurant on website and mobile application.

Grubway restaurant’s marketing plan analysis successful in Sri Lanka. The analysis explain

about the micro environment, macro environment, segment, targeting, positioning as well as

marketing mix of Sri Lanka’s restaurant. The following factor explaining below.

3.2 Micro environment

The micro environment of the Grubway is expended by push marketing strategy. Every micro

environment includes company, competitors, suppliers, customers and intermediaries. Therefore

we have to operate with push marketing strategy. So ultimately we can expand our business.

Marketing success will require building relationships with company departments, suppliers,

marketing intermediaries, customers, competitors, and various publics, which combine to make

up the company’s value delivery network. Micro environment that surrounds organization can be

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complex by nature; however company can control over it. Some the micro factors which success

for Grubway restaurants.

3.2.1 Company

The analysis is Grubway’s objectives, strategies, and capabilities which indicate the strength of

the business model, if the areas need to improvement and how an organization will fit with the

external environment.

Restaurants management is extremely demanding and high pressure there are very few people

who can do this job correctly. To be a successful at restaurants management you need to have to

a particular skill set and many of this skill will be in relation to managing staff correctly.

3.2.2 Competitors

There is high competition in Sri Lanka. The restaurants and hotels provide the foods services.

They have financial strength, raw materials, cook experience, chief and management staff. That

satisfaction is not 100% sure to consumer because all food’s price is high and day to consumer

will go to other restaurants. So, Grubway can make possible competition among in Sri Lanka.

3.2.2.1 Type of competitors

Primary competitors - Pizza hut, McDonalds, KFC, Perera & Sons, Keells and Burger King

Secondary competitors - John Keels hotel, Hilten hotel and restaurants, Arpico, Cinnamon

Hotels & Resorts, Aitken Spence Hotels and Jetwing Hotels

Possible competitors - Convenience foods PLC, Bairaha farms PLC and Cargils Ceylon PLC

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3.2.3 Customers

Customers are purchasing and enjoying the food from restaurants. The current situation is

customers increase the in Sri Lanka because more husband and wife go to work they don’t have

time home and cook activities in Colombo and Kandy areas, the wedding parties and birthday

function and office meeting peoples are possible to Grubway. The Sri Lanka culture changes to

be positive to the restaurants business. The people like to buy flavor animal foods from

restaurant because the people are not skillful cook for the animal foods (hot-dog).

3.2.4 Suppliers

Suppliers are supplying the raw material resources, resale goods and labors to the company in

order to supply goods and services. The effectiveness of suppliers determines the efficiency of

the company in terms of producing the goods.

In the situation of more suppliers deal with labor is required at the optimum level in order to

prevent the loss of labor force and prevent the company from the shortage of labor which again

can lead building of inventory as a cost for the company and handle all the material required by

the firm in order to manufacture the finished product for sale.

3.2.5 Marketing Intermediaries

Marketing intermediaries help the restaurants’ promotion, sell and distribute. It is products to the

final buyers. There are several types of intermediaries that operate in a particular channel system

in Sri Lanka. Their use the exclusive distribution, intensive distribution, and selective

distribution. Company factors, environmental trends, reputation of the reseller, experience of

reseller are just a few examples when selecting they type of intermediaries and channels to be

chosen.

This service is important because individuals want opportunities to grow their savings, and it

stimulates economic growth and development. Financial intermediaries can help manage

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investment risk with their specialized knowledge and experience. The advantages of using

intermediaries include risk management, fiduciary responsibility, and increased liquidity for

individual investors and professional advice.

3.3 Macro environment

The macro environments of the Grubway expended by pull marketing strategy. The macro

environment has a PESSTEL analysis. Therefor we have to operate through with pull marketing

strategy. So ultimately we can expand business.

PESTEEL model involves the collection information about external factors which have, or may

have, an impact on business. This can affect its activities and performance. The macro

environment according to the seven presented factors of the PESTEEL analysis is the starting

point of the global environmental analysis.

3.3.1 Political environment

These factors refer to government policy such as the degree of involvement in the economy.

The restaurants are successful in Sri Lanka. There is some of foreign franchise organization

already operating their restaurant (KFC, MacDonald and etc). The political is possible in Sri

Lanka because local consumer like more local and foreign food as well as tourist look to like

different food. The following political factors effect in restaurants business.

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The fast demand growth is high because the political uncertainties in the market and there is

not monopoly restaurants.

Government is protecting the environment (Going green). It is save the cost carried the

globalization.

Protect & safety measure knowledgeable property rights of geographical indications.

