Product and Promotion Transfers in Consumer Goods Multinationals

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Abstract
This article sheds light on MNC product transfers to subsidiaries – whether from the US or from third‐party markets – and on promotion transfers. Findings indicate that consumer goods subsidiaries have product mixes with heavy US orientations, but that this orientation diminishes over time. Promotion synergies are also shown to decrease with time. Overall, this research confirms the Levitt thesis that US products can in many cases be globalised, and that MNCs perceive inter‐market similarities to be more important than differences in their formulating of international product strategies.

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