How Multi-Version Labeling Can Benefit Your Brand

7/29/2024

When making the decision to add a line extension, you will likely face several challenges: possible cannibalization of existing products, brand dilution, and resource allocation, to name a few. 

A line extension can also lead to an increase in packaging complexity, taxing both the marketing and packaging teams. New labels for each new SKU have to be designed, updated, ordered, printed, and inventoried. Additional costs have to be taken into account as well — including inventory, marketing, packaging — which can cut into company profits.  

By implementing multi-version labeling, however, you can simplify these packaging challenges. 

Multi-version labeling and variable data printing

Multi-version labeling is a manufacturing process that allows marketing and packaging teams to combine the benefits of variable information and short-run production with the lower unit costs typical of long-run manufacturing. Multi-version labeling is a similar process to variable data printing, although they each use different inputs to produce the end product. 

Variable data printing uses the same layout and design throughout the entire run, featuring a blank area where the variable information — names, messages, lot numbers, expiration dates, etc. — can be printed. It requires a digital design file as well as a spreadsheet or database file for the variable data.

Multi-version labeling, on the other hand, allows you to vary the images that are used on a preset design. The labels are printed from a digital file compiled by the label manufacturer, which contains each label’s artwork. 

Keep in mind that variable data printing and multi-version labeling aren’t necessarily exclusive — in fact, the two processes can complement each other. For example, designing a multi-version label that includes a blank white area allows you to print pertinent variable information such as expiration dates and lot numbers prior to applying the label to the product. Both multi-version labeling and variable data printing simplify managing multiple versions of similar products.

Four primary benefits of multi-version labeling

Foods, beverages, bath and beauty products, and household products are just a few examples of items that come in various assortments, flavors, scents, and formulations. From a label perspective, managing options like these can create myriad challenges.

Multi-version labeling, however, can provide a solution. Here’s how the process can benefit a brand owner: 

Saving time and money: As noted earlier, designing, updating, ordering, and inventorying each unique label adds time and complexity to managing a product line. Using a preset design and varying the images to coincide with different items decreases the number of unique pieces needed to maintain, reducing design demands and reorder time.

Multi-version labeling also increases production efficiencies, reducing costs. Typically when producing a label, each unique item requires that the printing press be stopped, plates changed, and then restarted once the new plate is installed. Multi-version labeling allows you to use the same layout and design but print multiple label versions — all without stopping the press. This increases production efficiency, which translates into lower unit costs and substantial bottom-line savings to the brand owner.

Single layout design: Designing effective labels for multiple items in a product line and managing each one throughout the product life cycle is a time-consuming process. A single layout design means that just one label version has to be developed with variable data added, eliminating the need for multiple unique label designs.

Personalized design: Multi-version labeling provides personalized design opportunities that you can use to feature any number of options — from colors and tag lines to designs targeting different audiences, special promotions, and more.

Product tracking: Utilizing variable data can simplify the product tracking process. Applying a unique number to a product label or adding a small informative label to raw materials streamlines product tracking throughout the supply chain. This variable data allows manufacturers, distributors, and consumers to easily identify a product if an error occurs — and expedites the manufacturer's ability to fix it.

Working together for label success

Consider the following case study, which reveals how multi-version labeling and variable data printing can be combined to generate a successful label program.

When a company introduced a new brand of natural preserves, jams, and jellies, each category had the same brand name and required a similar label. However, the product names, flavors, ingredients, and other information for these 20 new SKUs were different. In addition, with this new line of products — which the company sells online and in some retail establishments — predicting consumer demand was difficult.

To simplify the challenge of managing 20 unique SKUs, forecasting expected demand, and ordering the appropriate amount of product labels, the company chose the multi-version labeling process. This allowed them to use their master brand design and vary the images to coincide with each product. So, rather than printing 20 unique labels that required a separate design, multi-version labeling utilized a single primary label design and 20 images that coincided with each item. This saved time, reduced the cost of the graphic design process, and simplified product label inventory management. Even more important for a new brand, it reduced the cost of the product labels. 

With multi-version labeling, the company could design a master version containing the common elements for all 20 flavors, and then copy the design to create a new version by simply editing the variable elements. It also allowed them to order in small lots — as little as 500 — until they were better able to forecast product demand and the requisite product label print quantities. Further, the master design included a blank white rectangle area that was used to apply lot numbers, expiration dates, and other variable data when the product was labeled. 

The applications for multi-version labeling are numerous — from foods, beverages, and household products to bath and beauty items, clinical trial medications, and more. A multi-version label can enhance a brand and reduce the time it takes to manage multiple SKUs.

The information presented in this blog was originally published by RRD’s United Ad Label, a label manufacturing company that can provide an unmatched level of multi-version labeling options. With manufacturing facilities located nationwide and a knowledgeable technical team, United Ad Label delivers the high-quality and economical labels you need to timely and effectively market your products.