When a new category emerges, one or two brands typically establish themselves and define the category mainstream. Subsequent entrants need to provide a reason to be bought by offering either a premium or budget alternative or positioning themselves as the best at an aspect of delivery that some people value highly.

In mature categories, the ideal portfolio has a strong brand in each segment.

Check out 'The Smart Marketing Book' for examples of companies that have built strong brand portfolios based on this thinking.