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R'Shack Dropping 'Radio,' Sort Of

By Alan Wolf -- TWICE, 8/24/2009

RadioShack is repositioning itself as “The Shack” in an expansive marketing campaign that launched this month.

But the company insists the effort, which encompasses TV, print and digital media, merely underscores an existing nickname, and isn't about changing the brand or the sign over storefront doors.

“When a brand becomes a friend, it often gets a nickname,” like FedEx or Coke, RadioShack chief marketing officer Lee Applbaum said in a statement. “Our customers, associates and even the investor community have long referred to RadioShack as 'The Shack,' so we decided to embrace that fact and share it with the world.”

“This creative is not about changing our name,” Applbaum said. “Rather, we're contemporizing the way we want people to think about our brand. The Shack speaks to consumers in a fresh, new voice and distinctive creative look that reinforces RadioShack's authority in innovative products, leading brands and knowledgeable, helpful associates.”

He said the campaign will also shift the focus from the chain's traditional association with cables, parts and batteries to its wireless and mobility offerings.

About 30 percent of RadioShack's annual sales are generated by its wireless business, which faces increased competition from Best Buy's freestanding and in-store Mobile shops and an expansive network of carrier-operated stores.

RadioShack beefed up its wireless offering this month by adding T-Mobile to its carrier roster, which also includes AT&T, Sprint Nextel and Verizon's Alltel unit.

Applbaum acknowledged in March that “the brand needs burnishing,” and said the recently announced partnership with cyclist Lance Armstrong “generated a great deal of consumer excitement and a reappraisal of our brand.”

Greg Stern, CEO of Butler, Shine, Stern and Partners, RadioShack's new ad agency, said, “Everything about the advertising — the media, format, style, music and tone — will contribute to a new interpretation of the brand.”

To kick off the campaign, RadioShack held simultaneous public events in New York's Times Square and San Francisco's Justin Herman Plaza earlier this month. The three-day “Shack Summer Netogether” featured live music, contests, celebrity appearances and 17-foot-tall laptops equipped with Web cams that streamed images of the activities online and to each city.

The rebranding campaign also includes in-store signage touting “The Shack.”

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