Pnadz936 PDF

INKING WATER AND HYGIENE
PROMOTION PROJECT
PAKISTAN SAFE DRINKING WATER

Literature Review
AND HYGIENE PROMOTION
Knowledge, Attitudes, and Practices
Khyber Pakhtunkhwa and Peshawar City
PROJECT
Water and Sanitation Systems
WASH MARKET ASSESSMENT STUDY
Prepared for
USAID/Pakistan
United States Agency for International Development
Embassy of the United States of America
Diplomatic Enclave
Ramna 5
Islamabad, Pakistan
November 2010
This publication was produced for review by the United States Agency for International Development.
It was prepared by Abt Associates Inc.
PAKISTAN SAFE DRINKING WATER

AND HYGIENE PROMOTION
PROJECT
WASH Market Assessment Study
Prepared for
USAID/Pakistan
Embassy of the United States of America
Diplomatic Enclave
Ramna 5
Islamabad, Pakistan
DISCLAIMER
The authors views expressed in this publication do not necessarily reflect the views of the United
States Agency for International Development or the United States Government.
TABLE OF CONTENTS
EXECUTIVE SUMMARY .............................................................................................. 1

1. BACKGROUND..................................................................................................... 10
1.1
WASH Programs......................................................................................................................................11
1.2
Private Sector Involvement in Provision of WASH Products and Services ...............................11
2. OBJECTIVES OF THE WASH MARKET ASSESSMENT STUDY ..................... 12

3. METHODOLOGY .................................................................................................. 12
3.1 Geographic Scope of the Study .....................................................................................................................12
3.2 Phase I Methodology........................................................................................................................................13
3.3 Phase 2 Methodology.......................................................................................................................................14
4. FINDINGS OF THE ASSESSMENT ..................................................................... 16

4.1
POU Water Treatment Products.........................................................................................................16
4.1.1
Critical Barriers/Challenges to Marketing POU Water Treatment Products....................19
4.1.2
POU Water Treatment Products Recommendations ..........................................................20
4.1.3
POU Water Treatment Products Summary/Conclusions ...................................................21
4.2
Soap Market ...............................................................................................................................................21
4.2.1
Soap Product Promotion.................................................................................................................23
4.2.2
Critical Barriers/Challenges to the Marketing of Soap Products...........................................23
4.2.3
Soap Products: Recommendations ...............................................................................................25
4.2.4
Soap Products: Summary/Conclusion ..........................................................................................25
4.3
Sanitation Products ..................................................................................................................................25
4.3.1
Promotion of Sanitation Products ................................................................................................26
4.3.2
Price of Sanitation Products ...........................................................................................................26
4.3.3
Critical Barriers to Sanitary Ware Marketing............................................................................27
4.4
Summary of Prices of WASH Products ..............................................................................................29
5 OTHER INSTITUTIONS RELEVANT TO THE MARKETING OF WASH

PROJECTS ................................................................................................................... 29
5.1
Microfinance Institutions.........................................................................................................................29
5.2
Tehsil Municipal Authorities ..................................................................................................................31
5.3
Non-Governmental Organizations .......................................................................................................31
5.4
CSR Programs of the Private Sector ...................................................................................................31
6 GENERAL CONCLUSIONS/FINDINGS .............................................................. 32

7 RECOMMENDATIONS......................................................................................... 33
APPENDIX 1: METHODOLOGY............................................................................... 34
APPENDIX 2: QUESTIONNAIRES ........................................................................... 45
QUESTIONNAIRE#1 - ALL MANUFACTURERS WASH PRODUCTS ............... 46
APPENDIX 3: INTERVIEWS WITH WASH PRODUCT MANUFACTURERS ..... 64
APPENDIX 4: MAPPING RESULTS (PHASE 1)..................................................... 101
ii
LIST OF TABLES
Table 1: Summary of Market Assessment, by WASH Product Category .................................................... 3
Table 2: Summary of Challenges and Opportunities, by WASH Product Category.................................... 8
Table 3: Household Drinking Water Sources Rural vs. Urban ...............................................................10
Table 4: Drinking Water Treatment Methods-Pakistan (Percentage of Households)...............................11
Table 5: Access to Sanitation Facilities .......................................................................................................11
Table 6: Access to Sanitation Facilities (Percentage of Households) and Prevalence of Diarrhea in Last
Two Weeks (Percentage of Children <5) ..................................................................................................13
Table 7: Analytical Framework for Data Collected Wash Manufacturers and Distributors .....................15
Table 8: POU Water Treatment Technologies Available in Pakistan ........................................................18
Table 9: Soap Market Companies and Brands - Multinational Companies (MNCs) and Local Companies
(LCs)............................................................................................................................................................22
Table 10: Cost Estimation for a Simple Pour Flush Latrine........................................................................27
Table 11: Identification of Brands and Retail Prices in all WASH Categories............................................29
Table 12: Microfinance Institutions.............................................................................................................30
iii
ACRONYMS
ACL
AGAHE
BCC
CBOs
CCBs
CDDA
CDWA
CDWI
CLTS
CSR
CWC
EPS
GDP
GHD
GOP
GSF
GST
HANDS
HRDS
HWTS
IDPs
IRSP
KPF
KPK
LC
LHWs
MCOs
MDG
MFG
MFI
MICS
MNC
MOE
MRDO
NaDCC
NGO
NRSP
P&G
PACOSAN
PCRWR
PCSIR
PDHS
Azhar Corporation Limited

Association for General Awareness and Human Empowerment (Multan-Rajanpur NGO)
Behavior Change Communication
Community Based Organizations
Citizens Community Boards
Community Driven Development Approach
Clean Drinking Water for All
Clean Drinking Water Initiative
Community-Led Total Sanitation
Corporate Social Responsibility
Community Water Centre
Environmental Protection Society (Swat NGO)
Gross Domestic Product
Global Handwashing Day
Government of Pakistan
Goth Seengar Foundation (Sukkur NGO)
General Sales Tax
Health and Nutrition Development Society
Human Resource Development Society
Home Water Treatment & Safe Storage
Internally Displaced Persons
Integrated Rural Support Program
Khushal Pakistan Fund
Khyber Pakhtunkhwa (formerly North-West Frontier Province NWFP)
Local Company
Lady Health Workers
Men Community Organizations
Millennium Development Goals
Manufacture
Microfinance Institution
Multi Indicator Cluster Survey
Multinational Corporation
Ministry of Environment
Marvi Rural Development Organization
Sodium Dichloroisocyanurate
Non-governmental Organization
National Rural Support Program
Procter and Gamble
Pakistan Conference on Sanitation
Pakistan Council for Research in Water Resources
Pakistan Council for Scientific and Industrial Research
Pakistan Demographic and Health Survey
iv
PEHE
PIHS
PKR
PLYC
PMA
POP
POU
PPAF
PPP
PRSP
PSDW-HPP
PSI
PSI/GS
PVC
R&D
RB
RO
RSPN
SACOSAN
SARHAD
SODIS
SRSP
SSD
TMA
UC
UNICEF
USAID
VAT
VB
WASH
WCOs
WHO
WISES
WSP-SA
ZIL
Participatory Efforts for Healthy Environment (Jacobabad NGO)

Pakistan Integrated Household Survey
Pakistani Rupee
Pakistan Lions Youth Council (Multan NGO)
Pakistan Medical Association
Potters for Peace (Ceramic filter)
Point-of-Use
Pakistan Poverty Alleviation Fund
Public-Private Partnership
Punjab Rural Support Program
Pakistan Safe Drinking Water and Hygiene Promotion Project
Pakistan Standards Institution
Population Services International/Greenstar Social Marketing Guarantee Limited
Polyvinyl Chloride
Research and Development
Reckitt Benckiser Pakistan Limited
Reverse Osmosis
Rural Support Program Network
South Asia Conference on Sanitation
Support Agency for Rural and Human Associations Development (Peshawar NGO)
Solar Water Disinfection
Sarhad Rural Support Program
Society for Sustainable Development
Tehsil Municipal Administrator
Union Council
United Nations Childrens Fund
Value-Added Tax
Village Banking
Water, Sanitation, and Hygiene
Women Community Organizations
World Health Organization
Women Industrial and Social Education Society (Thatta NGO)
Water and Sanitation Program- South Asia-(World Bank Affiliate)
Zulfiqar Industries Limited
Executive Summary
The Pakistan Safe Drinking Water and Hygiene Promotion Project (PSDW-HPP) carried out a market
assessment of water, sanitation, and hygiene (WASH) products in seven districts in three provinces of
Pakistan from July to October 2010. The range of products includes point-of-use (POU) products for
drinking water treatment, handwashing soap, and sanitation products (toilet and latrine components,
accessories, and latrine construction services, including labor associated with toilet installation and pit
emptying services). The study identified opportunities, gaps, and bottlenecks; assessed technical and
financial constraints that negatively impact the availability, costs, promotion, sales, and distribution of
these products; and provided recommendations for measures that can improve access to the range of
WASH products.
Phase I of the study identified stakeholders for WASH products, including private sector manufacturers,
distributors, retailers, technical specialists, microfinance institutions (MFIs), non-governmental
organizations (NGOs) working in the field, and public sector institutions working on WASH access and
behaviors. WASH product brands in the three product categories were identified and their retail prices
recorded. Phase 2 consisted of interviews with 15 manufacturers and distributors of WASH products in
Pakistan.
This assessment found no major manufacturers or national distributors of WASH products in the target
districts, although there are WASH manufacturers located in districts outside of the surveyed areas.
Soap and sanitation products were much more accessible than POU water treatment products, and
except for the multinational advertising of handwashing soap, no significant promotional activities were
observed. Pricing policies for all soaps, whether multinational or local brands, were found consistently
uniform across all seven districts because all soaps are subject to General Sales Tax (GST), and dealer
margins are standard for the industry. On the other hand, price variations in sanitation products were
found both within and between districts. These price variations relate to variations in production costs
for different models, design, quality, and size factors as well as transportation costs. Margins also vary,
reflecting price variations due to discounts given to customers on the high cost components of
sanitation products.
The main challenges and opportunities identified by industry representatives during the personal
interviews related to marketing of the three main categories of WASH products POU water
treatment, soap, and sanitation were:
POU Water Treatment Products - The supply chain for the POU water treatment products is the least
developed of the three categories supply chains. POU products do not have a properly developed
supply chain in Pakistan that connects manufacturers to distributors and wholesalers and to retailers and
customers in the rural areas. The underlying factor in the weak supply chain for the POU products is
the lack of demand. As a result, supply chain development is constrained, and the products are supplied
to the market only when sales orders are generated or a humanitarian emergency occurs. Well-planned
marketing activities and a large number of potential retailers in target districts would provide
opportunities for expanding this market.
P a g e |1
Soap - Regulatory policies, such as high taxes on 80 percent of the imported raw materials to make
soap, are constraints for the soap industry. In addition, the reformed GST will further increase soap
prices. Imports of similar brands manufactured locally and of soaps smuggled back into Pakistan via the
Afghan transit trade are disturbing the market and hurting the soap industrys growth and profitability.
Handwashing awareness campaigns through mass media can encourage greater use.
Sanitation Products - The market for toilet/latrine components and accessories (sanitary ware) is not as
fully developed in rural areas as the market for soap. Sanitary ware is not a fast-selling consumer item,
and brand preferences are not strongly established. Style, design, and color preferences change in
response to consumer demand and market trends, so dealers prefer to order small quantities of sanitary
ware that can be sold quickly without holding inventory for too long. Furthermore, sanitary ware is also
more fragile, and transportation costs are much higher due to the bulk and weight of the sanitary
components. Since unit costs of sanitation products require high levels of investment, manufacturers
prefer to develop supply chains close to their manufacturing base so that they can supply their products
to trade channels through their selected distributors. The distributors then place orders in bulk and
make substantial investments to lift stocks from the manufacturers. Opportunities exist for expansion
into rural markets, where only 36 percent of the population has access to improved sanitation facilities,
encouraging MFIs and NGOs to fund latrine construction and toilet facilities. Tables 1 and 2 summarize
specific findings from the market assessment including price, distribution, availability, and challenges and
opportunities by product category.
P a g e |2
Table 1: Summary of Market Assessment, by WASH Product Category

Product Category
Distribution
Price in Pakistani
Rupees (PKR)
Promotional Activities
Availability in
Target
Districts
Registration Status
in Pakistan
Data Source
Not available nationwide.

Medentech distributor Zita
has been working on
distribution for the last 5
years but is localized in
Islamabad and some
peripheral areas. Saafwater
was appointed in 2008 but
was confined to selling
door-to-door in the slums
of Karachi. Mirza Traders is
now also working for
Medentech. Grand
Agencies was appointed
national distributor in 2010
but has a limited setup.
Retail price per pack of 20

tablets (33mg) PKR 80. Per
tablet PKR 4.
No marketing budget or
support to distributors for
any multi-media marketing
campaign.
Of the 3,057
retailers and
chemists
(pharmacies)
identified in 7
project districts,
93% (of 657)
pharmacies and
85% (of 2,400)
retailers did not
carry any type of
POU product
including
Aquatabs.
Aquatabs is not
registered with any
government agency but
imported as a consumer
item
Availability data from Phase 1

district mapping field work
No national distributor for

Aquapura. Limited
distribution in Peshawar
and KPK and parts of
Southern Punjab.
15 mg: PKR 90 per pack of

30 tablets
Availability of
Aquapura is
limited to a few
pharmacies in
Peshawar but not
entirely in KPK.
Aquapura was initially

registered with Ministry
of Health as a drug.
Availability data from Phase 1,

other information from AGS
Pharma interview
POU Water Treatment

Aquatabs
Sodium dichloroisocyanurate (NaDCC)
effervescent tablets manufactured by
Medentech, Ireland, and imported into
Pakistan by Mirza Traders and Grand
Agencies
Aquapura (trichloroisocyanurate)
Manufactured by AGS Pharma,
Peshawar
Aquatabs 67 mg per tablet

cost PKR 5.
33 mg: PKR 70 for box of

20 tablets
100 mg: PKR 180 for box of
30 tablets
In 2008, PSDW-HPP
conducted acceptability
study and promoted
Aquatabs through NGOs in 4
pilot districts to test
community-based model for
POUs.
No mass media advertising.

Some outdoor advertising in
Peshawar city. Promotional
materials (i.e., brochures and
pack inserts).
Other information from

interviews with Medentech,
Grand Agencies and Mirza
Traders during Phase 2 data
collection field work
P a g e |3
Product Category
Distribution
Price in Pakistani
Rupees (PKR)
Availability in
Target
Districts
Registration Status
in Pakistan
Data Source
PUR Sachet
PSI/Greenstar Social
Marketing (GS) operate
through a pharmaceutical
distributor for
contraceptive products, but
PUR is sold to a limited
number of pharmacies.
PKR 5 per sachet.
Promoted by PSI/GS through

mothers of schoolchildren in
6 major urban cities. Limited
TV advertising
demonstrating how to use
PUR during recent floods.
PUR Sachet was

not available in
any of the 7
districts surveyed,
although PSI/GS
claims that it is
available with
retail pharmacies
around the
schools where the
PSI/GS mother
sessions are held.
Free samples to
participating
mothers.
No government
registration
Visit to P&G Hub plant,

interviews with P&G
Musaffa Decontamination Bag

(oligodynamic silver ions in sterilized
fine sand) originally developed by the
Pakistan Council for Scientific and
Industrial Research (PCSIR), and
manufactured by US Health Care,
Karachi
No national distributor.
Musaffa is manufactured
on order and directly sold
to relief agencies in
floods/emergencies. Some
limited quantities are sold
in Karachi as cartridges in
gravity-flow filters.
PKR 350 per bag of 1 kg
Promotion in Yellow Pages

also owned by the company
Musaffa was not

available in any of
7 districts
surveyed.
However, the
company claims
that a few
retailers in
Karachi stock and
sell the product.
Product registration
with the Pakistan
Council for Research in
Water Resources
(PCRWR), owners of the
patent
Interview with US Health Care
Colloidal Silver Ceramic Filter in Plastic

Bucket developed for the United
Nations Childrens Fund (UNICEF) and
modified by the Society for Sustainable
Development (SSD), an NGO
SSD invested in production

facilities but was unable to
sustain cost of
manufacturing and shut
down its plant.
Initial cost PKR 900 but

with plastic bucket and
improvements, current
estimated cost PKR 1500
Not available in
the market or in
any of the 7
project districts
surveyed.
No registration
Technical Review/Market
Assessment of Point of Use and
Community Water Treatment
Technologies (PSDW-HPP-2008)
(Calcium hypochlorite and additives for

coagulation/flocculation)
Manufactured by P&G in Hub, Pakistan
No mass media advertising
No marketing or
promotional activity
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Product Category
Distribution
Price in Pakistani
Rupees (PKR)
Availability in
Target
Districts
Registration Status
in Pakistan
Data Source
Nadi Biosand Ceramic Filter, made by

various NGOs such as the Associated
for Human DevelopmentAHD
Not commercially sold

through any distributor.
Mainly donor-funded.
Villagers are trained by
NGOs to make Nadi for a
service charge.
PKR 800 (excluding

transportation cost and
service charges for training
villagers in making Nadi)
Not available for ready sale

in any of the 7 districts
surveyed.
Not available for

sale as a complete
unit in any
district. Promoted
by donors
through NGOs in
some tehsils of
Sindh as well as
KPK districts.
No registration of Nadi
as it can be assembled
by any NGO or individual
with technical knowhow
Technical Review/Market
Assessment of Point of Use and
Community Water Treatment
Technologies (PSDW-HPP-2008)
Arsenic Ceramic Filter, a two-stage

candle filter with arsenic media,
initially developed for UNICEF by
PCRWR and then modified to a plastic
container for marketing purposes
PCRWR outsourced
manufacturing of two-stage
plastic vessel but retained
production control of
arsenic media.
PKR 1500
No promotion activity by
PCRWR
Not available
through PCRWR in
the market
PCRWR is a government
agency and owns the
patent for arsenic media
PCRWR, and Technical

Review/Market Assessment of
Point of Use and Community
Water Treatment Technologies
(PSDW-HPP-2008)
Soap
Distribution
Price
Promotion
Availability in
target districts
Product Registration
Data Source
Lifebuoy manufactured by Unilever

Pakistan
Available in nearly all urban

and rural areas through a
wide distribution network.
PKR 10 (small)
Mass media advertising

(mainly TV)
Generally, most
soap brands are
available in over
95% of retail
shops identified in
the target rural
districts.
Product registration for

trademark and GST
Phase 1 data collection,

interview: Unilever
Mass media advertising

(mainly TV)
Availability mainly
in urban areas
and rural districts

trademark and GST

interview: Reckitt Benckiser
PKR 16 (medium)
PKR 24 (large)
Dettol manufactured by Reckitt

Benckiser
No district distribution in
rural areas except through
wholesalers.
PKR 17 (small)
PKR 40 (large)
Consumer promotion of PKR

5 off on wrapper pack,
limited offer: one soap free
on purchase of two soaps for
PKR 80
P a g e |5
Product Category
Distribution
Price in Pakistani
Rupees (PKR)
Availability in
Target
Districts
Registration Status
in Pakistan
Data Source
Hoor and Pakeeza, manufactured by

Azhar Corporation
Probably the largest soap

distribution network with
374 distributors and
stockists (wholesalers).
Hoor Large PKR 25
Some mass media

advertising
Consumer
promotion offer:
Economy Pack of
4 for PKR 50

GST

interview: Reckitt Benckiser
Hoor Small PKR 10

Pakeeza Large PKR 12
Pakeeza Small PKR10
Sanitation
Distribution
Price
Promotion
Availability in
target districts
Financing
Data Source
Latrine sets typically include:
Sanitary ware companies

do not have national
distributors. However, they
have regional distribution
system and wholesalers in
rural districts who also
retail the products.
Western-style toilet
commode: average price
range PKR 2400
Sanitary ware companies

generally do not do any mass
media advertising. Marketing
activities are limited to print
promotional materials and
showroom displays.
All components
and sanitation
accessories are
available in target
districts.
MFIs only loan to

income-generating
business
Phase 1 district mapping data

collection
Western style with coupled water

cistern
Asian-style commode
With non-coupled water cistern W/C or
tank
-------------------Asian-style commode:
average price is PKR 600
(medium size) ; PKR 780
(large size)
---------------------Water tank (non-coupled)
is sold for PKR 1400
a-Flushing system inside water tank
a-Avg. Price PKR 400
b-Wash basin (sink)
b-Avg. Price PKR 1600
c-Pedestal and pipe
c-Avg. Price PKR 1100
d-P-trap
d-Avg. Price PKR 100
e-PVC pipe to pit (standard 10 ft)
e-Avg. Price PKR 350
f-Union joints/accessories
f-Avg. Price PKR 500
Manufacturers mostly
depend on the sanitary ware
dealers to promote their
components and accessories.
Interviews with sanitary

component manufacturers
Brands of various
companies are
stocked and sold
by sanitary ware
distributors,
wholesalers, and
sanitary stores in
the districts
surveyed
P a g e |6
Product Category
Distribution
g-Ventilator
Price in Pakistani
Rupees (PKR)
Availability in
Target
Districts
Registration Status
in Pakistan
Data Source
g-Avg. Price PKR 200
Latrine Superstructure:
h-Bricks for walls (Avg. 2000)
h-Avg. Price PKR 4000
i-Cement (branded) avg. qty 4 bags
i-Avg. Price PKR 1250
j-Crushed stones
j-Avg. Price PKR 125
k-Sand
k-Avg. Price PKR 2000
l-Septic tank (cement and brick lining)
l-Avg. Price PKR 600
m-Concrete slabs for main hole and

septic tank (Quantity 2)
m-Avg. Price PKR 2000
n-Latrine doors (wood and paint)

n-Avg. Price PKR 1400
o-Fiberglass overhead water tank (150
gallons capacity)
o-Avg. Price PKR 1500
p- Roofing slabs (Qty3x PKR 200)

Services (digging, installation, bricklining, plastering, etc.)
q-(3 days average )
r-Masons daily rate @PKR 800x3
s-3 x Labor daily rate @PKR 450x3
p-Avg. Price PKR 600
q-Avg. Cost PKR 4050

r-Avg. Cost PKR 2400
s-Avg. Cost PKR 4050
P a g e |7
Table 2: Summary of Challenges and Opportunities, by WASH Product Category

Category
Challenges
Opportunities
Data Source
POU Water
Treatment Products
- General
Generally, more than 90% of the

population do not treat their drinking
water, perhaps due to the perception that
clear water is safe to drink.
Demand creation opportunity

through well-planned marketing
activities.
Phase 2 interviews
Phase 1 district WASH
mapping
Secondary Data
Marketing activities to create awareness

about the link between diarrheal diseases
and water contamination are not being
undertaken by the product manufacturers,
which mainly depend on emergencies for
selling the bulk of their stocks.
A well-coordinated supply chain does not

exist for POU water treatment products,
except for some gravity-flow filters in periurban markets.
POU Water
Treatment Products
- Chlorinated
Chlorinated products such as Aquatabs,

Aquapura, and PUR Sachet are not freely
available in rural districts due to lack of
distribution networks and low level of
product awareness.
Acceptability and affordability of
chlorinated products may be an issue in
the rural markets.
POU Water
Treatment Products
- Ceramic Filters
Ceramic and PVC biosand filters are not

readily available in the rural districts.
Issues of high cost of production and
effectiveness of biosand filters need to be
addressed before they are ready for
marketing.
A large number of retailers and

pharmacies identified in target
districts offers a good opportunity
to the chlorinated POU water
treatment products to expand their
supply chain into the rural markets.

mapping
Phase 2 interviews
Opportunities to demonstrate the

products to households will
favorably impact acceptability and
usage.
Donors and NGOs can start
production of the biosand ceramic
filters on a small scale in the
districts and promote them to
households through community
mobilization.

mapping
Phase 2 Interviews
The secondary data are from the Pakistan Demographic and Health Survey 2006-07 (National Institute of Population
Studies and Macro International Inc. 2008), which is henceforth cited in this document as PDHS 2006-07.
P a g e |8
Category
Challenges
Opportunities
Data Source
Soap
Low practice of hand washing with soap is

a critical barrier.
Rural market potential exists for

increased use of soap through
regular awareness campaigns in
mass media, such as TV and radio,
by soap companies.
Phase 2 Interviews
80% of the raw material for soap is

imported. High import duties due to
discriminatory regulatory policies and
sales taxes are bound to increase the retail
prices and create an affordability issue,
especially in rural markets for low-income
households.
Sanitation Products
Supply chain is still limited because of

higher unit cost of sanitation components
requiring higher investment and slower
cash flow generation of the sanitation
products.
Limited credit facilities to the wholesalers
is also a barrier to building the supply
chain.
The cost of production is increasing due to
escalation in energy and transportation
costs.
Construction materials such as wood,
cement, bricks, iron bars, PVC pipes, and
other accessories are available, but their
cost is invariably rising due to increase in
commodity prices.
Greater opportunity exists for

improving accessibility of low-priced
soaps to rural markets. Some
multinational and local branded
companies can be encouraged.
Expansion opportunity for sanitary
ware companies exists in the rural
markets where the demand
potential of sanitation components
is high due to the large number of
households still without improved
access to latrines.
Secondary data on
handwashing practices
Behavior Change Strategy
(BCS) and Behavior
Change Communication
Plan (BCCP)-2007
Phase 2 interviews
Opportunity for MFIs to offer credit

facilities to the sanitary ware
businesses and for donors/NGOs to
fund community groups to build
latrines for their member
households.
Demand creation in rural markets where

there is huge potential for latrines is a
critical issue facing the industry.
P a g e |9
1. BACKGROUND
According to the World Health Organization (WHO), water- and sanitation-related diseases such as
diarrhea kill an estimated 1.2 million children under five years old each year, accounting for about 15
percent of the total deaths of children under five globally, including neonatal deaths (World Health
Organization 2005). In Pakistan, the mortality rate for children under five years old in 2009 was 87
deaths per 1,000 children (UNICEF 2006). The lack of access to improved drinking water sources and
basic sanitation facilities is a major contributing factor to these deaths and the poor health of Pakistani
children (UNICEF 2007). According to the 2006-07 Pakistan Demographic and Health Survey (PDHS),
diarrhea prevalence among children under five years old was a high 22 percent and an extremely high
40 percent among children 611 months and 31 percent in children 1223 months of age.
Access to safe drinking water is a critical health issue in Pakistan. As indicated in Table 3, 93 percent of
the population had access to improved drinking water sources by 2008. Significantly more urban families
had access to water piped into their dwelling, while rural families were collecting water from wells.
Because most people in Pakistan believe that if water is clear and odorless it is safe to drink, the vast
majority (89 percent) of the population do nothing to treat their water, as shown in Table 4. Access to
improved sanitation facilities is even more critical (as shown in Table 5), where only 50 percent of
Pakistanis have access to basic sanitation facilities with only 36 percent in the rural areas. Moreover, 43
percent of these rural dwellers do not have any sanitation facilities.
Table 3: Household Drinking Water Sources Rural vs. Urban
Main Source of
Drinking Water
Improved Source
Piped into dwelling
TubeWell, Borehole,
Hand Pump
Other Improved sources
Non-Improved Source
Other/Missing
Source: PDHS 2006-07.
Urban
Rural
Total
94.5%
62%
25%
91.9%
22%
62%
92.8%
35.8%
49.6%
7.5%
4%
1.5%
7.8%
7%
1.1%
7.4%
6.1%
1.1%
P a g e |10
Table 4: Drinking Water Treatment Methods-Pakistan (Percentage of Households)

