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Research and analysis highlights.

The market for Oral hygiene in Pakistan increased between 2002-2007, growing at an average

annual rate of 3.4%.

The leading company in the market in 2007 was Colgate-Palmolive Company. The second-

largest player was GlaxoSmithKline Plc with Unilever in third place.

Oral Care (41% of sales) Colgate's most recognizable products are in oral care, including

Colgate-brand toothpaste, toothbrushes, mouth rinses and dental floss. As of the end of 2008, the

company holds a staggering 44.8% global market share with its flagship toothpaste product line.

[1] Growth in this product line is highly dependent on rebranding and new product introduction.

Colgate also produces pharmaceutical products for dentists and other oral health specialists.

Colgate-Palmolive (NYSE: CL) is one of the world's largest Consumer Products companies by

market share with commercial presence on six continents.[1] Since its 1806 founding, Colgate has

grown into a multinational corporation known for its toothpaste and oral hygiene products with a

$15.3 billion in net sales and $2.0 billion in net income for FY08.[2] As of the end of 2008, the

company holds a staggering 44.8% global market share with its flagship toothpaste product line.

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The toothpaste market in Pakistan is around 7 billion rupees while the tooth brush and mouth

wash markets are 300 million and 85 million rupees respectively.

Colgate the worldwide leader in Oral Care was launched in Pakistan in 1988. It is the leading

toothpaste brand with a range of variants that offers benefits spanning from efficacy to sensorial.

Corporate entity, owner of Colgate toothpaste brand is the countrys fastest growing consumer

goods company Colgate Palmolive Pakistan Limited. This organization is known for delivering

innovative new products and concepts for improving the lifestyle of consumers. Colgate due to

its extensive research and technology base is number one recommended brand by dentists. The

product is known for its market leadership with over 26 percent market share in a situation where

numerous local and some very powerful smuggled brands are competing ruthlessly in the market.

Colgate with extensive promotional activities is developing the brand equity to new heights.

Quality has been identified as the most powerful convincing factor for the consumers. Colgate is

not only toothpaste but is also considered as a dental medicine. This feature alone, single it out in

the market of toothpastes. Familiarity is the second most voted factor which highlights

effectiveness and objective nature of brands promotion and marketing activities which are more

directed towards explaining the importance of good oral hygiene for the overall health.

Affordability and Availability have been graded by consumer survey as equal after the quality

and familiarity. It explains that Colgate operates in the premium price market segment and the

availability needs further improvement of the distribution network.

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Islamabad, July 10, 2009

According to a Gilani Research Foundation survey carried out by Gallup Pakistan, more than

two thirds of all Pakistanis (72%) use toothpaste for dental care followed by Miswak and Manjan

Powder each used by 18% and 9% respectively. Amongst those who do not use tooth paste,

majority (27%) claimed toothpaste is an expensive product, 25% said there is no specific reason

for them to not use tooth paste, 17% believe tooth paste does not clean teeth properly, 22%

claimed they use Miswak instead, because it is cheaper and 6% said that their method of cleaning

their teeth (i.e. Miswak) is a Sunnat (practiced and promoted by the Prophet sws). A nationally

representative sample of men and women from across the country were read out a list of oral

care methods and were asked Which of these do you use for cleaning your teeth? The results

show that majority (72%) likes to use toothpaste where as among the remaining respondents 18%

claimed to use Miswak (It is a natural tooth brush made from the twigs of a tree), and 9% said

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they use Manjan Powder (It is a powdered form of tooth paste which came into general use in the

19th

century in Britain). It is seen that a proportionately higher percentage of ruralites tend to use

Manjan Powder and Miswak as compared to their counter parts in urban areas that mostly prefer

using toothpaste. The data also reveals that the usage of toothpaste is more common amongst the

higher income groups. Interestingly a comparatively higher percentage of men (21%) than

women (15%) use Miswak to clean their teeth.

To understand why some people do not use tooth paste to clean their teeth, the respondents who

do not use toothpaste were asked Why do you not use tooth paste? While a higher percentage

(27%) claimed toothpaste is expensive, for 25% of the respondents there is no specific reason for

them to not use tooth paste. Seventeen percent (17%) believe that tooth paste does not clean teeth

properly and 22% claimed they use Miswak instead, because it is cheaper. Six percent (6%) said

that their method of cleaning their teeth (i.e. Miswak) is a Sunnat (practiced and promoted by the

Prophet sws) while 2% gave no response. The study was released by Gilani foundation and

carried out by Gallup Pakistan, the Pakistani affiliate of Gallup International. The latest survey

was carried out among a sample of 2754 men and women in rural and urban areas of all four

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provinces of the country, during June 2009. Error margin is estimated to be approximately + 2-3

per cent at 95% confidence level.