Lucrative Labels

Labels are exceeding expectations with infinite options to satisfy the most discriminating tastes.
By Joanna Cosgrove Contributing EditorThey are the silent advertisers. They inform and advise. And they are the billboards on which boundless marketing opportunities are limited only by one's creativity. Their cross-category success is demonstrated by their figures: the value of the total North American pressure sensitive label market was $3.93 billion in 1998 and has been projected to reach $5.35 billion by 2003, according to the Tag & Label Manufacturers Institute's (TLMI) 1998 North American Label Study (prepared by Frost & Sullivan).
Be they understated and refined or over-the-top and flashy, pressure-sensitive labels have proven to be one of the most popular cosmetic and personal care packaging implements when it comes to adding on-shelf variety and decorative depth. "You have to have a shelf presence in the retail market, even if it's an internet market," says Jake Ritz, sales manager, Label Graphics Manufacturing Inc., Little Falls, NJ. "Your product has to immediately convey its value and worth to the customer."
"Increased shelf presence...draws the consumer to the package, thus increasing the likelihood that the product is purchased," says Jeff Robinson, marketing development leader, FLEXcon Co. Inc., Spencer, MA. "It is estimated that 70 to 80 percent of all purchase decisions are made at the store and that percentage increases drastically if the consumer actually touches or picks up the package."
Another benefit of a great label is its ability to create brand recognition in a competitive marketplace. "Products must perform or add value for the consumer to maintain sustained growth. However, with so many brands and SKUs available, all competing for the same shelf space and the same consumer attention, it is imperative that the package provides shelf appeal," says Daryl Madeira, pharmaceutical market manager for the Fasson Roll North America (FRNA) Division of Avery Dennison, Painville, OH. "The design of the package, and maybe more so the label, must be eye-catching enough to capture a purchaser's interest. So then, the first benefit to a well-designed label is the point of purchase power that it can command."
"Consider the Clairol Herbal Essences label," adds FLEXcon's Robinson. "When they used an 'inward facing' prime label to create a distinct look that they carried throughout much of there product line, it helped them become one of the leading brands in the hair care category. Another good example would be Gillette's use of a metallized label stock to give their line of products a very high-end appeal."
An effective label must also be versatile to offer informational surface area. "This is especially true in the consumer care segment, where regulatory bodies dictate a strict informational content that must be displayed clearly and legibly" says Avery Dennison's Madeira. An example of surface area versatility is the latest trend of resealable labels; with limited container space to begin with, by designing labels that have multiple layers that are easily opened and re-sealed, you can double or even triple your print surface area.
Furthermore, the label has an obligation to conform to a minimum standard of performance. "A well-designed, robust label will ensure packages remain properly labeled for the life of the product," says Madeira. "Label removal or destruction can compromise the contents of the package and ultimately threaten the welfare of the consumer. Extreme cases of this are labels that provide tamper-evidence. These well-designed labels provide core functionality to the package."
Economical Assets
In addition to all of the qualities mentioned above, labels have the ability to positively effect the bottom line by offering an intrinsic cost saving to a package that could incur future design or text changes. "Beyond the attractiveness of the package is the economy of it, notes Label Graphics' Ritz. "For 20 years I've had to convince people to use labels, and today's graphics make labels the most economical way of decorating a container. You can have a common bottle and change it, say for an ingredient change. It's simply the cost of new bottles versus a smaller figure for new labels."
Such was the case for Newbury Port, MA-based Kent International Products. When the company's soft wax hair removal product, originally encased in unusually tapered, silk-screened jars, required a text change to incorporate both English and Arabic product copy, the cost was daunting. And since the company as making a switch to labels, they decided to up the ante by requiring a label that resembled the product's carton. "Our objective was to match the graphics on the jar's label to the outer carton to reinforce recognition after the carton is discarded," says Jan Qashat, co-owner, Kent International Pro-ducts. "Our working partnership with Label Graphics yielded a successful, creative result."
"Time was a factor, but we were able to give them extra colors on a specially tapered label to suit their package," says Ritz. "Now they have a jar that looks exactly the way they wanted it to for virtually pennies, as compared to what it would have cost to silk-screen a whole new batch of jars."
Matching Expertise
New York-based The Art of Shaving recently faced a similar package matching situation when it decided that the packaging for its exclusive line of shaving products could use a facelift. "Our initial packaging was limited by our beginning budget and consisted of only a label on the box," says the company's Mariam Zaoui. "Our current budget has afforded us the opportunity to invest in improved graphic design and beautiful packaging."
The Art of Shaving turned to Disc Graphics to fulfill the objectives of its new packaging, which required exact color matching and equally exact attention to coordinating detail. "The outside needed to reflect the inside productÑand we have a lot of different products," says Zaoui. "We wanted the box outside to match the label insideÑdown to matching the copy on the box to the copy on the labelÑfor better product association. Not only does it reinforce the brand recognition, but it also helps when you return to buy new product because by then, you've already discarded and forgotten the carton your product originally came in."
