An Empirical Analysis of the Impact of Macroeconomic Variables on Maggi Sales in India’s Fast Moving Consumer Goods Industry

Abstract

The Fast Moving Consumer Goods (FMCG) industry has an important contribution to the Indian economy, and Maggi remains the market leader for instant noodles because of its brand recognition and customer loyalty. But with changing economic conditions, inflation, population growth and changes in consumer behaviour, there is uncertainty over what is driving sales performance. The primary aim of this study is to examine the effect of Gross Domestic Product (GDP), Consumer Price Index (CPI), Population and Year on the sales of Maggi over the years. Time Series secondary data had been used to test the macroeconomic variables affecting the sales of Maggi using the multiple regression model. The findings show that GDP has a strong positive relationship with the sales of Maggi. This highlighted an important relation between economic growth and consumer demand in the FMCG sector. The study also emphasizes the impact of macroeconomic factors on the FMCG industry in India with respect to consumer buying and sales. The results of this study can help businesses, marketers and policy makers understand the impact of economic downturns on markets for consumer goods and help them to design better business and economic policies. The overall contribution of the research is that it provides empirical evidence about the correlation between the economic indicators and the sales of Maggi in India, thus adding to the existing literature on FMCG sales performance and the analysis of macroeconomic indicators.