HIVIEW and EQUITY: The Shampoo Case Study

The managing director of an operating company, which manufactures and sells a leading women's shampoo, has been told by the head office that advertising expenditure on the product in his country is much larger than in any other country where the shampoo is sold. The MD believes that special circumstances in his country justify the large expenditure, which is mostly for television advertising, but he does not have time to try reducing the advertising in a part of the country to see what affect it would have on sales. He decides to call a decision conference attended by his marketing manager, distribution manager, production manager, several supporting staff, and representatives from their two advertising agencies.