online, by phone, or using a smartphone app. You can choose the car you want, when and where you want it, and drive it for as little as $9.00 an hour, including gas, insurance, and free miles. When youre ready, walk to the car, hold your Zipcard to the windshield to unlock the doors, and youre good to go. When youre done, you drop the car off at the same parking spot, Zipcar worries about the maintenance and cleaning.

Zipcar not only eliminates the hassle of urban car ownership; it also saves money. By living with less, the average Zipster saves $600 a month on car payments, insurance, gas, maintenance, and other car ownership expenses. Thats like getting a $10,000 a year raise after taxes. In an era when consumers have become more frugal, this is a big plus, especially for those looking to live more minimally.

Zipcar isnt for everyone, it doesnt try to be. Instead, it zeros in on a narrowly defined urban lifestyle positioning. For starters, Zipcar pods (a dozen or so vehicles located in a given neighborhood) are stocked from a portfolio of over 50 different models that trendy urbanites love. The vehicles are both hip and fuel efficient: Toyota Priuses, Honda CRVs, MINIs, Volvo S60s, BMW 328s, Toyota Tacomas, Toyota Siennas, Subaru Outbacks, and others. And Zipcar now has plug-in hybrids, fully electric vehicles, and full-size vans for big jobs. Each car has its own personality, a name and profile created by a Zipster. For example, Prius Ping jogs in the morning; doesnt say much, whereas Civic Carlos teaches yoga; loves to kayak. Such personal touches make it feel like youre borrowing the car from a friend, rather than being assigned whatever piece of metal happens to be available.

To further eliminate hassles and make Zipcar as convenient as possible, company promotional tactics are designed to appeal to city dwellers. The companys goal is for Zipsters to not have to walk more than seven minutes to get to one of its car pods, no easy task. Zipcars management realizes that even with targeted Web and mobile promotions it is hard to target at a block level. Zipcar sends street teams to understand the urban blocks. They use local ads and transit advertising. They use an on-the-ground guerilla-type marketing approach.

With its eye sharply focused on maintaining the Zipcar image, the company is consistently developing new features that appeal to the tech-savvy urbanites. Recently, the company has shifted its focus a bit from being a Web-based business to be an overwhelmingly mobile concern. Soon, Zipcars will have in-car device holders for smartphones that will allow for easy plug-in and hands-free navigation. The interface between the cars and the users will allow playlists stored on the phone to be played through the cars audio system. Users will be provided with information specific to the vehicle they are in, a personalized deal recommendation service, and a real-time feedback loop where users can report on vehicle cleanliness, damage, and fuel levels.

Fostering Brand Community

Zipcars 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. Its like were 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 management has proven to be a good market for Zipcar. As word of mouth spreads on savings that Zipcar can bring, organizations wanting to get rid of their fleet of cars are signing up with Zipcar. How is Zipcars 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 five years, Zipcars annual revenues have rocketed nearly fivefold, 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, theres plenty of room to grow. As more cars are added, Zipcars reach will only increase.

Evaluate Zipcar based on benefit-based positioning.

Compare Zipcars positioning based on benefits to Zipcars positioning based on beliefs and values. Which is stronger?