Health department checks the food quality, production method, out resource material and

suitable price. So, Grubway can sells favor product to consumers and the health department

confirm the standard of foods.

Pressure group affect

The restaurant participate the social activities such as help the people, giving the donation

and etc. so, the government is possible in restaurants markets.

3.3.2 Economic environment

Restaurant is the important growing business areas in global economy. Economic environment

refers to the aggregate of the nature of economic system of the Sri Lanka. The economic is

different ways to success.

In few days, Sri Lankan economy is growing (GDP 8.2% in 2014 January). It may be

possible local and foreign companies.

Government considers safe food not only the taxation charge.

Grubway easily can get Sri Lankan employees in low salary because unemployment rate is

high in Sri Lankan.

Firm stable interest rates as well as slower than expected global demand.

The government also possible effect on foreigon country’s investment because increase the

vacancy, local economy growth and fulfill the consumers’ needs.

Higher exchange growth may boost demand for a firm's products.

Those are other interest rate, exchange rate, country economic growth, investment policy as

well as per capita per income related the restaurant business.

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3.3.3 Social cultural environment

Changing cultural and demographic factors are possible to restaurants. However, the population,

lifestyle and tradition are fairly different between regions as well countries. Sri Lankan

population growth is high onward food demand increase. The Grubway’s success accordingly

related with.

The following globalization of Sri Lankan consumers likes foreign foods because husband

and wife go to work so they don’t have time to cook.

The fast food demand is increased by birthday party, wedding and official meeting as well

as friends and lovers spends more money to fast foods

The government’s focused increase the social protection in food industry and global green

protection. Also, the global consideration will be reduced by companies

Changes in social and cultural trends can impact on the demand for a firm's products and the

availability and willingness of individuals.

The home hot dog increase is possible in Sri Lanka.

3.3.4 Technology

Technology forms the future of any society. Marketer must watch the changes in the technology

for keeping track of competition and customer wants. In the modern world, the pace of

technological changes is very fast. This change accordingly related with

Online order and call orders are easily attract the consumers

New technologies create new products and new processes. All improvements to the way we

do business as a result can reduce costs, improve quality and foods variety.

The company can easily advertise the product through the web sites

Internet makes it easy to collect & analyses consumers’ feedback.

The restaurants provide free Wi-Fi to consumers and partly palace to consumers

(McDonald).

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The mobile application easily finds the restaurant place, food orders as well as consumers

requirements without unnecessary cost. Example McDonald

3.3.5 Ethical environment

Ethical environment is possible by the following reasons

The price must be affordable to the brand value to their customers.

Marketers make sure to put their product component.

Customers are feeling healthy about restaurant’s foods

3.3.6 Ecological environment

Ecological environment is concerned of how the organization interacts with and effects the

natural environment or the ecology. So, many changes are success in ecological environment.

The company always thinks about the environment in their manufacturing process.

Restaurants are recycles their own garbage.

Financial supports for the environmental conservation projects.

3.3.7 Legal environment

Legislation could also impact the course of the restaurant industry. Obviously, central

government legislation tends to affect the industry more severely than local legislation. The law

more concern about the product. The following are the key challenges faced by the Sri Lankan

fast foods services.

Product health and safety department check the product standard as well as consumer

protection of consumer affair can make sure standard foods.

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All Ceylon Jamiyyathul Ulama Halal certification authority recommences the Halal food

restaurant to consumers but some restaurants only has Halal certificate. So, Grubway can get

the certificate for future Muslim consumers.

Lows relating to advertising and employees

The Sri Lankan restaurants are legally registered.

3.4 Marketing Strategy (Segmentation, Targeting and Positioning)

3.4.1 Segmentation

Market segmentation involves grouping your various customers into segments that have common

needs or will respond similarly to a marketing action. Each segment will respond to a different

marketing mix strategy, with each offering alternate growth and profit opportunities.

Marketing segmentation is a big part of the marketing strategies of firms in the restaurant

industry. Market segmentation and the identification of target markets, however, are an

important element of each marketing strategy.

Geographic Segmentation - The geographic segments consider of age group 15-24 year olds,

male & female (primarily - young adults and businesspeople, young families with children,

kids, youngsters,) and single person.

Demographic segmentation - Demographic segmentation consists of main cities of Colombo

and Kandy.

Psychographic segmentation – Psychographic segmentation groups customers according to

office staff and individual families.

Behavioral Segmentation – Behavioral segmentation groups customers according to loyal

consumer, knowable consumers and

3.4.2 Targeting

Target marketing can be the key to a business’s success. Those are

15-24 year olds - they go out for fast food more than any other age group. They have

disposable incomes which they tend to spend on immediate gratification items.

