October 29, 2009 | Category: Branding | Tags: Electronics Logo Design

Taking the ‘Radio’ Out of Radio Shack; Rebranding for the Twenty-First Century

Radio Shack is one of many companies that have been dealing with a serious branding crisis. The first and most major problem is its name and the electronics logo; with radio hobbies largely a thing of the past, few people associate the word ‘radio’ with the latest electronics, which is what the company aims to sell. Another problem is the store’s market in general.

Going up against larger electronic stores such as Best Buy as well as the big box retailers that are finding success in the electronics industry can be daunting for a store that has traditionally been a hobbyist store.

There is no doubt that Radio Shack is in need of a new brand, and that is why they will be undergoing the arduous process of rebranding over the next few months. This branding will have several components. First, Radio Shack is dropping the ‘radio’ and becoming merely ‘The Shack’. This change of names removes the obsolete element from the name while still retaining one of the key words.

Another key part of Radio Shack’s rebranding will involve the in-store signage. These will come from a more humorous slant than the previous signs to be friendlier to the younger crowd they are targeting. The signs will also promote the concept of Radio Shack, or ‘The Shack’, as the go-to place for electronics, a less intimidating alternative to the big box stores currently dominating the market. The idea to promote customer trust and a sense of friendship is almost always a good one.

To increase brand visibility, Radio Shack will sponsor famous bicyclist Lance Armstrong’s cycling team. This will get the word out among the young, hip crowd that Radio Shack wants to usher in their doors. Their continued involvement in and support of Armstrong’s Livestrong cancer research and awareness campaign will further make customers eager to shop. These combined with a new advertising campaign will get the word out about Radio Shack’s total image overhaul.

Radio Shack has not neglected products in this overhaul of the corporate brand. The store has negotiated for the rights to sell products from most of the major cell phone carriers. It also plans to release a new line of low cost wireless goods. The company clearly is trying to promote the idea that they are not a hobby shop, but rather a store where the average consumer can find products that are relevant and useful in their daily lives. This, hopefully, will create a more diverse customer base.

Whoever said, “Image is everything” wasn’t too far off. While no rebranding can singlehandedly turn around a company, it’s easy to see that Radio Shack has made a great start. This professionally redesigned brand is sure to draw in new customers. If the products and service are consistent with the brand, a loyal fan base will soon develop. A branding consultant brings not just a valuable set of skills, but the power to change a company into a place that their customer base wants to visit. This will give Radio Shack, and anyone else who hires a branding consultant, a huge advantage in even the tightest market.