(Solved by Humans)-Zipcar’s orientation around the urban, environmentally conscious lifestyle fosters a tight-knit...

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Zipcar’s orientation around the urban, environmentally conscious lifestyle fosters a tight-knit sense of customer community. Zipsters are as fanatically loyal as the hardcore fans of Harley-Davidson or Apple, brands that have been nurturing customer relationships for decades. Loyal Zipsters serve as neighborhood brand ambassadors; 30 percent of new members join up at the recommendation of existing customers. “When I meet another Zipcar member at a party or something, I feel like we have something in common,” says one Brooklyn Zipster. “It’s like we’re both making intelligent choices about our lives.” And just like Harley owners get together on weekends to ride, the Internet is littered with announcements for Zipster parties at bars, restaurants, and comedy clubs, among other places. As Zipcar has taken off, it has broadened the appeal of its brand to include a different type of urban dweller—businesses and other organizations. Companies such as Google now encourage employees to be environmentally conscious by commuting via a company shuttle and then using Zipcars for both business and personal use during the day. Other companies are using Zipcar as an alternative to black sedans, long taxi rides, and congested parking lots. Government agencies are getting into the game as well. The city of Chicago recently partnered with Zipcar to provide a more efficient and sustainable transportation alternative for city agencies. And Washington, D.C., now saves more than $1 million a year using Zipcar. Fleet manager Ralph Burns says that he has departments lining up. “Agencies putting their budgets together for next year are calling me up and saying, ‘Ralph, I’ve got 25 cars I want to get rid of!’ ” How is Zipcar’s strategy of positioning itself as an urban lifestyle brand working? By all accounts, the young car-sharing nicher has the pedal to the metal and its tires are smoking. In just the past 5 years, Zipcar’s annual revenues have rocketed nearly five-fold, to more than $270 million. Zipcar has also reached the milestone of being profitable. And with 10 million people now within walking distance of a Zipcar, there’s plenty of room to grow. As more cars are added, Zipcar’s reach will only increase. Zipcar’s rapid growth has sounded alarms at the traditional car-rental giants. Enterprise, Hertz, Thrifty, and even U-Haul now have their own car-sharing operations. Avis also had one. But recently, Avis decided to shut down its own service and buy Zipcar for nearly $500 million. The Zipcar brand will now benefit from cost savings that the large-scale rental service enjoys. Z01_ARMS6788_12_SE_APP1.indd 564 11/04/14 1:52 PM Appendix 1: Company Cases 565 # 149127 Cust: Pearson Au: Armstrong Pg. No. 565 Title: Marketing: An Introduction 12/e Server: C/M/Y/K Short / Normal DESIGN SERVICES OF S4carlisle Publishing Services As for the others, Zipcar has a big head start in terms of size and experience, cozy relationships in targeted neighborhoods, and an urban hipster cred that corporate giants like Hertz will have trouble matching. To Zipsters, Hertz rents cars, but Zipcar is a part of their hectic urban lives. Questions for Discussion 1. Evaluate Zipcar based on benefit-based positioning. 2. Describe the beliefs and values associated with Zipcar’s brand image. 3. Compare positioning based on benefits to positioning based on beliefs and values. Which is stronger? 4. Do you think the acquisition of Zipcar by Avis will be positive or negative for Zipcar?