Method
Urban
Rural
Pakistan
Punjab
Sindh
KPK
Balochistan
Boiling
17.9
1.2
6.9
5.7
13.7
2.1
1.7
Chlorine Bleaching
1.3
0.1
0.5
0.1
2.0
0.1
0.1
Cloth Straining
3.7
1.1
2.0
1.1
5.0
1.1
1.0
Ceramic Filtering
3.3
0.3
1.3
1.4
2.0
0.1
0.3
Solar Water Disinfecting
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Stand & Settle
1.2
0.3
0.6
0.7
0.5
0.2
0.0
% Treating Properly*
24.5
2.7
10.1
7.8
21.6
3.3
3.1
NOT TREATING
74.8
96.9
89.4
91.8
77.7
96.3
89.4
*Appropriate water treatment methods include boiling, bleaching, straining, filtering, and solar disinfecting.
Table 5: Access to Sanitation Facilities

Status of Sanitation Facilities
Access to Improved Sanitation
No facility/bush/field
Urban
78%
3.6%
Rural
36%
43%
Total
50%
30%
1.1 WASH Programs

Water, sanitation, and hygiene (WASH) programs, which are intended to promote good behaviors in
these basic factors, have proven effective in contributing to the good health of communities.
Documented research over the years has shown that key WASH-related behaviors have proven to
significantly reduce diarrhea in children under five years of age. These behaviors include the use of pointof-use (POU) water treatment technologies and safe storage of water, hand washing with soap at critical
times, and the use of sanitation facilities. To support these essential behaviors, households must also
have access to WASH products such as POU water treatment products; soap; and sanitation products
(components, accessories, and latrine construction services).
1.2 Private Sector Involvement in Provision of WASH Products and Services
The private sector has a vital role to play by building the supply chain, as well as creating awareness and
demand for WASH products through focused and sustained marketing efforts based on well-planned
and coordinated use of the 4Ps of marketing (product, price, placement, and promotion). Over the last
four years, PSDW-HPP, in collaboration with NGOs, actively promoted POU water treatment options
and hygiene practices, such as hand washing with soap, through school and community hygiene
promotion programs based on a behavior change communication (BCC) strategy. Similarly, other NGOs
have been promoting the community-led total sanitation approach to improve sanitation, particularly
construction of low-cost latrines. Although PSDW-HPP had the active support of some private sector
companies, such as Unilever and Medentech, for making POU water treatment products and soap more
accessible to communities, there remains a need to improve availability and accessibility of WASH
products in the rural markets. The private sector supply chain is essential to ensuring that consumers
have access to products. For example, more than a dozen manufacturers produce numerous varieties of
sanitation products and sell them under different local brand names. The demand and supply system,
P a g e |11
from manufacturing to sales, needs to be linked and synchronized efficiently to provide the necessary
infrastructure for distributors and retailers, and to stock and promote a full range of sanitation products
and services to rural customers at affordable prices.
The 4Ps of marketing are tools implemented by private sector companies that manufacture and market
the brands. As such, they are the strategic partners in the supply chain who decide how many resources
to invest in the 4Ps and in the marketing and distribution infrastructure. These manufacturers also
decide the pricing policies and profit margins in the distribution system, and determine the marketing
budget allocation for marketing communication and promotion, whether through personal selling, mass
media advertising, or trade/consumer promotion offers. The distributors, wholesalers, and retailers
down the supply chain play a tactical role in the implementation of the manufacturing companys
marketing strategy but have little impact on the strategic marketing decisions of the firm.
In order to more fully understand private sector marketing in the WASH product sector, PSDW-HPP
undertook a mapping exercise in seven districts to identify private sector stakeholders in the three
WASH product categories (POU water treatment, soap, and sanitation), the brands available, and the
gaps in the supply chain. PSDW-HPP also examined how effectively a subset of WASH manufacturers
and main distributors were implementing their marketing strategies by using the 4P marketing tools to
reach the rural consumers, and examined the critical barriers that were impeding the development of
the WASH markets in the districts surveyed. A description of the sector, challenges and opportunities
encountered in each subsector, and recommendations for measures to resolve some of the key issues
facing the WASH product sector are presented below, based on analysis of the data collected.
2. OBJECTIVES OF THE WASH MARKET ASSESSMENT STUDY
The objectives of this assessment were to (1) examine the production, marketing, sales, and distribution
infrastructure for WASH products, including POU water treatment, soap, and sanitation products in
seven districts; (2) identify opportunities and bottlenecks, assessing technical and financial constraints
that negatively impact availability, costs, promotion, sales, and distribution; and (3) provide
recommendations for measures that can improve access to these products.
3. METHODOLOGY
3.1 Geographic Scope of the Study
Districts/tehsils to be included in this study were selected from PSDW-HPP districts with an urban-rural
mix, having predominantly a rural population where sanitation coverage is low. Incidence of diarrheal
infections among children under age five was also taken into consideration during the selection process.
The selected districts with socioeconomic and culturally diverse characteristics were identified within
the provinces of Punjab, Sindh, and Khyber Pakhtunkhwa (KPK, formerly the North-West Frontier
Province NWFP). In Phase 1, the WASH Market Assessment Study covered seven districts; namely,
Thatta, Sukkur, Jacobabad, Multan, Rajanpur, Swat, and Peshawar. Table 6 provides background
information on access to various sanitation facilities in each of the provinces and corresponding diarrhea
prevalence rates as reported by the 2006-07 Pakistan Demographic and Health Survey.
P a g e |12
Table 6: Access to Sanitation Facilities (Percentage of Households) and Prevalence of

Diarrhea in Last Two Weeks (Percentage of Children <5)
Type of Latrine
IMPROVED, NOT SHARED FACILITY
Flush connected to sewerage system
Flush/pour flush connected to septic tank
Flush/pour flush connected to pit latrine
Flush/pour flush not connected to
sewer/septic tank/pit latrine
Ventilated improved latrine (VIP)
Pit latrine with slab
TOTAL IMPROVED FACILITY
NON-IMPROVED SHARED FACILITY
Pit latrine without slab/open pit/bucket
OTHER non-improved types
ALL NON-IMPROVED FACILITIES
TOTAL IMPROVED & NON-IMPROVED
NO LATRINE (OPEN DEFECATION)
Diarrhea Prevalence
SOURCE: PDHS 2006-07, Appendix A.
Punjab
Sindh
KPK
Balochistan
Pakistan
26.5
18.1
7.5
1.9
39.1
3.5
3.7
5.0
21.1
17.0
3.7
1.6
10.7
16.2
1.2
1.1
28.0
14.6
5.9
2.5
0.8
0.3
55.1
6.2
0.9
9.0
16.1
71.2
28.9
20.6
0.6
2.5
54.4
5.8
7.6
2.8
16.2
70.6
28.9
23.6
0.3
0.8
44.5
6.6
12.0
5.7
24.3
68.8
31.2
24.7
0.1
3.1
32.4
12.8
5.2
6.1
24.1
56.5
43.3
16.2
0.7
1.0
52.7
6.4
4.0
7.2
17.6
70.3
29.8
21.8
3.2 Phase I Methodology

Phase 1 focused on district-level mapping. The mapping provided basic information about the market
infrastructure including identification of manufacturers, distributors, wholesalers and retailers, brand
availability (or non-availability), and pricing data. The district mapping process also pinpointed the
microfinance institutions (MFIs), NGOs actively involved in promoting WASH activity, and Tehsil
Management Agencies (TMAs) implementing initiatives focused on water, sanitation, and hygiene
improvement. The sampling plan included all commercial entities in the private sector WASH market
and covered:
1. Point-of-use water treatment products, excluding all non-commercial water treatment methods
(e.g., boiling and solar water disinfection - SODIS), as well as so-called mineral bottled water.
2. Hygiene products including all soaps for hand washing, but excluding laundry soaps and grated
soaps substituted for detergents.
3. Sanitation products including toilet and latrine components, accessories, and services used for
construction of low-cost latrines.
4. MFIs, TMAs, and NGOs actively involved in facilitating, and promoting and supporting improved
hygiene in the selected districts.
NGO research teams stratified each tehsil/Union Council/town commercial market into the three main
WASH categories. Each NGO employed three research team members to cover the tehsil markets.
Each team collected data on all available brands/products and their manufacturers, distributors,
wholesalers, sanitary ware dealers, retailers, and chemists (pharmacies). Additional information on the
research methodology and sampling structure is provided in Appendix 1.
P a g e |13
3.3 Phase 2 Methodology

Monsoon rains in July and August 2010 flooded more than one-fifth of Pakistans total land area. Of the
seven districts selected for the WASH Market Assessment Study, Rajanpur (Punjab), Jacobabad (Sindh),
and Thatta (Sindh) were severely affected. Swat (KPK) suffered multiple flash floods. Multan (Punjab) and
Peshawar (KPK) were partially affected, and Sukkur City was also negatively affected. Infrastructure in
most of the districts was partially destroyed, and many of the 37 sampled tehsils in the seven districts
were inaccessible for any type of fieldwork during Phase 2 as initially planned.
In spite of access issues, the study team interviewed 15 known WASH product manufacturers and
distributors located in Pakistan to examine their marketing, sales, distribution, product and pricing
strategies, the issues blocking the effectiveness of marketing, and the critical barriers to accessibility
from the consumer demand angle, as well as development of the supply chain and scale-up from the
supply side perspective. In Phase 2, five manufacturers and three distributors of POU water treatment
products, three soap manufacturers, and four sanitation component manufacturers were interviewed, as
listed at the end of Appendix 1. Structured questionnaires for the manufacturers and distributors were
designed to obtain data in one session from an individual. However, due to the strategic and sensitive
nature of the information that is required from multiple sources at various management levels, it was
decided to use an interview guide with 10 basic questions to interview a number of individuals in each
company instead of administering a questionnaire to a single individual. The analytical framework for
Phase 2 data collection is provided in Table 7. Questionnaires are located in Appendix 2. Detailed
interview summaries may be found in Appendix 3.
P a g e |14
Table 7: Analytical Framework for Data Collected Wash Manufacturers and Distributors
Parameters
Qualitative Data Analysis
Indicator
Firms brand mission/objectives

Products in each WASH category
Product lines, brand variants and sizes,

number of markets served, position in
category, trade outlets stocking and
selling WASH products and the Supply
System in Urban/Rural Markets.
Quantitative Data Analysis
Constructing a profile of WASH manufacturers,

distributors, wholesalers, retailers; critical gaps
and inefficiencies in the supply chain that
negatively impact accessibility in rural markets.
Number of brands and variants

available in each WASH category;
brand extensions and choices
available to customers in rural
markets.
Affordability
Price to trade/distributor,
wholesale/retail margins.
Trade/consumer promotions. Credit facility to

trade channels.
Price differential range between

urban and rural markets.
Accessibility
Physical distribution infrastructure

(supply chain market coverage).
Supply chain. Distribution penetration.

Customer reach.
Distributors, retail outlets in trade

channels.
Fast-selling brands.
Economies of scale, manufacturing,
warehousing facilities, plant and
equipment .
Marketing/sales capabilities.
Sales/distribution network, coverage of
the rural markets .
Marketing strategy implementation Production capacity, product range,
and the relative emphasis on each pricing policy, packaging, price and cost
of the 4Ps via resource allocation, structure, margins, marketing budget
to achieve the marketing/sales
allocation to 4Ps. Cost of sales,
objectives
distribution, and other marketing costs.
Brand category leadership; demand potential;

sales trends; quality assurance processes;
control of active ingredients .
Source of supply of materials.
Corporate social responsibility (CSR) approach
and brand focus.
Top brands, market shares, sales

growth, and profit margins; level of
marketing spending (if data are
available); supply chain partners in
urban and rural markets; resource
commitment to CSR initiatives.
Effectiveness of implementation of WASH

marketing strategies and the functionality of
4Ps: product positioning, pricing, logistics and
distribution, promotion, selling, marketing
communication, advertising campaigns, quality
of customer support/services.
Sales growth trends. Distribution,

sales network, number of markets
served, gains in market shares against
competition.
Gross profit margins, discounts.
BARRIERS
Technical, financial, regulatory,
cultural, and marketing constraints
Technological; logistical capacity.

Unbranded vs. branded goods.
Socioeconomic, political, and environmental

challenges impacting cost of product and
consumer demand patterns.
Impact of inflationary pressures on

consumers; influx of unbranded,
smuggled goods.
FACILITATORS
Enabling environment conducive
to demand generation for WASH
products
Investment needs for marketing and

capacity building of WASH product
companies; public-private partnerships;
ease of entry into the markets.
Product development.
Recent trends in the WASH market;
competitiveness; gaps; and opportunities that
can be exploited by commercial, public, and
NGO sectors.
MFI, NGO, and TMA initiatives for

WASH-related projects; level of
competition; new entrants in the
market; impact of improved
awareness, accessibility, and
affordability on sustainable demand.
Core strengths and capabilities,

Business earning
Capacity for scale-up
Effective supply chain control
P a g e |15
4. FINDINGS OF THE ASSESSMENT

District WASH market mapping of 37 tehsils/Union Councils/towns within the seven districts identified
about 4,000 WASH businesses and other stakeholders in the private sector (manufacturers, national
distributors, retailers (sub-distributors or wholesalers), pharmacies/general stores, retailers, sanitary
stores), as well as NGOs, MFIs, and TMAs. The largest group of stakeholders identified was the retailers
(60 percent), over 95 percent of whom stocked and sold soaps. No major manufacturers or national
distributors were identified in Phase 1 in any of the seven districts surveyed. Almost all the supply
sources for POU, hygiene and sanitation products were located outside the seven districts. Soaps and
sanitation components were much more accessible than POU products. No significant promotional
activities are being conducted to market sanitation or POU products. Appendix 4 contains detailed
mapping of product availability and presentation of results for each of the districts surveyed.
4.1 POU Water Treatment Products
Very few pharmacies and retailers carried chlorinated products. Normally, it is assumed that
pharmacies/general stores stock and sell chlorinated POU water treatment products because
chlorinated tablets are usually associated with medicinal products. However, very few pharmacies and
retailers carried any stocks of POU water treatment products in any of the seven districts surveyed for
the WASH Market Assessment Study. Of the total pharmacies and retailers surveyed, 93 percent of the
657 pharmacies and 85 percent of the 2400 retailers identified did not sell any POU products. Only two
chlorinated tablets and one generic (unbranded) chlorinated tablet were identified. The two main brands
available in the retail market were Aquatabs (Medentech) and Aquapura (AGS Pharma). In the POU
water treatment product market, about a dozen brands were identified with the popular name Aqua.
Medentech has appointed a national distributor, Grand Agencies, which is planning to develop a
distribution network for Aquatabs. Medentech is also working with Mirza Traders. The Aquapura
manufacturer is based in Peshawar, and a number of pharmacies in that district were found to stock and
sell Aquapura. In the market for POU water treatment products, there is no concept of either trade or
consumer promotion as yet because the sales and distribution infrastructure is still undeveloped in the
rural markets.
The PUR sachet was not found at any pharmacy or retail shop in any of the seven districts surveyed.
PUR is marketed by the social marketing agency, Greenstar. Due to Procter and Gambles (P&Gs)
marketing strategy, Greenstar continues to be focused on six urban slum areas, targeting mothers of
schoolchildren.
Of the 376 small distributors and wholesalers surveyed, 18 percent of the wholesalers sold several
brands of two-stage and three-stage gravity-flow filters (mostly imported). These cartridge filters were
available mainly in peri-urban centers such as Peshawar and Multan where access to piped water makes
it possible to use this type of filter; however, very few gravity-flow filters were found in rural markets.
Biosand filters, colloidal silver filters, and arsenic filters were not available in the market but are being
promoted by a number of NGOs in pilot efforts.
P a g e |16
Table 8 provides a summary of household POU water treatment products and filter technologies that
are available in Pakistan. These include a number of chlorine-based products in both tablet and sachet
form that treat both clear and turbid water, as well as durable filters and gravity-flow filters.
P a g e |17
Table 8: POU Water Treatment Technologies Available in Pakistan
Description of POU Safe

Water Technologies
Potential
Partner(s)
Flow
Rate
Retail Price &

Cost Per Liter
Colloidal Silver Filter

Colloidal silver-coated clay
pot in PVC bucket
Society for
Sustainable
Development
(SSD) an NGO
7-liter pot in 19-lt.

bucket filters @ 2
lt. /hour.
PKR 900
3 paisa/lt. Claimed
life 2 years.
Arsenic Filter
Two-stage plastic mold
designed on clay pitcher
prototype with arsenic
removal media on top of
storage vessel.
Nadi Filter
Biosand clay pitcher on top of
storage vessel
Initially funded
by UNICEF,
developed
by PCRWR
10-liter
capacity
2 lt./hr flow rate
PKR1500
4 paisa/lt.
Association for
Humanitarian
Development and
other NGOs
PCSIR/
US Health Care
10-12 liters storage

capacity
2/lt./hr flow rate
Mussaffa Water
Disinfectant
.01% Oligodynamic Silver ions
in sterilized sand
Aquatabs 33 mg
Sodium dichloroisocyanurate
(NaDCC) effervescent tablets
PUR Sachets
Calcium hypochlorite, iron
sulfate removes arsenic
coagulation/ flocculation
Aquapura 15 mg and 100
mg Tablets
Trichloroisocyanuric acid
15 mg and 100 mg
Commercial Status
Conformance to International Standards/

Specifications/Lab Test /
Acceptability Status
Prototype based on
Potters for Peace
(POP) still in research
and development
(R&D) stage.
PCRWR produced
4000 units but
unwilling to give POU
and media technology
to private sector.
Some lab test reports available but no

acceptability study yet done. Still in R&D stage
due to lack of funds.
PKR 800
2-year life
4 paisa/lt.
Donor money for

assembly of filter.
No lab test report against E. Coli or acceptability

study available. Not available commercially but
made to order based on donor funding.
1 kg filters 2500
liters of water over
3-month period
PKR 250
per kg
10 paisa/lt.
Production on orders
from donors/NGOs.
Aga Khan Health Services efficacy study done but

no consumer acceptability study done. Supply on
demand by relief agencies.
Medentech,
Distributors:
Grand Agencies
Mirza Traders
1 tablet treats 10
liters of water that
looks clean or 5
liters of turbid
water
PKR 4/tab
40 paisa/lt. for
water that looks
clean and PKR1
for turbid water
Limited distribution
network in both urban
and rural areas.
P&G Global
PSI/Greenstar
4 gm sachet for 10
lts. liters of water
PKR 5 per sachet

cost/lt. 50 paisa
Commercial activity in
8 urban cities.
Approved by the U.S. Environmental Protection

Agency, National Science Foundation, and the
Joint Expert Committee on Food Additives of
the Food and Agriculture Organization of the
United Nations and WHO for treatment of
drinking water. Acceptability study done by
USAID PSDW-HPP in February 2009.
P&G conducted 5 studies on acceptability in slum
areas of Karachi. However, low consumer
acceptability still a critical factor in distribution.
AGS Pharma &

Chemical
Industries
15 mg tablet is for
treating 3 liters of
water and 100 mg
is for treating 20
liters of water
Cost of 15 mg
tab=PKR 3. Cost
of 100 mg tab
=PKR 6. Per liter
average cost= 65
paisas.
Note: Available does not necessarily mean Commercially Available in the Retail Outlets.
The only local

manufacturer of
chlorinated tablets.
Available in retail
outlets in Peshawar.
No study available from UNICEF on effectiveness

or acceptability of 300 arsenic filters distributed
free-of-cost in RahimYar Khan (Punjab). Not
available commercially.
No acceptability study. Some local lab reports on

efficacy against E. Coli. Available in some parts of
KPK with pharmacies but generally still not
available in the markets.
P a g e |18
4.1.1
Critical Barriers/Challenges to Marketing POU Water Treatment

Products
The supply chain for the POU water treatment products is the least developed among the three
categories of the WASH product supply chain, compared to soaps and sanitary ware. In fact, it
would be more accurate to say that POU water treatment products do not have a properly
developed supply chain in Pakistan that connects the manufacturers to the distributors or
wholesalers and retailers to customers in the rural areas. Although Medentech (Aquatabs) and
Greenstar (PUR sachet) supply to a limited number of pharmacies and retailers, they cannot be
described as a distribution network with linkages to rural trade channels. Similarly, AGS Pharma
(Aquapura) distributes its product to some local pharmacies and retail shops in Khyber
Pakhtunkhwa province, and in some limited areas of Punjab, but there is no well-connected
supply chain in other provinces. Also, companies that manufacture POU water treatment
products employed very few sales and marketing people in the field.
Although the two multinational companies have been selling millions of tablets and sachets for
relief in emergency relief efforts, they have not made any significant investment required to scale
up their marketing, sales, and distribution infrastructure. The WASH Market Assessment Study
identified 2400 retailers and 657 pharmacies in the seven districts, but very few retailers or
pharmacies stocked or sold POU water treatment products.
The underlying factor in the weak supply chain for the POU water treatment products is the
lack of consistent, strong, and regular demand for these products, despite their efficacy. The
majority of households (almost 90 percent) do not treat their drinking water, mainly due to lack
of awareness. A behavior change communication strategy would help to trigger behavior change
to increase the use of such products. As a result of weak demand, supply chain development is
constrained, and products are supplied to the market only when there is a generation of sales
orders or a humanitarian emergency.
Chlorinated products in particular have another overriding seasonal factor that results in sales
fluctuation. The chlorinated products are in peak demand during the summer monsoons or
flood season. During the winter, sales of chlorinated products usually decline due to weak
demand.
A recent price increase of 33 percent for Aquatabs could also lead to price resistance by
consumers. The recent depreciation of the Pakistani rupee may also result in a higher price for
the PUR sachet. Distributor and dealer margins for POU products were acceptable by industry
standards. However, the sales turnover being low, the margins offer little attraction to
wholesalers and retailers.
Gravity-flow filters, including the reverse osmosis (RO) and ultraviolet (UV) systems marketed
by So-Safe Technologies and other companies importing filtration products, are stocked and
sold by a limited number of sanitary stores and sanitary ware showrooms selling components
and accessories. Although So-Safe Technologies has a reasonably wide sales network in Pakistan
P a g e |19
and effective water treatment products, the company prefers to sell its standard-quality
products through its own sales offices to ensure product and service quality. So-Safe backs its
products with installation, parts and service warranty, and free maintenance for the customers.
The six-stage Advanced Reverse Osmosis (ARO) systems and ultra-filtration products have a
greater appeal to the institutional customers and the urbanized middle- to high-income
households that can afford the prices of the So-Safe filtration systems.
The imported filter products are not standardized, and the filter cartridges are of dubious
quality, with no backup service or replacement warranty. The imported filters are usually
discounted to attract customers to the lower price, but the effectiveness of these products has
not been established, nor do the retailers provide any after-sales service.
US Health Care also does not have any rural marketing, sales, and distribution network for
Mussaffa. Although some issues were raised about Mussaffas efficacy by the Aga Khan Study in
the Northern Areas, it did find Mussaffa effective if placed properly in a water cooler. The
company has not promoted Mussaffa beyond Karachi, where it is used as part of filtration
systems in homes. During the recent floods, Mussaffa received large orders from donor
agencies, but no marketing effort was initiated by the company to develop a supply chain for
Mussaffa in the flood-affected areas of Sindh.
4.1.2
POU Water Treatment Products Recommendations

Increase acceptability of and demand for POU water treatment technologies through
behavior change communication and demand generation in the rural markets for
POU water treatment products.
Focus on high-impact interventions for promoting home water treatment and safe
storage (HWTS) with government support to public-private partnerships (PPPs) and
NGOs.
Develop supply chains in rural markets to improve accessibility.
Use a community-based approach to expand delivery systems for POU water
treatment products in rural markets. These include community-based approaches
that can effectively utilize Safe Water events for demonstrations. Such
demonstrations can use the shock effect of treating contaminated test samples
taken from the households to convince customers to purchase the tablets regularly
each month.
Promote small and medium-sized enterprise development schemes through grants of
seed money.
P a g e |20
Expand rural sales and distribution staff to enhance marketing for POU water
treatment products (particularly chlorination tablets and flocculant/disinfection
sachets).
4.1.3
POU Water Treatment Products Summary/Conclusions
Due to the lack of marketing efforts and the absence of a well-developed supply chain, the two
quality brands are missing the opportunity to develop the market potential for POU water
treatment products by generating sustainable demand. AGS Pharma (Aquapura) also faces the
same type of problems due to a lack of marketing resources. A robust effort to improve both
supply and demand of these products could achieve significant health results. The POU water
treatment sector could build on emergency relief efforts to promote more regular uptake of
household purification products beyond emergency scenarios.
4.2 Soap Market
Soaps are generally available and found in more than 95 percent of retail outlets, even in the
rural markets. A large number, almost 50 percent of distributors and 37 percent of wholesalers,
were selling soaps. Almost all pharmacies also stocked and sold soaps. The soap market is highly
competitive, with several players having factories in the formal and informal sectors. As an
employment-oriented industry, the soap industry provides jobs to well over 100,000 workers all
over the country. The major players are Unilever, Procter and Gamble, Reckitt Benckiser (RB),
Zulfiqar Industries Limited (ZIL), and Colgate-Palmolive. There is also a fast-growing set of
companies marketing cheap, low-quality local brands of soaps. Some soaps are imported from
Turkey and China, while a large quantity of soap is smuggled back into Pakistan from the Afghan
transit trade.
Most of the soap companies in Pakistan (see Table 9) focus on urban market segments, which
are the source of the bulk of their revenues. High competition, however, also makes soap easily
accessible in rural areas when compared to other WASH products. Local companies such as
Azhar Corporation Limited (ACL) have taken advantage of their extensive distribution network
to reach rural consumers with their affordable soaps brands such as Hoor and Pakeeza.
P a g e |21
Table 9: Soap Market Companies and Brands - Multinational Companies (MNCs)

and Local Companies (LCs)
Company (not ranked by market
share)
Colgate-Palmolive
Unilever
Procter &Gamble
MNC or LC
Popular Soap Brands
MNC
MNC
MNC
Palmolive, Azadi, Protex

Lux, Lifebuoy
Safeguard
Reckitt Benckiser
Azhar Corporation
Kohinoor Industries
MNC
LC
LC
Zulfiqar Industries
LC
Dettol
Hoor, Pakeeza
Tibet, Gulnaz, Kohinoor, Floral,
Freshman
Capri, Palmy, Opal
Treet Corporation (Globo-Econ Trade)

Subhan Soap Factory
Skymanz International
Azhar Corporation Pvt. Limited
Skin Care Company
Mehak Soap Factory
Trend International
LC
LC
LC
LC
LC
LC
LC
Saba, Aks, Nova, BodyGuard

