Labels are one of the most prominent elements of branding and play a significant role in making potential customers familiar with your product. They provide information about the product, including the name, ingredients, and other features. Labeling enables the consumers to identify the product according to their needs and make a quick decision.
Let’s tell you everything about the different kinds of labels and their particular characteristics provide enough details to the customer and make your product a leading brand.
What is a Label?
Labeling displays brand name, logo, ingredients, and other pieces of information on a product. Labels can be in the form of paper pasted on the product or printed on cardboard or metal to act as a distinct identity. The sole purpose of the label is not to exhibit the name but to present facts about the product.
Types of Labels
Most commercial products carry one of the four types of labels considering the details about the product required on the packaging.
Brand Label
Brand labels are the most precise and only display the Brand Name without any characteristics of the product. A brand label may include the name, logo, and trademark number of the brand. Examples include Samsung, Huawei, or other brands’ labels on the back of mobile phones.
Grading Label
The grading label depicts the quality or specific features of the sub-categories of a product. It eases the customer’s quest of looking for particular qualities. For example, you can find various kinds of milk; whole milk, low-fat milk, reduced-fat milk, and skimmed milk. They are known as grading labels.
Descriptive Label
Descriptive labels give away more item attributes than branding and grading labels. They show manufacturing details like batch number, production date, expiry date, product weight, use, instructions, and precautions or warnings (if any).
Informational Label
Informational labels are more elaborate than descriptive labels meaning that they include elements like storage details, instructions about cleaning the gadget, or additional uses or recipes to utilize the product. Pharmaceutical packaging industries typically use descriptive or informational labels.
While all labels are used for different items, they all serve some common purposes, as mentioned below.
Purpose of Labels
Product Recognition
Putting a label on your product gives it recognition, and you can distinguish one item from another. For example, you may see two shampoo bottles in the grocery store in the same color; the absence of a label will make it difficult for you to choose the one you bought last time. Labels help people recognize your product among many others.
Product Information
Labels give all kinds of information about the product, such as the production date, expiry date, batch numbers, ingredients, directions of usage, etc. It avoids ambiguity and saves the consumer from the added hassle of finding product usage methods by other means.
Product Assortment
Grading labels allow product assortment by enabling manufacturers to grade products in different categories for a particular set of consumers. A common example of grading is the availability of moisturizers for different skin types like dry skin, oily skin, or combination skin. Some brands also offer medicated moisturizers. The grading of these products makes it convenient for the consumer to select the product.
Product promotion
While the logos stay the same for long periods, labels may change frequently. The change of label is usually subjected to a new campaign launched by the company, alterations in the color scheme of the brand, or discounts offered. Product labels convey the discounts and offer smoothly to the customer and boost sales.
Regulatory compliance
Varying product categories have specific label requirements that the company must consider when selling in a country or region. The analytical reports must prove the information provided on the label to ensure providing safe, quality products to the consumer.
The Bottom Line
With so many different types of labeling to choose from, it is important to make the right choice among the different types of labels. Opt for a brand label, grading label, or descriptive or informational label in consideration of the regulatory requirements and needs of the product.
Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.
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