A Study on Brand Extension of Fast Moving Consumer Goods to Customers' Perception with Special Reference to Kanyakumari District

Fast-moving consumer goods (FMCG) are products that are sold quickly and at relatively low cost. These satisfy elemental, day-to-day household needs other than groceries, ranging from packaged foodstuffs, dairy products, cooking oil, bread, butter, cereals, beverages such as tea and coffee, pharmaceuticals, confectionery, biscuits, glassware, stationery items, watches, toiletries, detergents, shampoos, skin care products, cosmetics, toothpaste, dishwashing liquid, energy drinks, soft drinks, clothing, furniture and household accessories to electronic goods such as cell phones, laptops, computers and digital cameras, which are usually categorised as fast-moving consumer electronics (FMCEs). India is a mixed economy, with a proper mix of rural and urban markets. Rural markets are an important and growing market. Rural markets offer enormous growth opportunities, such as an untapped market, a large population and huge scope for penetration. At the same time, this market poses some challenges as well. The urban market is almost reaching saturation point; thus, there is an urgent need to focus on rural development. Moreover, more than 70% of India's population lives in villages and constitutes a big market for industry. Hence, FMCG and its closest companion, the retail sector, are both likely to create most of the jobs in India in the coming years, primarily in functions such as marketing, sales, advertising, supply chain, logistics, human resources, product packaging and development, finance, operations, general management, supervision and so on. The cost of introducing an entirely new brand is often very high, accompanied by the risk of failure of new brands in a crowded market. These factors encourage companies to use brand extensions, particularly in the FMCG segment, to leverage the brand capital of the parent brand. The study is based on 150 respondents in Kanyakumari District in order to assess the overall visibility, perception and acceptance of brand extension in the FMCG segment.