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Design Master Kiska Stresses the Need for Product Differentiation
2007/10/29
One way to establish a motorcycle brand in the global market quickly is to spend a lot of money and struggle through a long and arduous learning process. Or you could have participated in the 2007 Taiwan International Motorcycle Industry Show (Motorcycle Taiwan) and listened to the wise words of Gerald Kiska, CEO of the world-famous Kiska Design of Austria, who shared his insights and successes via a talk on the topic of "Design Desire."
 | | Gerald Kiska, a design master in the motorcycle industry and the key man in KTM`s successful turnaround |
Kiska Design is one of the world`s foremost designers of powered two-wheelers (PTWs). It was responsible for the overall branding project for the globally known high-end motorcycle brand KTM; in 1992 KTM was bankrupt, but it has now become the second-largest motorcycle company, and the fastest-growing, in Europe.
In an hour-long presentation at Motorcycle Taiwan 2007, Kiska shared his know-how and experience in industrial design. He explained the meaning of good design; his company`s secret weapon, the IDD (Integrated Design Development) approach; and the success stories of KTM and Generic, another rising Austrian motorcycle brand.
Quoting the example of the iPod MP3 player, Kiska explained the significance of a good design. Around 2,000 to 3,000 makers of MP3 players in mainland China account for only about 30% (in terms of sales value) of the global market, he commented, while a single company, Apple, now accounts for the other 70% thanks to its well-designed iPod.
 | | Analysis of KTM`s targeted market segment |
What do you choose between a China-made equivalent and an iPod MP3 player? A lookalike cruise motorcycle and a Harley Davison? A Kia and BMW sedan? Good design, Kiska emphasized, yields a premium price and ensures recognition (everyone who sees the McDonald`s "golden arches," for example, knows immediately what is available there).
Kiska told his audience that with the IDD approach, which encompasses product design, communications design, environmental design, and overall strategy, his company succeeded in making KTM the second-largest and fastest-growing motorcycle manufacturer in Europe.
The Importance of Being Different
The design master also introduced some of the strategic design processes used with the KTM project. In 1991, KTM filed Chapter 11 and the following year was bought by the current owner, who tasked Kiska Design with building the new acquisition into a pure motorcycle brand. Kiska helped KTM to differentiate itself as an aggressive premium off-road brand distinct from a group of strong competitors, including Ducati (a premium brand with no off-road heritage), BMW (a premium brand mostly for the travel segment), Honda (an industry leader with price competitiveness in every segment), and Harley Davison (a premium brand in the cruiser bike market using standard technology).
 | | Some of KTM`s eye-catching products |
Since then, KTM has occupied a clear position in the market as an aggressive premium brand; adopted a strategy of from off-road to on-road vehicles; and presented a clear message to the world: "Ready to Race," which is a combination of the four concepts of purity, performance, adventure, and extreme activity.
In the past, Kiska pointed out, KTM products were undistinguishable from others, with similar body panels and parts, color and graphic treatment, and proportion and form. So in 1993 Kiska developed a visual product language to differentiate KTM from the rest of the pack, including edge-design language, Z-design body panels, and orange color identification (making it easy for you to spot one on a crowded rack track).
In 1994, KTM decided that it needed a strategy to bring it into the on-road segment. Kiska Design`s job then was to evolve the off-road brand into an equally competitive on-road brand; develop communications tools to prepare customers for the change; and offer intermediate product solutions to bridge entry into the new segment. The result was the Duke 1, a high-end bike which allowed KTM to move into the on-road segment without becoming too different and distant from its core brand strategy. The right product, Kiska said, enabled customers to accept KTM as an on-road brand; it became the first manufacturer to produce a Supermoto (a motocross and road-racing crossover model); and established its position as the pioneer, and leader, in the Supermoto segment.
During the period between 1995 and 2006, KTM`s "successful products bred successors," enabling the company broaden its product range, expand aggressively in the on-road segment, and boost growth.
Figures tell the result: KTM`s motorcycle sales soared from 6,976 in 1992 to 84,421 in 2006.
In answering a question about design trends in the motorcycle industry, Kiska said that there is no trend because every company has to find its targeted customer group and design niche products. In recent years, he said, bold expression and freedom of design have been encouraged.
 | | The X-Bow sports car that Kiska designed for KTM |
"The average age of motorcycle riders in Europe has risen to 40 to 50 years, which splits the market into mainly old and young customer groups," Kiska commented. "In order to help our customer achieve success, Kiska Design has a strong design team consisting of personnel who have been recruited from different nations so that they can deeply understand different cultures and customer tastes in different regions, conduct intensive market surveys, collect comprehensive market data, and subject it to sophisticated analysis so as to map out comprehensive design strategies.
"The so-called `polarizing design` is one thing that makes some people like the products very much but some perhaps to hate them. This means `market niches` and `to be different` too."
(by Quincy Liang)
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