case study for Pattern Brands article by sunil gupta

100 . . . What percent of the budget would you allocate to each brand? Why? In the short term, would you rather work on new designs for Equal Parts or new products/line extensions for Open Spaces? Would you continue with an advertising allocation that favors Equal Parts or allocate more of the budget to Open Spaces? Is it more important for Equal Parts to break even/bring its unit economics to a positive level, or for Open Spaces to continue scaling? Do you think Pattern should keep Equal Parts and bring it to profitability (by allocating at least 40% of the budget over the next months), or do you think Pattern should scale Open Spaces and not invest significantly in Equal Parts? . . . When Pattern first launched Equal Parts, why did the brand exist, from a consumer's point of view? Assuming the need does exist, does Equal Parts' cookware solve the need? What did Equal Parts change when the brand pivoted in early 20202 Is Equal Parts' revised positioning value proposition and target market) more compelling? From a consumer's point of view, why does Open Spaces exist? How does Open Spaces solve a need for consumers? . Artech a 18 00 pe1647710 72 100% . Are there other market factors that you believe led to the unexpected success of Open Spaces? Will these factors be sustained going forward (or are they a fad)? . Should Pattern allocate part of its budget to promoting the parent brand ("Pattern")? How should the company evolve the brand architecture going forward? Is the current "house of brands approach the best one? How can the company cross-sell Open Spaces products to Equal Parts customers and vice versa? How does the answer depend on whether the Pattern brand name is promoted or not? . ** $ 18 . . Which product category would you recommend as Pattern's third brand? How important is it for Pattern to launch a third brand within the next year? If, in the course of due diligence, a product category is found to have a strong customer fit and strong market potential but a low brand fit (ie, does not relate to the home or daily activities), should Pattern still consider it, or would that undermine the thesis behind the company's original approach? . What are the main challenges faced by DTC 1.0 businesses? Having better understood how the strategy has played out with the first two brands launched, do you believe that Pattern's DTC 2.0 vision will help them to avoid these DTC 1.0 challenges? Where and how do you see DTC 2.0 evolving (for Patter specifically and with respect to other possible models)? Assuming profit margins are the same for all, which DTC company would you prefer to invest in: one brand that is generating $200 million in sales, four brands that each generate $50 million in sales, or four brands, two of which each generate $85 million in sales and two of which each generate 515 million? $ 181 100 . . . What percent of the budget would you allocate to each brand? Why? In the short term, would you rather work on new designs for Equal Parts or new products/line extensions for Open Spaces? Would you continue with an advertising allocation that favors Equal Parts or allocate more of the budget to Open Spaces? Is it more important for Equal Parts to break even/bring its unit economics to a positive level, or for Open Spaces to continue scaling? Do you think Pattern should keep Equal Parts and bring it to profitability (by allocating at least 40% of the budget over the next months), or do you think Pattern should scale Open Spaces and not invest significantly in Equal Parts? . . . When Pattern first launched Equal Parts, why did the brand exist, from a consumer's point of view? Assuming the need does exist, does Equal Parts' cookware solve the need? What did Equal Parts change when the brand pivoted in early 20202 Is Equal Parts' revised positioning value proposition and target market) more compelling? From a consumer's point of view, why does Open Spaces exist? How does Open Spaces solve a need for consumers? . Artech a 18 00 pe1647710 72 100% . Are there other market factors that you believe led to the unexpected success of Open Spaces? Will these factors be sustained going forward (or are they a fad)? . Should Pattern allocate part of its budget to promoting the parent brand ("Pattern")? How should the company evolve the brand architecture going forward? Is the current "house of brands approach the best one? How can the company cross-sell Open Spaces products to Equal Parts customers and vice versa? How does the answer depend on whether the Pattern brand name is promoted or not? . ** $ 18 . . Which product category would you recommend as Pattern's third brand? How important is it for Pattern to launch a third brand within the next year? If, in the course of due diligence, a product category is found to have a strong customer fit and strong market potential but a low brand fit (ie, does not relate to the home or daily activities), should Pattern still consider it, or would that undermine the thesis behind the company's original approach? . What are the main challenges faced by DTC 1.0 businesses? Having better understood how the strategy has played out with the first two brands launched, do you believe that Pattern's DTC 2.0 vision will help them to avoid these DTC 1.0 challenges? Where and how do you see DTC 2.0 evolving (for Patter specifically and with respect to other possible models)? Assuming profit margins are the same for all, which DTC company would you prefer to invest in: one brand that is generating $200 million in sales, four brands that each generate $50 million in sales, or four brands, two of which each generate $85 million in sales and two of which each generate 515 million? $ 181