Sana
Nayab
Hoor, Pakeeza
Skin White
Mehak
Nisa
Retail prices of soaps are consistently uniform in all districts with minor variations due to dealer
discount. General sales tax (GST) of 15 percent and excise duty of 18 percent are imposed on
soaps, and printing of the retail prices on soap wrappers is mandatory. Prices of soaps marketed
by multinational companies were generally found to be higher than the prices of local-brand
soaps. The difference was quite significant prices of the multinational brands were on the
average 30 percent higher than local brands. The only multinational brand competing with local
brands is Lifebuoy from Unilever. Although pricing policies for soaps are consistently uniform in
all seven districts, there are price variations in sanitation products both within the districts and
between districts. Occasionally, soap companies offer price discounts and trade/consumer
promotion offers.
Lifebuoy is the most accessible soap brand in Pakistan. As far as rural markets are concerned,
Lifebuoy has a significant rural footprint. It is the leading brand in the rural markets with a
significant rural tilt in preference compared to urban areas. Most of the soap companies, such as
P&G, RB, ZIL (Capri), and Colgate-Palmolive, are primarily focused on urban customers because
they are willing to pay higher prices for the premium brands such as Lux, Safeguard, Dettol, and
Capri.
Of the total soap market, 65 percent falls into the beauty category, and 35 percent is health and
hygiene. The rate of growth in the antibacterial soap category is lower than for beauty soaps,
although the category itself is showing a growth trend. One reason for the reduced rate of
growth is attributable to higher soap prices forcing the rural consumer to switch to discounted
P a g e |22
brands; another reason is that the antibacterial soap brands are still focused on promoting their
brands to the predominantly urban markets. Hence, there is a lot of potential in the market for
growth of the antibacterial soap brands through rural market penetration, supply chain
development, and brand building.
4.2.1
Soap Product Promotion
Soap brands are still predominantly focused on the urban market segments because that is
where they make higher profit margins by selling more of their premium brands. A large portion
of soap companies marketing budget (an estimated 70 percent) is spent on television advertising
with a predominantly urban viewership. Soaps are heavily advertised on cable TV, which has low
viewership in rural areas. Television is still the primary medium for advertising of soaps, but
print media also form a crucial part of the communications strategy. National newspapers are
mainly circulated in the urban centers.
Promotion of health and hygiene by the development sector and to some extent the private
sector companies has contributed significantly to the awareness levels about hand washing with
soap, although there is still a big gap to fill in the rural markets. Social benefit messages have not
occupied a strategic role in soap companies marketing approach.
Safeguard, Lifebuoy, and Dettol do highlight the benefits of hand washing with soap. Unilever,
P&G, and Reckitt Benckiser are other examples of companies in the sanitation industry that
promote a hygiene culture. These three companies have emphasized the benefits of hand
washing in core health education programs within their marketing communications aimed
primarily at school-age children. In the case of Lifebuoy, the target market is the schoolchild
segment. Lifebuoy ran a successful marketing campaign Healthy Hoga Pakistan (Pakistan will be
healthy). The campaign targeted the parents to ensure that their children washed their hands
with soap. A multi-media campaign on TV, on the radio, in print, and on billboards was run to
propagate the message.
Increasingly, campaigns are focused on the theme of the health-conscious educated mother,
portraying the emotional benefit for her children. For example, Safeguard is running a Learn
and Thrive campaign. The TV advertisement features a worried-looking mother who is
concerned for her childs health, so she follows the child around to see if he is touching things
while playing and discovering different objects. The product message is then conveyed that the
child can touch and learn as many things as he wants, as long as he has Safeguard with which to
wash his hands.
4.2.2
Critical Barriers/Challenges to the Marketing of Soap Products
There are a number of discriminatory regulatory policies affecting the marketing of soap
products in Pakistan. These include:
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1. Import duty on raw material imports: The government has issued specific SRO No.
733 (1) 99 amending the basic policy order. This amendment has created an illogical and
discriminatory differentiation between the soap industry and oleochemical industry using
the same raw material (palm stearin imported from Malaysia) but for different end
products. This dual standard of regulatory policies is mainly responsible for the higher
prices of soap. The soap industry imports nearly 80 percent of the raw materials, and the
other 20 percent are procured locally.
2. Raw materials that are cheaper are taxed at a higher rate: There are two basic
raw materials required in soap manufacturing: tallow and palm by-products. Either can be
used for making quality soap. But duty on tallow is 15 percent, and on palm by-products it
is 35 percent. Palm products are imported from Malaysia and Indonesia cheaper than tallow
from Australia and the United States.
3. Detergents are taxed less than soap: Customs duties on detergent raw materials have
been reduced recently to enable companies to reduce their costs of production and
compete against the imported finished products. Although the soap industry continues to
face the same problem, it is ignored, and the end use of both products is the same.
4. Quality certifications are required by the Pakistan Standards Institution (PSI):
For export purposes, manufacturers are required to obtain quality certification for each
brand from PSI. Manufacturers must meet export commitments within a short time frame,
whereas PSI certification takes months and the export orders are generally lost. Therefore,
the soap industry generally avoids entertaining export inquiries due to the difficulties with
PSI.
Other critical challenges in the soap industry include the following:
The soap market has been most affected by the recent high increases in the price of palm oil,
which is the primary ingredient of soap noodles (the basic form of soap, before color, fragrance,
and other components are added). This has caused the average price of soap noodles to
increase by 20 to 25 percent, forcing soap manufacturers to increase prices of their soap
products by almost as much, so as to maintain their profit margins. This will undoubtedly result
in decreases in soap sales volumes (higher prices mean less consumer offtake) as well as
disruption in the market due to several quoted prices for the same product.
The reformed GST will further increase soap prices. Soaps already have a GST and excise duty
of 18 percent on the retail price paid by the consumer. The so-called reformed GST has been
imposed on consumer items, including soaps. It will add a further 15 percent value-added tax
(VAT) on the supply chain, and the tax impact will be borne by the consumer. Soap prices are
likely to increase by another 15 percent.
There is an influx of imported soaps and smuggled soaps that are a continuing threat to the soap
industry. The estimated imported quantity is about 20,000 tons annually. In the case of smuggled
P a g e |24
goods, there is no payment of import duties, resulting in huge revenue loss to the government.
A few brands produced by multinational companies are also imported or smuggled into the
country, although most MNCs such as Unilever, P&G, Colgate-Palmolive, and RB manufacture
the same brands locally. One reason for importing soaps is the general consumer perception
that imported soaps are better than local ones. The second reason is that, although 25 percent
import duty is paid on the imported brands, the local brands have to pay higher taxes in terms
of GST, excise duty, and income tax.
Imports of similar brands manufactured locally and soaps smuggled back into Pakistan via the
Afghan transit trade are disturbing the market and hurting the soap industrys growth and
profitability. The government seems to have provided a legal cover to smuggled items by
allowing the Afghan transit trade containers to carry goods from the Karachi Port to the border
areas, where goods are siphoned off and re-exported to the Pakistan market.
Handwashing habits are still low and not up to the living standards of the developing countries
due to illiteracy among the rural masses.
4.2.3
Soap Products: Recommendations

The practice of hand washing with soap and improved accessibility of low-priced
soaps to the rural markets can be promoted through PPPs.
Soap availability is not an issue, but improved supply chain delivery systems for lowcost soaps can improve access of the rural communities to affordable soaps for hand
washing.
Celebration of Global Handwashing Days and regular school-based educational
efforts may increase the practice of hand washing with soap.
Regulatory policy reform to remove tax anomalies and stop soap smuggling is
essential to the growth and profitability of the soap industry.
4.2.4
Soap Products: Summary/Conclusion
Hand washing with soap is a critical intervention to curtail diarrhea. To strengthen availability,
affordability, and use of soap throughout Pakistan, a multi-pronged effort is needed. Gaps and
barriers include a lack of reliable market data, limited understanding of the health benefits of
hand washing with soap, unclean water sources, and high prices. The public and private sectors
should work together to address these challenges in a systematic way.
4.3 Sanitation Products
A number of sanitation product brands were identified, but none of the components were
manufactured within any of the districts surveyed. Only small machine workshops were
P a g e |25
identified. Almost all the major components, such as toilet components and sinks, were available
in all seven districts. However, accessories, such as roofing materials, iron, steel and wooden
doors, and concrete slabs, were being locally fabricated by small workshops, pipe-fitting shops,
and brickworks. Construction materials such as sand and cement were readily available. Sanitary
stores carried some brands in different sizes and a variety of colors, and almost all the major
components were accessible.
A large number of small distributors and sanitary ware wholesalers were selling their products
both on the retail market to take advantages of the retail margins and on the wholesale market,
thereby competing with sub-distributors and wholesalers of other sanitation products.
Availability of masons and skilled labor, though in short supply and a significant cost component
in the construction of latrines, was not found to be a major obstacle for the construction of
latrines. Although labor charges varied from district to district, variation in cost estimation of
latrines was mainly due to the differences in cost and quality of sanitation components as well as
the size of the latrines. Sanitation components and accessories and technical services (engineers,
masons, and skilled labor) were sufficiently available for construction of low-cost latrines in all
seven districts.
4.3.1
Promotion of Sanitation Products
Sanitary ware companies do not advertise their brands (with the exception of Master Ceramics).
However, Dar Ceramics and Durr Ceramics, who were interviewed for this survey, promote
their brands through print promotional materials such as brochures. There are two major
reasons why media advertising is not the norm in the sanitary ware industry.
First, sanitation products are expensive, and customers want to see the products displayed in
the sanitation shop or showroom before they decide on the specific design, color, and cost.
Sanitation products are a major investment for the household; therefore, cost, quality, and
aesthetic appeal all count in the purchase decision of the household.
Another reason is that potential customers only purchase sanitation components when they are
planning to construct a house or a latrine, and there may be no particular brand preference at
the time of search before purchase. Customers who prefer quality are willing to pay any price
for premium-quality brands. However, the rural customers choose affordable quality.
4.3.2
Price of Sanitation Products
Construction of low-cost, simple, pour flush latrines ranged from PKR 27,000 tp PKR 57,000.
The cost variation is also due to the type of roofing materials, as well as to the connection of
the latrine to the pit or septic tank or to a sewerage system. The cost of construction of a lowcost latrine depends on labor and materials. Labor cost varies from district to district, ranging
from PKR 4500 to PKR 7500. Material costs vary with location, quality, and type of sanitation
product. In remote districts, material costs are higher due to transportation costs.
P a g e |26
Sanitation companies usually segment their products into high-, medium-, and low-quality brands
to cater to price-sensitive consumer groups. The type of material also impacts cost significantly;
for example, iron doors and iron pipes and sheets are costlier than cement slabs. Further,
washbasins or sinks are costly components: a medium-sized handwashing station could cost up
to PKR 1000, whereas a toilet would cost PKR 500. Bricks cost between PKR 7500 and PKR
8000; additional transportation would cost about PKR 3000. Finally, roofing material (e.g.,
cemented sheets and iron bars) could elevate the costs significantly.
Table 10: Cost Estimation for a Simple Pour Flush Latrine
COST ESTIMATION FOR CONSTRUCTION OF LATRINE

DISTRICTS
PLYC-MULTAN
AVERAGE COST
Size 6x4 ft.
IN PKR
57,175
AGAHE-MULTAN
36,115
AGHAE-RAJANPUR
35,355
SUKKER
LOW COST
29,375 Variation in
cost is partly due to latrine
30,615 size as well as
cost of materials
23,000 Also labor and
transportation charges have
a cost impact.
36,285
42,150
JACOBABAD
33,075
23,885
THATTA
26,951
23,415
PESHAWAR
37,262
19605
SWAT
4.3.3
N.A.
REMARKS
N.A.
Critical Barriers to Sanitary Ware Marketing
The sanitary ware market is not as fully developed in rural areas as the market for soap. Sanitary
ware is not a fast-selling consumer item, and brand preferences are not strongly established with
these products. Also, sanitary ware style, design, and color preferences change in response to
consumer demand and market trends, so dealers prefer to order small quantities of sanitary
ware that can be sold quickly without holding inventory for too long.
The sanitary ware industry is constrained by a limited supply chain consisting of 27 small
distributors, 174 wholesalers/stockists, and 411 sanitary stores in the seven districts surveyed.
P a g e |27
Although sanitary ware distributors are 33 percent of the total distributors, and sanitary ware
wholesalers are almost 60 percent of the total number of WASH wholesalers identified, the
number of retailers is very small compared to the number of retail outlets selling soaps. Even if
all the wholesalers that have an open retail counter are added, the total number of sanitary ware
retailers in the seven districts is 585, compared to 2400 shops selling soaps.
Sanitary ware is also more fragile and involves much higher transportation costs due to the bulk
and weight of the sanitary components. Since the unit costs of sanitation products require
investment of higher amounts of cash and since cash flow generation is slower than for other
WASH product categories, the manufacturers prefer to develop supply chains closer to their
manufacturing base, where they can supply their sanitary ware to the trade channels through
their selected distributors, which place orders in bulk and make substantial investments to lift
stocks from the manufacturers. In some cases, manufacturers do offer limited credit to their
main distributors, which pass it on to some retailers.
Imports of large quantities of sanitation products are also discouraging the local industry from
investing further in plant modernization or expansion, although the three manufacturers
interviewed (Frontier Ceramics, Durr Ceramics, and Dar Ceramics) are modernizing or
expanding their plant capacity to capture domestic and international markets.
The three manufacturers interviewed had excess manufacturing capacity because demand for
sanitary ware is depressed due to a slowdown in construction activity in the housing and
commercial building sectors. Inflationary pressures have caused potential consumers to cut back
on durable goods that are more expensive per unit.
Due to the substantial investment required in sanitation components, the number of
manufacturers is also restricted to a few manufacturing hubs such as Gujranwala, Peshawar, and
Karachi. One possible explanation is that because of the high level of investment required to
stock sanitation components and the slow turnover of sanitary ware, very few retailers are
willing to invest in and hold the stocks. Lack of credit is another reason, as manufacturers and
distributors take on limited risk with their selected customers.
4.3.4
Sanitation Products: Recommendations
Credit availability could facilitate accessibility of more sanitation components to the rural
markets because maintaining adequate stock requires substantial investment. Sanitation products
have a high cost per unit, and the range of sanitary ware is also very wide.
P a g e |28
4.4 Summary of Prices of WASH Products

Table 11 provides a summary of all branded products encountered during the surveys and the
accompanying retail prices.
Table 11: Identification of Brands and Retail Prices in all WASH Categories
WASH BRANDS AVAILABLE IN SEVEN DISTRICTS

TABLE 17
S.
POU
NO
BRAND
1 AQUASAFE
2 AQUADUAL
3 AQUATRIPLE
4 AQUASAFE-Triple
5 AQUA-MOLE
6 AQUABRITE
7 AQUASAVE
8 SHELTER 3-STAGE
EVERGREEN FILTER
9 NECTAR GRAVITY FL
10 TRIPLET UV 6 WT
11 TRIPLET UV 12 WT
12 TRIPLET UV 24 WT
13 AQUA CLASSIC
14 CHLORINE TABLETS
15 AQUAPURA 100MG
16 AQUATABS 33 MG
17
18
19
20
SOAP RETAIL PRICES IN PKR

SANITATION
SMALL
RETAIL PRICE
BRAND
LARGE MEDIUM
BRAND
SIZE
RETAIL PRICE
PKR 4600-6000LUX
40
30
20 3-STAR w/C
MEDIUM
400
2500 LIFEBUOY
24
16
10 MASTER W/C
MEDIUM
420
3000 SAFEGUARD
33
23
CERAMICS W/C
MEDIUM
670
2200 CAPRI
36
30
21 KHAN W/C
MEDIUM
400
1800 DETTOL
35
25
GORE W/C
MEDIUM
450
2200 REXONA
35
25
BRIGHT WIC
MEDIUM
370
2500 SWISS MISS
40
30
20 ENGLISH W/C
MEDIUM
920
5500 GULNAZ
10
ASIA WIC
MEDIUM
350
4200 RONA
12
SUNNY W/C
MEDIUM
500
2900 SANA
12
12 PAK ASIA W/C
MEDIUM
550
2300 TIBET
10 ASIA WASH BASIN
MEDIUM
730
3750 BODYGUARD
20
MASTER WASH BASIN MEDIUM
990
4800 AZADI
14
PAK ASIA WASH BASIN MEDIUM
1200
11900 FRESHMAN
20
14
10 PAK ASIA WASH W/C MEDIUM
550
17 PER TAB KOHINOOR
10
SUNNY WASH BASIN MEDIUM
680
6 PER TAB
PROTEX
25
3-STAR P-TRAP
STANDARD
150
5 PER TAB
AKS
10
BEST WAY CEMENT
50 KG BAG
310
FLORAL
10
LUCKY CEMENT
50 KG BAG
305
U CARE
15
KOHAT CEMENT
50 KG BAG
300
PALMY
15
SABA
15
OTHER INSTITUTIONS RELEVANT TO THE MARKETING OF WASH

PROJECTS
5.1 Microfinance Institutions
Microfinance institutions (MFIs) were identified in all districts except Swat. Some of the NGOs
provide microcredit services as well. In the seven districts surveyed, the National Rural Support
Program (NRSP) was found to have the largest network with nine branches, while Khushali Bank
had six, the Punjab Rural Support Program (PRSP) had four, and First Microfinance Bank had
three. Some MFIs, such as the Khushali Bank, First Finance Bank, Tameer Microfinance Bank, and
Kash MF Bank also provide commercial banking products and have started to extend their
P a g e |29
coverage. MFIs identified in the districts did not have well-developed networks. A summary of
MFIs surveyed is provided in Table 12.
Table 12: Microfinance Institutions
DISTRICT-WISE DISTRIBUTION OF MICROFINANCE INSTITUTIONS

Districts
Rajanpur AGAHE
Multan Multan
Jacobaba
Sukker
AGAHE PLYC
d
Peshawa
r
Thatta
MFI Institutions
Interest
Rate
Total
Loan Products and Policy
N.A.
Khushali Bank
NRSP
3
1
N.A.
29% Rs. 10,000-15,000 loans for 3-12 months.
N.A.
28% Rs.10,000-15,000 for 3-12 months
2 N.A.
N.A.
N.A.
N.A.
N.A.
30%
N.A.
20%
N.A.
N.A.
22% Rs.10,000-15,000 for 6-12 months
SRSP
SRSO?
MRDO
PRSP
FMFB
KASHF MF Bank
Tameer MF Bank
First MicroFinance
Bank
Bunyad
MicroCredit
SWAT
4
1
HANDS
AISHA MFI
1
1
1
2
20%
N.A.
1
N.A.
29% Rs. 10,000-12,000 for 3-12 months
N.A.
22% Maximum Limit Rs.20,000 for 12 months
MFIs have a group lending policy and give microcredit loans to groups of men or women. The
average group size is 15. Loans are given usually for a short period of three months, but MFIs
can extend the loans to a year. The MFIs loan portfolio covers agriculture, livestock, small
business, and housing. Small businesses and the manufacturing sector can also receive the MFI
loans. However, MFIs have a policy of not entertaining new businesses because they prefer
repayment from existing businesses. No MFI has granted any loans for the construction of
latrines, probably due to the non-income generating nature of most rural households.
Of the 52 MFIs identified in the district mapping exercise, almost all were providing short-term
loans (3-6 months) at interest rates that were significantly higher than the rates of commercial
banks close to 30 percent, on average, compared to normal bank loans of around 20 percent
interest. The lending policy is to cater to the cash flow needs of running business operations or
income generation activities. Some MFIs charge a flat rate of interest, while others charge an
interest rate based on declining balance. However, monthly installments are common to all
MFIs. Recovery rates have ranged from 75 to 95 percent for MFIs working in the seven districts.
Most MFIs operate within their local area; an MFI network is still in its early stages of
development. Due to high interest rates and limited network coverage, MFIs have not had a
strong impact on the rural communities.
P a g e |30
5.2
Tehsil Municipal Authorities
TMAs were generally not found to be active in WASH activities. TMAs were generally involved
in performing administrative duties and routine maintenance of water filtration plants, even
though in some cases these plants were non-operational due to neglect or lack of funds. Some
TMAs were actively involved in WASH activities such as the development of water supply
schemes for the provision of drinking water to the Union Council (UC) population. These
schemes ranged from installation of hand pumps to sanitation schemes and drainage systems. In
only one case (Peshawar District), the TMAs were involved in the construction of public
latrines.
5.3 Non-Governmental Organizations
Of 68 NGOs identified in the WASH district mapping, some NGOs, including NRSP, Sindh
Rural Support Organization, Sarhad Rural Support Program (SRSP), Punjab Rural Support
Program (PRSP), Health and Nutrition Development Society (HANDS), and Marvi Rural
Development Organization (MRDO), were also providing microfinance facilities to the local
community. The amount was usually limited to PKR10,000. However, their lending policy was
also similar to the other MFIs (i.e., loans are not given for latrine construction but only for
income-generating activities).
SRSP has initiated a capacity building program for a Village Banking (VB) Project for easy access
on easy terms to five districts of KPK (total of 15 Union Councils). SRSPs approach is to form
separate womens and mens community organizations to build the self-help networking capacity
so that the rural community can develop and manage small development projects, while SRSP
will provide microfinance and technical assistance.
5.4 CSR Programs of the Private Sector
Corporate social responsibility (CSR) budgets for WASH have not been allocated to safe
drinking water, sanitation, or hygiene campaigns but more symbolically to project a positive
company image. There is no fixed resource commitment and no segregation in terms of water,
sanitation, and hygiene in the CSR budgets of the multinational companies. There is little CSR
activity in this sector except for Unilever and P&G, to some extent, which channel some of the
CSR funds to national campaigns for hygiene education and provide monetary and product
donations to raise hygiene awareness.
In the case of Unilever and P&G, their social mission is to sell, distribute, and highlight Lifebuoy
and Safeguard soaps with a health message (i.e., promote hand washing with soap by generating
awareness among schoolchildren and other sectors of society through health and hygiene
education). Companies such as Unilever, P&G, or Reckitt Benckiser prefer to align their brand
strategies on the basis of their regional long-term strategies, which are normally for a period of
P a g e |31
three years. Therefore, any CSR or social development program partnering with the soap
companies needs to be designed with a longer-term perspective.
P&Gs 100 Schools in 100 Days program is designed to improve school-based hygiene
behaviors across Pakistan. Through School Health Days, P&G has reached about 5 million
schoolchildren in 14,000 schools across Pakistan in the past five years to change hygiene habits
and to teach the importance of regular hand washing with soap.
Aside from Medentechs marketing campaigns and P&Gs PUR promotional campaign through
Greenstar, other POU water treatment companies do not have any significant marketing
campaigns. For this purpose it may be crucial to develop public-private partnerships with the
corporate sector to commit resources from CSR funds to a long-term WASH program.
6
GENERAL CONCLUSIONS/FINDINGS
Consumer confidence remains fragile, and companies continue to operate under slow
economic growth and difficult economic trading conditions.
The most significant marketing finding was that the supply sources of the WASH categories
were located outside the seven districts, and there was an absence of major manufacturers
and national distributors in the seven districts.
Prices will remain constrained and competitive despite rising commodity costs.
Improvement in accessibility, especially in rural markets, will continue to be a challenge.
Generally, the business environment has become very difficult and challenging. The
government of Pakistan is looking for more tax generation through an additional 15 percent
reformed GST (VAT) to boost its revenue resources. On the other hand, the business
community is facing higher costs of production due to the inflationary rise in prices and the
rapid depreciation of the Pakistani rupee. As a result, the customer is also squeezed
between higher taxes and higher inflation, and is forced to trade down or cut back
purchases due to higher retail prices.
Global companies such as Unilever and Medentech are saving millions through production
volume efficiencies and are saving from lower supply chain costs and a leaner organizational
structure. Cost-saving programs continue to deliver significant benefits across the business
in terms of improved margins and stable prices for consumers.
Companies need to make the most of the production scale for cost efficiencies. Having a
single, global procurement strategy means that for many items, buying globally allows the
company to take advantage of economies of scale.
In addition to improvements in the supply chain to improve customer service levels, the
companies have been investing more in advertising and promotional support.
Successful innovations and the extension of brands into new markets have been another
recent trend.
Marketing research support is required by the WASH sector to improve the 4Ps of
marketing.
P a g e |32
RECOMMENDATIONS
Given the weak supply chain for the POU water treatment products because of lack of demand
in the rural areas, future behavior change communication (BCC) programs should include
messages on the need for water quality testing and treatment. PDHS and PSDW-HPP surveys
have shown that household water treatment in the rural areas is less than 5 percent since most
people believe that if water is clear and odorless, it is good to drink. Therefore, household
water treatment could potentially be scaled up quickly, and the public and private sectors in
Pakistan should take advantage of the demand being created as POU water treatment products
are distributed during the flood relief programs.
Household water treatment options developed in Pakistan, including chlorination, filtration, and
combined flocculation and disinfection, should be field tested for effectiveness and promoted to
the communities if they are proven safe according to internationally accepted standards.
BCC programs for hand washing with soap and improved accessibility of low-priced soaps to the
rural markets should be promoted through PPPs. Supply chain delivery systems for low-cost
soaps can improve access of the rural communities to affordable soaps for hand washing.
Celebration of Global Handwashing Days and regular school-based educational efforts will
increase the practice of hand washing with soap. At the same time, efforts should be made to
reform policy for taxes on raw materials for soaps and to stop the smuggling of soaps, which will
be essential to the growth and profitability of the soap industry.
Access to sanitation components for low-cost latrines should be improved, and training should
be provided to local sanitary store staff on installing sanitary components for latrines. If, for
instance, the local NGOs, TMA staff, and community volunteers are trained in latrine
construction, there could be a significant drop in the cost of labor, and therefore in the cost of
latrine construction. In addition, credit availability could facilitate accessibility of more sanitation
components to the rural markets because sanitation products are costly, requiring substantial
investment to maintain adequate stocks.
To promote and develop WASH markets, it may also be possible to develop PPPs with
corporate entities and to commit CSR resources to a long-term WASH program. PSDW-HPP
experienced great interest from the private sector on project objectives.
Technical assistance for further market research and for formulating effective WASH marketing
strategies should be provided.
P a g e |33
Appendix 1: Methodology
Data Management Procedures Phase 1
NGO orientation and training sessions
Before the start of the Phase 1 district mapping activity, two orientation and training sessions
were held with NGO staff in the presence of senior NGO management. NGOs selected
research coordinators and field research teams in consultation with Abt Associates. The CVs of
the researchers hired by the NGOs were also evaluated.
There were a total of about 40 participants in the orientation-cum-training sessions. The NGOs
senior management along with eight research coordinators supported by 24 researchers in
seven districts (37 tehsils) attended the sessions. The objective of the WASH study and the
research design and methodology along with the research tools were thoroughly explained.
Research techniques to carefully observe and record data in the field were discussed. Emphasis
on quality rather than quantity was emphasized to generate data from reliable sources that could
be validated. Senior Abt Associates executives and Grant Managers also attended the sessions to
discuss staffing and budgetary issues related to the management of the regular ongoing program
as well as the WASH Market Assessment Study.
Organizing Data Collection
In Phase 1, data was organized into three main categories to match the target stakeholder
groups (i.e., POU water treatment products, hygiene (soaps for hand washing) and sanitation
products and components) and added to one of three worksheets that corresponded with each
group. Worksheets Nos. 1, 2, and 3 were clearly marked for each WASH category in order to
avoid any confusion during data recording process.
A fourth worksheet was added to capture data on public sector and NGOs as well as MFIs. The
public sector, represented by the TMAs, was also recorded on Worksheet No. 4.
Hundreds of worksheets were received from seven districts with data collected from 37 tehsils.
This did not include additional data regarding information about health statistics, MFIs, and cost
estimation of latrine construction. Data was tabulated into summary sheets which included
stakeholders in all three WASH categories. For each district, the tabulation sheets were
prepared by tehsil with district summaries showing the total picture of all stakeholders identified.
P a g e |34
Data Cleansing Before Entry

