The food company invests in the future with a flexible financing model: “With Foppa, we have had the opportunity to invest significantly more in marketing than usual”
According to Evoke CEO Mikko Lähdetie, Foppa’s financing model is exceptional, as the marketing investment does not have to be repaid at once, but can be spread over smaller parts throughout the year. According to him, there would be a demand for the model especially in startup companies in the food industry.
The intention is to increase Evoke Oy’s revenue of EUR 3.86 million from last year to more than EUR 5 million for the first time this year, says Mikko Lähdetie.
“With Foppa, we have had the opportunity to invest significantly more in marketing than usual. In addition, they have been able to show what kind of advertising we can use to achieve sufficient reach and growth.”
With Foppa – flexibly
Evoke is a company founded in 2014 that specialises in the manufacture and import of food and beverages. Collaboration with Foppa began a year ago.
The aim was to increase recognition of the company’s product groups and, with the increase in recognition, total sales. In the future, the goal is to further increase sales and become one of the largest in the field, including outside the domestic borders.
Engaging in the collaboration was a unique opportunity for the company, as despite the limited resources, greater investments in marketing only became possible through it.
“We engaged in this collaboration because of Foppa’s new type of financing model, which handles marketing investments in blocks throughout the year. Now, for example, we do not have to cover a TV advertising campaign of EUR 100,000 in a single payment – and that would not have been possible before, either.”
According to Lähdetie, for food manufacturers television and radio are the most important advertising channels of all, as they reach the masses and bring with them a higher degree of recognition.
“When it comes to a quality product that is reasonably priced, nothing other than recognition matters. For example, we measure the profitability of our products directly based on the development of recognition. In addition to product availability, recognition is also what drives product sales growth up in the longer term,” says Lähdetie.
An even wider demand for Foppa’s financing model
According to Lähdetie, Foppa’s media financing model is an important opening because many of the companies in Finland are of a size comparable to that of Evoke Oy, and only a few have the opportunity to invest in advertising to the extent necessary to achieve widespread recognition.
The model would also be in demand among other similar companies, Lähdetie ponders.
‘Many companies have quite limited resources, especially for the mass media and this is exactly where Foppa can help. The collaboration has also proceeded well with regard to other areas. The operation has been really straightforward, they have extensive knowledge of the media field and they have been able to obtain good contracts individually for us.”