The Connection Between Labels and Marketing Success
Ever wonder how important labels are to your marketing and business success? If so, read on.
As a manufacturer, it’s important to understand that when consumers shop for a new product, they are often looking for a type of product rather than a specific one. The label of your product can make all the difference in why a customer chooses your product over another.
It’s important to remember that buying is a journey, and for customers and B2B purchasers, finding a new brand is a journey that often starts with the product’s label. Research has shown that labels are not only important when it comes to marketing but are also one of the most cost-effective ways to promote a product or even an entire company. In fact, some marketers have found that labels can be more effective than other marketing methods such as television ads or online advertising.
To illustrate this point, let’s look at Coca-Cola. In the early 1900s, Coca-Cola was just one of many soft drinks on the market, with unremarkable sales. However, the company turned to graphic designers and a labeling company to create a recognizable and memorable label. They chose a distinctive red label with white wording, which is still used today. In a very short time, Coca-Cola became the most popular soft drink in the country – and many parts of the world.
In another example, sometimes the wrong label can work against a manufacturer, at least, that is what Tropicana found out the hard way. From 1947 to 2009, the company used the same label – a big orange with a red and white straw coming out the right side of the orange.
In 2009, the company decided a new, more modern, and more sophisticated label was needed. They introduced the new label, but soon after, Tropicana customers started asking grocery stores if they still sold Tropicana orange juice. Customers did not see the label they had become so acquainted with, so they selected other types of orange juice. Things got so bad that sales plummeted by 20 percent.
At that point, Tropicana realized the wrong of their ways and brought back the old, now iconic, orange and straw label.
Other Reasons Why Labels are So Important
We see how a properly designed label is vital to marketing a product. But there are several other reasons labels are so important. Among them are the following:
- To provide information to consumers, such as its ingredients, nutritional content, and usage instructions. This information is essential for consumers to make informed decisions about the products they buy. And if you think people do not read labels, think again. A 2019 study released by the American Heart Association found that 59 percent of consumers “always read labels on a packaged food before buying it for the first time.” Remember what we mentioned earlier: labels are often the first step in the buyer’s journey.
- To comply with regulations, many countries have laws requiring certain information to be displayed on product labels. For example, in addition to nutritional content, food labels in the United States must also include allergy warnings, the name and address of the manufacturer, storage instructions, etc.
- To protect consumers, labels must provide information about potential hazards, such as choking hazards or toxic chemicals used to make the product. Toy labels, for instance, must include a warning if the toy contains small parts that could be a choking hazard.
- To promote sales. Labels often include catchy and memorable taglines. One of the most successful was introduced by Pepsodent toothpaste in 1933. That tagline: “You’ll wonder where the yellow went when you brush your teeth with Pepsodent.” In time, suppliers could not keep up with demand. That tagline – boldly printed on the label – and used in all advertising became unshakable into the late 1950s.
The Nity-Grity About Labels
Labels are an essential part of any product marketed to consumers or B2B purchasers. They provide crucial information, comply with regulations, protect consumers, promote sales, and create brand identity. Never underestimate the power of labels.
GenFlex Labeling Solutions is a General Paper Goods Company.