The worksheets were carefully checked for errors and inconsistencies on completion of the
District Mapping-Phase 1. Data was cleaned before the data entry procedure to list the available
number of stakeholders in the three WASH categories. In a number of cases, missing or doubtful
data were re-checked and verified by the research coordinators with the support from their
staff. Missing and incomplete data was collected again in at least four districts.
Major Challenges in Field Research
Aside from very bad weather, rains and floods as major obstacles, a key challenge was how
researchers introduced themselves to potential stakeholders. Due to NGO proliferation and
local population sensitivities to certain agencies (Abt Associates excluded), stakeholders
sometimes refused to cooperate. There was fear that their personal or business information
would be passed on to tax authorities, or that they were not taken into confidence regarding
the purpose of the survey. To overcome this problem, NGOs were briefed in the orientationcum-training sessions on how to properly introduce themselves and explain the purpose of their
survey, making sure they mentioned they were not salespersons nor from the taxation
department.
In the case of POU water treatment products, the challenge was to identify the products as well
as locate the outlets that traditionally stock and sell them but did not have any POU water
treatment products available at the time of the survey. A large number of pharmacies/general
stores were thus identified where POU water treatment products were not available.
P a g e |35
Table 1: WASH MARKET ASSESSMENT STUDY - DATA ANALYSIS PLAN Phase 1

Parameters
Quantitative Data Analysis
Qualitative Data Analysis
Indicator
TYPES OF
STAKEHOLDERS ACTIVE
IN WASH MARKET and
SUPPLY SOURCES of
WASH Products
Number of outlets stocking and selling

WASH products and the supply
system in the districts. Supply sources
of different players in the supply chain.
Constructing a basic profile of WASH Market

comprising manufacturers, distributors,
wholesalers, retailers, pharmacies/general stores,
and sanitation stores as well as MFIs and NGOs
active in WASH sector.
Number of retailers, pharmacies,

sanitation stores, wholesalers,
distributors and manufacturers
selling WASH Products. MFIs and
NGOs active in WASH sector.
AVAILABILITY
Brands/Products IN THREE
WASH CATEGORIES
Variety and range of brands and types

of products/ components available in
the WASH market for POU water
treatment, hygiene (soaps) and
sanitation products.
Level of competition at the distributor, wholesaler,

and retail levels, within each category: POU water
treatment, hygiene(soaps) and sanitation
components and accessories.
Number and type of commercial

entities operating and competing
Brands Available in three WASH
Categories in the
Districts/Tehsils.
Availability of Local
expertise for construction
of low-cost Latrines
Realistic Cost estimation of different

type of latrines including components
and labor charges.
Availability or Lack of local technical expertise for

construction of low-cost latrines, socioeconomic/cultural constraints. Variation is cost of
latrines due to local prices and soil conditions.
Cost variation may be an

indicator in cost of local labor
and type of materials and
components used for
construction of latrines.
MICROFINANCE
Loan Limits Cost of loan (service

charges/interest, payback period)
Loan Policy and Product Portfolio generally as well

as specific to WASH sector, especially, to small
businesses and households.
Priority sectors for granting

microcredit.
NGOs
Number of NGOs identified in the

Districts, Tehsils, UCs, and Towns
actively working on projects being
undertaken by different agencies to
provide safe drinking water, improved
hygiene and sanitation.
NGOs activities to promote any aspect of WASH

such as promoting safe drinking water through
different POU methods, hand washing with soap,
and promoting CLTS for construction of latrines
and/or contributing to an enabling environment for
market development of WASH products
Number of NGOs active in

different aspects of WASH
Promotion, i.e., safe drinking
water, hygiene promotion, CLTS,
and construction of low-cost
latrines
TMAs
Number of TMAs , provided they are

actively working on WASH related
projects
TMAs contribution to safe drinking water, hygiene

and sanitation improvement
No. of TMAs active in

Districts/Tehsils
P a g e |36
PHASE 1, STEP 2: STUDY PROTOCOLS AND SAMPLING METHODOLOGY

Research Design
The research design was based on exploratory-cum-descriptive research. During the district mapping
phase in Phase 1, the research activity focused on identifying the key players and the brands/product. In
this line, the research approach can also be described as observational. The descriptive research
describes market potential, demographics and attitudes of consumers, in this case, through the
perceptions of the manufacturers, distributors, wholesalers, and retailers. However, it does not study
the cause and effect relationship between marketing variables and consumer behavior; for example, the
effect of lower price on demand. This area is considered to be beyond the scope of work of the study.
Planning Primary Data Collection
The research approach adopted is mainly descriptive research and the research instruments used are
questionnaires and personal interviews. To some extent, as explained above, the observational approach
was also utilized to examine the retailers advertising and sales promotional or merchandizing material
for an assortment of WASH products available in the retail shops.
The contact method was by telephone and email to get appointments from manufacturers, distributors,
microfinance institutions and NGOs involved in the marketing process for WASH products.
The Sampling Plan
The sampling plan was based on the sampling units identified for three WASH categories: POU water
treatment products, hygiene products (soaps for hand washing) and sanitation components and
accessories that are essential for construction of latrines.
Sampling Units
Manufacturers, distributors, wholesalers/stockists, sanitation and hardware stores, retailers, and

pharmacies and POU water treatment products, hygiene products (handwashing soaps), and
sanitation products, components and accessories for construction of low-cost latrines;
Microfinance Institutions;
TMAs actively contributing to safe drinking water, hygiene improvement, and sanitation
management; and
NGOs promoting improved hygiene (hand washing with soap), safe drinking water, and
sanitation (CLTS).
P a g e |37
Sample Size
The sample size was determined per district/tehsil based on the available number of WASH entities in
the each target group identified in the WASH mapping, tentatively estimated between 60 and 90 per
district consisting of the following approximate range of target respondents subject to availability.
Table 2: Phase 2: Estimated Sample Size for Target Groups Per District
Target Groups
POU Water
Hygiene
Sanitation
Total
Treatment
(Soaps for
Products
Products
Hand
Washing)
Manufacturers:*
1
1
3
5*
Distributors**
Wholesalers/Stockists 2
10
Retailers
Sanitation/Hardware
Stores
Pharmacies/General
Stores
10
20
20
10
Public Sector (Local

Government TMAs)
Microfinance
Institutions
NGOs
Total
70***
Note: *Subject to number of manufacturers identified in the district. However, manufacturers located outside the target districts number
could be higher and can be interviewed if contacted.
** Some large marketing companies can be classified into the Distributor category.
***Target sample size was adjusted subject to the number of actual respondents identified in Phase 2.
The study focuses on three WASH categories: POU water treatment, soap, and sanitation products.
Each category is heterogeneous and described as a stratum. Within each stratum there are six groups or
clusters: manufacturers, distributors, wholesalers and stockists, retailers, pharmacies, and
sanitation/hardware stores. In light of the statistical data collected from Phase 1, no major manufacturer
was identified in any of the 7 districts in any WASH category. Hence, the number of manufacturers in all
three WASH categories was pre-determined on a need-to-contact basis in locations outside the district
P a g e |38
by finding links of those distributors surveys in Phase 1 within the target districts with supply sources
outside the districts.
In the sample, sanitation was given a higher weight (three manufacturers) due to a large number of
diversified components/accessories that are produced by different manufacturers. With soap being more
or less a single product even one manufacturer can give sufficient information. POU water treatment
products unfortunately only have one manufacturer in all 7 districts.
TMA is the local government official only one per tehsil. With the smallest district having three tehsils,
it was decided to interview three TMAs. The number of MFIs and NGOs is also small, so the sample
includes three MFIs and two NGOs active in WASH. All three WASH categories were different in key
product and dealer characteristics and did not together give any representative (randomized probability)
sample.
Sampling Procedure
For the purpose of the WASH Market Assessment Study, a multi-stage sampling method was adopted.
In the first stage of our sampling procedure, clusters were identified for each stratum in terms of
geographic concentration/close proximity within the district. The tehsils were a geographical sub-unit.
Within each POU, soap and sanitation categories, clusters of different stakeholders such as distributors,
retailers, wholesalers/stockists, sanitation stores, and pharmacies, were identified.
Samples were drawn from each cluster for each category according to a pre-determined number of
individuals to be interviewed. If the cluster was sufficiently large, the sample was randomly chosen as per
a systemic sampling process based on Phase 1 listings through systematic sampling procedures based on
n=k. For example, from Retailer Cluster N, a random sample size n was drawn at intervals of k (1-9).
All clusters in a tehsil were eligible to represent the tehsil. Sampling was done from each eligible cluster
because if all eligible clusters are lumped together, there is risk of bias towards larger clusters, such as
retailers of soaps and other clusters, such as sanitary stores which are fewer in number and may be
underrepresented.
When the clusters are not clearly identifiable and scattered over a geographic sub-unit (tehsil), a
judgment sampling method was used. Using their best knowledge of the territory (tehsils/UCs) WASH
commercial markets, the researchers decided to identify the target respondents for POU, hygiene and
sanitation in each tehsil.
Survey Tools
A set of structured questionnaires containing both closed-ended and multiple-choice questions were
used for collecting information from WASH manufacturers, distributors, wholesalers/stockists, and
dealers. Information from NGOs, CBOs, Citizens Community Boards (CCBs), and MFIs within the
target districts was also collected through interviewer-administered questionnaires.
P a g e |39
However, in the case of selected manufacturers and distributors and/or microcredit institutions involved
with production and marketing efforts for WASH products located outside the target districts, face-toface short-duration interviews with senior management were conducted by the consultant/NGOs for
gathering information regarding strategic marketing questions.
Data Management Procedure Phase 2
Phase 2 utilized interviewer-based questionnaires as tools for collection of data: A set of seven
questionnaires was designed to collect the required information from the target groups. Before the
actual interviews, questionnaires were pre-tested.
Training/orientation sessions were held to explain the sampling methodology and correct interviewing
techniques. Questionnaires were interviewer-administered. Interviewers and interviewees were
properly identified on each questionnaire along with the date of the interview. Incomplete
questionnaires were rejected.
Once completed, questionnaires were organized by each WASH category and the target group. All
responses were coded and hard copy data was transferred to digital files created for each district by
WASH category. Data cleaning was done for validation. Data tables were constructed for each
district/WASH category. Data was analyzed and interpreted as per analytical framework, and
conclusions and/or recommendations were presented.
Questionnaires were formatted so that answers can be efficiently tabulated and effectively analyzed.
Open-ended and scale questions were avoided to minimize the element of bias during the interview
process. Multiple choice answers were inserted for the interviewer to quickly record the correct
response rather than enter a handwritten response that could lead to Type 1 and Type 2 errors.
Questionnaire #1: Manufacturers- All WASH Categories:
This questionnaire was designed for all manufacturers in the three WASH categories, i.e., POU water
treatment products, soap, and sanitation components.
Questionnaire # 2: Distributors- All WASH Categories:
Questionnaire#2 was used to collect data from all available distributors in every WASH category.
Questionnaire #3: Stockists/Wholesalers- All WASH Categories
Selected wholesalers identified in Phase 1, for each WASH Category, were interviewed.
Questionnaire #4: Chemists-cum-General Stores, Sanitation Stores, and Retailers
Since most chemists (pharmacies) have a dual nature of business as retailers, they were bracketed as
one. POU water treatment products, especially chlorinated tablets, are normally sold by these chemistscum-general stores. However, another type of POU water filter is sold by sanitation and hardware
stores.
P a g e |40
Similarly, sanitation and hardware stores were put into one classification, as both type of stores stock
and sell different sanitation components and accessories.
Questionnaire #5: Microfinance Institutions (MFIs)
Regular commercial banks were excluded due to the vast number and low priority to small businesses.
Questionnaire #6: NGOs active in the WASH Sector
NGOs actively working on any WASH Project, identified during Phase 1 mapping, were interviewed.
Questionnaire #7: Public Sector (TMAs)
Active TMAs working on any WASH Project, identified in Phase 1, were interviewed.
Pretesting Questionnaire
To remove any inconsistencies and to improve sequencing in the questionnaires, pre-testing was done
before the field work began.
Screener Questionnaire
In order to ensure that the target respondent was identified beforehand and that not at home and
refusals cases were kept to a minimum, a screener questionnaire was used by each researcher. As in
Phase 1, the screener had a message to elicit full cooperation from the target respondents. The NGO
being represented is the NGO actually conducting the survey. Therefore, the claim is ethical and not
misleading.
In addition, the interviewee was informed about his/her right to refuse to answer any question or to
quit at any stage of the interview process.
SCREENING SHEET FOR SELECTION OF THE INTERVIEWEES

INTRODUCTORY REMARKS BY THE INTERVIEWER FOR THE INTERVIEW
CANDIDATE
My name is _______________________. I am from the NGO______________________.
I am not here to sell or promote anything nor am I from the taxation department.
We are surveying the market for Drinking Water Purification Products, Hygiene and Sanitation
Products. We believe there is still great opportunity for the private sector to develop new, effective and
economical products for the Water Purification, Hygiene and Sanitation markets that would ultimately
benefit your business and your customers. All information will be used only for the purpose of
understanding the types and number of products available in the WASH categories, and their supply
sources, your cost and retail prices and profit margins. Your information will remain confidential.
Your participation in this survey is completely voluntary and you may withdraw from the survey at any time.
You may withdraw by informing the interviewer that you no longer wish to participate (no questions will be
P a g e |41
asked) and the interview will end. You may request that any or all sections of the survey you have already
answered be destroyed. Otherwise they will be kept.
We would appreciate if you can spare about 30 minutes of your time. Thank you for your cooperation.
P a g e |42
SCHEDULE OF INTERVIEWS CONDUCTED WITH WASH MANUFACTURERS AND DISTRIBUTORS

Manufacturer/ Distributer
Name
of Designation
Date
Interviewee(s)
MANUFACTURERS & DISTRIBUTORS OF POINT-OF-USE (POU) WATER PURIFICATION PRODUCTS
Medentech Ireland-Manufacturer Aquatabs
Michael Gately **
Director Marketing and Sales 08.09.10 Oct
Medentech
14
Grand Agencies- Distributor Aquatabs
1. Aneesuddin
1. CEO
21.09.10
2. Junaid Anees
2. Director Marketing
3. Dr. Sheherzad
3. Director Technical
Mirza Traders-Co-Distributor Aquatabs
Mirza Ghafoor**
Proprietor/ Sales Director
22. 09.10
Rawalpindi**
AGS Pharma- AquaPURa Chlorinated Tablets
US Health Care-Manufacturers of Musaffa

[POU]
P&G- Manufacturers of PUR Sachet and
Safeguard Soap
1
2
7
8
Abdul Ghafoor
1. Dr K. Nizam
2. Farhan Anis
1. Keith Zook**
2. Ali Ahmad
Allahwala
3. Shoaib Ali
PSI/Greenstar- Distributors of PUR Sachet 1. Nadeem Abbas
[POU}
2. Fawad Shamim
So-Safe Technologies
Shahid Mahmood
Place
Wexford,
Ireland**
Islamabad
Managing Director
22.09.10
Peshawar
1. President
2. Director Marketing
1. PUR Global Team Leader
Cincinnati, USA**
2. PUR Plant Team Leader
3. PUR Technical Coordinator
1. CFO
2. GM Sales & Operations
CEO
27.09.10
Karachi
01.10.10 -Oct
14
P&G Plant at Hub
28.09.10
Karachi
04.10.10
Karachi
1.CEO
2. Director Marketing/Sales
23.09.10
Faisalabad
1.Category Marketing Manager

2. Category Trade Manager
1. Marketing Director
2. Category Manager
3. GM Corporate Affairs
29.09.10
Karachi
30.09.10
Karachi
MANUFACTURERS
OF HYGIENE
[SOAPS] [SOAPS]
MANUFACTURERS
OF PRODUCTS
HYGIENE PRODUCTS
9
Azhar Corporation-Manufacturers of Hoor 1. Sheikh M.

Soaps
Munawar
2. Mazhar Munawar
10 Reckitt Benckiser-Manufacturers of Dettol 1. Sumera Nizam
Soaps
2. Zaid Tahir
11 Unilever- Manufacturers of Lifebuoy Soaps
1. Amer Paracha
2. M. Farooq
3. Naila Ismail
P a g e |43
MANUFACTURERS OF SANITATION COMPONENTS AND ACCESSORIES

12 Rawal Group Owners of Frontier Ceramics SyedFarrukh Shah
Chief Operating Officer
13 Frontier Ceramics- Manufacturer Sanitary
Ware/Tiles
14 Durr[Peshawar]Ceramics-Manufacturer
Sanitary Ware
15 Dar Ceramics-Manufacturers of Sanitary
Ware
**Telephone Interview,
Email Correspondence
22.09.10
1. Engr. FazleKhaliq
2. KhawarNasim
ShahidYusufzai
1.General Manager Operations

2. Dy. GM Production
CEO
22.09.10
Islamabad
Expressway
Peshawar
22.09.10
Peshawar
Tariq Ayub
Chief Executive
23.09.10
Gujranwala
P a g e |44
Appendix 2: Questionnaires
SCREENER QUESTIONNAIRE FOR SELECTION OF INTERVIEWEES
INTRODUCTORY
CANDIDATE
REMARKS
BY
THE
INTERVIEWER
FOR
THE
INTERVIEW
My name is ________________________________. I am from the NGO_______________________

_________________________________________.
I am not here to sell or promote anything nor am I from the taxation department.
We are surveying the market for Drinking Water Purification Products, Hygiene and Sanitation
Products. We believe there is still great opportunity for the private sector to develop new, effective and
economical products for the Water Purification, Hygiene and Sanitation markets that would ultimately
benefit your business and your customers. All information will be used only for the purpose of
understanding the types and number of products available in the WASH categories, and their supply
sources, your cost and retail prices and profit margins. Your information will remain confidential.
Your participation in this survey is completely voluntary and you may withdraw from the survey at any time.
You may withdraw by informing the interviewer that you no longer wish to participate (no questions will be
asked) and the interview will end. You may request that any or all sections of the survey you have already
answered be destroyed. Otherwise they will be kept.
We would appreciate if you can spare about 30 minutes of your time. Thank you for your cooperation.
1. Name
of
the
Interview
____________________________________________________
2. Position this Person
_______________
is
holding
in
this
Candidate
Business___________________
Since
3. Business
________________________________________________________________
Contact
Number(s)
_____________________________
_______________________________
When
Address
Email
4. Are you the person responsible for making key business decisions such as purchasing, investment, or
approving the marketing budget?
Yes
No
5. In the past three months have you invested/purchased/sold any WASH Products?
Yes
No
P a g e |45
6. In the next three months are you likely to continue running this business?
Yes
No
SCORING RESULT FOR ACCEPTING OR REJECTING CANDIDATE

IF QUESTIONS 4, 5 AND 6 ARE ALL YES, THEN SELECT THE CANDIDATE FOR INTERVIEW.
IF IS THERE IS A SINGLE NO IN REPLY TO ANY OF THE QUESTION NOS. 4, 5, 6, REJECT THE
CANDIDATE.
IN BOTH CASES, HOWEVER, PLEASE THANK THE CANDIDATE.

District_________Tehsil/UC/Town_____________Interviewers
Name__________________Date______
Questionnaire#1 - ALL MANUFACTURERS WASH PRODUCTS
Category:
Components
POU Water Purification Product
Name
of
the
Company
________________________
Proprietorship
company
Partnership
Soaps
________________________
Sanitation
Location/Address
Private limited company
Public limited
Name of Person Interviewed ____________________________________

Position_______________
Contact No _______________________
1. What are the five top selling brands you manufacture and market?
2. What do you think are your core strengths that give your company a competitive advantage?
Brand Loyalty
Low Prices
High Quality
Wide Distribution Network
3. What are the critical barriers you face in your business that hinder your company growth?
Low Profit Margins
Demand
Lack of Credit
High Production Cost
Weak
P a g e |46
4. What is your capacity utilization percentage?

Over 100%
100%
80%
50% or below
5. [If operating below capacity] What are the reasons for operating below capacity?
Lack of demand
Shortage of raw materials
Lack of credit
6. How much have you invested in this business?

Less than 1 crore
crores
Rs.1 - 4 crores
Rs. 5 - 8 crores
Over Rs. 8
7. By what percentage have your sales grown over last year?

No Growth
5%
10%
15 -20%
Over 20%
8. What growth do you expect your company to achieve next year?

No Growth
10%
20%
30%
Over 30%
9. What is your companys overall growth rate compared the industry growth rate?
% [industry growth rate]
%[your company growth rate]
10. What is your overall companys profit margins compared to industry margins?
[industry gross profit margins]
[company gross profit margins]
11. Do you supply directly to your customers or do you depend on market-based distributors?
Direct Distribution
Market-based Distribution
12. If you supply directly, how many stockists and retailers do you directly supply to?
Stockists
Retailers
Chemists
Total Customers
13. If you supply through company-appointed distributors and stockists, where are they located?
Location-District/Tehsil/UC/Towns
Number of Distributors
Number of Stockists
14. What gross dealer margins do you allow your authorized distributors?
Less than 5%
6-10%
11-15%
16-20%
15. Of your total marketing costs what percentage are distribution costs?
P a g e |47
Distribution cost as percentage of total marketing cost

16. How much of your sales do you allocate for your marketing budget?
Percent of sales you allocate for your marketing budget
17. Of your marketing budget what ratio do you spend on personal selling, advertising and sales
promotion?
% spent on Personal Selling
Promotion
% spent on Advertising
% spent on Sales
18. What is the number of your staff employed by you for key operational functions?
Production
No.
Finance/Admin.
No.
Marketing
No.
Sales
No.
Distribution
No.
Total Number
19. What kind of trade promotion do you mostly use in your distribution channels?
Quantity discount
Price Discount
Extra Quantity Bonus
20. Do you have a customer refund and replacement policy: Yes
No
Name__________________Date______
QUESTIONNAIRE#2- ALL DISTRIBUTORS- WASH PRODUCTS

Category:
Components
Name
of
the
Company
__________________________________
Proprietorship
company
Soaps
Sanitation
_____________________
Location
Private limited Company
Public limited
Partnership
Name of Interviewee _____________________________ Designation

_________________________
1. As a distributor what resources do you have to provide services to your customers in the market?
No. of Sales Staff
Depots
No. of Delivery Staff
No. of Vehicles
No. of
P a g e |48
2. How many towns do you cover in your supply routes?

Supply Route
Towns Covered
Frequency
Month}
of
Service
[Per
3. What is number of total customers reached by your company each month?

Stockist
Stores
Retailers
Chemists
Sanitary
4. What are the five top selling brands do you distribute?
5. What services do you offer your customers that result in their repeat orders regularly?
Top Selling Brands
Credit Facility
Wide Network
Variety of Brands
No Delivery Charges
Quick Supply
6. How much do you invest in stocks each month?

Less than 5 lacs
lacs
6-10 lacs
11-20 lacs
21-50 lacs
Over 50
7. How many weeks worth of sales is your current stock sufficient for?
1-2 weeks sales
3-4 weeks sales
5-8 weeks sales
9-12 weeks sales
8. How much is your distribution cost as a percentage of your total sales?

1-4%
5-8%
19-12%
13-16%
17-20%
9. How much of your stocks are offered on credit by the company you buy from?
25% credit
cash
50% credit
75% credit
100% credit
100%
10. What are the credit terms?

7-14 days
15-30 days
31-60 days
61-120 days
11. Do you pass on credit to any or all of your following customers?

Stockists/Wholesaler
Retailer
Sanitation Store
Chemist
P a g e |49
12. [If not offering credit] Any reason for not offering credit to your customers?
Credit from Supply Source
Risk of loss due to credit
Recovery problems
13. What net dealer profit margins are you getting on your total sales?
Less than 5%
6-10%
11-15%
16-20%
14. Which brands have you seen being advertised most often [for WASH Products]?
Brand A
Brand B
Brand C
Not seen
15. [If seen ], where did you see it?

Cable TV
Radio
Posters
Billboards
Newspaper
16. Which brands are fast-selling?

Brand A
Brand B
Brand C
Brand D
17. What do you think is the reason your customers like to buy the brands?
Low Price
Good Quality
Brand loyalty
Attractive Packaging
18. What is your regular source of supply?

Supply from manufacturer
Various Manufacturers Sales Agents Booking Orders
19. Which specific reasons account for doing business directly with the Supplier?
Provides credit on invoice
Provides quick & free of cost delivery
Provides more discount than competitors

Provides larger variety of products than competitors
21. Do you give customers refunds or replacement in case of dissatisfaction with goods purchased?
Yes
No
Name__________________Date______
P a g e |50
QUESTIONNAIRE#3 - STOCKIST- WASH MARKET STUDY

Category:
Components
POU Water Purification Products
Soaps
Sanitation
Name of the Stockist _____________________ Location________________ Contact No

___________
Proprietorship
Partnership
Private Limited Company
1. As a stockist what resources do you have to provide services to your customers in the market?
No of Sales Staff
Depots
No of Vehicles
Number of
2. How many towns do you cover in your supply routes and how many times a month?
Supply Route
Towns Covered
Frequency
Month]
of
Service
[Per
3. What is the number of total customers reached by your company each month?
Retailers
Chemists
Sanitary Stores
Total
4. What five top selling brands do you distribute?
5. What services do you offer that your customers regularly keep repeating their orders with you?
Fast-Selling Brands
Credit Facility
Wide Network
Variety of Brands
No Delivery Charges
Quick Order Supply

Less than 5 lacs
lacs
6-10 lacs
11-20 lacs
21-40 lacs
Over 40
7. How many days of your sales will your current stock be sufficient for?
1-2 weeks sales
3-4 weeks sales
5-8 weeks sales
9-12 weeks sales
8. How much is your distribution cost as part of total sales ?

1-3%
4-6%
7-9%
10-12%
13-15%
P a g e |51
9. How much of your stocks are offered on credit by the supplier you buy from?
25% credit
100%Cash
50% credit
75% credit
100% Credit
10. What is the credit period?

7-14 days
15-30 days
31-60 days
61-120 days
11. Do you pass on credit to any or all of your following customers?

Yes
No
12. [If NO: not offering credit Q#11] Any reason for not offering credit to your customers?
Supplier demands cash
Recovery problems
13. What net dealer profit margins are you getting for your services?
Less than 5%
6-10%
11-15%
16-20%
14. Which brands have you seen being advertised most often [for WASH Products]?
Brand A
Brand B
Brand C
Brand D
NOT SEEN
15. If seen, where did you see it?

CableTV
Radio
Posters
BillBoards
Newspaper/Magazines
16. Which brands are fast-selling ?

Brand A
Brand B
Brand C
Brand D
17. What you think is the reason your customers like to buy the fast-selling brands ?
Low Price
Good Quality
Variety
Brand loyalty
Advertising
18. On which brands do you make more profits?