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Young adults and business – They have the potential of providing large volume sales to the

company during the peak hours of 11 a.m. to 2 p.m. The lunch business is driven by

individual.

Families with children – They are a growing population, both numerically and in their choice

for convenient foods. Two-income families have less time to prepare meals so they are an

easy group to market to because their lifestyle is very specific.

3.4.3 Positioning

Positioning is high restaurant marketing component. Positioning is the place restaurants hold in

the customers or prospects mind relative to the competition are cheaper choice, the higher quality

choice and etc.

3.5 Marketing mix

Restaurants business may consist of a number of product lines, which are groups of items

containing similar characteristics. Together, these product lines comprise company product mix,

which is the total assortment of products your offer. Understanding the concept of a product mix

is essential to the success of restaurants business for a number of important reasons.

3.5.1 Product

The Sri Lankan restaurants are commonly selling different types of products. The consumers are

mainly focus the variety of products. So, Grubway restaurants the food activity mainly focus this

category.

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The famous verities foods are burgers, sandwich, pizza as well as chickens. The main categories

of products are Chinese foods, Indian food, Sri Lankan pizza, homemade food, halal food, Thai

food, various types of chicken sandwiches, and vegetarian items, wraps and other localized fare,

and etc.

The product plan of Grubway mainly the important varies of foods Burger, home foods, hot-dog

and Sandwich because that foods sales more in Sri Lanka.

3.5.2 Price

This restaurant’ food and meal the normally high prices compare than home foods. But these

restaurants are respectfully satisfying the consumers when preferring and communicating. This is

high demands for the restaurant. The Sri Lankan restaurant’s price is high that consumer 100%

not satisfy So, Grubway should focus the consumer satisfaction.

The different varieties of foods are different price in Sri Lankan restaurant. Also that consumer

mainly chose the foods than it is price to taste, variety, free delivery and hospitality.

3.5.3 Place

A restaurant's location is as important to its success as great food and service. When considering

the selecting the restaurant place. The restaurant mostly consider the more population areas in

Colombo & Kandy, suitable essay parking area, located in near the main areas as well as

considers the traffic jam and natural place. For example, that most of restaurants are located

Mount Lavinia, Wellawtta in Colombo.

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3.5.4 Promotion

The restaurant may be full day at the weekends. The Grubway should select the webpage,

Facebook, banner, mobile application radio and etc. TV advertising cost is high. So, consider

when selecting the advertisement media.

The Sri Lankan restaurants provide promotion to consumers. Those examples are McDonald's

free toy with every happy meal, KFC bucket buy get 1 free with Seylan credit card, Cargills food

city 30% off for visa cardholders and More restaurants supply directly to home without charges.

3.5.5 People

People are involved in the marketing process, such as serving the customers, cooking the food

and cleaning up afterwards, as without them the restaurant would fail to exist. In this case it does

not represent the customers. Example: waiters, chefs and cleaners.

3.5.6 Processes

How the restaurant is managed is paramount to a good business, as unless everyone involved

knows what their functions are to ensure the smooth running of the establishment, none of the

customers will receive good service, or the excellent food they expect, or a clean and respectable

place to eat it in.

3.5.7 Physical Evidence

The environment of a business, especially which provides a good experience for its customers, is

vital to ensure consistency, continuity and good practice. This includes the staff’s uniforms, table

linen, plates and cutlery, restaurant’s decoration and style of the menus, all relevant to continue

the reputation of the establishment.

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4. Consumer behavior

4.1 Customer value and satisfaction

4.1.1 Customer value

The value is different between the quality of restaurant's foods and the price. For example,

buying food, customer will think about food content and the values against the money, effort and

compare restaurants food with alternative restaurant.

4.1.2 Customer satisfaction

Customer satisfaction measures how products or services supplied by restaurants meet or exceed

a customer’s expectation. The Grubway restaurant’s customer satisfaction is important because

they can use to manage and improve their businesses as well future success.

To reduce the customer waiting time for food order

Listen, identify and provide the best thing offer to delight the customer

Build customer loyalty and exceed consumer expectations

Prefer the make the quality foods with services quality

Emphasize the, customer satisfaction, customer loyalty and responsibility.

Make smile and friendly communicate when customer entering the restaurant

Easily organize the restaurants food hand menu

Reasonable price for the foods with services

4.2 Brand personality

Brand personality is a set of human characteristics that are attributed to a brand name.

