SKU Mix Targets
Core Heroes
10-15%
~40-60 SKUs. Protect at all costs: service levels, supply, content, promo. If this creeps above ~20%, you're duplicating heroes and creating cannibalization.
Support / Core Variety
55-65%
~220-260 SKUs. The healthy middle: completes the line across retailers, solves different needs. Portfolio stability lives here.
Strategic Bets
10-20%
~40-80 SKUs. Launches in their "prove it" window, retailer exclusives, Amazon experiments. Below 10% = innovation stalls. Above 20% = ops chaos.
Long Tail / Candidates
10-20%
~40-80 SKUs. Intentional pruning zone. If consistently >20-25%: too many one-offs or you're not sunsetting fast enough.
Channel Distribution
Target Channel Split: 30% Wholesale · 40% Amazon · 30% DTC
Launch Sequence: DTC first (test & learn) → Amazon (scale) → Target (mass penetration)
GMROI Targets: Hair Care 3.5-5.5 · Hair Accessories 2.5-4.0
Review Cycle: Strategic Bets get 3 cycles to prove leading indicators before rolling to Long Tail
Launch Sequence: DTC first (test & learn) → Amazon (scale) → Target (mass penetration)
GMROI Targets: Hair Care 3.5-5.5 · Hair Accessories 2.5-4.0
Review Cycle: Strategic Bets get 3 cycles to prove leading indicators before rolling to Long Tail
Performance Thresholds by Tier
| Tier | GMROI | CP Quartile | Velocity | Incrementality | Review Window |
|---|---|---|---|---|---|
| Core Hero | Hair Care: ≥3.5 Accessories: ≥2.5 |
Q3-Q4 | Q3-Q4 in at least one major channel | Strong repeat rate, high attach, new-to-brand driver | Permanent -- protect |
| Support / Variety | Hair Care: ≥3.0 Accessories: ≥2.0 |
Q2-Q3 | Q2+ across channels | Completes planogram, good-better-best role | Quarterly review |
| Strategic Bet | Can underperform temporarily | Exempt during prove-it window | Exempt -- watch leading indicators | Repeat rate, ratings, attach, new buyer % | 3 review cycles max |
| Long Tail | Below thresholds | Q1 on CP$ AND Q1 on velocity | Q1 (bottom quartile) | No clear strategic role | Sunset or fix immediately |
KPI Scorecard
| Category | Metric | Channel Applicability |
|---|---|---|
| Economics | Contribution Profit $ & % | All channels |
| GMROI | All channels | |
| Net revenue after trade/returns | All channels | |
| Demand | $/store/week (velocity) | Ulta, Target, Walmart |
| Units/week + search rank share | Amazon | |
| Repeat rate / reorder rate | DTC & Amazon | |
| Ratings / review volume | Amazon, DTC | |
| Retail Health | In-stock % / OOS lost sales | Wholesale |
| Fill rate / OTIF / chargebacks | Wholesale | |
| Promo dependency (%vol on deal) | Wholesale | |
| Incrementality | New-to-brand buyer % | DTC, Amazon |
| Attach rate / basket builder | DTC | |
| Planogram necessity | Target, Ulta |
Pricing Guardrails
Non-Negotiable Rules
- Do NOT enter Salon or Premium pricing -- we do not compete with Kenra or Kerastase
- Hair Care: Target mid-range $12-$18 sweet spot at Target (treatments up to $18)
- Hair Accessories: Mass pricing -- comp against mass-market, not salon brands
- Benchmark: price Hair Care at approximately 1/2 the price of DAE
- Must win at Amazon -- pricing must be competitive and defensible against Amazon-native brands
- Clean beauty compliance (Ulta Conscious Beauty) is non-negotiable for Ulta distribution
Budget / Value
$2.99-$8.99
Target · Entry Tier
Travel sizes, basic sprays/gels. Suave, Tresemme travel, Aussie.
Avoid -- too low
Kitsch Zone -- Mid-Range
$12-$18
Target · Amazon · DTC
Hair care: $12-$16 sweet spot. Treatments up to $18. Accessories: mass pricing below this range. Comp: Dove, Batiste, Mielle Organics.