Brand A
Brand B
Brand C
Brand D
19. What brands have complaints from customers about quality defects?
Brand A
Brand B
Brand C
Brand D

Direct Supply from manufacturer
Direct from Distributor
Sales Agents Booking Orders
21. Which specific reasons account for doing business directly with the company you purchase from?
P a g e |52
Provides better discount than other suppliers
Provides quick &free of cost delivery
Provides a larger variety of products than competitors
22. Do you give customers refunds or replacement in case of dissatisfaction with goods purchased?
Yes
No
Name_________________Date______
QUESTIONNAIRE#4 - Retailer, Chemist, Sanitation Store

Category:
Components
Soaps
Sanitation
Name of the Vendors Shop_______________________ Name of Person Interviewed

______________ _______________________
Location/Address____________________________________________ Contact
No___________________
Proprietorship
1.
Partnership
As a vendor what resources do you have to provide services to your customers in the market?
No of Sales Staff
No. of other stores owned
2. What is the number of total customers that purchase from you each month?
51-100
101-200
Above 200
3. What are the five top-selling brands that you sell?

Less than 5 lacs
lacs
6--10 lacs
11-20 lacs
21-40 lacs
Over 40
5. How many days of your sales will your current stock be sufficient for?
1-2 weeks sales
3-4 weeks sales
5-8 weeks sales
9-12 weeks sales
6. How much is your net dealer profit margin on your total sales?
Less than 5%
6-10%
11-15%
16-20%
21-25%
P a g e |53
7. How much of your stocks is offered on credit by the company you buy from?
25% credit
cash
50% credit
75% credit
100% credit
100%
8. What are the credit terms?

7-14 days
15-30 days
31-60 days
61-120 days
9. Do you pass on credit to any or all of your customers?

Yes
No
10. [If not offering credit-Q#9] Any reason for not offering credit to your customers?
Supplier demands cash
Recovery problems
11. In the past 30 days have you seen any advertising of WASH Products? [Promotion]
Yes
No
12. [If Yes], which brands have you seen being advertised most often [for WASH Products]?
Brand A
Brand B
Brand C
Brand D
13. If seen, where did you see it?

Cable TV
Radio
Posters
BillBoards
Newspaper
14. Which brands are the fastest-selling?

Brand A
Brand B
Brand C
Brand D
15. What do you think is the reason your customers like to buy the fast-selling brands ?
Low Price
Good Quality
Variety
Brand loyalty
Advertising
16. On which brands do you make more profits?

Brand A
Brand B
Brand C
Brand D

Direct Supply from Manufacturer
Stockists
Direct from Distributor
Direct Supply from
18. What brands have complaints from customers about quality defects?
Brand A
Brand B
Brand C
Brand D
P a g e |54
19. From which companies do you make most of your purchases regularly?
Company A
Company B
Company C
20. Which specific reasons account for doing business directly with the company you purchase from?
Provides better profit margin than competitors
Provides quick & free of cost delivery
Provides larger variety of products than competitors
21. Do your give customers refunds or replacement in case of dissatisfaction?

Yes
No
Name__________________Date______
QUESTIONNAIRE#5 - MICROCREDIT INSTITUTIONS

MFIs Name______________________
Name/Position of Person being
interviewed__________________________________________________ Location
____________________Address ____________________Contact Nos.___________________
1. What is the number of branches and partner organizations in your services network?
District/Tehsil/UC/Town/Location
Number of Branches
Name of Partner Organization
2. What are your different loan products, loan limits, interest rates and recovery period?
Loan Products
Maximum Loan Limit
Interest Rate
Repayment
Period
Recovery Rate
Agriculture/Livestock
Poultry/Fish farming
Small business[retailing]
Small Housing Loans
Manufacturing
Commercial Trading
P a g e |55
3. What is the total number of your present customers?

Number of Customers
4. How much have these customers borrowed from your organization?
Total Amount Borrowed [Rs.]
5. Of the total loans, what percent of loans has been given out to different sectors?
Agriculture/Livestock %
Small Manufacturing %
Commercial Trading/Retailing %
Housing %
6. What growth do you see in the micro-financing market this year?

5%
Growth
10%
20%
No
7. [If NO GROWH response to Q#6] What do you think are reasons for no growth?
Poor Economy
Situation
High Inflation
Damage due to Floods
Poor Security
8. What growth do you expect during next year?

5%
Growth
10%
20%
No
9. Do you provide loan facility to low-income households for construction of latrines?

Yes
No
10. [If yes] what are the loan limits and repayment periods for individual households?
Loan limit
Interest Rate
Repayment Period
11. What is your marketing budget for generating demand for your business?
Sum allocated for marketing activities
No marketing budget
12. Who do you consider as your strongest competitors?

Big Commercial Banks
Institutions
Microfinance Banks
Other Microfinance
13. What do you consider as your strongest asset ?

P a g e |56
Low interest rates

collateral
Efficient service
Easy access to customers
No
14. What do you consider the strengths of competition?

More Funds
More branches
More money spent on marketing
15. What do you consider are the barriers to the growth of microfinance business?
Lack of Awareness
Network
Lack of marketing effort
Lack of finances
Limited
16. What media do you use to communicate your promotional messages?

Cable TV
Radio
Newspapers/Magazines
Posters
Billboards
No Media
17. What is the operational cost of doing business as a percent of total loans given out?
5%
10%
15%
20%
18. What is the gross margin after taking into account loaning costs?
10%
20%
30%
40%
Name__________________Date______
QUESTIONNAIRE#6 - NGOs ACTIVE IN WASH SECTOR

NGO Name_____________________
Name/Position
of
the
person
interviewed______________________________________________
being
Location/Address________________________________________Contact
Nos.__________________
1. What areas does your NGO cover and what type of services does your NGO provide?
District/Tehsil/UC/Town
NGO Branch Locations
Type of Services Offered
P a g e |57
2. What is the number of your regular full-time and temporary employees ?

Regular full time employees
Temporary Employees
3. Are you linked to other NGO Networks and CCBOs and CBO?
Yes
No
4. If yes, what is the number of such Partner NGOs, CCBOs and CBOs?
Partner NGOs
CCBs
CBOs
Total
5. Has your NGO been involved with the private sector in marketing, selling or distribution of water
purification products, hygiene products [soaps for hand washing] or sanitation components for the
construction of low-cost latrines?
Yes
No
6. [If Yes to Q#5] What type of Products have you promoted, sold or distributed at community level?
Water Purification Products
Hygiene[Hand washing with Soap]
Sanitation Products
7. What services do you offer to the community that are funded through your own resources?
Safe Drinking Water
Hygiene
Sanitation
Microfinance
8. Are you promoting the construction of low-cost latrines for the low-income households?
Yes
9.
No
[If Yes to Q#8] How many low-cost latrines has your NGO directly constructed in support of the
community?
No. of Latrines constructed
10. Are you promoting safe drinking water methods at the household level?
Yes
No
11. If Yes, what water treatment methods are you promoting to provide safe drinking water?
Boiling
Filter
SODIS
Chlorination
Bios and filters
Gravity Flow
12. Are you promoting improved hygiene, specifically hand washing with soap?
Yes
No
13. Are you actively promoting the construction of low-cost latrines?

Yes
No
P a g e |58
14. [If yes to Q#13], what is the number of such latrines that you have convinced households to build?
Less than 20
25-50
51-100
Over 100
15. Do you offer a micro-credit facility to the community?

Yes
No
16. [If yes to Q#15], Do you provide small loans to households for construction of latrines?
Yes
No
17. [If Yes to Q.#16] What is the loan limit and interest charged on the loan?
Loan Limit for Latrines
Interest Plus Services Charges
Repayment Period
18. What is your overall Recovery Rate?

70-75%
76-85%
86-95%
96-100%
Name__________________Date______
QUESTIONNAIRE #7 - PUBLIC SECTOR- [TMAs]

District
_______________
_____________Town______________
Tehsil____________________UC
Name
of
TMA_______________________________Contact
__________________________
Number
Address--------------------------------------------------------------------------------------------------------------------------1. Do you see any link between contaminated water and diarrheal diseases?
Yes
No
2. Do you see any link between lack of hand washing with soap and diarrheal diseases?
Yes
No
3. Do you see any link between open defecation, poor sanitation and diarrheal diseases?
P a g e |59
Yes
No
4. How do you rate the health and hygiene conditions in your District/Tehsil/UC?
Satisfactory
Unsatisfactory
5. Of the three areas what do you consider as the most important factor for improving public health?
A. Sanitation
D.
B.
A&B
Hand Washing with Soap
E.
C. Safe Drinking Water
B&C
F. A,B & C
6. What steps have you taken to improve public health and hygiene in your district?
Water Supply Scheme for Safe Drinking Water
Excreta Disposal Project
Drainage Scheme
Construction of Public Latrines
Construction of Latrines for Households
Training/Capacity Building of Staff
7. What is the budget for completion of projects this year for health, hygiene and sanitaiton?
Approved Budget
8. If No, what is the extra amount of funds needed for public health projects in your area?
Funds Needed
9. If you are given the necessary funds on what projects will you utilize them?
Hiring new staff
Buy Machinery/ Equipment
Drinking Water Supply
Drainage Scheme
Excreta Disposal Scheme

Construction of Latrines
10. What do think are the reasons people are not constructing latrines in their houses?
Lack of awareness
Construction
Lack of personal finances
Lack of Masons & Skilled Labor

Ware
Lack of MicroCredit
High Cost of
High Prices of Sanitary
11. Do you see any role of the private sector in improving public health and hygiene?
Yes
No
P a g e |60
12. In what ways do you think the private sector can support you in improving health and sanitation?
Reduce prices of Sanitation Products
Provide loans to households
Better quality products
Increased availability
Increase marketing activities to build awareness
13. What type of latrine design do you think is most suitable for your local area?
Dry Pit Latrine
Pour Flush without Septic Tank
Pour Flush with Double Pit

Pit
Ventilated Improved Pit [VIP]
Pour Flush with Septic Tank

Pour Flush with Single
14. In your Tehsil/UC what is your estimated cost of a latrine?

Rs. 10,000-15,000
Rs. 15,000-20,000
Rs. 21,000-25,000
Rs. 26,000-30,000
Rs.3,0001-35,000
Rs. 36,000-40,000
15. What do you think are the most important obstacles to improved health and hygiene in your
Tehsil/UC?
Lack of Technical Know-How
Lack of Finances
Lack of Consumer Awareness

Water
High Prices
Lack of Availability of Effective Products for Purifying
Lack of Availability for Sanitation Products

16. Do you believe the Public and Private Sectors can work together to improve Water, Hygiene and
Sanitation?
Yes
No
P a g e |61
Notes on Sampling Procedure Phase 2
Sampling Procedure
Rationale of Target Sample Size for Phase 2 Data Collection
Research Design and Methodology

Steps in the Sampling Process and Procedure for Phase 2 and 3
1. Basically we are focusing on three WASH categories: POU water purification, Hygiene
[soaps] and Sanitation Products.
2. Each category being heterogeneous can be described as a stratum.
3. Within each category or stratum, we have four to six groups or clusters, depending on
the category: Manufacturers, Distributors, Stockists, Retailers, Chemists (Pharmacies),
and Sanitation Stores.
4. In the light of the statistical data collected during Phase 1 District Mapping, no major
manufacturer was identified in any of the 7 districts in any WASH category. Hence, the
number of manufacturers in all three WASH categories was pre-determined on a needto-contact basis in locations outside the district, by finding links of those distributors
surveyed in Phase 1 within the target districts with supply sources [manufacturer]
outside districts.
5. In the sample, Sanitation is given the higher weight [three manufacturers] due to a large
number of diversified components/accessories that are produced by different
manufacturers. Soap being more or less a single product even one manufacturer can give
sufficient information. Re: POU water purification products, unfortunately, there is only
one manufacturer that has been identified in all 7 districts.
6. TMA is the local government official - only one per Tehsil, because the smallest district
has 3 tehsils, it was decided to interview 3 TMAs.
7. Number of MFIs and NGOs is also a small number so the sample includes 3 MFIs and 2
NGOs active in WASH.
8. All three WASH categories, being different in key product and dealer characteristics,
will not together give us a representative [randomized probability] sample.
1. Based on three heterogeneous WASH strata, i.e., POU, Soaps and Sanitation, clusters
will be identified for each stratum in terms of geographic concentration/close proximity
within the tehsils. The district being a geographic unit, each tehsil within the district
being a geographic sub-unit.
2.
Within each POU, Soap, and Sanitation stratums/strata, clusters of different

stakeholders such as distributors, retailers. Wholesalers/stockists, sanitation stores,
chemists will be identified.
3. Each cluster for POU, Soap, Sanitation will be the Universe or Population from which
samples will be drawn from each according to the pre-determined number of
distributors, stockists, etc. to be interviewed.
4. From each cluster within the POU or Soap stratum, for example, the target group will
be screened first to identify the decision-makers by using the screener questionnaire.
Net sample screened should be close to target number to be interviewed in each
cluster.
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5. If the cluster is sufficiently large the sample will be randomly chosen as per systematic
sampling process based on Phase 1 listings.
6. All clusters in a tehsil will be eligible to represent the tehsil. Sampling will be done from
each eligible cluster because if all eligible clusters are lumped together, there is risk of
bias towards larger clusters, such as retailers of soaps, and other clusters, such as
sanitary stores that are fewer in number, may be under-represented.
Steps Data Management Procedure Phase 2
7. In case the clusters are not clearly identifiable and scattered over a geographic sub-unit
[Teshil], a judgment sampling method will be used. Using their best knowledge of the
territory [tehsils/UCs] WASH commercial markets, the researchers will decide to
identify the target respondents for POU, Soaps and Sanitation in each Teshil.
1. Before the actual interviews, questionnaires will be pre-tested.
2. Training/orientation sessions will be held to explain the sampling methodology and
correct interviewing techniques.
3. Questionnaires will be interviewer-administered.
4. Interviewer and interviewee will be properly identified on each questionnaire along with
the date of the interview.
5. Incomplete questionnaires will be rejected.
6. Once completed, questionnaires will be organized by each WASH category and the
target group.
7. All responses will be coded and hard copy data will be transferred to digital files created
for each district by WASH category.
8. Data cleaning will be done to validate data.
9. Data tables will be constructed for each District/Wash Category.
10. Data will be analyzed and interpreted as per analytical framework and conclusions and
recommendations presented.
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Appendix 3: Interviews with WASH Product Manufacturers

Company: Medentech
Product: Aquatabs
Company Description
Medentech was established in 1984 as an independent Irish company that has specialized in the
development and manufacturing of effervescent tablets and granules for use in human and animal health
care. The company acquired a strong brand- Aquatabs- with a high quality image and reliability
worldwide. Medentech now makes over 1 billion tablets per annum which is 20 times bigger than the
next biggest competitor. Medentech is also the only manufacturer of sodium dichloroisocynaurate
(NaDCC), the active ingredient in the tablets.
The company is financially-sound and has the potential to invest in marketing activities. They are planning
to hire sales teams and develop a countrywide distribution network by appointing sub-distributors.
Medentech is also engaged in over 20 different countries in their community home-based water
treatment and safe storage [HWTS] programs. The company, however, has not been able to sell and
promote the concept of HWTS at the public policy level in Pakistan.
Product
Aquatabs is a water purification product with the active ingredient NaDCC. They are effervescent [selfdissolving] tablets that kill microorganisms in water responsible for diarrheal infections. Aquatabs are
recommended for disinfecting water at point of use by all major international aid agencies, NGOs and
defense forces. Aquatabs have the following features:
Proven technological intervention suitable for sustained usage;

Practical, effective and safe;
Affordable for low-income population groups;
Packing: Strips of 10 tablets preventing access by children;
Taste and odor is more acceptable;
Very little training is required to learn the proper use of the product;
Non-hazardous;
Requires small storage space and is easy to handle during transportation;
Shelf-life of the product is 5 years, even in tropical conditions;
Storage: Aquatabs must be stored in cool, dry place away from direct sunlight;
Aquatabs are appropriate for point-of-use water purification;
Effective wide spectrum biocidal activity;
Guaranteed quality and technical support;
Residual chlorine levels can be measured using standard techniques [e.g., DPD method].
P a g e |64
Medentech holds a certificate of Good Manufacturing Practice [GMP] for pharmaceutical products and is
ISO 9001-2000 certified and is registered by the UN Global Marketplace.
Table 1: Aquatabs Dosage for Clear and Turbid Water

Water Quality
Aquatabs Strength
Water
Volume
For clear water
33 mg x 1 tablet
10 liters
For dirty or turbid water*
33 mg x 2 tablet
10 liters
For clear water
67 mg x 1 tablet
20 liters
For dirty or [turbid water]* 67 mg x 2 tablet
20 liters
* Turbid water must be filtered through a cloth before adding Aquatabs.
Wait Time
30 minutes
30 minutes
30 minutes
30 minutes
Price
The price of the retail pack is Rs. 80. About a year ago, the same pack of 20 cost Rs. 60. Aquatabs 33 mg
is selling for Rs. 4 per tablet, whereas Aquatabs 67 is selling for Rs. 5 per tablet. On a cost per liter basis,
Aquatabs 67 mg is 15 paisas cheaper (37.5% lower on cost per liter basis).
Table 2: Cost per Liter Comparison of Aquatabs 33 mg and 67 mg
Aquatabs
Price Per
Liters
Cost Per Liter
Variant*
Tablet
Purified
33 mg
Rs. 4
10
40 Paisa (Rs. 0.40)
67 mg
Rs. 5
20
25 Paisa (Rs. 0.25)
Cost
Differential
+15 Paisa
-15 Paisa
*The packaging design is the same in two colors, blue and red, and instructions are provided in the packing leaflet in English and Urdu.
The price of Aquatabs can be reduced if the heavy taxes approximating 70% on the product are
drastically curtailed. Air freight and clearing charges also add another 20% to the landed cost. The heavy
import duties combined with freight add on to the cost and are reflected on the price.
Promotion
Aquatabs marketing to date has included the following product messages:
Without treated water children will get diarrhea.

Water treated with Aquatabs can be trusted.
Aquatabs treated water tastes and smells good.
Aquatabs treated water is affordable.
Aquatabs are safe and easy to use.
Inventory
Current stocks are sufficient for 5-8 week of sales. However, import orders are shipped quickly by
Medentech by air cargo service. The recent flood disaster generated heavy demand for Aquatabs.
P a g e |65
Donors, INGOs and local NGOs placed estimated orders of more than 5 million Aquatabs. The largest
buyer is UNICEF.
Medentech charges Mirza Traders cost of air shipment on the invoice. Shipment cost is based on weight
and volume calculations. The company is making an estimated 20% margin on sales of its products.
Distribution
Medentech Aquatabs distributers are Mirza Traders and Grand Agencies. Mirza is managed by Mirza
Ghafoor, who was sales manager with Zita International, former Medentech sole Aquatabs distributor.
Medentech has authorized Mirza Traders to import Aquatabs and then distribute it through Grand
Agencies. Grand Agencies is a private limited company based in Islamabad. The company has a
diversified portfolio of business. Recently, the Group acquired the distribution of Aquatabs. However,
together with Mirza Traders, they will continue as co-distributors until Medentech decides to choose
one national distributor. This arrangement will continue until Grand Agencies is able to set up its own
distribution network. Grand Agencies recently advertised for regional sub-distributors all over Pakistan.
They intend to appoint distributors in major cities such as Rawalpindi, Lahore, Faisalabad, Karachi and
Peshawar. They also plan to hire sales representatives for promotion and sales of Aquatabs in major
towns, while Lady Health Workers [LHWs] will be offered commission to work in smaller towns and
villages. Medentech also directly supplies to large donors like UNICEF who recently purchased over 10
million tablets.
There are two supply routes to cover the following small towns: Kahuta, Kallar Syedan, Rawat, Mandra,
Gujjar Khan, Sohawa, Dina, Jhelum, Gujrat, Kharian, Mirpur AJK, Dadhial, Mangla, Kotli, Rawlakot,
Attock, Nowshera, Peshawar, Mansehra, Haripur, Marri, Chakwal, Gojra, Faisalabad, Lahore.
There is one stockist in the north, in Kotil, Azad Kashmir, which also serves the Muzzaffarabad market.
In Punjab, one stockist is located in Faisalabad. In Rawalpindi, the wholesalers in Bohr Bazar also carry
Aquatabs stocks. There are no Aquatabs dealers in Kohat and Mardan. Nor is there a dealer to stock
Aquatabs in Gujranwala.
Aquatabs stocks are also shipped to Karachi by courier to one of the largest chemists in Pakistan:
Kausar Medicos who sells it over the counter. Aquatabs are also available for sale in the Armys Central
Stores Depot.
About 1,500 retailers sell Aquatabs all over Pakistan; 1,000 are retail chemists. However, their purchases
are sporadic and soar especially during peak flood season.
Medentech offers limited credit to their distributors in over 65 countries as well as in Pakistan. Due to
limited financing by Mirza Traders, Medentech is offering up to 50% credit for a period of 30 days. Mirza
Traders passes on 10% of the order value on credit to its selected customers on a bill-to-bill basis.
P a g e |66
Credit is only offered against cross-check in favor of Mirza Traders post-dated 30 days. Cash payments
are usually wired online, or where an internet facility is not available, by bank draft [cashier check].
Sales
Volume Sales in Emergencies: Medentech is quite happy with receiving large orders from the donor and
relief agencies during emergency situations, such as the recent floods. This enables the company to sell
large volumes without incurring any significant marketing, selling, distribution and promotion costs. For
example, Medentech shipped more than 150 million tablets to Pakistan during the flood-related IDP
crisis.
Margins
Mirza Traders offers an approximate 35% margin on average to distributors who pass on 25% to
stockists. Stockists in turn pass on a 20% margin to retailers. Thus distributor margins are 10% to cover
all business rental and operating costs including delivery charges by courier. Stockists have a narrow
margin of 5% but most of the stockists also run a parallel retail sales counter to avail the retail margin of
20%.
Investment
The company plans to invest about Rs. 30 million in new businesses, with more than Rs. 5 million
directed towards Aquatabs.
Critical Issues
Limited distribution network;

Lack of credit facility to sub-distributors, stockists, and retailers;
Medentech is not investing much in marketing activities for raising awareness and usage of
Aquatabs;
They offer limited credit on imports of Aquatabs.
P a g e |67
Company: Procter and Gamble

