Labeling in Marketing

A yellow packet depicting “2-minute noodles” will lead to customer attention and brand recognition within seconds. I am sure you, as a reader must have guessed what I am talking about. Yes, it is the packaging through which a brand like Nestlé has created its name so much so that people know about the product more than the brand. Today, we are talking about the importance of labeling in branding.

Labeling is used for packaging the product. In marketing, a marketer can also use a sticker inedible products to impart knowledge of the ingredients of the food items. This helps to spread awareness among the customers about the item they are consuming and labeling also helps to mention ingredients. It enables product identification.

Packaging is the process of enclosing the product in a way that is remains safe and secure for its distribution, sale, storage and use.

Types of Labeling

There are different types of labels:

  • Brand label: It is very essential when it comes to labeling as it gives information about the brand. It can be removable or non-removable.
  • Descriptive label:  It specifies product usage.
  • Grade label: It describes the aspect and features of the product.

Functions of Labeling

The multiple functions of labeling are as follows:

  • Defines the product and its contents: A label is very informative in nature and is used to know about the details of the products, its specifications, usage and caution to be taken while using the product. Example, Green tea depicts various health benefits of consuming it.
  • Recognition of product: Labeling assists in the identification of the product. Example, we talked about Maggi in the beginning of the article.

  • Classification of products: It means classification or grading of products according to different categories in the market. Example, soaps are classified as child care, one for dry/oily skin etc.
  • Help in promoting the product and increase brand visibility.

Standard Requirements for Labelling

  • As per a Notification issued by the Ministry of Commerce on November 24, 2000, all pre-packaged commodities (intended for direct retail sale only) imported into India must carry the following declarations on the label:
  • All units of weight or measurements must be metric.
  • If the net quantity of the imported package is given in any other unit, its equivalent of standard units must be declared by the importer.
  • Month and year of packing in which the commodity is manufactured, packed or imported, and the maximum retail sales price (MRP) at which the commodity in packaged form may be sold to the end consumer.
  • The MRP includes all taxes, local or otherwise, freight, transport charges, commission payable to dealers and all charges towards advertising, delivery, packing, forwarding, and any other relevant charges.
  • Note: Pre-packaged food products meant for institutional use do not require the MRP, but a ‘Not for Retail Sale’ declaration on the label is required.

Labeling is an important factor in the sale of a product. It helps businesses to get customer attention via the packaging. Attractive graphics are used to appeal to the masses to buy the product and similarly visuals are targeted.