Henkel Case

Topics: Customer service, Customer, Henkel Pages: 27 (6813 words) Published: October 14, 2012
Market Share Estimation & Analysis of Customer Satisfaction Index for Henkel CAC Pvt. Ltd.



We would like to thank Mr. Kona Prasadrao, our project guide, for his guidance and support throughout the internship. Without his cooperation and review, the project would not have encompassed so many aspects of marketing and would not have been such a wonderful learning experience. We would also like to express our gratitude to the AIL Sales Team for their support and assistance in the internship process in providing a working atmosphere conducive for learning and interaction. Special thanks to Mr. Dharmesh Shah and Mr. Pankaj Bhalerao for giving us this opportunity and for the constant support and guidance they provided. Finally, we would like to express our deepest gratitude to Mr. Umang Shethia, Mr. M.C. Shanker, Mr. Sadanandam, Mr. Inder Oberoi, Mr. P.K Jain, Mr. Srinivas, Mr. Rajesh and Mr. Lalit Malhotra for their fantastic hospitality and for giving us valuable insights into the workings of the industry. It has been a wonderful learning opportunity and we look forward to associations with HENKEL CAC PVT LTD in the future as well.


The packaging industry is largely dependent on the adhesive industry. Over the past 5 years the packaging industry has maintained a steady growth rate of around 15-20% and is slated to grow at the same level in the future as India is still considered to be an under-packaged economy. The major brands of AIL (Adhesives for Industrial laminates) business operating in India are Henkel CAC, Rohm &Haas, Bostik, DIC, Micro, Flex &VAM etc. Henkel CAC is currently the market leader with approximate 13000 MT production capacity of adhesives per annum. Henkel used to control more than half the market share in AIL business for a long time but with growing competition the pie was shared with others too. Hence this market research was conducted to estimate the market share of Henkel CAC and also to analyse the customer satisfaction index of their existing customers. The research concludes that Henkel has certainly lost its market share but still commands nearly 45% of the existing organised market. The predominant reason for the decline in market share was the intermittent price rise of the products. As per majority of the customers the products of Henkel were priced high. Though the product quality was appreciated by a lot of customers but a few customers had the perception that CAC before Henkel acquired it was providing better product quality. The technical support & customer services provided by Henkel were rated as best in the industry but at the same time customers did not show much confidence in the new product development capabilities of Henkel as they were not being updated regularly on the new product portfolio. A number of customers switched to other brands and had Henkel offered them modest prices, they would resume business with Henkel. When asked for the overall satisfaction level more than 80% of the customers said that they were satisfied and more than 90% of the customers interviewed said they will recommend Henkel products to others. Although Henkel is a market leader in the organised sector but competitors like Rohm &Haas (now backed by DOW) and Bostik have succeeded in matching the product and service quality of Henkel and with their competitive price structures they have been able to acquire more than 20% of the market share which is a major threat for Henkel in the near future.


1.1 Company Profile
1.2 Henkel-Adhesive Technologies
1.3 Henkel CAC Pvt. Ltd.
1.4 AIL (Adhesives for Industrial Laminates)
1.5 Packaging Industry & India
1.6 Henkel CAC Product Portfolios

1.1 Company Profile
Henkel AG & Co. KGaA is an international company headquartered in Düsseldorf, Germany. The company operates in three business areas: Home Care (with household cleaning...
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