To recognize certain brands and products we use labelling, this is due to the specific labelling, that their logo and design is well known to us. A distinct label of a product is one of its most identifiable features in the product, and thus after viewing it the customers gain the confidence to buy the product.
Labelling is thus an important part of the branding of the product and the company uses it to fulfil their motive of mass selling. It helps the product to stand out in the market, and this identifies it as a part of a particular brand. This is an important era of high and intense competition and thus labelling serves the purpose.
Branding is a big part while labelling is a part of it, which enables the process of product identification. This is printed information which is bonded to the product for recognition and also provides the detailed information and basics about the product. Customers make the decision whether to buy it or not easily at the point of purchase seeing the labelling, labelled on the product.
Also, it should be noted that the labels must comply with the legal obligations. A company’s label should adhere to the Competition and Consumer Act 2010. According to The Food and Drug Administration (FDA), the products are to be packaged and processed, also the food items must have nutritional labelling. The Federal Trade Commission Act (FTC) states that fraud with labels and graphics is an offence and also this consists of unjust competition. The Fair Packaging and Labelling Act levies the compulsory labelling conditions, boosts independent packaging standards which grants federal companies to establish the packaging regulations in certain industries and businesses.
Labelling is significant as it pulls customers’ attention to purchase the product because of its visual appeal. This also promotes the sale of the product as this initiates the sale of the product. Labelling thus, is an important factor which helps in selling the product, labelling also helps in grading the products, and this provides information required by the law.
Branding is the process of attaching a meaning to a specific organization, company, products or services by creating and shaping a brand in the consumers’ minds. This is a strategy designed by the organizations to help the people to quickly identify and experience their brand, and also give them a reason to choose their products over the competition’s or rival’s product.
Packaging is the art of enclosing or protecting the products for distribution, for storing, to sale, and use the product for further use. Packaging also means the process involved in designing, evaluating, and producing the packages.
Labelling is defined as the process of affixing a descriptive word or phrase to someone or something. An example of labelling is the process of putting signs on jars that say what is inside it.
A product label usually holds this certain key information in its label:
The name of the product that affixes the label.
A logo of the brand, if the product is part of a line of brand.
Units of measurement which denotes the size, quantity or weight of the specific item.
A short description, or tag line which encourages the customers to buy the product.
The list of ingredients.
The history attached with the product.
Directions for use of the product.
The label should be readable enough, the type should be legible in its own font size and colour. A font size that is readable by others should be used in the labelling.
Differentiate Between Labels and Brands
A label is a piece of paper, a plastic film, or a cloth, a metal, or other material which is affixed to a container or product, on which it is written or printed the information or symbols about the particular product or item. Information is directly printed on a container or on an article that can also be considered as labelling.
A brand is the overall experience of a customer which distinguishes an organization or product from its rivals in the eyes of the customer. Brands are used in business, marketing, and advertising. Name brands are also sometimes distinguished from the generic or store brands.
1. What is Meant By the Term ‘Logo’?
Ans. A logo is a graphical mark or an emblem, or even a symbol that is used to aid and promote public identification and helps in recognition. This may be of an abstract design which includes the text of the name which represents it.
2. Why is Labelling Used for ‘High and Intense Competition’?
Ans. Labelling attaches a specific brand image to a product, it discusses details about the product and hence it gives a perfect competitive image of the product in the market along with its rival products. Thus, if proper labelling is done, then it will beat the high and intense competition and stand out of the market with its own unique feature.
3. What Does ‘Competition and Consumer Act 2010’ Tell?
Ans. The Competition and Consumer Act 2010 is actually an Act of the Parliament of Australia. Before 1 January 2011, it was known as the Trade Practices Act 1974. The Act is a legislative vehicle for competition law in Australia, which seeks to promote competition, also fair trading as well as providing protection to the consumers.
4. What is the FDA?
Ans. FDA is the abbreviation for Food and Drug Administration which is a federal agency for Department of Health and Human Service.