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The video tutorial demonstrates how to insert a logo in a Microsoft Word document. To do this, click on "Insert," then "Picture," and select the logo from your system. After inserting the logo, click on it, then click on "Format," "Text Wrap," and "In front of text" to adjust its position. You can resize and move the logo as desired. The tutorial shows how to create a simple letterhead by inserting a logo into the document.