The Shack not picking up the slack
John Wooden said “Never mistake activity for achievement.”
Radio Shack didn’t get the memo.
The electronics retailer, faced with slumping sales and declining market share, decided that the best way to turn that around was to launch new marketing materials and point-of-sale branding the company with the nickname “The Shack.”
They could’ve saved the money.
For whatever reason, companies seem to be in love with rebranding right now. “Oh, sales are slumping. It must be because our brand isn’t “youthful” enough. We’ve lost our core consumers. Our store name doesn’t seem approachable enough… If we shorten our name, sales will return.”
Or, perhaps, Radio Shack’s business model just cannot compete. A specialty store that “specializes” in every type of electronics cannot play with Best Buy. Hell, a big box store with a less innovative staff and marketing campaigns (see also Circuit City), can’t compete with Best Buy.
People didn’t decide that Radio Shack didn’t seem friendly enough. Consumers decided that it was easier to shop online for electronics if they wanted a deal. And if they were out shopping, it’s more fun to go to a 50,000 square foot electronics store with everything (Best Buy), or to buy electronics at the same store where they buy their furniture and their towels (Target or Wal-Mart).
Instead of shortening the brand name, why not address the key reasons that you are no longer competing? (Hint: It’s not your name.)