13 AUG. 2009

RadioShack's Re-Branding: "The Shack"

RadioShack, the 88-year-old consumer electronic chain, is undergoing some major changes to refresh its brand. The main re-branding effort is the change of name from RadioShack to “The Shack”.

The new name will be used in all brand communications except the signs of the stores which will remain as RadioShack. Actually, “The Shack” has been the brand’s nickname for a long time among its employees and customers. To some, having “Radio” in the name ties the brand to old technologies, whereas The Shack is more fresh and upbeat. At the same time, critics have pointed out the original meaning of the word shack, equating it with a hut or a shanty, and also that it is the nickname for the basketball player Shaquille O’Neal. It is hard to say at this point just how consumers will react to the name change.

 RadioShack’s re-branding is accompanied by other modernization efforts to change the way people think about the brand. For example, they will broaden their retail space and concentrate more on mobile products to attract tech-savvy customers and better compete with retailers such as Best Buy.

The re-branding is supported by a wide television, print, and digital ad campaign, launch events in New York and San Francisco, and a marketing agreement with bicyclist Lance Armstrong. All of these efforts demonstrate RadioShack’s objective of modernizing their brand and making it more relevant for its consumers. It will be interesting to see the results of RadioShack, or should we say The Shack’s, re-branding.

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