Page 133 - NITI - Navigating Indian Traditions in Industry
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connections with the brand. On the other hand, PepsiCo took a more youthful, trend-
driven approach with campaigns like “Pepsi Generation” and celebrity endorsements.
This use of distinct strategies represents the concept of Vigraha, where different
warriors (or brands) employ varied combat tactics to achieve their objectives. Both
companies continually adapt their strategies to counter the moves of their competitor,
much like warriors adjusting their approach based on their opponent’s tactics.
3. Brand Positioning as Strategic Ground:
In the Vigraha tradition, warriors choose the best terrain for battle to maximize
their advantages. In business, brand positioning can be seen as choosing strategic
ground. Coca-Cola and PepsiCo have carefully crafted their brand images to appeal
to different consumer segments.
Coca-Cola positioned itself as the classic, all-American beverage brand, associating
itself with family, happiness, and tradition, while PepsiCo targeted a younger audience,
associating the brand with youth, fun, and pop culture. Each company’s ability to
position itself in a way that resonates with specific consumer groups has allowed them
to “secure favorable ground” in their competitive combat.
4. Crisis Management and Conflict Resolution:
During the “New Coke” fiasco in the 1980s, Coca-Cola experienced a major conflict
with its consumers when it attempted to replace its classic formula with a new, sweeter
version. The backlash was swift, and the company had to act quickly to resolve the
conflict by reintroducing the original Coke formula, now branded as “Coca-Cola
Classic.”
This is an example of Vigraha’s principle of managing conflicts and correcting course
during a direct engagement. Coca-Cola quickly assessed the situation, used feedback
to adapt, and managed the crisis effectively, ensuring it maintained its position in the
market.
5. Strategic Alliances and Coalition Building:
Just as in Vigraha, where alliances can play a crucial role in determining the outcome
of battles, both PepsiCo and Coca-Cola have sought alliances to strengthen their
market positions. For instance, PepsiCo formed partnerships with fast-food chains like
Taco Bell, KFC, and Pizza Hut, expanding its reach through strategic alliances in the
food service industry.
Coca-Cola, too, has made strategic alliances with a variety of global brands, ensuring
its products are available in diverse markets. These alliances act as reinforcements,
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