People who exercise are typically concerned with what they put into their bodies. Pepsico is hoping its Gatorade brand extension, G2, will appeal to consumers who seek hydration benefits after exercising but want less calories contained in regular sport drinks (including Gatorade). A serving of G2 contains 25 calories, half of what is in a serving of regular Gatorade.
Extending into low calorie sport drinks is not new for Gatorade. It tried it in the early 1990s with Gatorade Light and failed. What’s the difference this time? There appear to be several differences. First, Pepsico got the brand name right. By avoiding the “Light” tag in the brand name, there is less chance that consumers will feel they are getting a “diet” version of the product. It is similar to what Coca-Cola is trying to do with its branding of Coke Zero. They are diet drinks that are not positioned as diet drinks! Second, more consumers are involved in recreational activities and pursuit of a healthy lifestyle. Market demand for products that meet their needs stand a better chance of gaining acceptance than they did 15 years ago. Third, the marketing know how of Pepsico and its channel relationships should benefit G2. These factors, coupled with the benefit of being able to learn from the failure of Gatorade Light, make G2 a more viable brand extension. Link