For every dollar earned in 2008 in the consumer and technical (C&T) industry, 51 cents was spent on marketing, 30 cents on production costs, 7 cents on research and development and administration, and 12 cents was kept as profit. Marketing expenses accounted for the largest share of costs at 50.6% of sales. While margins have been pressured by rising production costs and marketing expenses over 2007-2009, the operating margin increased slightly to 12.1% in 2008.

1. Personal Care:
U.S. Competitor Cost Structures 2009
Fact Sheet
C&T Industry Cost Structure 2008 Marketing expenses, 50.6%
For every dollar earned in 2008 in C&T sales, an
average of 51¢ is spent on marketing, 30¢ is spent on Other
expenses, 7.2%
producing the goods, 7¢ on R&D and administration,
and 12¢ are kept as profits. COGS, 30.1% Operating
margin, 12.1%
$ Million
20,000 $18,062
18,000
Industry Cost Structure in 2008 16,000
Actual Dollars 14,000
12,000 $10,745
Costs for the industry is as follows in 2008 10,000
in manufacturers' dollars. 8,000
6,000 $4,319
4,000 $2,570
2,000
0
Marketing expenses Cost of goods sold Operating margin Other expenses
2007
2007 2008
2008
Marketing, 52.8% Marketing, 50.6%
Comparison of Cost Structures 2007, Other,
Other, 7.2%
2008, and 2009 COGS, Operating COGS,
7.2%
28.7% 30.1% Operating
profit, 11.3% profit, 12.1%
Margins continue to be pressured by rising COGS
1H 2009
1H 2009
and marketing expenses over the past three years.
Marketing, 52.2%
Other,
7.4%
COGS, Operating
30.6% profit, 9.8%
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Report #Y375D | © 2010 Kline & Company, Inc.