Product: Pur Sachet
Company Description
Procter and Gamble (P&G) is a global consumer goods giant. Its Safeguard soaps and PUR sachets
manufacturing facilities in Pakistan are located in Hub, Baluchistan. The Hub plant supplies markets
worldwide. Currently the plant is operating in triple shifts to meet the heavy demand created by the
recent disastrous floods.
Product
Each packet of PUR Purifier of Water (PUR) treats 10 liters of water. They use ferric sulphate as a
coagulant to remove contaminants (heavy metals, turbidity and chlorine resistant parasites) and calcium
hypochlorite as a disinfectant to kill bacteria and virus contaminants. PUR provides one of the most
effective options for consumers living in areas with turbid water with the added extra benefit of the
removal of all 3 classes of pathogens.
Price
Despite the impact of taxes and inflation on the cost of production, PURs selling price has been a
constant Rs. 5 for a sachet of 4 gm for the past 6 years. Prices are intended to hold steady. P&G will
keep the PUR price at $0.035 per sachet plus shipping for the time being. However, the cost in Pakistan
will vary based on the exchange rate.
PUR is priced as low as possible and it does not create a profit for P&G. At the exchange rate of 85 Rs.
= $1, assuming 100% recovery of product costs, 17% sales tax (applied at each transaction), modest
assignment of overhead, modest distributor and retail margins, no subsidies and no marketing expenses
recovered, PUR sachets should have a 6-7 Rs./packet at retail price.
P&G estimates that higher sales volume will provide economies of scale and make production more
cost-effective. This will allow the company to maintain the $0.035 per sachet product price against
inflationary pressures, taxes, and devaluation of Pakistans rupee.
Shipping costs are paid by international customers. Local shipping costs for delivery to Greenstar, the
distributor, in Karachi are included in the finished product price. Greenstar will include handling,
delivery and other costs in the price of the goods charged to customers.
Inventory
Most finished goods inventories are held by nonprofit partners in country. On average, P&G asks their
partners to hold a 3-6 month inventory. The exact quantity of product held varies per country. At Hub,
P&G previously held a 1 month inventory. A higher speed multilane packing machine gave P&G the
P a g e |68
ability to respond to instantaneous requests or peaks in demand very rapidly, reducing their need to
keep a large inventory.
P&G has sufficient onsite and offsite storage to meet production needs, and if additional storage is
needed, this is done through external suppliers. At the Hub Plant there is warehouse space dedicated
for raw materials and finished goods. Raw material stocks are arranged based on operational
requirements several months beforehand. Greenstar has both national and regional warehousing
facilities available for P&G.
Promotion
The strategy was based on consumers desire for a product that visually showed their water being
cleaned. The result was the PUR Purifier of Water product. PUR is not only among the best options for
emergencies, it is also useful for people with HIV, malnourished kids, and turbid water users. For
sustained use, the target user of PUR would be a low-income housewife with young children. People
living in locations with access to only surface waters, turbid waters, or water with arsenic contamination
(Punjab and Sindh) are most likely to adopt PUR use. For emergency use, the target use of PUR is a
displaced person with access to a safe water supply.
PUR is not directly marketed through a P&G Pakistan-based company, a totally commercial for-profit
operation. Instead, P&G works with PSI/Greenstar in a non-for-profit program to reach people in need
of safe drinking water. Greenstar is operating a PUR promotion program with a very small budget which
results in a less than 5% of PSI/GS social marketing activity dedicated to PUR. P&G, however, pays
additional margins to PSI/GS to promote PUR according to an agreed-upon business plan that allocates
the market to spend against planned marketing activities.
Promotional Messages: PUR Slogan: PUR-Because Water is Life.
Do you drink water that is free of germs?
Water that looks clean may also contain bacteria.
Effective way to rid your drinking water from germs.
In five rupees you get 10 liters of clean and safe drinking water.
Recommended by Pakistan Medical Association.
Procter & Gamble supports its PUR non-profit venture as part of its global CSR policy. Therefore, the
company does not allocate a fixed marketing budget for PUR based on sales. The marketing expenditure
comes from the CSR Budget. Total CSR budget dedicated to all non-profit programs is $2 million - $5
million. The Pakistan portion of the budget is small; therefore, the ability to reach large sections of the
rural population is severely limited by lack of funds.
However, P&G is spending an estimated $500,000 against seed funding for PUR promotional programs
and relief activities that include substantial donations of PUR. On the other hand, P&G is not planning to
increase the scope of marketing activities to mass awareness campaigns through electronic media, nor
through community level sessions on the pattern of Good Life Parties to educate the rural households
through PUR demonstrations.
P a g e |69
PUR Success with Social Marketing Approach in Africa: A Model for Pakistan?
P&G has been successful with social marketing in the Democratic Republic of Congo (DRC) and
Ethiopia, by integrating the PUR product into existing health programs through a broad group of
partners. For example, in DRC about 80% of the total amount of product has been provided via social
marketing versus emergency relief. The support of USAID and UNICEF in DRC was instrumental to
reach this goal. In Pakistan, it is the other way round. More sales come from emergency relief. P&G has
now learned that to be successful they must work in partnership with other programs and with
sufficient budgets.
Distribution
Population Services International (PSI) and GreenStar Social Marketing are the distributors of PUR in
Pakistan. PSI/GS has been granted with tax exemption for social marketing and have about Rs.2 billion in
donor (e.g., USAID and KFW) funding. They now work with a sub-distributor called Paras, which
represents Novartis.
Through the affiliate-distributor, PSI/GS has access to about 90,000 retail outlets in about 80 towns. Of
these 40 are major towns and the remainder are small towns. The trade channels are not offered any
credit and all business is on cash. However, PUR is sold through Goodlife, an associate concerned with
practically the same Board of Directors.
Greenstar has focused on 6 major urban slum areas (Karachi, Hyderabad, Multan, Faisalabad, Lahore,
Rawalpindi) plus the earthquake region near Abbotabad. After a strong focus on mothers of
schoolchildren, Greenstar changed its strategy and targeted doctors in medical clinics located in slums
instead. A pilot test conducted in Korangi, PSI/GS combined medical clinic education of moms with sick
children, school education programs, outreach to mothers and distribution of product in local, small
outlets which resulted in reasonable sales for a couple of months. Outreach to rural areas has not been
successful due to lack of resources and commitment from P&G.
Up to now P&G has been focusing on penetration of the urban slum areas without assessing the market
demand for PUR. There has been no impact analysis done by P&G or PSI/GS. The positioning of the
product is still fuzzy. Quality of safe drinking water is not being highlighted as a unique selling
proposition for the product. PSI/GS believe that PUR has a greater potential to address water turbidity
rather than killing bacteria.
However, turbidity is problematic especially during the flood season, and thus the sales resulting from
monsoon flood demand is cyclical. Furthermore, open sources of water are more amenable to turbidity
than tube wells or dug wells that are covered. In areas where there is no silting and water is not murky
or turbid, PUR would have weaker demand under the current turbidity based strategy.
P a g e |70
Availability at chemist shops is limited and a very modest number of retail outlets carry PUR despite the
fact that PSI/GS are piggybacking on Paras, a countrywide pharmaceutical distributor to reach chemists
and doctors.
Sales
As far as PUR is concerned the normal sales per month before the flood disaster averaged about a few
thousand sachets per month. However, in the aftermath of the flood havoc, there was a dramatic jump
in the demand for PUR as donors placed direct orders for substantial quantities for free distribution of
PUR in the flood-affected areas. Currently USAID plans to purchase $1.5 million worth of PUR.
However, about 80% to 90% of PUR sales contribution is by way of exports
Margins
PSI/GS is using a large pharmaceutical distributor network, which increasse its distribution costs (i.e., 1520%). PSI/GS is receiving approximately 5% net margins on the distribution of PUR. Greenstar purchase
price is Rs. 3.50. On each sachet the GST is 17%, which adds another Rs.0.60 to the product. The
margin left for Greenstar is Rs. 0.90, approximately 20%. The retail margin also comes out of this
amount.
Last year shipment volume for PUR was about 60 million PUR packets/sachets, including sales in
Pakistan. P&G has already shipped 30 million PUR Sachets in the first quarter of 2010. Since this is a notfor-profit program, there is no company gross margin on the product. However, distributor and dealer
margins vary globally, but a range of 10-20% is typical. In Pakistan it is close to 20%.
Investment
P&G has just added a new multilane packing line for PUR at the Hub facility to cater for future growth in
demand from emergency relief efforts. Prior to tripling production capacity, P&G's Hub manufacturing
plant was operating at full capacity for the past year. Currently, P&G has been running non-stop to meet
large donor orders for PUR. As a consequence of expected disasters in other regions, P&G has
announced the building and starting up of a second PUR plant in Singapore by 2012/13.
Critical Issues
Marketing Strategy - P&Gs not-for-profit strategy for PUR is laudable as an attractive social marketing
slogan; however, it hardly makes practical sense in terms of marketing realities for the following reasons:
a. P&G still needs to pay PSI/GS for marketing services;
b. Attractive distributor and retail margins still need to be paid to attract sufficient investment in
retail level stocks;
c. Consumer awareness and safe drinking water messages still need to be conveyed through
effective sales promotion;
P a g e |71
d. Effective demonstrations to educate and convince potential customers are still very essential in
rural markets, and;
e. Consumer and trade promotions are still required to incentivize customers and trade channels.
All of the above build up to a low marketing budget and low dealer margins that eventually stall
marketing efforts.
Lack of Effective Partnerships - P&G is not satisfied with the sales performance from the existing sales and
distribution arrangement with PSI/GS. PUR distribution volumes in relation to social marketing in
Pakistan have been below expectations for the past several years, due in most part to the limited
support and lack of partnerships with social development and relief agencies.
Additional partnerships are needed to achieve long-term volume in Pakistan. Total volume in Pakistan
prior to the recent floods exceeded P&G objectives due mostly to the 2005 earthquake, several floods,
and the SWAT Valley IDP crisis. The current floods have resulted in an unprecedented response and
P&G is likely to provide more than 30 million sachets. This has resulted in a number of new partnerships
[e.g., with USAID] and many more groups familiar with PUR which provides an excellent opportunity to
expand its efforts.
Lack of Rural Penetration - Assessing the real need for PUR and estimating potential market demand
would be the first step towards developing a well-focused marketing strategy. Inadequate funding for
marketing activities is a major barrier to product growth. Piloting a marketing research study in selected
rural districts would clearly establish the acceptability and willingness to pay for PUR. Affordability may
be an issue for low-income groups in the urban slums and rural market.
To create a sizeable growth market for POU a clear BCC strategy combined with an aggressive
marketing effort is required, especially in the rural markets. Large-scale demonstrations could create
mass awareness and educate the rural population. PSI/GS recently launched a public awareness campaign
with a 30-second TV infomercial demonstrating the correct use of PUR. However, frequent interactive
sessions with women from rural households through Good Life Parties for family health would be
more effective as they would demonstrate the product in person and answer questions on the spot.
PSI/GS is more focused on the core marketing activity of promoting family planning products and baby
active vitamins. There is a lack of consistent and sustained emphasis year round on PUR. As a result
PUR is only visible during the flood season.
P a g e |72
Company: AGS Pharma

Product: AquaPura
Company Description
AGS Pharma and Chemical Industries is a private limited company that manufactures Aquapura, a brand
of chlorinated tablets. The company has invested Rs. 42 million in the manufacturing facilities and quality
control laboratory. AGS Pharma can manufacture about 100,000 to 150,000 tablets of Aquapura per
hour: 1 million tablets per 8-hour day. However, the company operates on orders booked in advance to
avoid build up of stocks. Currently, the manufacturing capacity is at 50% due to seasonal demand for
chlorinated tablets.
During the recent floods as well the IDP crisis in Swat last year, AGS supplied large quantities of
Aquapura to various relief agencies. The company has developed a trusted relationship with the
customers in the Peshawar local market and other parts of KPK.
Product
Aquapura is available as 15 mg and 100 mg tablets. The 15 mg tablets purify 3 liters of contaminated
water, whereas 100 mg can treat 20 liters. Aquapura contains the active ingredient sodium
dichloroisocyanurate and trichloroisocyanuric acid. The tablets disinfect the water to bring the bacterial
count to a near-zero level and provide protection against waterborne diseases. Due to a granules
coating additive in the formula, Aquapura has a remarkably faint chlorine smell and taste. However, no
product acceptability trials have been conducted by the company.
The company is ISO 9001:2008 Certified by Moody International and is the only company manufacturing
a quality chlorinated water purification product besides P&Gs Hub Plant.
Table 3: Microbiological Efficacy
Parameter
Unit
Total
Coliforms
Fecal
Coliforms
E.Coli
CFU/100ml
MPN/100ml
CFU/100ml
MPN/100ml
+ve, -ve
Reference
Method
APHA, 20th Edition
Permissible
Limit PSQCA
Potable
Water
NIL
Results
Results
Untreated
Treated
900
<2
APHA 20th Edition
NIL
500
<2
APHA 20th Edition,

FAO
-ve
+ve
-ve
P a g e |73
Price
Table 4: Price by water purification capacity
Available
Chlorine
Description
Aquapura 15 mg
Aquapura 33 mg
Aquapura 100 mg
Aquapura Plus*
13.50 mg
20 mg
90 mg
930 mg
Water
Purification
Capacity
1 tablet for 5 liters
1 tablet for 300
liters*
Retail Price & Packaging

Rs. 90 for a Box of 30s
Rs. 1920 for a Pack of 160
Recommended
for
water storage tanks
**In plastic pack of 160 tablets for 10,000 UK gallons= 48000 liters
Table 5: Size and purification capacity cost per liter comparison
Product Description
Price per tablet
Purification Capacity
Aquapura 15 mg
Rs. 3.00
5 liters
Aquapura 33 mg
Rs. 3.50
7 liters
Aquapura 100 mg
Rs. 6.00
30 liters
Aquapura Plus
Rs. 12.00
300 liters
Cost per Liter

60 paisas [Rs.0.60]
50 paisas [Rs.0.50]
20 paisas [Rs.0.20]
4 paisas [Rs.0.04]
Promotion
The company spends about 5% of its sales revenues on promotion, which includes personal selling. The
company does not have a budget allocation for regular mass media advertising but has billboards
highlighting the health benefits of purifying drinking water. Messages emphasize Prevention is better
than Cure. For trade promotion, the company usually offers a price discount on an order of one million
tablets.
Promotional Messages
AGS claims the following benefits of Aquapura on the outer pack as well as in the packing insert:
Aquapura makes water safe for drinking by destroying harmful waterborne microorganisms,
solid protection against hepatitis, gastroenteritis, typhoid, dysentery, cholera, and intestinal
infections. For purification of 5 liters of water, use Aquapura 15 mg. For 30 liters of water use
Aquapura 100 mg.
If you feel any problem with taste or smell, then decant the treated water into another
container and repeat it several times.
While shaving, put a tablet of Aquapura 15 mg in your shaving cup and enjoy sterilized shaving.
Feeder sterilization: After thoroughly washing childs feeder, nipple, and other utensils, dip them
in a container with Aquapura 100 mg tablets already dissolved in it. Repeat the action after
P a g e |74
every use until 24 hours. After 24 hours throw away the water and refill the container and
insert another Aquapura tablet 100 mg. After washing, you can also dip childrens clothes in a
bucket containing 2 liters of water. Add one tablet of Aquapura 100 mg to sterilize the children
clothes.
Mouthwash: Insert a tablet of Aquapura 15 mg tablet in 250 ml of water and rinse your mouth
regularly to fight bad odor or mouth infection.
Denture cleaning: If you are wearing false teeth, insert them in a cup with Aquapura 15 mg
dissolved in it every night for germ-free teeth in the morning.
Fruit and Vegetable Wash: Since Aquapura has also anti-fungal properties, you can use Aquapura
100 mg in 10 liters of water and dip vegetables and fruits into the treated water to disinfect
them.
Water tank cleaning: To purify your water storage tank use 20 tablets of Aquapura 100 mg for a
tank capacity of 500-600 liters (about 150 gallons).
Distribution
Aquapura is shipped to customers via courier, as the products presentation is compact and lightweight.
Delivery charges per carton of 5 kg are normally Rs. 100. Approximately 7500 tablets are in one carton.
Therefore, distribution costs are nominal at less than two paisa per tablet. If Daewoo Bus Service is
used the delivery charges drop Rs. 50. The company absorbs the delivery charges on all customer
orders. Transportation cost is roughly 5% of the sales revenue.
In Bahawalpur, the company has entered into a deal with ART International, a trading company with
strong a distribution network in the flood-affected districts of Rajanpur, D.G. Khan and Muzaffargarh
Southern Punjab.
Sales
In 2009 the companys sales showed a modest growth of about 2%. However, during the current year
(2010), sales have shown a marked improvement in growth of about 15% on a year to year basis. This
was mainly due to demand after the flood disaster hit 70 districts of Pakistan and displaced nearly 20
million people. The company is optimistic and forecasts a sales growth of 20% by next year, if the
demand remains strong. The company is also in negotiations with the Punjab government to supply
Aquapura to the Basic Health Units [BHUs] for purification of drinking water.
Recently, the company has obtained orders for approximately 5 million tablets from NGOs and welfare
trust organizations such as LRBT [Layton-Rahmatullah Benevolent Trust]. AGS Pharma also concluded a
supply agreement with the Federal Worker Welfare Board, managed by the Ministry of Industries. The
Welfare Board runs 16 colonies and 16 schools. Their drinking water tanks are treated with Aquapura,
benefitting about 200,000 workers and students. AGS Pharma is also negotiating with the Government
of Punjab to supply Aquapura to Basic Health Units in all of Punjabs provincial districts.
Margins
P a g e |75
Gross margin is about 33%. Cost of goods manufactured and sold is approximately 67% of net sales after
adjusting for distributor discounts of 30%. After marketing, selling and distribution and other operational
expenses at 17%, the company expects to make nearly 16% net margin before taxes. After paying taxes,
the net margin after tax is 12%. Distribution margins are normally 15% and retailers are allowed 15%.
Some distributors have incentivized sales targets with an additional 5% performance bonus.
Critical Issues
Lack of awareness and adoption of water purification methods by the general public are the
biggest barriers to the growth of the Point-of-Use water purification products.
Lack of marketing resources to educate the rural population and trigger behavior change (BCC)
to generate sustainable demand.
Lack of credit facility to enable the trade channels to stock and sell the chlorinated tablet.
P a g e |76
Company: US Health Care

Product: MUSAFFA DECONTAMINATION BAG
Company Description
US Health Care is a financially strong, multi-business private sector company. It has a diversified
portfolio which consists of health services and events marketing, the Musaffa decontamination bag
manufacture and marketing, and the Yellow Pages business directory. US Health Care is the largest
events marketing company in Pakistan, organizing events for promotion of a wide range of exports items
, health products and services, agricultural products and building materials.
The company also markets a range of gravity-flow filters for household usage that include the Musaffa
filter. Its manufacturing capacity can be expanded on short notice to meet sudden demand surges. Major
buyers include Oxfam and other donors. There is a Musaffa-dedicated sales force promoting and selling
Musaffa to medical stores in Karachi. However, due to low-profit margins on the filters, the company
does not focus much on promoting the two-stage and three-stage water filters.
Product
Musaffa was originally developed as a research product of Pakistan Council for Scientific and Industrial
Research (PCSIR), the largest research organization in the public sector. PCSIR was unable to market
the product due to lack of resources and marketing expertise. They decided to outsource the product
manufacturing and marketing to U.S. Health Care.
PSDW-HPP initially identified and evaluated Musaffa along with other POU water purification
technologies available in Pakistan. Musaffa was shortlisted as one of the POU options recommended by
the PSDW-HPP for NGO promotion to communities in the Projects 32 rural districts.
The PSDW-HPP provided technical assistance to the US Health Care to revise and repackage the
product. A new label was designed and pretested by the project. The new packaging was more pictorial,
colorful and attractive with clear usage instructions. The poster child used by the project and the safe
drinking water messages were incorporated on the new packaging to reinforce the messages and to
remind the consumer about Mussaffa.
Price
Mussaffa is manufactured in three pack sizes: 0.25 kg, 0.5 kg and 1 kg. Each pack of 1 kg can purify 2500
liters of water over 4-6 months. The retail price of Musaffa has been raised from Rs. 250 in 2008 to Rs.
350 per kg pack. For the flood-affected victims, the price has been discounted to Rs. 325 per kg.
Promotion
US Health Care has no dedicated marketing budget for Mussaffa. The product, however, is included in
the Yellow Pages of Pakistan, mainly circulated among the business community in urban centers.
P a g e |77
Mussaffas marketing strategy is focused on institutional sales during floods and other emergencies. The
company has not tailored its marketing strategy to make Mussaffa an everyday regular use product in
spite of the potential demand of rural markets among low-income groups. US Health Care could
leverage the products benefits and provide a relatively affordable price to attract a large segment of the
rural population. However, this would require a re-evaluation of the marketing strategy.
Distribution
US Health Care has a limited distribution network in Karachi. There are no regional distributors or
stockists in the peri-urban or rural districts. The company directly supplies to NGOs and relief agencies.
Sales
During the flood season during 2010, demand for Musaffa jumped by 200% over the previous year.
NGOs and other organizations working on behalf of donors in the flood-hit districts, particularly in
Sindh and Punjab, have placed orders exceeding 40,000 packs of Mussaffa 1 kg. Total orders expected
from flood-affected districts for Musaffa are estimated to exceed 100,000 packs of 1 kg.
Musaffa demand surges during the monsoon season when there are flash floods and drinking water
sources become highly contaminated. During the months when there is no rainfall, Musaffa demand
weakens due to lack of promotion. Lack of credit to distributors and stockists is also a major factor
impacting demand.
Critical Issues
Public awareness regarding the hazards of drinking contaminated water and the benefits of water
purification solutions such as Mussaffa are quite low due to lack of marketing campaigns. The seasonality
factor makes forecasting demand extremely difficult. Also, seasonal customers stop using the product
once they start getting the normal water that is not as turbid as flood water.
Musaffas contribution to the total business is tiny compared to marketing events and yellow pages
which generate substantial revenues and profits for the company. Hence the few sales offices are mainly
focused on marketing events and booking orders for the Yellow Pages Business Directory. Mussaffa, on
its part, is left without a sales, marketing and distribution network. Musaffa is manufactured and directly
distributed to the customers placing orders. In some cases, Musaffa is available in some medical retail
shops in Karachi.
Other
Silver nitrate, the imported ingredient with bacteria-killing property, fluctuates in prices due to
the changes in silver prices.
Lack of credit may be responsible for up to 75% of sales lost.
Company: So-Safe Technologies

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Product: Durable Water Purification Filter

Company Description
So-Safe Technologies is a research-oriented Pakistani company started in 1976 that brings innovative
technologies for water treatment to Pakistan. It has manufacturing facilities in Jebel Ali Industrial Area,
Dubai, Sharjah and Bahrain, with presence in 62 countries. The company specializes in the design and
manufacturing of high quality water filtration and treatment products. So-Safe is ISO 9001:2000 certified
and is in the process of being certified as ISO 14000.
So-Safes research and development center has played a pivotal role in maintaining the companys lead
over competitors. Community Water Centers or filtration plants give the company a unique
competitive advantage in rural markets. It has a large distribution set-up with 250 distribution offices and
service centers in Pakistan, and its free after sales service with life-time system maintenance guarantee is
effective in winning customer confidence.
Product
Water filtration and purification technologies marketed by So-Safe Technologies include:
Filter housing (different sizes catering to different customer needs)

Filtration units with sediment cartridges
Countertop and Wall-mounted Granular Activated Carbon filters and Ceramic Water filter
Dual and Triple Water filters
Silver impregnated granular activated carbon cartridge [SGAC] with KDF that removes heavy
metals through re-dox [oxidation/reduction] reaction. It also adsorbs 95% of free chlorine from
water and removes organic chemicals such as insecticides, pesticides. Silver impregnation in the
SGAC cartridge inhibits the growth of bacteria
Automatic Water Softeners
Filtration Systems with UV Sterilizers with under sink installation unit
Bag filters (These have been in domestic and commercial use for a long time and washable, and
re-usable with a longer service life and lower maintenance cost.)
Reverse Osmosis (RO) Systems [Domestic and Commercial] with space-saver water storage
tanks
Brackish Water RO System up to 6,000 PPM TDS and High Brackish System up to 12000 PPM
TDS
Reverse Osmosis Desalination Systems (filtration +desalination system for bottling plant 4500 to
36,000 GPD capacity)
Custom-designed wastewater treatment plants
Containerized filtration and desalination systems from 30,000 to 300,000 GPD built to customer
specifications
P a g e |79
Table 6: Filter Media

Filter Media
KDF [Copper +Zinc]
Granular Activated
Carbon
Ion Exchange Resin Beads
Phosphate Beads
Acitivated Alumina
Water Purification Properties

Removes Heavy metal and Chlorine
Removes Chlorine and Bad Odor
Removes Heavy Metal, Calcium and Magnesium
Removes Calcium and Magnesium
Removes Arsenic
So-Safe Advanced 5-stage Reverse Osmosis [RO] System

The So-Safe Domestic Advanced RO System for the treatment of potable water has been designed to
tackle most of the water pollution problems, including removing excessive amounts of salts
(brackishness). The RO separation process, using cross-flow technology, may be described as a hyperfiltration process which means the RO membrane acts as a filter that removes impurities from water.
This RO based filtration system has a daily production capacity of 75 gallons. The RO unit includes a 4.5
gallon capacity storage tank. On the basis of the chemical analysis of both source and treated water
samples conducted during a three-month period, it was revealed that the So-Safe Domestic RO System
can significantly reduce the soluble salts in the source water, making the water softer.
So-Safes most popular filter is the triplet water purification system used by homes that have piped
water and an overhead or storage tank with a 20 p.s.i. water flow pressure. However, due to increasing
contamination level and poor quality of water [e.g., brackish water] the three-stage filters are becoming
less effective. To tackle increasing contamination levels, turbidity, brackish water, arsenic, fluoride and
other contaminants, So-Safe designed a new RO water treatment system called Santeo. So-Safe is
planning to launch Santeo soon. This will come with a built-in water heater and cooler.
Price
The retail price of 5-stage RO System is Rs. 35,000. With the 6th stage UV system, the price is Rs.
45,000. So-Safe decided to price its products higher than the market. Due to its after sales service and
technical support teams, So-Safe has been able to maintain its market leadership despite stiff competition
from unbranded and imported lower-priced products.
Promotion
So-Safe technologies concentrate on upscale, urban markets where the residents are aware of the
hazards of contaminated water and the benefits of water purification. The So-Safe gravity flow filters and
RO systems appeal to both individual and institutional customers who can afford costly equipment and
are willing to pay for quality. The marketing strategy, is therefore, geared to generate higher profitability
from the urbanized customer groups.
P a g e |80
So-Safe promotes its products through customer sales presentations and exhibitions. They print
expensive brochures on glossy paper to give the impression of high quality to potential customers. SoSafe does not spend money on electronic media advertising. Since a large number of their customers are
corporate or institutional, they prefer to develop customer relationships on a personal level at the
premises where the So-Safe Systems are already installed.
Distribution
So-safe has the largest distribution network in Pakistan when compared to any water purification
company. They have 250 offices/service centers to deliver the water purification system on site at
company cost, and provide free installation and lifetime technical maintenance.
Critical Issues
Along with Raindrops, So-Safe was one of two companies that set up the filtration plants
Clean Drinking Water for All (CDWA). However, the concerned Ministry of Special
overseeing the installation of the filtration plants has delayed payment to the company on
plants installed. Consequently, further progress on installation of filtration plants has stalled.
installed approximately 300 F plants.
under the
Initiatives
the 150 F
Raindrops
P a g e |81
Company: Frontier Ceramics

Product: FORT brand sanitary ware
Company description
Frontier ceramics is a public limited company owned by the Rawal Group. Frontier Ceramics is a
pioneer in wall and floor tile manufacturing, located in the Industrial Estate of Hayatabad, Peshawar.
Production capacity is about 6000 square meters a day. The manufacturing and warehousing facilities are
spread over 15 acres of land. More than 50% of the factory's external area is occupied by the finished
goods inventory.
The company has invested over Rs. 1 billion in land, buildings, plant and machinery and has modernized
its kilns to improve quality. Despite an unfavorable security environment, political instability and
disturbed economic conditions, management is continuously expanding to cater to future demand. Wall
tiles production capacity will be increased to10,000 sq.m., and floor tiles capacity will expand to 5000 sq.
m. Thus, the company will increase its existing capacity of 6000 sq.m. to15,000 sq.m.
Quality at affordable prices is the companys biggest strength along with brand loyalty. Quality control is
ensured through process managers who monitor and check quality in three shifts. Due to brand quality
and economical pricing the company has a waiting list of at least one week to fulfill pending orders.
Product
Top selling brand of Frontier ceramics is Fort Tiles. However, they also manufacture sanitary ware, such
as commodes and washbasins (sinks) for latrines, but the demand for tiles outstrips all other products.
Fort Tiles are a popular brand all over Pakistan because of their good quality at a low price. The
company is focused on meeting the growing demand for wall and floor tiles instead of manufacturing
diversified sanitary ware that takes more time to produce and sell, and offer lower profit margins
compared to tiles.
Ninety-five perent of the ingredients used for tile manufacturing are available locally: soft material (clay)
and hard material (quartz). Imported ingredients are glazing material and pigments. Cost of the imported
ingredients is 80% of the cost of raw materials in terms of value.
Promotion
Frontier Ceramics started off making a variety of sanitary components for the market, including W/C
commodes, wash basins [sinks], and tiles. However, the company discovered a huge potential for tiles
imported from Spain, China and Turkey. Management decided to shift the marketing strategy to wall and
floor tiles. The company became highly successful in capturing the market against stiff competition from
imported products. Today, the brand Fort Tiles dominates the company's products and is the largest
selling product mainly due to affordable price and good quality.
P a g e |82
Due to strong demand for their top-selling product, they do not see the need to advertise or do
consumer promotion. Instead they focus on fulfilling the sales orders from the trade channels. The
brand Fort Tiles is very popular in the sanitary ware market and word-of-mouth advertising is a very
effective tool for their sales promotion.
Distribution
The company has its own trained sales team and market-based Fort distribution network. Sales offices
are located in Peshawar, Rawalpindi, Lahore, Faisalabad and Multan. Due to a fast-selling brand the
company has been able to develop its supply chain in nearly all urban and rural markets. The company
has a number of stockists in each sales team and it also directly books orders and supplies Fort dealers
through the distribution network. A warehouse manager coordinates with the transport contractors to
ensure smooth supply to all distributors and direct customers.
Two distributors are authorized to supply to sanitary dealers in the KPK. Lahore, Rawalpindi, Multan
and Faisalabad have separate distributors. Distributors usually place orders with advance payment.
Although the company distributors are allowed credit of 60% with cross-cheque and cash payment of
40%. Up front, the credit period is limited to 10 days after which the company takes legal action against
the defaulters. In selected cases, the company allows running credit for 30 days if by the end of the
month the party has zero credit balance. The company delivers up to the distributor warehouses at its
own cost.
Sales
Sales growth has averaged 20% per annum. The growth rate of the Frontier Ceramics is decidedly above
the average industry growth rate of about 10-15%. With new machinery and kilns added to the
production line, management is optimistic and aims to achieve a growth rate of more than 30% next
year. The company plans to capture more market share. According to their estimates, 60% of the tiles
are still imported or smuggled into Pakistan from China and other sources.
It is difficult to forecast fashion trends and consumer preferences, whether they decide to construct a
latrine or a house. However, Frontier Ceramics management estimates that potential demand for wall
and floor tiles in Pakistan is about 100,000 square meters. Sales to KPK constitute 30% of the total,
whereas Punjab market contributes nearly 70% to the companys sales revenue.
Critical Issues
Lack of government support in providing uninterrupted power supply is a major obstacle. Load shedding
of power and gas has reduced the plants operational capacity to 70%. Management said that plant
operation was not viable on alternate means such as generators; fuel cost are too high to run the kilns
round-the-clock in three shifts. Interruptions in supply of electricity and compressed natural gas supply
were a major cause of high cost of production.
P a g e |83
Increasing labor costs are also a problem. Labor wages have gone up from Rs. 5,000 to Rs. 7000 per
month. In addition, shortage of skilled labor is also a problem. There are no training institutes that could
provide a supply of skilled workers for the ceramics and sanitation industry. Gujranwala availability of
skilled workforce who have experience in ceramics manufacturing industries is an exception.
High transportation costs are also a significant problem. Due to frequent fuel price increases by the Oil
and Gas Regulatory Authority, the cost of transportation by truck mode has almost doubled from Rs.
800 per ton to Rs. 1400.
The company appears to lack a coherent marketing strategy. A case in point is that the company has
manufactured large quantities of sanitary ware such as W/Cs, both Indian and English style commodes,
and washbasins. The estimated value of finished stocks exceeds Rs. 10 million. However, due to lack of
aggressive marketing skills, the company has not been able to dispose of the inventory.
Other
Although the factory is located in an industrial area, the authorities concerned do not provide
any special benefits or tax breaks for investors in the industrial zone.
The company also faces the problem of imported and smuggled ceramics which are a threat to
the growth of the local industry.
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Company: Peshawar Ceramics

