The car rental companies have historically attracted a great deal of consumer criticism about charges, insurances, lack of flexibility etc, which makes the current positioning success of Zipcar even more remarkable and well worth a few ‘3rd button’ thoughts.
Just so that we are all on the same page, by positioning, we mean what the business/brand stands for in the hearts and minds of customers relative to the competition in the marketplace. In our view, positioning can happen at three levels – business model, product/experience and communications – and what is so unusual, so totally extraordinary, is that Zipcar has created real competitive advantage, simultaneously at all three levels. Let’s take a look:
At a business model level, Zipcar have completely disrupted convention:
–by changing the way we think about the business from car rental to car sharing
–by changing the pricing model from those complex, bewildering car rental agreements to an annual fee + hourly/daily all-inclusive charges
–by integrating new, smart, proprietary technology into the business at every step
–by changing the distribution model and making vehicles available near where consumers want them
–by changing the environmental footprint and impact of the category
At a product/experience level, Zipcar have been revolutionaries:
–by offering sought-after vehicles such as the Prius, the Jetta, the Element and the Mini rather than the vehicles selected for you, such as the wonderful Impala
–by targeting urban professionals, many of whom were too young to rent cars from the likes of liability-conscious Hertz, Avis etc
–by offering a modern, efficient and consumer-empowering experience that has resulted in a cult following
–by creating a mission-based brand that has in turn lead to a tangible sense of purpose and authenticity in everything that it does
–by making the entire consumer experience trail both simple and intuitive, especially for Gen Y’ers
At a communications level, Zipcar have been similarly inventive:
–by giving each of the vehicles in its fleet their own personal name (think Jinglebell, Armson, Monty etc)
–through its confident and quirky attitude, from the company name itself to its’ informal slogan “wheels when you want them”
–through its digital and viral roots, the communication is mostly word of mouth and peer to peer
–through inviting their target to participate and be “part of the solution”, they have created a community of cult followers, the Zipsters
–through its amusing and arresting street theater and marketing stunts
As a business and as a brand Zipcar stands today at a crossroads. It has created an entirely different type of ‘car rental’ experience, one that delivers not only intrinsic customer benefits but also broader social benefits. But the company is still in its embryonic stage, it is not yet making money and competitors have (finally) woken up to the Zipcar threat.
The potential market for car sharing is huge and global. The interesting brand question is who will end up driving off with the ultimate prize. To date, Zipcar wins hands down. But the race has only just begun. The fact that ‘Hertz and co’ have been caught off balance will make them even more determined to win the race long-term and they have deep pockets and scale and clout.
But let’s at least award an interim brand Oscar to Zipcar. Their courage and skill have resulted in one of the most innovative and elegant brand solutions that we have witnessed in recent years. And the fact that they have created true competitive advantage at all three levels of positioning (business model, product/experience and communications) is beyond impressive and worthy of a toast.
Well done Zipsters!! Now, let the real race begin.
Simon Williams
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