[jacques_chester]

Market segmentation is a common tactic. Different consumers want different things and are prepared to pay different prices. They will however lump together anything under the same name.

So, for example, Cheap'n'Nasty Nappies Co may have done very well in the bottom market segment. It will now struggle in the higher segment unless it invents a new brand, say Bling Slings Nappies, with some ostensible differences ("6 layers of plastic!") and a much higher price.

You will see this practice in every industry with large firms. They will own multiple brands in multiple market segments.