Target Zone
Premium / Salon
$15-$30+
Ulta · Specialty
Kenra, Kerastase, celebrity collections. Salon-style positioning.
Do Not Enter
Price Benchmarks
| Product Type | Kitsch Target Price | Positioning vs Competitors | Key Rule |
|---|---|---|---|
| Hair Care (shampoo, conditioner, spray) | $12-$16 | ~1/2 price of DAE · Below Kenra | Mid-range, not salon |
| Hair Treatments (masks, intensive) | Up to $18 | Below premium specialty brands | Premium-adjacent but accessible |
| Hair Accessories | $5-$12 | Mass-market comp set | Volume-driven, not salon |
| Kids / Tear-Free | $10-$14 | Accessible family price point | Must compete on Amazon first |
Decision Triggers (Any 2 Over 2-3 Review Cycles)
Kill / Exit Triggers
Bottom quartile on CP$ AND bottom quartile on velocity
GMROI deteriorating while inventory weeks-of-supply rises
High operational friction (MOQ, changeovers, claims) with no strategic role
Promo-only seller (volume collapses off deal)
90 SKUs currently meeting exit triggers -- 30% of total stock at risk
Keep / Invest Triggers
Top quartile CP$ or velocity in any major channel
Clear strategic role: hero, entry price point, retailer requirement, platform tech
Strong leading indicators: repeat rate, rating, attach rate, new-to-brand %
Retailer planogram necessity (Target, Ulta)
Brand story / PR / influencer utility
"Fix It" Pathway
Price / pack fix: Adjust AUR, margin, or pack size architecture
Distribution fix: Wrong channel / retailer / missing content
Messaging fix: Rename, claims ladder, PDP update, shelf callouts
Give a defined deadline -- if the fix doesn't move the KPI, exit
Formula fix: Remove non-compliant ingredients for Ulta Conscious Beauty
Incrementality Test
Incremental = creates new demand, not just cannibalizes.
DTC/Amazon: When this SKU is in stock and promoted, do closest substitutes drop 1:1? If yes -- not incremental.
Wholesale: If delisted in a subset of stores, do brand dollars hold (shift to sisters) or fall materially? Fall = incremental.
New Buyer Rate: If a SKU disproportionately brings new-to-brand customers, it's often incremental even if small.
DTC/Amazon: When this SKU is in stock and promoted, do closest substitutes drop 1:1? If yes -- not incremental.
Wholesale: If delisted in a subset of stores, do brand dollars hold (shift to sisters) or fall materially? Fall = incremental.
New Buyer Rate: If a SKU disproportionately brings new-to-brand customers, it's often incremental even if small.
December 2025 -- Channel Performance
Amazon
$31.8M
Net Sales · 48% of total
↓ -3% prev. period
DTC
$17.3M
Net Sales · 26% of total
↓ -2% prev. period
Target
$4.7M
Net Sales · Wholesale
--
Ulta
$3.9M
Net Sales · Wholesale
--
Top Categories by Net Sales
| Category | Gross Sales | Net Sales | Units Sold | % of Total |
|---|---|---|---|---|
| Sleep | $15.3M | $14.7M | 1,269,624 | 22.3% |
| Hair Accessories | $13.3M | $13.0M | 2,438,643 | 19.6% |
| Cleanse & Groom | $13.8M | $12.6M | 1,364,769 | 19.1% |
| Consumable | $11.6M | $11.0M | 1,040,320 | 16.7% |
| Fragrance | $8.3M | $7.3M | 580,248 | 11.1% |
| Licensing | $3.8M | $3.5M | 266,351 | 5.3% |
Amazon Top Categories
| Category | Amazon Net Sales | Units | Note |
|---|---|---|---|
| Sleep | $9.3M | 650,584 | Largest Amazon category |
| Cleanse & Groom | $7.1M | 686,466 | High strategic priority |
| Hair Accessories | $5.8M | 718,951 | High unit velocity |
| Consumable | $4.2M | 307,827 | Strong repurchase potential |