Impact of International FMCG Companies' Strategic Responses to Institutional Uncertainty on Consumer Preferences in Russia

This research explores the impact of international FMCG companies’ strategic responses to institutional uncertainty on the CSD market and consumer preferences after the geopolitical conflict of 2022 took place. Due to sanctions’ imposition, increasing inflation and exit of global brands, such as Coca-Cola and Pepsi, the market players had to reconsider their strategic actions and consumers – their purchasing behavior and preferences. This research employs a mixed-method approach in order to assess both subjectively (from the consumers’ point of view) and objectively (based on experts’ and industry’s notions) how the market has changed and how the consumer behavior and purchase intention was influenced. By using quantitative methods for analysis of survey results of more than 240 Russian consumers and qualitative methods for analysis of market research and in-depth interview, this study has identified emerging consumer centric trends. This research provides an empirical evidence on the interplay between corporate strategy and consumer behavior. It offers practical recommendations for companies on how to navigate similar crises, highlighting the importance of being flexible and adapting the strategy to consumers’ preferences. The findings do not only contribute to the academic literature discussions on strategic response and consumer-based brand equity research, but also helps FMCG companies to guide their decisions in strategic planning.