Labels are the slips pasted on the containers, wrappers, bottles and indicate the detailed information of the product and producer. Labels are the medium through which the manufacturer passes on necessary information to the users of the product.
Requisite Information on the Label
- Name and address of the producer / manufacturer or dealer.
- Ingredients used in the product.
- Weight, size and measurement of the product.
- Color and appearance of the product.
- Date of manufacturing and expiry of the product.
- Maximum retail price.
- Directions for the use of the product.
- Precautions for the use of the product.
- Statutory Warning.
Functions/ Objectives of Labeling
Identification of the product
Labeling helps in the identification of the product. The consumer easily picks up the product because labeling offer entities it with other similar products.
Knowledge about the specialties of the production
The special features and the quality of the product are mentioned on the labels. The customer goes through the contents of the labels, obtains knowledge about the product and decides whether to purchase it or not.
The label mentions the maximum price of the product. So, the seller cannot charge more than the maximum price. As such labels keep price of the product under control.
Provides an opportunity for sale of the product
Labels, no doubt provide an opportunity to the manufacturer to exploit the deal in their favor. Labels present reasons before the customers to own the product. Labels facilitate marketing of the product.
Prevention of false claim
It will not be possible for the manufacturer to make false claim on the label in writing because these claims can be verified and if found false, the suit can be field in the consumers’ court.
Special service to customers
Labels render valuable services to the manufacturers and customers. It is an effective marketing tool for the manufacturer. Customers also gain complete details about the product, its price, contents, directions for use and precautions to be taken.
Labels also display legal restrictions as imposed by the government. As such they fulfill legal requirement. Certain commodities such as cigarettes, pan masala etc. contain Statutory warning, such as “Cigarette smoking is injurious to health”. It is written on every cigarette packet. In case of poisonous and hazardous products appropriate safety warning need to be mentioned on lebels.
Limitations / Demerits / Disadvantages of labeling:
Inspite of its above mentioned advantages labeling has got the following limitations.
Useless for illiterate customers
Labels convey messages in fitting. It cannot be read and understood by illiterate customers. Majority of people in India are illiterate. So labelling is not very effective.
Increasing the price of the product
The drafting, printing and pasting of the label is expensive. The cost of labeling is added to the price of the product consequently price is increased.
Discard of the product
Labels on certain products carry statutory warning that the use of the product is harmful. These statements touch certain people, who discard the product.
Effective for standardized product
Labeling is useful effective and significant for branded and standardized product. Non-standardized products do not need labels. If labels are pasted the price is unnecessary increased. Increase in price pinches the customers of non-standardized product.