Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise marketing

Question:

Jaagruk Grahak is an NGO which is active in spreading awareness and conducting tests of products for quality checks.

After doing a quality check in their laboratory, they found an energy drink by the name 'Blue Bull' produced by an MNC that contains the ingredients which are very harmful to health but the company has not mentioned them anywhere in the label of the product package. Jaagruk Grahak called a press conference and revealed the reports of the test for the product claiming that it contains harmful perspectives which were way beyond the permissible limits and regular intake of such drink could cause cancer. It was a breaking news on TV channels, newspapers, Radio, Magazines etc.

As a result, people stopped consuming that drink. This gave a big shock to company's sales and consequently it's revenue decreased drastically and affected company's goodwill. To overcome this situation, the top executive of the company decided to issue a press release clarifying that the company has stopped using harmful ingredients and label contains all the required information as per the law. The company also made multimedia presentation of its production process and future plans to promote its sales. The company also plans to change its packaging and labelling to give a fresh look to product.

Why is labelling of a product important?

Options:

Describe the product and specify its content

Identification of the Product or Brand

Providing information required by law

To describe the product, identify the product and to provide information required by law

Correct Answer:

To describe the product, identify the product and to provide information required by law

Explanation:

Labelling: It is the display of information about a product on its container, packaging, or the product itself.