<a href="/2009/08/theshack.gif"><img class="alignnone size-full wp-image-562" title="theshack" src="/pullinc/wp-content/uploads/2009/08/theshack.gif" alt="theshack" width="450" height="127" /></a>
<h2><span style="color: #808000;">The Sans Radio SHACK Attack.</span></h2>
<h2><span style="color: #808000;">I’m amused with the new name adopted by <a href="http://www.radioshack.com/home/index.jsp" target="_blank">RadioShack.</a><strong> </strong>You can check out the promotional roll-out events <strong><a href="http://www.radioshack.com/theshack/" target="_blank">here</a>.</strong> In an effort to be more relevant in the challenging retail environment of consumer electronics, I think RadioShack’s intention to transform itself into a more compelling and “hip” retailer is a good idea long overdue.  Alas, it might be too little, too late.</span></h2>
This name change seems to be a half-hearted effort with a half-baked result. My intuition tells me RadioShack’s management is still not quite sure what they want to become, or if they are even doing the right thing. Of course, I am not privy to the real facts behind the story, but as a blogger with an informed opinion, I think this provides an interesting example of why a name change must be an “all-in” affair. I rolled my eyes at the CMO’s hedging <a href="http://adage.com/article?article_id=138297" target="_blank">remarks</a> that this is not really a name change?  Then what is it–advertising?

Let me begin with the name change to– “The Shack”.  (Interesting that it coincides with Pizza Hut’s recent moniker change to “The Hut”.  I wonder if they are using the same ad agency?)  It seems to me, management must believe the key descriptor in the name (radio) is no longer an accurate handle that describes a relevant, and emotionally powerful customer-facing frame of reference.

On the surface, one might agree with the “logic” behind this rational, we are way past the glory days of transistor radios, CB’s and home radio operators for which this brand is iconic. One could make a convincing case for a name change. However, this effort seems blatantly superficial!

The hard truth remains– people have stopped caring about RadioShack (and Pizza Hut too), pure and simple. Here’s what has not appeared to have changed much at THE SHACK:

<strong>oh-hum store environments with generic products</strong>

<strong>a third-tier electronics component retailer with a low-value consciousness and blurry positioning.</strong>

<strong>a management culture that continues to value safety and security, over love and innovation.</strong>

I’m not being critical of the name change to “THE SHACK”.  In my opinion, (aka rant) I don't think it matters what you call them. I’m just saying that customers care more about the experience of value your brand provides them. You can’t change the name and not the substance behind the name and expect that alone will make your business matter to people again.

A highly targeted positioning, an emotionally rich and relevant value proposition, and an unforgettable experience of value will comprise a brand worthy of customer advocacy. Best Buy has these bases well covered, plus their name says it all.

By the way, you may not realize this, but all the mobile communication products and services that are a large part of the merchandising mix at the now RadiolessShack are, in fact, just a newer type of radio. Go figure…

<strong> What’s your take on it?</strong>