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Label on a product provides detailed information about the product, its contents, methods of use etc. The various functions performed by a label are as follows
(i) Describe the Product and Specify its Contents
One of the most important functions of labels is that it describes the product, its usage, cautions in use etc and specify its contents.
(ii) Identification of the Product or Brand
A label helps in identifying the product or brand e.g., we can easily pick our favourite soap from a number of packages only because of its label.
(iii) Grading of Products
Labels help grading the products into different categories. Sometimes, marketers assign different grades to indicate features or quality of the product e.g., different type of tea is sold by some brands under Yellow, Red and Green label categories.
(iv) Help in Promotion of Products
An important function of label is to aid in promotion of the products. A carefully designed label can attract the customer to purchase. So, many labels provide promotional messages, some show discount or other schemes etc.
(v) Providing Information Required by Law Another important function of labelling is to provide information required by law. e.g., the statutory warning on the package of cigarette or pan masala – ‘Smoking is injurious to health’ or ‘Chewing tobacco causes cancer.’