Functions of labelling are:
(i) Identification and differentiation: Labelling helps in easy identification of the product. It helps the consumer to differentiate one products from other products. A label also provides other valuable information such as name, address of the manufacturer, net weight, max. retail price, batch no., etc.
(ii) Description of use and contents: The main function performed by labelling is to provide description about the product regarding its use, application, contents, cautions, etc. For example, on food products like maggic cuppa mania, a picture of noodles is there describing its appearance. Along with this, the ingredients and procedure of making it is also stated.
(iii) Standardising and grading: A label helps in setting grades for the product. This helps the marketers to classify the product in different categories based on specific quality and feature.
(iv) Promotes the production: An attractive label helps the marketers in promoting the product as well. It helps in attracting more customers towards the products. For example, in the case of maggi noodles, the label says "taste bhi, health bhi".
(v) Provides information required by law: Label also provides and mentions the information which are required to be mentioned as per the law, For example, on the packet of tobacco, it is mandatory to write warning that 'chewing tobacco is injurious to health'.