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FOUNDATIONAL LAYER

Structural Note 03

Structural Note 03

Portfolio Compression

Portfolio Compression

The 3 SKU Question

Many beauty brands do not struggle because they lack products.

They struggle because their portfolio expands faster than its structure.

As new SKUs are introduced, attention becomes fragmented.
Marketing shifts constantly between launches, messages, and product priorities.

Over time several symptoms begin to appear:

• SKU hierarchy weakens
• hero products lose visibility
• campaigns compete with each other
• messaging becomes fragmented

A simple diagnostic question often reveals the problem: