Business Policy

COMPANY BACKGROUND

Colgate Palmolive (Pak) Limited (CPPL) is a joint venture of Colgate Palmolive Company USA, a global company operating in more than 200 countries. The company is a part of the Lakson Group of Companies in Pakistan. Colgate Palmolive owns a number of world-renowned brands in categories including Toothpaste, Toothbrushes, Soaps and Shampoos. Their specified fields of operations are:

Oral care

Fabric Care

Household Surface Care

Personal Care

In Pakistan Colgate Palmolive is one of the largest consumer product companies. Its well-known brands are Colgate, Palmolive, Brite, Express, Bonus, Max Bar, Azadi Bar, and Sparkle.

The rapid expansion in various markets of Pakistan is facilitated by Colgate's proven quality products, duly supported by their marketing thrust; down-scale distribution drive covering towns and villages, creative media advertising and 360 degree marketing.

The success and growth of CPPL in Pakistan is attributed to their market leadership, acquired through the speed in introducing powerful brands in various markets according to price and income strata. The latest business tools are used, and highly motivated and dedicated professionals work as a team. Colgate Palmolive operates in an environment of mutual respect, trust and commitment, consistent with the global Colgate values of caring, team work and a drive towards continuous improvement.

Colgate Palmolive has its Head Office in Karachi. All the products sold by CPPL are manufactured in the factory situated in Kotri, near Hyderabad. Inventory is dispatched to six warehouses, namely, in Hyderabad, Sukkur, Multan, Faisalabad, Lahore and Islamabad.

Most of the inventory is delivered to the distributors from the warehouses. However, in some cases due to heavy orders, inventory is dispatched directly to the distributors from the factory.

Opportunities for profit margin improvement continue to be identified and successfully implemented. One such initiative has delivered savings from improved materials planning and sourcing. Information technology is now increasingly being leveraged to increase efficiency and productivity, and to improve the quality of information for better decision-making.

Colgate-Palmolive's future strategy is to continue in its ongoing quest to understand the continuously evolving needs and expectations of consumers and exceed these expectations by offering products that provide unique functional benefits, quality and value. This strategy is designed to strengthen the company's market leadership positions, and deliver further earnings growth and incremental value to all its stakeholders.

Leveraging their brands through the introduction of innovative new products and the restaging of their existing brands is a key determinant of their strong competitive position.

Colgate toothpaste is the main driving force behind the Oral Care business, contributing towards consistent and profitable growth. Colgate Maximum Cavity Protection toothpaste, a key equity driver, was relaunched last year with a new improved germ-fighting formula containing micro particles of calcium and active fluoride that help keep teeth healthy and strong.

The relaunch was accompanied with a hard-hitting advertising campaign highlighting the importance of protection against cavities.

Colgate works hand in hand with Pakistan Dental Association (PDA) to leverage its quality perceptions and oral health awareness in the masses. This is one of many consumption building activities, which have been pioneered by Colgate in Pakistan.

CONSUMER CONNECTVITY AT COLGATE PALMOLIVE

Colgate Palmolive has always been the front-line player in establishing a meaningful rapport between the company and its consumers. Some of its mainstream projects in this regard are:

Colgate Picture Pakistan

Colgate Picture Pakistan is a model building contest designed to promote an awareness of Pakistani art and culture amongst school children. The contest invited teams of school children to construct models of famous Pakistani landmarks from Colgate packs. Schools from across twenty two cities of Pakistan sent around 200 fascinating entries of artistic excellence to the contest.

Palmolive Swimming Championship

The Palmolive Swimming Championship is organized every year by the Karachi Women's Swimming Association (KWSA). The championship is an annual event which has been sponsored by CPPL for the last 12 years. The aim of the company is to promote the sport among young women athletes and provide opportunity and encouragement to pursue their goals.

Bright Smiles, Bright Futures Program

This program is a regular feature of Colgate which reaches out to school children nationwide. To date, 1.6 million children have been covered and taught about oral health hygiene and good oral practices. The vision for Bright Smiles, Bright Futures program is to see a cavity free generation for Pakistan.

Global Art Contest

This contest is an element of the Bright Smiles, Bright Futures program. Every year, school children are invited to portray their vision of bright smiles. In 2004 a Pakistani entry was selected for the third consecutive year to be included in the "My Bright Smile" global calendar.

International Dental Congress

Colgate, in collaboration with the Pakistan Dental Association (PDA) organized the seventh International Dental Congress in Islamabad last year. This four-day

international convention was inaugurated by the Prime Minister of Pakistan. Over 2000 foreign delegates participated in this convention which geared to highlight the importance of oral hygiene and key dental health issues faced in Pakistan. The event benefited from significant levels of exposure on TV, radio and newsprint.

EXPLORING NEW FRONTIERS

CPPL explores new opportunities for consumer contact and market expansion through moves such as fairs, festivals, and exhibitions; as well as customer marketing initiatives.

Fairs, Festivals and Exhibitions

The company's participation in fairs,