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Private labeling involves a company producing goods for another brand, not introducing products under the same brand name.
False- Private labeling refers to a manufacturer producing goods for another company under the latter's brand name. In the context of the toothpaste and mouthwash example, if the manufacturer introduced mouthwash under the same brand name, it would not be considered private labeling.
Private labeling typically involves a company creating products for another brand to sell as their own, maintaining distinct branding for each product.
This practice allows companies to offer a variety of products under different brand names, targeting different segments of the market without diluting the original brand's identity.
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