As an automotive giant with a diverse portfolio of brands, Volkswagen Group has embarked on a mission to enhance the design differentiation among its marques. This strategy aims to amplify individual brand identities and further captivate their customers.
The Strategy: Success by Design
During the Volkswagen Group Media Night event on the eve of the 2023 IAA Mobility show in Munich, the company announced its new design strategy. Branded as "Success by Design," this initiative aims to sharpen each brand's design identity, thereby creating striking and distinctive products that delight customers.
VW Group CEO Oliver Blume announced, "Good design is an essential factor in delighting our customers. With sharpened design identities, we design striking products and increase the differentiation of the brands. In their exterior, interior, and digital experience."
A Design-Driven Company
Under this strategy, Volkswagen Group aims to transform into a design-driven company. The design heads of each brand will now work more closely with their respective CEOs to ensure a holistic implementation of the design principles. This will range from corporate identity to product design to digital offerings.
A Portfolio of Ten Brands
The Volkswagen Group boasts an extensive corporate umbrella sheltering ten brands: VW, VW Commercial Vehicles, Skoda, SEAT, Cupra, Audi, Lamborghini, Bentley, Porsche, and Ducati. Each brand is poised to exhibit its unique personality through its design principles.
Design as a Key Differentiator
Design has emerged as a key differentiator in the automotive sector, playing a crucial role in creating an emotional connection with customers. The company's refined design principles aim to enhance design quality and brand differentiation.
Showcasing the Strategy: Volkswagen ID. GTI Concept (2023)
The ID. GTI Concept from Volkswagen is a prime example of this strategy in action. It looks substantially different from other models in the group, such as the Cupra DarkRebel, despite both models sharing the same MEB Entry underpinnings in their forthcoming 2025 production versions.
The Cupra DarkRebel: A Vision of Provocative Design
Contrasting with Volkswagen's long tradition, the Cupra DarkRebel represents the pinnacle of Cupra's design philosophy. The show car pushes design boundaries, offering a glimpse into how cars of the future could be designed and created.
The Importance of Brand Differentiation
With more than 100 million customers worldwide, customer satisfaction remains a top priority for the Volkswagen Group. Strong brands with clear differentiation are key to this success, hence the company's shift towards becoming a design-driven entity.
Design as an Emotional Language
Michael Mauer, Head of Group Design and Head of Porsche Design, underscored the strategic role of design in shaping brand identity, consistency, and innovation. He noted that in an era where traditional unique selling propositions are becoming less important, design has taken center stage as one of the most important differentiating factors between brands.
Overcoming Challenges in China
Volkswagen Group's new design strategy is also a response to challenges in the Chinese market, where sales of the company's electric models have been slower than expected. By enhancing the design differentiation among its brands and increasing the appeal of its electric offerings, Volkswagen aims to regain its footing in this crucial market.
Forward-Looking Design Strategy
The Volkswagen Group's forward-looking design strategy focuses on the further development of established model series, technological lighthouse projects for electric vehicles, and iconic products. As a design-driven company with ten strong, clearly differentiated brands, the group aims to cover all customer segments to sustainably expand and secure its competitive edge.
Through this comprehensive design strategy, the Volkswagen Group is reinforcing its commitment to creating unique, highly emotional vehicles that resonate with customers. By enhancing design differentiation among its brands, the group is poised to strengthen its position in the global automotive market.