If I may ...
Ok, so - sorry if I just sound dumb - they make a cheaper version of a product - because they've reached saturation of their main product?
Because it seems as though instead of making cheapo version of something - just ship out more of the expensive stuff, right? There must be more to it than I am getting.
Okay think like this..... Brand X has their "premium" green beans. They are premium because every green bean is of equal length and color. What is left over is the slightly off color irregular pieces, ie maybe not as deep a green as the premium, and includes the end pieces. Those irregular pieces, though not too noticeable, are packaged as a generic version, and/or, labeled under a store's brand label.
Because, Brand X does not want to be known for an inferior cheaper product. So the leftover pieces are sold under another name. But, Brand X still profits from all the green beans it brought from farmers that it has processed. All the green beans go through the same possessing plant and are sorted and categorized prior to packing. Basically, it is done this way to reduce waste and increase profits. Why throw away what might otherwise be an edible and tasty green bean? They are not competing against themselves because they are in the business of canning green beans. It really doesn't matter the label.
Now, expand this example to all other vegetables. Premium (name brand) peas vs. irregular sized peas. Same with corn, carrots, beets etc.
As for hard goods. A "premium" lawn tractor may use a higher quality metal, plastic, tire, etc., than the same cheaper name brand coming off the same line that uses inferior made components imported from China to keep the sales price low. "Premium" transmission made in Canada. Cheaper name brand transmission made in China. Each transmission the exact same specifications and same look and function, as well as all the other parts. Assembled on same line. Same for many many things made.
Did I help you to better understand?
*Added* Remember this: "Scotch Buy, ain't fancy but it sure is good."