The restaurant brand personality is something to which the consumer can relate and an effective

will increase its brand equity by having a consistent set of traits. This is the added value that a

brand gains, aside from its functional benefits.

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Here are a few reasons why Grubway should know the personality

What kind of consumer visits to restaurants whether they are in town visiting or your regulars

imagine what you like your customer to think about when they hear you

4.3 Perceptual map

High Intent to buy

Grubway

KFC

McDonalds

Perera & sons Pizza hut

Burger King

Low Price High Price

Low Intent to buy

I have decided the fast foot brand by the intent to buy and price. The price is different in

restaurant. The main reason is every restaurant makes different variety of taste foods as well as

promoter different way. The future position of Grubway will select the suitable price and intent

to buy will high.

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4.4 Consumer attitudes and affect the growth of Grubway

Consumer attitudes are a complex of a consumer’s beliefs, feelings and behavioral intentions

toward some object within the context of marketing, usually a brand or retail store. These

components are viewed together since they are highly interdependent and together represent

forces that influence how the consumer will react to the object.

4.4.1 Consumer attitude of fast foods

Beliefs - The consumer may hold both positive beliefs toward an object as well as negative

beliefs. For example, Food is good taste as well as negative belief of food is not hot, some of

foods are fresh at lunch time only and some meal are not sure by pork

Affect - Consumers also hold certain feelings toward brands or other objects. Sometimes

these feelings are based on the beliefs. For example, person feels nauseated when thinking

about a burger because of the tremendous amount of fat it contains, but there may also be

feelings which are relatively independent of beliefs.

Behavioral Intention - The behavioral intention is what the consumer plans to do with respect

to the object. Consumers will buy or not buy the brand with affect, this is sometimes a

logical consequence of affect, but may sometimes reflect other circumstance, although a

consumer does not really like a restaurant, he or she will go there because it is a favorite

place for his or her friends.

4.4.2 Affect the growth of Grubway

Grubway care about consumers, product quality, open every day, make verity of foods as well as

all over the market because the effects on consumer purchasing behaviors. Consumer always

expects satisfy service from the restaurants.

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5. Findings & Conclusion

There are micro and macro factors are influence in restaurants food business. The micro

environment of company can controllable and manageable and the increasing population suitable

market demand, technology easily sales the good without advertising cost, the social cultural

trend change opportunity to get consumers as well as all the macro factors possible to Grubway

business success.

The market segment of consumers increase because the consumer husband and wife are go to

work and they don’t have to no time care about cook in Colombo and kandy areas. The

employees, youths, school children are market segment to restaurants business.

The restaurant businesses have variety of foods items. That price and taste vary from restaurant

to restaurant. The restaurants innovate to satisfying the new variety of goods. Also, consumers

care about the price. The place is mainly selected easily purchase and natural area. The

promotional can make without the unnecessary cost from web and mobile application.

The restaurant foods and services satisfy by nutritious foods, quick services and free delivery

services. The restaurant brand personality and consumer attitude favor the restaurant business.

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6. Recommendation

Many restaurants are quickly entering the restaurant business but they are not fixating and not

satisfying the consumer’s need. When Grubway restaurant entering the business which should

consider below.

Many restaurants face the problems. The restaurants are not regularly work in weekday and

weekend. The ability to come up with creative solutions. The solution should be routine

running a restaurant.

More restaurants’ purpose is more profit but Grubway will focus sales of the nutrition food

and services with consumer satisfaction.

The ineffective marketing and advertising campaign. So, the key to promotion positive word

of mouth and turning first time customers into repeat customers.

Restaurant’s success determines not only the good food but also the consider management

and communication because the success of your restaurant. Poor staff management can be the

element that’s costing your foodservice operation every single day and poor communication

skills.

Before starting your restaurant business, consider the kinds of conditions may arise in the

day-to-day management to your establishment. Successful restaurant entrepreneurs find way

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7. Reference

Marketing an introduction 7th

Edition by Gary Armstrong, Philip Cotler.

Consumer behavior 10th

edition, Leon G. Schiffman, Leslie Lazar Kanuk,

http://en.wikipedia.org/wiki/Restaurants

https://hospitality.ucf.edu/files/2011/08/DPI-Why-Restaurants-Fail.pdf

www.bplans.co.uk/pie_restaurant_business_plan/market_analysis_summary_fc.cfm

http://smallbusiness.chron.com/definition-customer-value-hierarchy-26365.html

http://www.theacsi.org/industries/accommodation-and-restaurant/fast-food

http://josefwelch12.skyrock.com/3075283739-Common-Restaurant-Problems-and-

Solutions.html