Unit # 2 Business Management.  The labels that appear on products can make the difference as to whether or a not a product sells. Labels contain a variety.

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Presentation transcript:

Unit # 2 Business Management

 The labels that appear on products can make the difference as to whether or a not a product sells. Labels contain a variety of information that consumers can hold to have as much value as the brand name. In the Australian market many Australians have a strong attitude to supporting Australian products, thus the importance of an “Australia made” or an “Australian owned” label is important in attracting that market segment.

The Australian Competition and Consumer Commission is a government body that regulates fair competition and consumer protection in Australia. It is largely governed by the federal legislation The Trade Practices Act 1974.

Perhaps the most used part of that legislation is s.52 which relates to Misleading and Deceptive Conduct. This applies to all areas of business including product labelling. The ACCC also has developed specific requirements in relation to labelling of country of Origin, Tobacco products, Cosmetics & toiletries, and Clothing; businesses much adhere to these requirements or risk litigation.

 Think of a product that you purchase regularly.  What sorts of labelling on that product influence your buying? What other market segments apart from your own demographic would the labelling attract?

 Not only do organisations have legal obligations in their product labelling but also social/community obligations. Depending on community values companies should also behave in a many that conforms to these societal attitudes.  For example: Global warming is a topic of hot debate as many people are recognising the importance of becoming more environmentally friendly. Both product labelling and packaging should therefore attempt to comply. This can also be an effective marketing tactic as organisations can attract another market segment to their products, leading to increase in sales revenue, productivity, and profit.

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