In order to maintain consistency in design and color, The Art of Shaving asked Disc Graphics to manufacture both the folding cartons and the labels. The cartons were manufactured in Disc's Hauppage, NY, facility and the labels were manufactured in its Rockaway, NJ, facility. "The company chose a single design but varied that design using several different color groups depending on the product," says Doug Renna. "Although the cartons match the labels, they each required a different manufacturing process."
The packaging was produced using offset printing then it was embossed, gold stamped and high gloss UV laminated. The labels were manufactured on a permanent, pressure-sensitive poly stock that was UV and flexographically printed, hot stamped and film laminated in-line. The work was worth the effort. "The colors are exact and the packages are just what we wanted," says Zaoui.
Likewise was the job performed by Ampersand Label Inc., Garden Grove, CA, for Urban Decay, Costa Mesa, CA. All of the labels for the company's eye shadows, lipsticks and body hazes are painstakingly color matched to reflect the shade of the formula. "It's important to match those labels as closely to the product as we can so the customer can get a good representation of the product inside," says Karen Quimby, Urban Decay's product development manager. "Most women have a drawer full of make up and we feel it's more convenient to turn the product over to see the shade, rather than removing the lid."
But the color matching process is no small feat considering the quirky colors Urban Decay has become known for. Color-shifting metallics pose the greatest challenge. "Sometimes the color is designed to shift, say from burgundy to green, depending on the way the light hits it," says Quimby. "The same holds true for our opalescent colors."
"Color matching can be problematic when you get into specialized colors," says Kent Story, Ampersand's special account coordinator. "We mix small custom batches of special inks and often have to rematch almost from scratch up to six of seven times in order to hit the color perfectly."
Smart Solutions
Colorful labels were the "scent-sible" choice for Belae Brands' Claire Burke Potpourri Refresher Oil line. "The labels convey flavor on a visual level by simply using color, for example, peach for Peaches & Dreams and red for AppleJack & Peel," says David Bowers, manager product development, Belae Brands Marketing, Phoenix. AZ. "They also convey a perceived value. The more upscale the packaging, the more precious the product."
Belae-commissioned Smyth Companies Inc., Minneapolis, MN used a typical pressure- sensitive label process, however combination tor from decorating. The hot stamping process could not hold the tolerances as well as the Print Foil, which turned out to be more precise and more clear than the direct-to-bottle hot stamp process."
Thinking Out of the Panel
Oftentimes a conventional label is not one-size-fits-all and ingenuity plays a vital role in meeting your customer's specific needs. As an international company with global product distribution, Calvin Klein Cosmetics is required to include lengthy usage copy in multiple languages on their product packaging. But the inclusion of lengthy copy has a tendency to interfere with the company's renowned minimalistic packaging aesthetic. Rather than investing in speialized packaging for each market segment, the company contacted The Rothchild Printing Group, Elmhurst, NY, to develop an innovative label that satisfied all of the copy requirements for its new skin care and color cosmetic product line.
The result was a miniature, round multi-page leaflet label that fits all of the legal, usage and ingredient copy in a single area that measures one inch in diameter. A typical label may include up to 11 separate panels for copy and other information. "Multi-page labels have generally been shunned in the higher end cosmetic and fragrance industries due to concerns about poor printing quality ruining the package appearance," says Bob Bernstein, Rothchild's vice president, marketing and sales. "However, using unique in-house manufacturing processes, we were able to overcome these issues by offering high quality (150 DPI) four color process flexographic printing that rivals the quality of offset printing. Calvin Klein's design, development and marketing divisions were bold in thinking outside the box in accepting this technology, thereby improving the performance of their packaging, increasing flexibility, as well as reduce costs and inventory issues."
According Jeff Rothchild, president and CEO, the new label design has already been tweaked to better meet Calvin Klein's needs. "The label currently consists of a fold out leaflet that remains attached after the leaflet has been opened," he says. "On the newly redesigned label, the leaflet can be detached, leaving a permanently affixed label on the bottom." The new label has not yet been produced and is scheduled to ship at the end of the year.
A multi-panel label also proved valuable for Stila Cosmetics, but not before other options were explored. "I make it a point to ask lots of questions on the front end of each new label application," says Tom Medved, sales, Labels West, Woodinville, CA. "Obtaining product knowledge and environmental requirements is very important for a smooth and trouble free process, for example testing labels' material for proper face stock and adhesives, inks and varnishes, addressing automatic labeling requirements, obtaining actual product filled bottles, etceteras."
This 400,000-plus label job required the use of various kinds of labels. "Some of the applications are barcode labels printed on kraft color label stock for kraft color unit cartons and multiple layered labels printed on a double deck of matte silver foil for products like eye shadows, cheek colors and nail shimmers," he says. "This label construction allow extra billboard space on smaller sized labels with copy printed on both sides of the top layer and one side of the bottom layer."
The highlight label of the group turned out to be Labels West's Aqua Flaunt model, which required extra research and development to provide a pearlescent look. "We consulted our ink supplier and provided initial ink draw downs using a pearlescent background color for Stila's approval," says Medved.
"It's expensive to silk-screen a four color process onto a bottle, so we opted for the label," says Kierna Terrisse, Stila's creative director. "The Aqua Flaunt label is a great label that gives our product character."