Product: Ceramic sanitary ware
Company Description
DURR Brand is associated with quality, thus the brand name Durr has come to dominate the company
name. Durr produces modern high quality sanitary ware for the urban classes as well as good quality
sanitary components that are more affordable to low- and medium-income groups. The company is ISO
9001-2000 certified. Located in the Industrial Estate in Hayatabad, Peshawar, from this location, Durr
Ceramics can supply sanitary ware to the KPK and FATA Areas as well as to the Punjab markets. Durr
Ceramics has a production capacity of about 300 pieces per day of a mixed variety of sanitary ware.
They have two kilns in operations. At the time of the visit one kiln was shut down due to smaller
volume of orders in the pipeline. However, the company has the capacity to scale-up production if sales
orders are received from the trade or institutional customers.
Recently, Durr was successful in becoming the approved contractor and supplier to the Pakistan Army,
and has obtained a sizeable order for sanitary ware from Military Engineering Services. Its affordable
prices allow Durr Ceramics to export containers to Afghanistan where Durr is becoming popular. Durr
Ceramics has also explored the markets in UAE, Kuwait and South Africa. Before the economic
recession, when the security environment was also better, 80% of the product was sold in the local
market and 20% was exported. Sales were about 120,000 pieces of sanitary components per month.
However, sales have now dropped to 10,000 pieces per month on the average.
Product
While Durr has a wide range of sanitary ware to cater to both urban and rural tastes, they also
manufacture an Indian style commode with a non-coupled cistern or water tank that is connected to the
latrine pit through a pipe. This is the simple latrine set of two items and is economically priced at Rs.
1500.
Production Cost Breakup
Raw Material
30%
Labor
20%
Factory Overheads
40%
Due to the depreciation of the rupee the value-wise import cost is 80% whereas in terms of quantity
40% of the material used is imported and 60% is procured locally.
The company also manufactures P-traps that are fixed to the pipe leading to the soak pit or septic tank.
Price
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Peshawar Ceramics manufactures top of the line high quality DURR brand products as well as medium
and low price range sanitary ware for the low and medium income groups. There are six basic designs
manufactured by Durr Ceramics. Prices vary not only for quality and design, but also for color.
White ceramics are priced less than the colored sanitary which include the costly imported pigments.
Black and burgundy colored sanitary ware, on the other hand, are priced higher than other colors. Cost
of pigment can vary from Rs. 5000 per kg for black and burgundy to Rs. 2500 for other colors. Pigments
are usually about 10% of the glaze material quantity, which is also imported.
Table 7: Price by product
Price (Rs.)
Indian W/C
NCC [standard size]
Price of Set of 2 pieces
Price of P-trap
Flushing system inside cistern
Hockey Pipe to pit
Medium
600
900
1500
100
400
80
Large
780
900
1680
100
400
80
Table 8: Price of 4-piece Set [All Prices Exclusive of 17% GST plus 1% (Price in PK
Rs.)]
Item GLORY SET
White Color
Normal
Special
Dark
Color*
Color**
Color***
1. Washbasin
1500
1550
1850
1925
2. Pedestal
1100
1150
1350
1425
3. W.C.
2200
2250
2450
2650
4. C. Tank
1400
1450
1750
1900
Total SET Price
6200
6400
7400
7900
NICE DURR SET
1. Washbasin
2. Pedestal
3. W.C.
4. C. Tank
Total SET Price
1500
1200
2900
1400
7000
P- Trap 2 inches
P-Trap 3 inches
P-Trap 4 inches
140
170
200
1600
1300
3000
1500
7400
1900
1500
3300
1700
8400
2025
1575
3400
1900
8900
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Promotion
Unlike Frontier Ceramics, which is focused on the strength of its tiles, Durr Ceramics follows a different
a marketing strategy. They cater to the different needs and tastes of different customer groups: from the
high-end aesthetic designs for urban customers demanding expensive quality sanitary ware to the more
affordable basic designs for the low- to middle-income groups. The marketing budget is allocated to
print, newspaper advertising, and Yellow Pages. They also maintain a website.
Distribution
Durr Ceramics has a distribution network covering the KPK and Punjab regions. It has distributors in
Peshawar, Mardan, Bannu, D.I. Khan, and Rawalpindi. The company has a direct distribution system,
supplying orders directly to it major customers such as the Army, as well as a market-based distributor
who places orders to Durr from its network regions. The Peshawar distributor supplies to three
stockists located in Multan, Rawalpindi and Bannu.
The company does not have a refund or replacement policy in case of damaged goods and all
transportation is at customers risk.
Packaging
Packing in corrugated board cartons has now replaced the more costly wooden crates. Wooden crates
could carry only 180 pieces of sanitary components per truck load, whereas corrugated board packaging
can carry 400, doubling transportation capacity and slashing distribution costs by half.
Margins
Of the finished goods price, the ex-factory cost of production is about 75%, which means the gross
margin is 25%. Marketing, selling, distribution expenses added are about 15%, thus leaving a net margin
of 10% to the company. Transportation charges up to the distributor warehouse in Peshawar and out of
city distribution points are paid for by the company.
The company offers up to maximum of 35% commission to its main distributor who then passes on up
to 30% margin to their stockists. In turn, the stockist part with about 20% of their margin to sanitary
retailers. Retailers do not follow a fixed retail price policy. However, due to high competition in the
markets, retailers seldom overcharge their customers and are forced to discount prices to sell their
stocks. The dealers on the average retain 10-12% of the margins.
Investment
Durr has invested over Rs. 80 million in their medium-sized factory. However, the present market value
of the production unit and factory building and warehouse facilities in its existing condition exceeds Rs.
150 million. According to Durrs management, the demand pattern is so erratic that long-term
forecasting and planning is not possible.
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Critical Issues
Due to the economic crunch, Durr is facing weakened consumer demand. Capacity utilization of the
factory is around 50%, one of its two kilns is shut down due to lack of orders. Cost of production is
increasing at an alarming rate due to sudden hikes in power rates and compressed natural gas.
Credit sales risk is another major barrier as local markets demand credit to stock and sell sanitary ware
and components. Durr is offering 40% credit for up to 15 days to selected customers who have a good
credit history.
Company: Dar Ceramics

Product: DARZ brand sanitary ware
Company Description
Dar Ceramics is located in Gujranwala, Punjab. Gujranwala is the hub of sanitary ware production.
Venture capitalists incubated the ceramics industry in the district by making pottery and crockery,
sanitary ware, kitchen utensils, pots and pans, fans, washing machines, and a host of other electronic and
ceramic household products. The Dar factory is located on main GT Road, and the showroom is in
Model Town. The factory is situated on 17 acres of land, with 5 acres for the factory and two acres for
the storage and warehousing facilities.
There are over 40 large and small factories in Gujranwala that manufacture a large variety of sanitation
components and accessories. However, only four large factories manufacture the bulk of the genuine
sanitary ware brands that are well-known all over the country. These are Dar Ceramics, 3-Star, Master
Ceramics and Peshawar Ceramics.
Product
Dar Ceramics makes a wide range of sanitary ware, including bathroom sets that range from luxury
quality to the more affordable sinks and commodes.
Price
One toilet set of four items with Indian style commode and W/C is priced at Rs. 6,000. Since the
company offers attractive discounts on their sanitary ware product range, they do not fix the retail price
as it varies from market to market.
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Promotion
Presently, 80% of Darz brand is sold abroad and 20% locally. The company's marketing strategy is to
cater to the export markets with the latest ceramic designs aimed at the upscale markets. At the same
time, it pushes its popular brand in the domestic market to the price-conscious customer. For the high
end market they import high quality sanitary ware from Spain and Dubai. Medium quality ceramics from
China cater demand from the middle classes who prefer imported goods but are not willing to pay high
prices for them. For the low-income groups Dar Ceramics has designed a sanitary ware set of latrines
offered recently offered to UNICEF.
The company exports to South Africa and Middle East markets where Pakistani sanitation products have
a good acceptance due to their high quality and competitive price. They maintain a large warehouse in
UAE to re-export their products to North African markets. Dar also owns a showroom in Oman and
Ras Al Khema [UAE] for selling Pakistani sanitary ware.
Dar Ceramic allocates 2% of its overall sales to promotion budget. They use the electronic media such
as cable TV, CDs and Yellow Pages to advertise their products.
Distribution
Dar Ceramics has a network of independent distributors on regional basis. For example, the Northern
Region Distributor caters to the demand of the Abbotabad, Mingora [Swat], and Peshawar areas. In
Sindh, the South Region Distributor serves the customers for Hyderabad and Sukkur. In Punjab, the
distributors in Lahore and Faisalabad sell the products to their customers in their respective regions.
Dar Ceramics has a modern system of packaging and palletization to cater to the container
requirements of export orders.
Sales
Dar Ceramics sees sales growth opportunities for their local business of around 8-10% in the domestic
market and about 15-20% growth in sales in export markets.
Margins
Dar offers up to 40% margins to the distributors on their range of sanitary ware. The distributors in
turn pass on 25-35% of their profit margin to their stockists and retailers and operate on a thin margin.
Investment
Dar Ceramics was established with an initial investment of Rs. 50 million in 1988. The present market
value of Dar Ceramics with its factory, land, buildings, machines, kilns, molds and other equipment is
approximately Rs. 1 billion. The cost of the large, modernized automatic kilns alone is Rs. 0.5 billion.
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Sanitary ware operations require huge space for manufacturing and warehousing. The showroom is
housed in a multi-story building located in an expensive locality of Gujranwala.
As part of their future plans for saving in energy costs, Dar Ceramics intends to install the latest version
of the kilns called Shutter Kilns. These kilns can be shut down after every firing and do not require
perpetual round-the-clock operations using high temperature and energy loads of 1200 centigrade as in
the case of traditional kilns.
Critical Issues
Demand in the local market is weak, in certain periods of the year, driving operating capacity utilization
to 80%. Under utilization of capacity is also due to skilled labor shortages. Further, credit plays a major
role in the off take of the products but recovery issues and risk of losses discourage any liberal credit
policy. Transportation charges of containers have more than doubled from Rs. 50,000 to Rs. 110,000
per container load of approximately 27 tons.
Dar Ceramics estimates a huge gap between production and consumption of sanitary materials. Large
ceramics factories are expanding their production units and operating full capacity but sanitary ware
demand is not increasing at the same pace. Dar management attributes weak demand to lack of
awareness. They believe people generally spend a lot of money on other sections of the house while
construction is in progress; however, they pay little attention to their bathrooms.
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Company: Unilever
Product: LIFEBUOY and LUX brand soaps
Company Description
Unilever is one of the worlds leading suppliers of fast-moving consumer goods in nutrition, hygiene and
personal care. Its strong global brand portfolio has great appeal. Unilever has the leading position in 7
product categories with Lifebuoy at No. 1 as a global health brand. Over 95% of the products are locally
manufactured. Its strong supply chains globally and locally, superior quality and aggressive marketing have
made it popular in urban and rural markets.
Unilevers highly-skilled human resource based talent and organization readiness program started in
2009, increasing exposure to global learning. Its strong R&D, with a budget of $1.24 billion [Rs. 106
Billion], is the support of brand innovation.
Improved customer connectivity:
(1) Strong distribution network which is spread out all over Pakistan;
(2) strong brands that have a mass appeal among consumers;
(3) credibility & reputation of brands;
(4) Unilevers global learning to guide the Pakistan management.
CSR Heritage and Lifebuoy are co-founders of Global Handwashing Day. They invested $124 million in
CSR and community programs worldwide. It has joined other members of the Global Public Private
Partnership for Handwashing (PPPHW) including UNICEF; the World Bank; Procter and Gamble in
the promotion the single life-saving message: wash hands with soap.
Unilever also contributes to multiple community projects through the Annual Grants Scheme. Four
projects in the health and education field were selected for funding in 2009. In Pakistan, Lifebuoy joined
partners such as USAID and the Pakistan Poverty Alleviation Fund to carry out educational activity in
3,500 schools. In 2005, over 200,000 bars of Lifebuoy soap were donated to UNICEF and the
International Committee of the Red Cross to support their earthquake relief operations in Northern
India and Pakistan. Lifebouy also supported IDPs with Rs.7 million as monetary and product donations
channeled through partners such as Oxfam. It also ran messages in the media for contributions to the
IDPs.
Product
Unilever has positioned its two leading brands, Lux and Lifebuoy, within different large customer
segments. LUX targets the young females who are more conscious about skin care and want to look
good. Lifebuoy, on the other hand, focuses on the health-conscious housewives who are concerned
about their children.
Lifebuoy is a strong brand, a high quality product, with good distribution and a low price. Its attractive
packaging helps increase the impact of advertising. For the Unilever Group as a whole, underlying
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volume growth accelerated through the year, reaching 5%. The increase in volume growth was
widespread across most of our key categories and countries and translated into improving market share
performance in all regions as the year progressed.
Price
Lifebuoy is bracketed in the germ-kill category, but it is not positioned based on low prices; germ-killing
ingredients are costly. Lifebuoy is still half the price of Procter and Gambles Safeguard, the next
competitor in line, and three times cheaper than Dettol, another competitor.
Lifebouys low price has helped entrench the brand in rural markets, where Unilevers deep market
penetration has made it easily accessible. Lifebouy is planning to move up the ladder with a hand
sanitization solution they claim kills 99% germs in just 10 seconds. Its advantage is that it can be used
without water.
Table 9: Lifebuoy size and prices
Size
Price (Rs.)
55 gm
Rs. 10
75 gm
Rs. 24
The small size of Lifebuoy was introduced during the negotiations leading to the MOU signing of the
PSDW-HPP in August 2008. The small variant launch coincided with the beginning of the USAIDUNILEVER partnership that not only resulted in Unilever's valuable participation in the regular school
and community programs but also culminated in the highly successful celebration of the first ever Global
Handwashing Day.
Promotion
The history of Lifebuoy brand, that spans more than a century, is all about marketing innovation. Since
2000, major changes were made to the classic Lifebuoy soap bar to ensure that it provides improved
hygiene protection and a more enjoyable healthy washing experience for its billions of consumers. The
Lifebuoy soap's classic hard red brick shape has been replaced with a new signature Lifebuoy shape. The
new shape makes the bar easier to grip and use.
The Lifebuoy Brand team also developed a new formulation providing even better germ protection
which creates a rich lather on the skin. Lifebuoy soap's characteristic medicated, carbolic smell has been
replaced with a more enjoyable and contemporary 'health' fragrance.
Lifebuoys target is to reach another 8 million Pakistanis in the next three years with the hygiene
message of hand washing with soap. Regarding the estimated potential of rural market demand, Unilever
believes that there is still untapped potential, and it is currently being catered to with discounted soaps.
Brands Repositioning
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Lifebuoy was repositioned in 2005 on the basis of a successful marketing campaign run in India called
Healthy Hoga Pakistan [Pakistan will be Healthy]. The campaign targeted parents to ensure children
washed their hands with soap. A multi-media campaign on TV, radio, print and billboards promoted the
message.
Unilever has a substantial marketing budget of about $350 million [Rs. 30 billion] worldwide. There is no
separate CSR budget. All social and hygiene programs come out of the core marketing budget.
The Unilever global marketing team designed and developed models for every product category. The
models are now with the country teams who are using for their local markets. This approach has
already shown excellent results in many of the markets in which Unilever operates.
The Lifebuoy brand falls into the Home and Personal Care category which includes laundry, hair care
and skin care products. The Unilever marketing strategy is to either innovate or acquire new or existing
brands for launching and market activation. The brand portfolio stretches across the socioeconomic
pyramid to cater to low-, middle- and high-end market segments.
The company's advertising and sales promotional expenditure is Rs. 2,629,9760 which is about 7% of the
total sales revenue of Rs. 38.2 billion. The promotional outlay includes all product categories including
Lifebuoy.
The Lifebuoy brand is mainly focused on children. Marketing campaigns as well as trade/consumer
promotions are aligned to rural market. The marketing campaigns include electronic media and
promotions at the trade and consumer level in rural areas. Unilever advertises regularly on terrestrial
channels (PTV and ATV) to ensure that promotions and campaign messages reach the rural consumers.
Promotions, on their part, are customized to the needs of the rural trader and consumer. Activation
and incentive plans are planned out regularly in this regard.
Unilever also does below-the-line promotional activities to reach consumers with health and hygiene
messages of Lifebuoy by engaging and informing consumers through the brand ambassadors team.
Unilever also ran marketing campaigns on the occasion of GHD and Swine Flue [H1N1 virus] epidemic.
Distribution
Unilever manages its own supply chain operations. Unilever has improved it supply chain by reducing
road mileage in logistics through cross-docking and route rationalization. Its rural distribution network is
spread across Pakistan and covers all major rural towns. The company reaches around 40% of rural
areas in Pakistan.
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Sales
Table 10: Summary of Financial Projections Unilever Pakistan Financial Year 2009
Performance Metrics
2009
2008
Sales Net of GST and other PKR. 38,188 million
PKR 30,957 million
Taxes
Gross Profit [GP] as % of sales
34.92%
34.69 %
Profit Before Taxes
PKR 4,516 million
PKR 2,925 million
Profit After Taxes
PKR 3,056 million
PKR 1,984
The sales growth of about 23% was mainly led by pricing. Notably, the Home and Personal Care
category that includes Lifebuoy and Lux brands, contributed nearly 80% of the profits. Volume growth of
Lifebuoy is in single digits due to intense competition with P&G, RB and local products. Management
avoided discussing specific brand sales and growth numbers.
Sales to customers in Pakistan are 97% and to customers outside is 3%. Unilever Group's customer base
is diverse with no single customer base accounting for more than 10% of net revenues.
Margin
Operating margin before restructuring rose to 14.8%.
Critical Issues
Hand washing habits are still low and not up to the living standards of developing countries. Illiteracy
among the rural masses, especially women, is a large factor, becoming an obstacle to behavior change.
Low quality discount brands in the economic slow down pose serious economic challenges to the
brand's growth. The demand reduction due to inflationary impact first hits the consumer products with
more elastic demand.
Additionally, debilitating power cuts led to increasing costs of production and reduced company margins.
This difficult operating environment worsened with precarious law and order situations, severely
affecting buying behavior.
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Company: Reckitt Benckiser

Product: DETTOL brand antiseptic and personal soap products
Reckitt Benckiser (RB) has been operating in Pakistan since 1999 after taking over Reckitt Colman
Pakistan Limited. RB is also in the personal care and household category. However, soap contributes to
about a quarter of the total business of the company.
Product
Dettol is worlds leading brand for household cleaning. Germ killing is Dettols brand heritage and its
biggest strength. It is also a trusted brand worldwide. It is positioned as a quality brand with 100%
protection against all germs and bacteria. Dettol was launched in 1932 as an antiseptic lotion. Dettol
Soap was then leveraged on the strength of the core Dettol Brand. In 1990 the brand was repositioned as a love and care brand thus shifting to the core value of germ protection. The Dettol
brand extended to band aids, moisturizer, glycerin, shaving gel and liquid soap.
Price
Dettol soap small size [45 gm] sells for Rs. 17. However, Dettols 115 gm is the biggest selling variant.
For NGOs willing to purchase the product for flood and other related disasters, the company has a
special price offer of Dettol Soap for Rs. 25 per piece. For this special price, Dettol will only supply the
product in plain white wrappers to prevent the buyer from re-selling the product in the open
commercial market where the regular price of Dettol Soap is Rs. 40.
Promotion
The marketing budget is approximately 4% of sales turnover. Promotion Mix is allocated as follows:
Advertising on electronic media
Outdoor advertising
Print materials
Sampling Promotions
70%
15%
10%
5%
RB marketing strategy is more focused on the urban market where it is fighting to gain a strong
foothold. The company has positioned Dettol Soap to appeal to the urban consumer who prefers not to
sacrifice the health benefits of germ-free living over higher price. Dettols target audience is mothers,
while Safeguard and Lifebuoy focus on kids. By implementing this marketing strategy the company aims
to achieve the following objectives:
Generate above industry profitable growth;

Focus on building Dettol as a power brand by investing more of the returns on brand building
activities;
Geographic expansion to rural markets;
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Improve margins and cash conversion to fund re-investment in core brands and grow returns to
shareholders.
RB is using inspirational messages for hygiene promotion, aggressively advertising them in TV

commercials on cable. They do not advertise to the rural markets.
The company also uses price discounts as a tool for trade promotion:
An economy pack of 4 bars of soaps that offers a 10% price discount;
One large size soap [115 g] free on purchase of two soaps for a Special Price of Rs. 80;
Rs.5 Off on a Bar of regular soap that is normally priced at Rs.40.[115 gm bar]
Distribution
The distribution network is more urban-oriented, although there are rural-based sub-distributors that
connect the main distributors in urban centers with wholesalers and stockists. RB has over 92
distributors covering 160 major towns while sub-distributors serve 60-70 smaller towns.
RBs Rural Development Force [RDF] focused on developing the rural markets to expand Dettol
distribution. The RDF Team covers 150 towns. Distributors are usually appointed on the basis of their
financial strength due to companys strict cash-only policy, limiting market expansion efforts.
Sales
CSR is also an integral part of the Dettol marketing strategy. RB sees CSR and sustainability as one and
the same thing, committed to moving business towards greater sustainability across economic and social
dimensions of its activities.
CSR activities include:

Dettol soap and antiseptic liquid promotion in a joint program with the Ministry of Hajj as well
as through an awareness campaign about swine flu.
Soap distribution at a discount and hygiene kits.
Media Hygiene Workshops at Karachi, Sukkur and Multan to create awareness about health and
hygiene.
A New Mother sampling program where visits are organized regularly to maternity wards and
soaps and antiseptic liquid are given free to new moms.
The antibacterial market segment grows every year with consumer awareness and education about
health benefits from using soap.
Margins
High production cost, intense market competition and supply chain costs drive margins quite low. The
distributor gets 6% of the margin, while the retailer makes a 10% profit margin on the distributors price.
For example, if a soap is sold for Rs. 20, the distributor sells it for Rs. 21.20 and the retailer then sells it
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for Rs. 23.32. Since the 32 paisa or for that matter any paisa is out of circulation, the retailer will roundoff the selling price to Rs.24. Apart from quality, another reason for Dettols high prices is high
production costs. The company outsources its soap production to a third party who manufactures the
products on a modernized plant.
Critical Issues
Dettols strong medicinal smell is usually associated with antiseptic liquid used in clinics and hospitals.
Dettol is not perceived as an everyday soap by most of the soap users. The company should leverage
Dettol to make it a daily use product. Some customers complain that Dettol does not lather well.
Due to inflation, purchasing power is declining and the rate of market growth has reduced. To counter
lower demand, Dettol is planning to introduce smaller sizes in the future.
Other
There is less consumer pull due to softening market demand that does not work in favor of high
priced Dettol.
RB is also in the personal care and household category. However, soaps contribute about a
quarter of the total business of the company.
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Company: Azhar Corporation Limited [ACL]

Product: Hoor and Pakeeza soaps
Azhar Corporation Limited Faisalabad manufactures local brands of affordable toilet and laundry soaps.
Product lines include washing powder as well as dishwashing bars and powder. Azhar Corporation has a
modern soap manufacturing plant with a quality control laboratory and a reverse osmosis water
purification plant. Water is fully decontaminated before use in the soap manufacturing process.
The companys greatest strength is an extensive, well-connected supply chain of 374 market-based
distributors across Pakistan's urban and rural districts. These distributors in turn supply to their
stockists within their distribution area.
ACLs products have good quality and low price. The brand loyalty is increasing, even if the company is
not pumping a great deal of money into electronic media advertising. Price comparison shows that 120
gm of Hoor retails for Rs. 25 whereas premium soap brands such as Lux and Safeguard (Rs. 33) are
selling at a higher price.
As a local company, ACL has more flexibility to adapt quickly to changing market conditions and adjust
its marketing strategy. Multinational companies normally let their headquarters outside Pakistan make
these decisions.
Product
The top selling brands in the toilet soap category are: Hoor and Pakeeza. In the laundry category, they
market the top-selling laundry brand Gai (meaning Cow), as well as Nayab. Sales ratio of toilet soaps
to laundry is about 25% to 75% due to the high demand for low-priced laundry soaps. However, in two
years time, the company plans to enter the toilet soap market more aggressively and will target its sales
ratio to 50% toilet soaps and 50% laundry soaps.
Hoor and Pakeeza are available in three sizes and colors. Hoor is the top quality product of the
company priced at Rs. 10 for a hand wash size 50 gm. Pakeeza is affordable quality priced at Rs 10 for a
Classic Box Pack 60 gm. The brand fragrances are exclusive to the company under agreement with the
foreign supplier.
Price
Table 11: ACL Soap Brands
Brand
Soap Weight/Size
HOOR
120 gm Bath Size
HOOR
80 gm Standard
HOOR
50 gm Hand Wash Size
PAKEEZA
70 gm Wrapper Packaging
PAKEEZA
60 gm Classic Box Pack
PAKEEZA
Economy Pack of 4 Soaps
Retail Price
PKR 25
PKR 15
PKR 10
PKR 12
PKR 10
PKR 50
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Promotion
ACLs marketing allocation is approximately 4% of its sales revenue. The company focuses more on
trade and consumer sales promotion activities, outdoor advertising and merchandizing instead of
electronic media. Azhar Corporation's Hoor and Pakeeza brand are more inclined towards the middleincome and low-end markets mainly in peri-urban and rural areas. The Hoor Brand of Soap caters to the
middle income segments and is priced approximately 25% higher than the more economical Pakeeza
brand that is positioned for the price-sensitive income groups.
Hoor, an Urdu name for a beauty found in paradise, and Pakeeza, which in Urdu means a purified lady,
have great cultural appeal and therefore provide an additional impetus to marketing efforts.
Distribution
ACL has leveraged its large distribution network that sells it top-selling laundry soap, Gai Brand to stock
and sell its two toilet soap brands Hoor and Pakeeza. ACL has over 374 market-based distributors
across Pakistan that are the companys partners in the supply chain. These distributors in turn supply to
their stockists who sell to the retail outlets within their distribution area.
Sales
Total Sales exceed Rs. 3 billion (including both toilet and laundry soaps). Sales growth of the company
has been averaging 12-15% and the management expects sales growth to go over 20% next year. The
companys growth is higher than the industry average. Azhar Corporation has about 15% market share
of the toilet soap market and 30% of the laundry soaps.
Margins
Pricing formula (Rs.): Taking the example of Hoor Soap:
The Retail Price printed on the pack is
Distributor price (Trade Price)
Distributor to stockist/wholesaler
25.00
21.00 [Company to Distributor 4%]
22.00
The product cost is approximately 70% of the price, which means that the gross margins are about 30%.
The companys net margins are around 8-10%. However, margins in the toilet soap are about 6% on the
average. The industry gross margins are about 15-20%.
P a g e |99
Investment
The business initial investment was Rs. 80 million. However, as production capacity expanded,
investment in land, buildings and equipment now exceed Rs. 1.5 billion.
Critical Issues
The company is facing multiple issues on the regulatory policy front that are commonly affecting the
soap industry. This will be discussed in the section: Trends and Challenges of the WASH Market.
P a g e |100
Appendix 4: Mapping Results (Phase 1)

