Comments on: Have You Been To Or Plan To Go To “The Shack?”

By: Ed Sugar

Ed Sugar — Sun, 27 Sep 2009 17:02:55 +0000

I was just on ESPN.com and there were two or three banners ads for “G” (the product formerly known as Gatorade). Has this re-branding been a success? I know Q2 sales were below expectations and dragged overall sales volume for parent company Pepsi.

Still, will “G” catch on or has it “jumped the shark”?

By: Sean Jordan

Sean Jordan — Thu, 24 Sep 2009 21:58:25 +0000

I have to admit that I don’t stop in RadioShack often because they are expensive and generally don’t have what I want. I also don’t like their salespeople; they’re either too pushy or too indifferent. They don’t seem to have a lot of interest in serving customers. This has been true at every store I’ve been in, so I know it’s not just a St. Louis thing.

Trying to “hip up the image” seems like a bad move to me. There’s a real opportunity right now to provide electronics and service to people who are older and not tech-savvy. RadioShack has a brand name that’s established and trusted, and they have expertise. Going after this market segment would be MUCH smarter than trying to go after the younger demographic (particularly since younger people tend to buy electronics online anyhow).

As was mentioned before, this is just as ill-advised of a move as rebranding Pizza Hut “The Hut.” I’m really puzzled about why either of these brands’ managers would want to throw away decades of good branding in favor of trying to appeal to the fickle youth markets.

By: Bob Graham

Bob Graham — Thu, 24 Sep 2009 16:48:25 +0000

Oh, you guys are killin’ me…

As Karen mentioned, I used to be a Market Research Manager at RadioShack. My name’s Bob and I’m a Shacker, a term I use with pride.

When I was at RadioShack there was a viable and successful business model: 7,000 small stores (“90% of the country was 5 minutes away from a RadioShack”, we used to say), and the stores were known for providing advice on electronics as well as stocking small parts and electronics. “You’ve got questions, we’ve got answers” was our motto. RS was the third largest seller of Cellular Phones (this was before the Sprint and Verizon stores were so widespread) and lets not forget who introduced the personal computer to America. When I took geeks to the RadioShack museum, they would get all misty over the TRS-80.

RadioShack experimented with big box stores like Incredible Universe and Computer City, but I think the time wasn’t right.

As for “The Shack” the new marketers at RS are trying to build off the colloquial references that consumers use without giving up the brand equity that exists for the retailer. RS used to call itself “The Shack” in it’s advertising in the 70′s. I can still remember Charles Napier saying “The Shack’s got everything you need!” and thinking, “Hey there’s that guy from the Russ Meyer movies…”

If I were writing the campaign, I would have talked about the Company’s history and reputation for expertise. (Few people know that “RadioShack” is actually a nautical term and refers to the location on the ship where the electronics are.)

Last time I was in a RadioShack store; last week. Next time I’ll visit a RadioShack store; probably this weekend.

By: Karen Flannery

Karen Flannery — Wed, 23 Sep 2009 20:58:56 +0000

I am surprised that no one commented about hoping The Shack was on the beach so we could see Merrill in a bathing suit with no shirt on…

I am also surprised we have not heard from Bob Graham – former MR at “Radio Shack”.

By: Fee Sepahi

Fee Sepahi — Wed, 23 Sep 2009 13:47:41 +0000

Given that it was a re-branding effort, the focus was mostly on that name, but if I recall correctly (not likely…:-) ) The words Electronic Shed, Radio Barn, Electronic Outlet, Computer Shack, Everything Shack, Everything PC, Everything Electronic, and some other obscure words were all polled. Given their business model, of carrying a whole lot of different components, the majority of their focus was attempting to get away from a name like “Radio Shack” that empathizes Radio, or PC…etc. They knew they couldn’t be a Best Buy or a Circuit City, Staples etc. in the short term, but given their niche market, as no one else does what they do, they wanted a name that could grow with them, generically!
I wish I could recall the facility I was in, on City Line Ave. That would probably help

It was one of my experimental, immersion, participation efforts, to find out more about the MR industry as a whole, early on! The $100 helped too and I was fascinated!

By: Alan

Alan — Wed, 23 Sep 2009 01:03:54 +0000

I don’t really like the name but their thinking was to appeal to a younger audience. I do shop there and in fact it is the only place I’ll ever go to for cell phone upgrades. I’m with Sprint and The Shack always has better deals than dealing direct with Sprint.

By: Marc Silverberg

Marc Silverberg — Tue, 22 Sep 2009 23:59:48 +0000

This is just a guess, but…this seems like a clear brand management decision. And in the low risk world of a large, corporate retailer, probably the only decision that could be made.

You need to update your name to rid yourself of the outdated perception of a 1950′s “Radio” store, yet maintain the relationship with your customers and retain some of the decades of brand equity you’ve built. That’s the hard part that none of us know about. What did the research say about all the other names they considered and their customers perception of it. Unfortunately, naming research among them would probably have shown The Shack was a MUCH less risky choice.

The new name also meets one of the key ingredients of a long-term successful brand name – flexibility. And it also communicates many of the key benefits of the brand – low cost, wide variety of products. (probably not quality, but neither did Radio Shack.)

And most importantly, it saves money. To properly re-brand under a new name would cost millions of dollars. And going with The Shack, overcomes what has become one of the most difficult issues to deal with in naming, especially if there’s a limited budget: they owned the URL. Interestingly, they registered it in 1997.

It may not end up being the thing that helps them succeed, but in many ways, it seems to me like the obvious choice.

By: Merrill Dubrow

Merrill Dubrow — Tue, 22 Sep 2009 18:44:06 +0000

Fee,

That is amazing that you were at the Focus Groups. No question they needed to change the name but I question “The Shack” Do you recall any other names they discussed or words they were using to describe the shopping experience?

Thanks.

Merrill

By: ron crane

ron crane — Tue, 22 Sep 2009 17:29:27 +0000

“The Shack:- Must be a burger or rib joint!
The Name- No less compelling than the misnomer Radio Shack. For a better name, I defer to the creatives and focus groups. I’m just an advertising lawyer!
Shopping there. If its a cable or splitter or whatever, they are the only ones around to go to. Maybe that’s how they stay in business.
In general, they have it, are no bargain, and the employees almost universally bring to mind my wife Paula’s comment, “It makes you wonder who is unemployed”

By: VPN

VPN — Mon, 21 Sep 2009 22:39:09 +0000

I believe this name change is just one more example of Corporate America trying to make in-roads with the younger crowd. The Shack sounds far more hip and cool than Radio Shack. I mean, who listens to the radio any more? Nowadays, it’s either the iPod, Sirius/ XM, or maybe something streaming off the Internet.

Beyond all of that, there’s a lot more than radios (and radio parts) in The Shack — and there has been for years. It was time for a new name.