Gatorade recently launched a new packaging design for its bottles. In the past Gatorade was one of the leading sports drinks, but in recent years it has been loosing market share to brands like Powerade and other health drinks such as vitamin water. The redesign of the brand’s visual identity may have been an attempt by Gatorade to stop the shrinking of their business.

The goal of the redesign was to simplify the bottle, namely by replacing the brand name with the letter “G”. However, the market has not reacted positively to the new bottle appearance. It is so different from the former one that most people do not even recognize the brand, and sometimes mistake it with a store brand. This new packaging design may account for Gatorade’s sales volume decrease of 13.7% in the first quarter this year, as well as its market share decrease of 6.3%.

Brands must be cautious when releasing a new visual identity for their products. A dramatic and sudden change is usually not the best strategy for a famous brand like Gatorade. Well-established brands should implement changes in their visual identity gradually so they don’t confuse consumers and damage the brand equity they have already built.

Gatorade thought it could rely on its brand awareness to replace its name by the letter G only. For Gatorade’s marketing team, G represents the core of athleticism. But does their target market share this strong brand awareness? Apparently not.

Unfortunately for Gatorade, the change in bottle design has not contributed to their brand identity or stimulated their sales.

Gatorade is not the only brand facing this kind of challenge. Pepsi-Cola is having the same problem with its new logo.