New Products
The combination of different label substrates with nearly endless decorating alternatives makes labeling options seemingly limitless. From glow in the dark inks by Label Graphics to security-wise labels from Avery Dennison, label providers are creating inventive new label concepts to push the bounds of creativity.
Too much copy and not enough label space? CCL Label's Spinformation Rotating Labels use an outer sleeve with a rotating information window that creates up to 75 percent more space for information, promotions or marketing copy on brands while intriguing and involving customers. Spinformation allows marketers to create brand packaging as a marketing tool versus a packaged product. The nature of the product allows great depths of creativity based on what marketers would like to achieve," says the company's Chris Schaefer. "It can create and reinforce brand identity, deliver sweepstakes or games, reinforce tie-ins and cross promotion partners and introduce line extensions."
CCL's FingerPrint raised image printing allows marketers to create areas of raised text or images to add depth, texture and a tactile experience. "It's a creative reaction to the increasing popularity of involving touch and interaction to packaging. Touch is a way for the consumer to connect," says Schaefer. "The recognition of the sense of touch is significant because it represents a new way to involve the senses into the purchase decision-beyond sight and smell."
Along the same vein is Spectrum Label's Velvet-Soft Coating, a soft tactile treatment that can be applied to label materials of any kind, as well as flexible packaging.
FLEXcon has been developing exciting materials that were once never considered for prime label applications. "Our new products include: squeezable iridescent material designed for full squeeze applications, microembossed and holographic materials, scented adhesives, flocked (textured) material, full squeeze, brilliant metallized materials, thinner gauged versions of our existing materials which allows for increased economic stability; high clarity, fully squeezable facestocks; materials that change appearance upon the human touch; high barrier material with great dead fold and adhesives that are designed to wet out and disappear on rough textured and dark color containers," says the company's Robinson.
The clear-on-clear label has continued to become a tremendous marketing and performance tool for consumer care companies. By providing crystal clear, see-through capability, the product becomes part of the packaging design to illustrate sharp, creative, three-dimensional graphics. Simultaneously, it increases the surface area that is available for marketing or information. Avery Dennison has taken this concept one step further by offering Fasson¨ Crystal FasClear¨, fully conformable and squeezable no-look label, which expands the technology to new package designs for tottles or tubes.
New developments in iridescent films offer a colorful, dynamic look for more widespread applications. The new Auroraª IF-9000 special effect iridescent films from Engelhard Corp., Iselin, NJ, are engineered to provide a stable iridescent effect on applications that require heat and solvent stability as well as mechanical strength. "The films express color and iridescence through light interference-not with pigments or dyes. Composed of hundreds of microscopically thin layers, the films actually separate white light to create a rainbow of reflections," says Ted Rulon-Miller, marketing manager for Engelhard's specialty Films. "As white light travels through the layers it is broken down into a rainbow of colors and reflected out from the films' optical core. The reflected rays interact to create complementary reflected and transmitted colors. Reflection color varies with the viewing angle, creating a dynamic play of color."
Eastman Chemical Co., Kingsport, TN, has infused the graphic appeal of labeling into its new Embrace copolyester, which is designed for shrink-wraping and shrink labeling on containers. "Embrace copolyester provides maximum design freedom and maximum shelf appeal for the packaging designer due to its ability to produce graphics and a label that can fit on high contour containers," says Katherine Watkins, media relations manager, Eastman Chemical Co. "It has a high shrink force, high clarity, low haze and high gloss and sparkle."
Part and parcel to the new labeling concepts are the industry's technological advancements. And many exciting new technologies are influencing the label industry, according to Innovative Folding Carton's Shawn Smith, vice president sales, new market development, including the increase from 150 to 200 line screen capability. "Other advances will be seen in in-line or off-line hot stamping and embossing, UV and other coatings, digital printing, laser die cutting, computer-to-plate printing and electronic beam technology."
"Many technological advancements are streamlining the progress of label production," concurs David Seuss, vice president of sales, Color Craft Label Co., Memphis, TN. "Coatings are more ink and print receptive, presses are tighter and analog refinements are yielding finer printing which allows you to approach the quality of offset printing."
Equipment advances are an important part of the evolution of labeling, according to FLEXcon's Robinson. "With new application equipment coming on line that claims to dispense labels at 1000 per minute, new markets may be opened up for pressure-sensitive that would never previously have been a consideration."
"Pressure-sensitive materials have come along way in terms of durability and flexibility and the ease of applying labels with high speed high tech equipment makes them functionally efficient," says Label Graphics' Ritz. "We print up to 13 colors using multi-webs and employ lots of combination printing, silkscreen, letterpress and hot stamping all on the same label all done at the same time."
In Closing
A well-executed label successfully captures the essence of the brand. "Consumers equate package quality with product quality," says CCL's Shaeffer. "Package designers have said-and researchers have confirmed-that consumers equate package appearance with the quality of the brand. Labels must be the tool that lends a personal connection to the consumer to convey overall brand excellence."
FLEXcon's Robinson aptly summarizes the winning equation: "Innovation equals differentiation equals market share."