LABELLING: INTRODUCTION, TYPES AND FUNCTIONS

WHAT IS LABELLING?

Labelling is identifying a product by attaching a label with information about it to the product or its container.

A label can be anything – a little piece of paper, metal, or any other material on which information about the value of the content, the price of a product or information about manufacturing, the expiration date, and many other crucial facts are written or printed for the consumer’s benefit.

It is a vital component that transmits all necessary information about the product to the user. Labelling provides a distinct identity to a product, helping it to stand out in the market.

• Prof. William J. Stanton defines a label as “the component of a product that includes spoken information and the manufacturers identify.”
• “Labelling is an information tag, wrapper, or seal applied to a product or product’s package,” Mason and Rath explain.

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WHY IS LABELLING IMPORTANT?

Labelling is strategically crucial for businesses all around the world. Some objects are constructed so that if they do not deliver correct and up-to-date information, they increase the hazard. 

As a result, manufacturers should be forced to tag all things with all relevant information. If medical and dangerous objects are not labelled, unexpected hazards and crises may emerge. If it contains harmful substances or is dangerous to minors, it should prominently indicate any safety measures and warnings.

Labelling is a critical component of product marketing. Marketers use labelling and packaging to draw attention to their products and encourage potential buyers to buy them. These two branding components communicate to customers all information about product usage, such as how to transport, recycle, or dispose of it, as well as its packaging. 

It is an essential aspect of the customer decision-making process since consumers rely on the information supplied on the label when purchasing a product.

Based on the information provided by labels, users may swiftly compare a product to others on the market. People may learn about a product’s features and quality level without ever using it. 

Labelling plays a significant role in increasing brand sales by attracting more and more consumers to items in today’s competitive climate. It differentiates the product in the market and marks it as a part of a particular brand.

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CHARACTERISTICS OF HIGHLY EFFECTIVE LABEL

Labels are one of the most effective marketing techniques available. The label is the aspect that connects with customers and can have a positive influence on any product. Not all labels are successful and serve their function. As a result, several generic traits make a label extremely successful. Among these qualities are:

• A label must communicate the required or anticipated information clearly.
• Users are always drawn to visually appealing labels. To communicate something, one must first engage. Marketers must concentrate on the font, colour, images, form, and size of the label to create an appealing label.
• Because users prefer labels to obtain information, a label should incorporate the anticipated and required information.
• A very effective label must be credible/legible, which means it must include information about the product and the creators.
• Another quality is adaptability, which implies that the context, information, design, texture, and so on should be incorporated and adapted throughout the product. For example, the labels on juice brands vary depending on the flavour, with mango juice having a yellow dominance and apple juice having a red dominance.

TYPES OF LABELLING

There are four distinct forms of labelling.

BRAND LABEL

It is a sign that gives brand information about a product. The brand label identifies the product’s brand name, trademark, or logo and does not carry any more information. L.G., Samsung, Whirlpool, and Raymond are some instances of brand labels.

GRADE LABEL

A grade label denotes a product’s quality or grade level. Such labels explain the product’s attributes, and the organisation uses them to categorise things depending on their quality. The USHA, for example, is a brand that manufactures several fan quality such as deluxe, continental, and premier. The USHA brand brands its products according to the Grade label.

DESCRIPTIVE LABEL

A descriptive label conveys essential information about a product. This label comprises the following information: product ingredients, unique uses, directions, use precautions, manufacturer information, date of manufacturing, weight, size, and value of the product.

INFORMATIVE LABEL

Informative labels give a lot of information and particular facts about the product. It varies from descriptive labelling in that it includes specific instructions on using and caring for the product. These labels contain recipes, detailed cleaning instructions, and other such information.

FUNCTIONS OF LABELLING

The following are the functions of labelling:

IDENTIFICATION

Labelling offers a product a unique identity that sets it apart from others on the market. Customers can immediately recognise the items because of the label that is attached to them. It keeps consumers from getting mixed up and substituting competitive items. Based on the labelling, users may easily distinguish items from brands such as Tata tea, Horlicks, and Lux.

GRADING

Labelling divides items into different classes. One type of item, for example, can be classed as A, B, C, or D. Leading manufacturing countries to make comparable items and ship them to their destinations based on the grade and quality of the product. For example, clothing made in Bangladesh by business A may be of a different quality than clothing produced in China by the same firm. Customers may buy whatever class of items they want since they are classed in this way.

CONSUMER PROTECTION

Labelling safeguards customers from deceit or manipulation of facts by manufacturers. It delivers accurate product information, allowing clients to make educated purchase decisions. For example, food, cosmetics, and pharmaceutical labels must provide correct information about the components, production method, and expiration date.

COMPLIANCE WITH LAW

It enables the firm to comply with all regulatory requirements by including all required warnings on product packaging. Tobacco companies are required by law to add the phrases “Smoking is dangerous to health” on pan masala packaging and “Chewing tobacco is harmful to health” on cigarette containers. Furthermore, the firm must post a statutory warning label on all harmful and hazardous items.

PROMOTION

Product labelling is an effective marketing technique. Stressing essential characteristics makes the product more desirable and captures people’s attention. Labels on items make enticing remarks to persuade buyers to buy them. The Colgate toothpaste packaging, for example, features a slogan guaranteeing a free toothbrush with purchase, which motivates users to buy it.

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Conclusion:

Labelling is an essential function in the marketing and production of various products. It helps identify, grade, and promote products while providing essential information to consumers. Labelling compliance with the law is also crucial to avoid any legal penalties