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AGATA algorithms have increased the profit of enterprises
to +38% due to automation of 4P marketing elements:
P roduct
rice
lace
romotion
RESULTS OF THE
AGATA
ALGORITHMS
Sales &
Revenue
Sales &
Revenue
  • Increase in accuracy of sales planning from +-25% to +-5%
  • Growth in margin profit by +38%
Process
Automation
Process
Automation
  • Industrial marketing tools in one solution for day-to-day use
  • Decrease of the human factor impact on the result
  • Decrease of dependence on individual employees’ expertise in the marketing department
Cost
Optimization
Cost
Optimization
  • Decrease of the cost per unit of production -10%
  • Decrease of the advertising costs by -35%, and increase of ROMI
  • A double-to-triple reduction of the time-to-market periods
  • Optimization of marketing department staff up to 50%*
Faster decision-
making
  • Transparency of enterprise marketing solutions for TOP-management and other departments
  • Acceleration of the annual sales planning process by 3 times
  • Quick adjustment of plans in response to unforeseen market changes
MAXIMUM
INSIGHTS FROM THE 4PS MARKETING
DATA
AGATA is an industrial marketing tool Unlike the popular belief that marketing = Promotion, industrial marketing covers both Assortment, Pricing, and Trade Policies, being the task setter for the R&D and Sales departments
01.
Product Assortment policy management
02.
price Pricing policy management
03.
Place Trading policy management
04.
Promotion Communications policy management
CASES
Application of AGATA algorithms for the period 2003-2022
Perfumery and cosmetics manufacturer
2003 - 2006
  • Turnover
    3.5bln.rub
  • Sales growth in the period
    +42%
  • Accuracy of planning
    99%
  • Market share growth
    +5% AC Nielsen
Roofing manufacturers association
2016 - 2018
  • Turnover
    30bln.rub
  • Sales growth in the period
    - Undisclosed
  • Accuracy of planning
    101%
  • Market share growth
    5.5% 11-16,5%
Dry mixes manufacturer
2017 - 2018
  • Turnover
    3.5bln.rub
  • Sales growth in the period
    +7%
  • Accuracy of planning
    90%
  • Market share growth
    -% Undisclosed
Telecommunications operator
2010 - 2011
  • Turnover
    45bln.rub
  • Sales growth in the period
    -% Undisclosed
  • Accuracy of planning
    98%
  • Market share growth
    2pp
01.
Previous
03.
Next
00.
00.
algorithms
AGATA
STRATEGIC ALGORITHMS
01.
Absolute sales growth and shares of:
  • Product range policy (PRODUCT)
  • Pricing policy (PRICING)
  • Trading policy (PLACE)
  • Communication strategy (PROMOTION)
  • General plan by each of Ps and each product category
02.
Algorithms for calculating market benchmarks:
  • SKU benchmarks, by product categories
  • Assortment efficiency (sales per SKU)
  • Sales per outlet
  • Quantitative and qualitative distribution
  • Marketing costs, target A/S
  • Awareness / consumption in the market
03.
Algorithms for calculating business targets:
  • Setting targets
  • Decomposition on 4Ps (sources of growth)
  • Decomposition on categories and distribution channels
  • Assembling of targets
04.
Algorithms for calculation of marketing budget items:
  • Targets on marketing budget by selected items: direct advertising (ADV), PoS and equipment, trade-marketing and promotions, R&D
  • Advertising-to-Sales target
  • Margin minus Total Budget
HOW AGATA WORKS
  • step 01.
    Entering data:
    • 01.Market data
    • 02.Company data
  • step 02.
    Targets and market analysis:
    • 03.Sales & revenue. Top down
    • 04.Market benchmarks
  • step 03.
    Detailed planning and approval of indicators:
    • 05.Interrelated indicators of product categories
    • 06.Assembling TOTAL. Bottom up
    • 07.Decomposition into sources of growth:
      • Pricing policy
      • Product portfolio development
      • Sales plan by geography and channels
      • Budget and structure of communication channels
  • step 04.
    Day-to-day work:
    • 08.Control of timing and quality of execution
    • 09.Work with Product,
      Price, Place, Promotion
Case of
Profit Growth
38%
Industry: Perfume and Cosmetics
Manufacturer.
Turnover of $200 million
What was the algorithms’ contribution?

Determining the required number of SKUs allowed to:

  • Remove unprofitable and slow positions, add new more effective ones, which meant reduction of the variable cost per unit of production and raise the marginal profit, which led to reduction of the cost of provision of stock and filling of distribution channels.
  • Correction of promotional costs and budget redistribution towards trade marketing and merchandising improved the «Margin minus Advertising» indicator, increased sales per outlet by 9%.
  • Improvement of product launch periods by 42% has led to meeting sales targets.

All these steps together resulted in a significant profit growth by 38%, which outstripped the sales growth of +32%.

Case description
AGATA
benefits
Through AGATA
01.
Revenue and profit targets are detailed before operational step-by-step actions
High accuracy of sales planning based on detailed forecast of indicators
The decisions and opinions of marketers are always backed up, since the logic is clearly visible
The advertising budget is reduced without loss of performance due to the launch of other sources of growth
Responsibility for the result is clearly divided between production, marketing and sales
The result of marketing work in the company does not depend on the quality of specific performers
35% OPTIMIZATION OF AD BUDGET
TELECOMMUNICATIONS OPERATOR. TURNOVER OF $1.5 BILLION

Prior to the application of the algorithms, the marketing department employed a total of 91 people:

— about 50% were developing local services for b2c and one-time b2b clients in 7 different regions, and then buying local advertising
— sales and ad budgets could not be properly managed due to the difference in the competence levels of remote employees and frequent errors in calculations: sales plans were not fulfilled and the marketing efficiency was not evaluated
— the other 50% of employees were collecting and processing field quantitative and qualitative data.

The use of the algorithms made it possible to plan in detail the sales in each product category - wired communications, mobile communications, television, the Internet - by geography, sales channels and segments (b2b and b2c upselling).

Sources of growth, which, unlike what was before (all hope for advertising!), now consisted of new products (now completely centralized), a trade policy (plus a service policy), and only part of the growth now depended on marketing activity (TM, R&D and ADV). For the first time, the marketing budget was not based on previous periods, but on tasks at hand.

Ad budget was centralized, abandoning local advertising campaigns, since the release of new services and products was now managed from the head office. This allowed the company to reduce the budget by 35% and increase media efficiency by 8 times thanks to the efficient ad buying. And marketing staff was cut by 2 times.

REQUEST
DEMO
Contacts
  • Address
    1 Poseidonos Street, LEDRA BUSINESS CENTRE, Egkomi, CY-
    2406 Nicosia
  • Country
    Republic of Cyprus
  • E-mail
MATE MARKETING Ltd