After being one of the oldest electronics retail chains, and having a successful 88-year run, Radioshack is now set to re-introduce itself as just “The Shack” — at least in its ads.
The retail chain is spending a huge dent of its $200 million ad budget for this year on new TV and Web Ads to introduce “The Shack” as its new name for advertising and marketing purposes. Signs outside of stores will remain RadioShack. The company hopes this popular rebranding technique will allow it to hold onto to its brand heritage and attract more tech-savvy shoppers.
“When a brand becomes a friend, it often gets a nickname — take FedEx or Coke, for example,” said Lee Applbaum, RadioShack’s chief marketing officer, in a statement. “This creative is not about changing our name. Rather, we’re contemporizing the way we want people to think about our brand.”
As part of its new branding, the chain recently expanded its own proprietary brands and added more national brands such as T-Mobile. It’s also signed a marketing agreement with Lance Armstrong, who next year will compete in the Tour de France and other races under Team RadioShack. “We have an iconic American legacy brand,” says Lee Applbaum, chief marketing officer at RadioShack. “This is a way to ensure that customers understand our innovation in products with a focus on mobility, leading brands and knowledgeable associates.”
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