Swat District
WASH PRODUCTS MARKET STUDY - STAKEHOLDERS IDENTIFIED IN TEHSILS/DISTRICT- SWAT (EPS)
Table 10

Tehsil
MFG
DIST
STK
Hygiene [Soaps}
RET
CHEM
MFG
DIST
Sanitation Products
STK
RET
CHEM
MFG
DIST
STK
S.Store
Babozai
10
60
Bahrain
17
28
Khwajakhela
45
Barikot
39
14
10
Matta
17
48
11
10
Kabal
44
17
Charbagh
11
Total
35
20
18
271
66
70
24
Table 10.2
Table 10.1
POU Water Purification Product (NotAvailable)
Tehsil
MFG
DIST
STK
RET
CHEM
Charbagh
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
17
0
0
17
0
0
Total
34
Babozai
Bahrain
Khwajakhela
Barikot
Matta
Kabal
TOTAL WASH
Tehsil
0
0
0
0
0
9
8
MFG
DIST
STK
RET
S.Store
CHEM
MFI
NGO
Babozai
19
61
24
Bahrain
45
Khwajakhela
45
Barikot
14
39
10
Matta
19
65
10
Kabal
17
44
Charbagh
11
84
306
70
20
17 Total
Graph 1
Swat
Graph 2
Swat Tehsils-Private Sector WASH
District Swat - All Stakeholders
Charbagh
2
Kabal
0
NGO
T e h s il
Matta
CHEM
S.Store
Barikot
RET
MFI
20
CHEM
Total
70
S.Store
STK
Khwajakhela
RET
306
DIST
STK
84
MFG
Bahrain
DIST
MFG
6
0
Babozai
0
20
40
60
80
50
100
150
200
250
300
350
P a g e |101
District WASH Market Analysis:

There were 35 retailers and 20 chemists surveyed to identify any POU Water Purification Brands. Only
three chemists stocked chlorinated products [Aquapura Tablets and Aquatabs] in the Babozi Tehsil and
only one of them carried AquaSafe gravity flow filters.
Hygiene Products [Soaps]
Of the three WASH categories, the largest number of stakeholders was identified in the hygiene
category [soap] which consisted of four distributors [all in Babozai Tehsil], 18 stockists, and 271
retailers.Of the 18 stockists, 10 were identified in Babozai and 8 in Matta Tehsil.
Sanitation Products
Only two distributors were identified under the sanitation category, all in the Bahrain Tehsil. The large
variety of sanitation components explains the presence of 66 sanitation stockists spread in all tehsils.
There were 70 sanitary stores identified also, distributed in all tehsils; although, the number of sanitary
retailers was significant in Babozai, Barikot, Matta and Charbagh Of the 376 commercial stakeholders
[excluding chemists], the highest number was that of retailers, with over 70% selling soaps. No
manufacturers identified for any WASH category in the Swat District. Availability of skilled labor,
engineers and masons for latrine construction was not a major obstacle.
Total WASH Market
Data reflects that while soaps and sanitation products were being stocked and sold, POU water
purification products were generally not available. Furthermore, no manufacturer was identified for any
WASH category. Overall, six distributors, 84 stockists, 306 retailers, 70 sanitation stores and 20
chemists were identified.
Diarrheal infection, CLTS, MFI and TMAs
As of the end of this study, 4,301 cases of diarrhea have been reported in children under five. CLTS is a
new approach in District Swat, and it is difficult to determine the exact number and location of open
defecation villages; however, almost all of the villages in the district practice open defecation. No villages
have yet been declared as an Open Defecation Free Village. Two active NGOs and one active TMA
were identified in terms of WASH activities. No MFI was identified in Swat.
P a g e |102
Peshawar District
WASH PRODUCTS MARKET STUDY - STAKEHOLDERS IDENTIFIED IN TEHSILS/DISTRICT-PESHAWAR
Table 11
Tehsil
MFG
Town 1
Town 2
Town 3
Town 4
DIST
0
0
0
0
0
Total
STK
0
0
0
0
0
Hygiene [Soaps}
RET
5
0
1
0
6
CHEM
0
35
2
0
37
5
4
0
0
9
Table 11.1
Tehsil
MFG
DIST
0
0
0
0
0
STK
Sanitation Products
RET
0
3
1
0
4
4
0
5
2
11
CHEM
16
0
56
25
97
MFG
3
0
1
9
13
DIST
STK
0
8
16
10
34
0
0
0
0
0
S. Store
23
19
26
23
91
21
17
15
7
60
Table 11.2
POU Water Purification Product (Not Available)
MFG
Town 1
Town 2
Town 3
Town 4
DIST
0
0
0
0
0
Total
STK
0
0
0
0
0
RET
1
0
0
0
1
CHEM
0
33
0
0
33
TOTAL WASH
Tehsil
MFG
0 Town 1
3 Town 2
0 Town 3
0 Town 4
3 Total
DIST
0
8
16
10
34
Graph 3
STK
0
3
1
0
4
RET
32
19
32
25
108
S. Store
16
35
58
25
134
CHEM
21
17
15
7
60
MFI
8
4
1
9
22
NGO
0
0
1
0
1
0
0
4
0
4
Graph 4
District Peshawar - All Stakeholders
Peshawar Tehsils-PrivateSector WASH
Town 4
1
NGO
MFI
CHEM
Town 3
22
T e h s ils
S. Store
RET
CHEM
Total
60
S. Store
STK
Town 2
134
DIST
STK
108
MFG
DIST
Town 1
MFG
34
10
20
30
40
50
60
70
RET
50
100
150
P a g e |103
Peshawar District WASH Market Analysis:

POU water Purification Products
Visits to six stockists revealed that Peshwar District hosts 37 retailers, 9 chemists and one stockist.
Only 33 retailers and three chemists carried POU water purification products, mainly: chlorinated
tablets and three-stage gravity flow filters. Aquapura is the only local manufacturer of chlorinated tablets
in Peshawar.
In this category four distributors, 11 stockists, 97 retailers and 13 chemists were identified. No
manufacturer of soaps was identified in Peshawar.
Sanitation Products
Thirty-four sanitation product manufacturers were identified. Most of them small manufacturers of
ceramics (i.e., Indian style commodes) as well as manufacturers of iron doors, bricks, PVC pipes, P-traps
and concrete slabs. The number of stockists identified was 91 and of sanitary retailers 60. Their
numbers are mostly due to the multiple components and accessories in sanitation products. The higher
number of stockists compared to sanitary stores is explained by the dual nature of business as most
stockists have a retail counter as well. The presence of this large number of stockists decreased the
need for distributors, which were not found in the sanitation market.
Total WASH Market
The number of small manufacturers and stockists is quite high in Peshawar compared to other Districts.
Overall, 34 small manufacturers [iron pipe and brick works], 4 distributors, 103 stockists, 134 retailers,
60 sanitation stores, and 22 chemists were identified. The large number of stockists reflects the
presence of large whole sale markets. Availability of masons and skilled labor/engineers was not a
problem.
MFIs, NGOs and TMAs
Only the SRSP [Sarhad Rural Support Program] was identified as a MFI in the district. SRSP has initiated
a Village Banking (VB) Project: a self-reliant organization for easy access to microfinance. SRSP does the
capacity building of the VB management to ensure transparency and accountability. VB is a powerful tool
to address gender strategic needs. The SRSP approach is to form separate womens and mens
community organizations as the two vehicles to build the self-help capacity and potential of the
communities. SRSP has pilot-tested the VB concept in 5 districts of KPK [total 15 UCs]. While the
village communities manage the development projects, SRSP provides microfinancing and technical
assistance. In KPK [Khyber-Pakhtunkwa, formerly known as NWFP], 45% of the population lives below
the poverty line.
P a g e |104
Three TMAs were identified working on water supply schemes such as provision of hand pumps. Two of
these TMAs initiated a project for construction of public latrines.
P a g e |105
Multan and Rajanpur Districts

WASH PRODUCTS MARKET STUDY - STAKEHOLDERS IDENTIFIED IN TEHSILS/DISTRICT- MULTAN (AGAHE)
Table 12
Tehsil
MFG
DIST
STK
Hygiene [Soaps}
RET
CHEM
MFG
DIST
STK
Sanitation Products
RET
CHEM
MFG
DIST
STK
S. Store
Sheershah Town
62
147
46
Shujabad
17
12
87
24
Jalalpur
30
82
15
Sub Total
109
15
316
85
RajanPur
26
80
15
Jam Pur
27
85
17
Rojhan
13
80
Sub Total
66
11
245
37
Total
175
10
26
561
122
Table 12.2
Table 12.1
Tehsil
MFG
DIST
STK
RET
TOTAL WASH
Tehsil
CHEM
MFG
DIST
STK
RET
S. Store
CHEM
MFI
NGO
Sheershah Town
55 Sheershah Town
147
46
62
Shujabad
17 Shujabad
15
87
24
17
Jalalpur
29 Jalalpur
82
15
30
Sub Total
101 Sub Total
18
316
85
109
12
RajanPur
26 RajanPur
80
15
26
Jam Pur
23 Jam Pur
85
17
27
Rojhan
13 Rojhan
80
13
Sub Total
62 Sub Total
11
245
37
66
Total
10
29
561
122
175
19
11
163 Total
Graph 5
Graph 6
Multan Tehsils-Private Sector WASH
District Multan - All Stakeholders
Rojhan
11
19
Jam Pur
NGO
CHEM
RajanPur
MFI
175
Te h sil
S. Store
RET
Total
CHEM
122
S. Store
STK
Jalalpur
561
DIST
Shujabad
STK
29
MFG
RET
DIST
10
MFG
Sheershah Town
0
50
100
150
200
100
200
300
400
500
600
P a g e |106
Multan and Rajanpur Districts WASH Market Analysis:

Out of the total 175 chemists identified, therefore, the majority (93%) did not carry any type of water
purification product. Of those who did carry a POU product, the product had some type of gravity flow
filter. One hundred nine chemists were visited in the three Multan Tehsils, 101 of them did not carry
any POU product. In the three tehsils of Rajanpur, 66 chemists were identified, and 62 did not carry any
POU products.
Overall 561 retailers were identified. In the three tehsils of Multan, 316 retailers were identified stocking
and selling soaps. Multan had only two distributors and 15 stockists of soaps. In the three tehsils of
Rajanpur, 245 retailers were identified as stocking and selling soap. Eleven soap stockists were identified
in the Rajanpur tehsils and 8 distributors. The higher number of distributors related to retailers when
compared to Rajanpur may be because their commercial size is smaller. No manufacturers were
identified in Multan or Rajanpur Tehsils.
Sanitation Products
In the three Multan Tehsils, only 3 stockists of sanitation products were identified and 85 sanitation
stores were selling sanitation products. In the three Rajanpur tehsils no distributor or stockist could be
identified and only 37 stores were retailing sanitary products in the three tehsils of Rajanpur. Availability
of masons/skilled labor/engineers for construction of latrines was not an issue.
Total WASH Market
Overall, 10 distributors were identified in the six tehsils of Multan and Rajanpur. The number of
stockists was 29 with 18 in Multan Tehsils and 11 in Rajanpur Tehsils.
Of the 683 retailers, those selling soaps were 561 [82%]. Multan Tehsils had 58% of the retailers and
Rajanpur Tehsils had the rest. Similarly, the majority of the chemists (62%) were in Multan Tehsils.
MFI, NGOs and TMAs
A total of 19 MFIs were identified in both Multan and Rajanpur Tehsils. Twelve of the MFIs were
operating in Multan Tehsils whereas only 7 were doing business in Rajanpur Tehsils. Of the 11 NGOs
identified, 8 were active in WASH sector in Multan and only three NGOs were found actively working in
any aspect of WASH in the Rajanpur Tehsils. Three TMAs were identified but were not really active in
any WASH-related activity; except routine administrative duties and pavement of streets.
P a g e |107
Multan District
WASH PRODUCTSMARKETSTUDY - STAKEHOLDERS IDENTIFIED INTEHSILS/DISTRICT- MULTAN(PLYC)
Table 13

Tehsil
MFG
DIST
STK
Hygiene [Soaps}
RET
CHEM
MFG
DIST
Sanitation Products
STK
RET
CHEM
MFG
DIST
STK
S.Store
SR Alam
53
112
25
Mumtazabad
14
48
31
70
12
Bosan Town
25
17
88
25
Total
39
118
31
270
62
Table 13.2
Table 13.1
Tehsil
MFG
DIST
STK
RET
CHEM
Bosan Town
0
0
0
0
0
0
0
0
0
0
3
25
Total
28
SR Alam
Mumtazabad
TOTAL WASH
Tehsil
MFG
53 SR Alam
34 Mumtazabad
17 Bosan Town
104 Total
Graph 7
STK
DIST
RET
S.Store
112
25
CHEM
MFI
53
11
31
84
12
55
113
25
17
31
309
62
125
11
Graph 8
Multan Tehsils-PrivateSector WASH
DistrictMultan - All Stakeholders

11
Bosan Town
NGO
CHEM
MFI
125
S.Store
T e h s il
NGO
Mumtazabad
RET
Total
CHEM
62
S.Store
STK
RET
309
DIST
STK
31
MFG
DIST
SR Alam
MFG
20
40
60
80
100
120
50
100
150
200
250
300
350
P a g e |108
Multan District (3 TEHSILS) WASH Market Analysis:

Under this category 118 chemists and 39 general stores were visited: 104 chemists and 28 retailers did
not have any POU water purification product available in stock. A few chemists and retailers were found
selling different types of gravity flow filters.
Hygiene Category (Soaps)
There were 5 distributors and 31 stockists identified stocking and selling different brands of soaps. All
these distributors and stockists were operating in Mumtazabad Tehsil, a wholesale market. Of the total
271 soap retailers, 112 were doing business in S.R. Alam Tehsil, 70 in Mumtazabad, and 88 in Bosan
Town. There were no manufacturers of soaps identified in the three tehsils of Multan.
Sanitation Products
No manufacturers, distributors, or stockists could be identified in all three tehsils. However, the number
of sanitation stores identified was 62, with 25 in S.R. Alam, 12 in Mumtazabad, and 25 in Bosan Town.
Masons and engineers as well as skilled labor were available for construction of latrines.
Total WASH Market
Overall, in the three WASH categories five distributors and 31 stockists were identified, all located in
Mumtazabad. Total Retailers identified were 309, the majority of them stocking and selling soaps. In
addition 62 sanitation stores were identified in the three Multan Tehsils reflecting the availability of the
sanitation components.
MFIs, NGOs and TMAs
There were 3 MFIs identified all in Bosan Town; 11 NGOs, all in SR Alam; and, 2 TMAs involved only in
routine administrative duties, not active in any significant WASH related projects.
P a g e |109
Sukkur District
WASH PRODUCTS MARKET STUDY -STAKEHOLDERS IDENTIFIED IN TEHSILS/DISTRICT- SUKKUR (GSF)
Table 14

Tehsil
MFG
DIST
STK
Hygiene [Soaps}
RET
CHEM
DIST
MFG
Sanitation Products
STK
RET
CHEM
MFG
DIST
STK
S.Store
New Sukkur
14
97
13
Sukkur City
21
95
25
Saleh Pat
15
75
PanoAkil
19
85
Rohri
19
96
12
Total
88
448
60
Table 14.2
Table 14.1
Tehsil
MFG
DIST
STK
RET
TOTAL WASH
Tehsil
CHEM
Rohri
0
0
0
0
0
0
4
0
0
0
0
0
0
0
0
0
0
0
0
0
14
15
15
19
19
Total
New Sukkur
Sukkur City
Saleh Pat
PanoAkil
MFG
DIST
STK
RET
S.Store
CHEM
New Sukkur
97
13
14
Sukkur City
95
25
21
Saleh Pat
75
15
PanoAkil
85
19
Rohri
96
12
19
82 Total
10
448
60
88
Graph 9
MFI
NGO
4
4
2
4
3
5
5
6
5
4
17
25
Graph 10
Sukkur Tehsils-PrivateSector WASH
District Sukkur - All Stakeholders
Rohri
25
17
NGO
PanoAkil
T e h s il
CHEM
S.Store
Saleh Pat
RET
MFI
88
Total
CHEM
60
S.Store
STK
448
DIST
Sukkur City
STK
MFG
RET
DIST
10
MFG
New Sukkur
20
40
60
80
100
120
100
200
300
400
500
P a g e |110
Sukkur District WASH Market Analysis:

POU Water Treatment Products
Four distributors and 88 chemists were visited in all five tehsils. However, all four distributors did not
carry any POU products. Of the total chemists visited, 82 chemists did not have any type of POU
products.
Soaps
Only one distributor and one stockist of soap were found doing business in New Sukkur and Sukkur
City, respectively. No soap manufacturer was identified in the Sukkur District.
Sanitation Products
Five distributors of sanitation products were all in Sukkur City. Of the six stockists identified: four are in
Saleh Pat and two in Sukkur City. Availability of masons and skilled labor/engineers was not a problem.
No manufacturers were identified under this category.
Total WASH Market
Total number of distributors identified was 10. However four of these were dealing in medicines,
whereas five distributors were operating in the sanitation market. Only one distributor of soap could be
identified.
Of the seven stockists, 6 were dealing in sanitation products, while one was a soap stockist. Against 60
sanitation stores, the number of retailers stocking and selling soap was 448; 88 chemists were identified
for POU water treatment products, but only six had some type of POU water filter available. No
manufacturer in any WASH category was identified.
MFIs/NGOs/TMAs
A network of 17 MFIs was identified in Sukkur District reflecting business potential in microcredit
market. Some of the MFIs are well-established banks such as Khushali Bank and Tameer Microfinance
Bank. Some MFIs were working in all tehsils, therefore, the actual number could be less if we count the
same MFI as one for all District /Teshils.
Three TMAs were identified and they were involved in water supply and drainage schemes, and routine
maintenance of water filtration plants in the UCs. Twenty-five NGOs were identified, some with a
network in the entire district. Some like MRDO are also MFIs.
P a g e |111
District Jacobabad
WASH PRODUCTS MARKETSTUDY -STAKEHOLDERS IDENTIFIED IN TEHSILS/DISTRICT-JACOBABAD (PEHE)
Table 15

Tehsil
MFG
DIST
STK
Sanitation Products
Hygiene [Soaps}
RET
CHEM
MFG
DIST
STK
RET
CHEM
MFG
DIST
STK
S.Store
Thul
20
100
Jacobabad
114
27
12
Garahi Khairo
10
60
Total
30
274
27
16
Table 15.2
Table 15.1
Tehsil
MFG
DIST
0
0
0
0
Thul
Jacobabad
Garahi Khairo
Total
STK
0
8
0
8
RET
0
5
0
5
TOTAL WASH
Tehsil
CHEM
0
0
0
0
MFG
DIST
20 Thul
0 Jacobabad
10 Garahi Khairo
30 Total
STK
RET
S. Store
CHEM
MFI
NGO
100
20
0
0
21
5
11
0
114
60
0
0
27
10
2
1
29
18
274
57
5
5
3
13
Graph 12
Graph 11
District Jacobabad - All Stakeholders
JacobabadTehsils- Private Sector

WASH
13
5
Garahi Khairo
NGO
MFI
CHEM
T e h s il
S. Store
Jacobabad
57
Total
CHEM
S. Store
RET
274
STK
STK
18
DIST
MFG
DIST
29
Thul
MFG

0
20
40
60
80
P a g e |112
100
120
RET
50
100
150
200
250
300
District Jacobabad WASH Market Analysis:

Under this category 9 distributors, 5 stockists and 30 chemists were visited. However, 8 of the
distributors were not dealing in POU. The remaining distributor was dealing with POU water
purification filters. None of the stockists had any type of POU water purification product. No
manufacturer was identified in the POU water purification category.
Hygiene Products (Soaps)
There were four distributors dealing in soaps; soap stockists were 7. The number of retailers stocking
and selling soaps was 274. In addition to the retailers, 37 chemists were also found selling soaps. No
manufacturer was identified in the Hygiene Category (soaps).
Sanitation Products
Sixteen small distributors and six stockists were dealing with sanitation products. While no sanitary
retailer could be identified, most of the distributors and stockists were operating a retail counter to
cater to small customers along with wholesale trading.
Masons and skilled labor as well as engineers were available for construction of latrines. In the sanitation
category, no manufacturer was identified.
Total Wash Market
Overall, the WASH Market in Jacobabad has 24 distributors, 11 stockists, 274 retailers, 57 chemists, 5
MFIs and 13 NGOs. However, some of the NGOs may be the same as they have their network in a
number of tehsils. Jacobabad is also close to Sukkur markets where the distributors and stockists
purchase their supplies.
MFIs, NGOs and TMAs
Five MFIs and 13 NGOs were identified. MFIs were mainly lending to agricultural and commercial clients.
Three TMAs identified were basically involved in water supply schemes such as installation of hand
pumps, sanitation schemes such as drainage systems, as well as providing administrative services to the
UCs.
P a g e |113
Thatta District
WASH PRODUCTS MARKET STUDY - STAKEHOLDERS IDENTIFIED IN TEHSILS/DISTRICT- THATTA (WISES)
Table16

Tehsil
MFG
DIST
STK
Hygiene [Soaps}
RET
CHEM
MFG
DIST
Sanitation Products
STK
RET
CHEM
MFG
DIST
STK
S. Store
MA Bathoro
31
29
Shabundar
27
14
KT Bundar
10
Ghorabari
28
Kharo Chhan
10
Jati
16
60
Mirpur Sakro
16
42
Sajawal
46
95
16
Thatta
28
14
80
Total
169
12
15
368
11
37
Table 16.2
Table 16.1
Tehsil
MFG
DIST
STK
RET
CHEM
Thatta
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
MA Bathoro
Shabundar
KT Bundar
Ghorabari
Kharo Chhan
Jati
Mirpur Sakro
Sajawal
TOTAL WASH
Tehsil
31
27
1
3
1
16
16
46
28
MFG
DIST
STK
RET
S. Store
CHEM
MFI
NGO
MA Bathoro
29
31
Shabundar
14
27
KT Bundar
10
Ghorabari
28
Kharo Chhan
10
Jati
60
16
Mirpur Sakro
42
16
Sajawal
95
16
46
14
80
28
11
18
17
368
37
170
Thatta
169 Total
Graph 13
Graph 14
Thatta TehsilsPrivateSector WASH
District Thatta - All Stakeholders
Thatta
Sajawal
Mirpur Sakro
NGO
MFI
CHEM
CHEM
Jati
T e h s il
Kharo Chhan
RET
Ghorabari
STK
KT Bundar
S. Store
170
S. Store
Total
RET
37
368
DIST
17
MFG
18
Shabundar
11
20
40
60
80
100
DIST
MFG
MA Bathoro
0
STK
100
200
300
400
P a g e |114
Thatta District WASH Market Analysis:

In the nine tehsils of District Thatta, two distributors and 169 chemists were visited to identify POU
water purification products. However, none had any POU products stocks.
Hygiene Products (Soaps for Hand Washing)
In the Hygiene Category (soaps), 12 distributors were identified. Except for four tehsils (Ghora Bari,
Karo Chan, Jati, and Keti Bunder) the rest of the tehsils had some soap distributors in the market. Of
the 15 soap stockists identified in the nine tehsils, 14 were operating out of Thatta Tehsil. These
distributors are the source of supply to other tehsils and Union Councils in the District. For most soap
distributors and stockists, the source of supply is Karachi where many soap manufacturers are located.
Sanitation Products
In the Sanitation Category, 11 manufacturers were identified in all tehsils. These were small
manufacturers making different components/accessories of sanitation products (e.g., pre-fabricated slabs,
bricks and block works) and machining workshops (e.g., pipes, iron doors, wooden doors, and roofing
materials) that are used for construction of latrines.
The sources for the distributors of sanitary materials in Thatta are manufacturers and stockists for
STAR and PAK Brands in Karachi. Some distributors also purchased sanitation components from
Hyderabad.
Availability of masons, technicians/engineers and skilled labor for construction of latrines was not an
issue.
NGOS/ TMAs/MFIs
Seven TMAs were identified in Thatta, none of which are involved in any significant WASH activity.
TMAs were mainly performing routine administrative duties and maintenance of filtration plants. In fact,
in some UCs the filtration plants were operating partially due to lack of electricity or lack of
maintenance. For example, in UC Bathoro only one filtration plant is working.
Seven MFIs and five NGOs were identified. NGOs such as NRSP and HANDS are also providing
microcredit services to the community, although the loaning priority sectors are agriculture, livestock
and commercial enterprises.
P a g e |115

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INKING WATER AND HYGIENE

PAKISTAN SAFE DRINKING WATER

PAKISTAN SAFE DRINKING WATER

WASH Market Assessment Study

EXECUTIVE SUMMARY .............................................................................................. 1

Private Sector Involvement in Provision of WASH Products and Services ...............................11

2. OBJECTIVES OF THE WASH MARKET ASSESSMENT STUDY ..................... 12

4. FINDINGS OF THE ASSESSMENT ..................................................................... 16

Summary of Prices of WASH Products ..............................................................................................29

5 OTHER INSTITUTIONS RELEVANT TO THE MARKETING OF WASH

Tehsil Municipal Authorities ..................................................................................................................31

Non-Governmental Organizations .......................................................................................................31

CSR Programs of the Private Sector ...................................................................................................31

6 GENERAL CONCLUSIONS/FINDINGS .............................................................. 32

Azhar Corporation Limited

Participatory Efforts for Healthy Environment (Jacobabad NGO)

WASH Market Assessment Study

WASH Market Assessment Study

Table 1: Summary of Market Assessment, by WASH Product Category

Not available nationwide.

Retail price per pack of 20

Availability data from Phase 1

No national distributor for

15 mg: PKR 90 per pack of

Aquapura was initially

Availability data from Phase 1,

POU Water Treatment

Aquatabs 67 mg per tablet

33 mg: PKR 70 for box of

WASH Market Assessment Study

No mass media advertising.

Other information from

PKR 5 per sachet.

Promoted by PSI/GS through

PUR Sachet was

Visit to P&G Hub plant,

Musaffa Decontamination Bag

PKR 350 per bag of 1 kg

Promotion in Yellow Pages

Musaffa was not

Interview with US Health Care

Colloidal Silver Ceramic Filter in Plastic

SSD invested in production

Initial cost PKR 900 but

(Calcium hypochlorite and additives for

WASH Market Assessment Study

No mass media advertising

Nadi Biosand Ceramic Filter, made by

Not commercially sold

PKR 800 (excluding

Not available for ready sale

Not available for

Arsenic Ceramic Filter, a two-stage

PCRWR, and Technical

Lifebuoy manufactured by Unilever

Available in nearly all urban

Mass media advertising

Product registration for

Phase 1 data collection,

Mass media advertising

Product registration for

Phase 1 data collection,

Dettol manufactured by Reckitt