The whole plethora of similar products are offered by different company ultimately targeted to same target segment. The ability to Differentiate and set your offering apart others is really important in the competitive environment.
Thus in such a situation and circumstance what is desired to get the target audience "is to differentiate your offering" and develop your Brand. The customer does not actually value your product they trust the brand they are buying.
Well established brand have probably greater customer acceptability when undergoing Diversification in the products.
As the Trust is build in the customer.
In the competitive environment it is rightly said " Owning a Brand is more important and valuable then owning a factory"