> you have to pick your approach and commit to it.

I somewhat agree with this, especially when we are talking about higher brand companies appeasing cheaper consumables.

However, the other way around, it can be done effectively. Take for IKEA instance. They made inroads into Europe and American homes, and did it by offering cheaper, well-designed and modern alternatives made of particle board. After seeing some customers wanted higher-quality products with the same design aesthetic, they introduced a sliding scale of products from cheap-and-cheerful, to better constructed, yet still flatpacked materials.

Customers could then choose the desired range and quality on a sliding scale for each product. This model seems to have worked well for them.