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This video tutorial demonstrates how to automatically categorize Outlook calendar appointments to visually distinguish them. By assigning different colors to appointments, such as using yellow or red for specific types of appointments like HR department tasks, users can easily categorize and organize their schedule. Manually categorizing appointments can be time-consuming, but Outlook offers an automatic option where users can specify keywords to categorize appointments efficiently. This feature can streamline the organization process and ensure the calendar is easy to navigate.