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Home » The Power of Strategic Rivalry
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The Power of Strategic Rivalry

by INSEAD KNOWLEDGE November 19, 2025
by INSEAD KNOWLEDGE November 19, 2025 0 comments 1.1K views 5 minutes read Share
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Done right, referencing your arch-rival in marketing campaigns can drive engagement and sales.
Samsung and Apple. Coca-Cola and Pepsi. McDonald’s and Burger King. These aren’t mere competitors but protagonists in ongoing sagas that consumers follow with genuine interest. Yet, conventional marketing wisdom warns companies to avoid mentioning competitors, especially in a negative light. Our research suggests this advice overlooks a powerful tool: the strategic use of rivalry narratives.


We analysed social media data from 100 brands across 20 product categories and conducted controlled experiments with thousands of consumers. As we wrote in Harvard Business Review, what we found was that when brands reference their true rivals – those with whom they share a storied history – they generate substantially higher consumer engagement and purchase intentions. What’s more, negative messaging about rivals can outperform positive approaches.

Why rivalry narratives captivate
The secret lies in storytelling. Rivalry isn’t ordinary competition. It features the elements that make any narrative compelling: clearly defined characters locked in sustained conflict over supremacy. When brands invoke their rivals, consumers instinctively place these messages within a larger, familiar story arc. See how Pepsi only had to tweet a “#SixWordHorror” about Coca-Cola for consumers to bite.
This is what we call the “rivalry reference effect”. Consumers perceive rivalry-based messages as chapters in an ongoing narrative rather than isolated marketing claims.


This explains why T-Mobile focuses its attacks on Verizon, its arch-rival in the United States, rather than other telecommunications providers, or why Burger King’s campaigns target McDonald’s specifically.
These narratives are more engaging drama than straightforward advertising. They’re easier to follow, more entertaining and emotionally resonant. By tapping into existing rivalry narratives, brands borrow the engagement power of storytelling without having to build that narrative from scratch.

When negativity drives loyalty
Another counterintuitive finding of our study – published in the Journal of Marketing Research – concerns message tone. Decades of marketing research suggest that negative competitor references backfire, violating social norms and triggering scepticism. Our data reveal that negative messaging can work with specific audiences.
Among brand loyalist (i.e. the customers who matter most to long-term profitability), negative messages about rivals significantly outperform positive ones. Positive messages about rivals, conversely, can reduce engagement.
This makes psychological sense. Loyal customers have incorporated their brand preference into their identity. Negative rivalry messaging validates their choice and reinforces their feeling of superiority over “the other side” whereas positive messaging threatens their sense of distinctiveness. But watch your tone: The key is to keep it playful and humourous rather than hostile. Think witty jabs rather than mean-spirited attacks.

Matching messages to audiences
Our experiments revealed that different consumer segments respond distinctly to rivalry messaging, requiring tailored approaches.
Loyal customers: These customers are your rivalry messaging sweet spot. They respond most strongly to negative references about your rivals, showing higher engagement that translates directly to increased purchase intentions. Nowhere is this effect more apparent than brand-owned social media channels, where your follower base skews heavily towards loyalists. The reverse is true: positive rival references with this audience can backfire as your supporters may be confused about why their preferred brand is “being nice” to the enemy.
Neutral consumers: Individuals who purchase in your category but remain brand-agnostic comprise the market’s largest segment. Fortunately, both negative and neutral rivalry messages work with this group, although negative messaging has a slight edge.
Rival brand loyalists: Such consumers are not a lost cause. Occasional gracious gestures towards your rival – congratulating them on milestones or anniversaries, for instance – can demonstrate sportsmanship and potentially soften attitudes towards your brand. PlayStation did it with panache on Xbox’s 20th anniversary (Xbox had a killer reply).

A framework for rivalry marketing
To leverage rivalry effectively, brands must first identify genuine rivals. Not every competitor qualifies. True rivalry requires sustained history, repeated direct competition and widespread consumer recognition of the relationship. Our research found that both market leaders and challengers can deploy rivalry messaging successfully. When category leaders engage established smaller rivals, consumers perceive it as battle between equals rather than bullying.
Once you’ve identified your rival, systematically build your rivalry archive. Document notable interactions, campaigns and competitive moments. This historical record provides material for future messaging while ensuring narrative consistency. The most effective rivalry references feel like organic continuations of an established story.
Help consumers recognise the narrative dimension by incorporating explicit storytelling signals: phrases like “another round in our ongoing battle” or “remember when…” These cues prime audiences to interpret your message within the broader rivalry context, amplifying engagement.
It’s also important to be strategic with the channel and occasion. Deploy negative messaging primarily on brand-owned platforms where loyal customers concentrate. For campaigns targeting broader audiences, both negative and neutral tones work. Reserve positive rival messaging for specific strategic occasions, particularly when you want to reach the rival’s loyalists.
Finally, manage the frequency. Regular rivalry references maintain narrative momentum, but excessive attacks create fatigue and risk damaging your brand’s image.

Avoiding the pitfalls
The boundary between engaging rivalry and inappropriate hostility demands vigilance. First, ensure consumers genuinely recognise the rivalry. If audiences don’t perceive the shared competitive history, negative messaging will register as unprovoked competitor bashing.
Maintain a playful rather than hostile tone. The goal is entertaining competitiveness, not genuine animosity. Consider “prosocial teasing” that acknowledges your rival’s strengths while asserting your superiority.
Prepare for counter-attacks. Effective rivalry messaging typically provokes responses, which actually benefits both brands by extending the narrative and generating additional engagement. The best rivalries feature back-and-forth exchanges where both sides “win” rounds over time.

The competitive advantage of narrative
As consumer attention fragments and traditional advertising loses effectiveness, rivalry messaging offers a distinctive advantage: It activates pre-existing narrative frameworks that audiences already find compelling and may even be emotionally invested in.
The rivalry reference effect is fundamentally about storytelling, and humans are wired to engage with stories. Brands that identify their true rivals and craft compelling narrative-driven messaging gain a powerful tool for cutting through market noise, driving engagement and deepening customer loyalty. In crowded markets where differentiation grows increasingly difficult, your rivalry might be your most underutilised strategic asset.

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