Is G2 Threatening Gatorade's Main Brand?

Will 2010 be a better year for Gatorade? The brand certainly hopes so. Gatorade's 2009 was filled with everything from the Tiger Woods debacle to a loss of both market share and sales volume — all despite a major rebrand early in the year that resulted in the announcement of another rebrand in 2010.

The only silver lining to Gatorade's gloomy cloud appears to be its newish low-calorie offering G2, which, with “1/2 the Calories. All the G," saw an increase in both share and volume. But is Gatorade botching its new sub-brand and respective marketing campaign because it isn't effectively differentiating its various products?

Undoubtedly, Gatorade was desperate for a low-calorie product line to compete with SmartWater and other similar energy-boosting beverages. And strong sales of G2 prove that consumer demand remains vibrant. However, the marketing for G2 appears to be tangled with Gatorade's main product and the end result could mean confusion regarding where one product ends and the other begins. After all, if both are equally replenishing and flavorful, who would choose the one with more calories?