There are many industries in which brand and image are key to the consumers purchase decision.
Mobile communication providers have established proprietary brands for the low cost segment to minimize the migration of price-sensitive customers to their competitors and at the same time avoid the migration of regular customers into the low cost segment. In competitive industries the introduction of a low cost brand may help you secure your market share and enable a presence in all customer segments without negative effects on your average yield.
Another opportunity in customer segmentation is the creation of a premium brand. Through the introduction of their premium brands Infiniti and Lexus, Nissan and Toyota have entered a new market. Owners of Infiniti or Lexus cars would not buy a Nissan or Toyota. Through their premium-brand-strategy Nissan and Toyota have access to the high-yield customer segment and are able to compete with premium brands like Audi, BMW or Mercedes without significant effects on their regular customers.