SKU Management for the Cosmetic Industry: What is the Best Policy for Product Portfolios?

Abstract

The purpose of this research is to explore crucial factors for SKU optimization decisions, specifically for the cosmetic industry. As product proliferation increases in popularity and consumers come to expect more personalized product, cosmetic companies, like Mary Kay, need to evaluate their product portfolio to ensure that they are meeting their corporate objectives and offering consumer solutions without compromising operational efficiency or profits. Implementing a SKU optimization process allows companies to establish a regulated method to manage product portfolios. This paper aims to conclude with an applicable decision tree that Mary Kay can incorporate as a SKU optimization process.