If you haven't noticed it yet, some RadioShack stores across the country are disappearing just like that old electronics giant Circuit City did years ago. RadioShack may be able to linger while their company undergoes restructuring, but their outlook remains uncertain in the eyes of consumers. The majority of RadioShack's problems, which included eleven consecutive quarterly losses, stems from their poor marketing strategies and a big identity crisis. It goes without saying that brand identity and effective marketing are one of the best ways to keep a company alive. So where did RadioShack go wrong?
1. Brand Confusion
Back when RadioShack got into the retail game they were a prime place for consumers to buy electronics, but after stiff competition from other retailers their name was no longer a household one. Because of this, the store tried to rebrand itself as "The Shack" around 2008 but this name was a huge marketing mistake. Critics and consumers did not see the name as "cool," and it created quite a bit of confusion because it didn't have much to do with the company or brand. Also, a "shack" didn't exactly conjure up an image of cutting-edge products.
2. Product Confusion
Did consumers even know what RadioShack was selling? One of the biggest mistakes that the company made was trying to get into too many already-saturated segments of the market. Were they selling cellphones? Radio equipment? Home electronics? RadioShack never did a good job of marketing its brand and sending a consistent message to consumers. On the other hand, they managed to steer away from their original customer base of DIY electronic hobbyists – not a good move when the company hadn't secured other loyal customers in their stead.
3. Outdated Stores
If someone wants to walk into a store that hasn't changed since the 1990s, then RadioShack is the place to be. Consumer trends have vastly changed in the past few years, and a bad store layout can result in a decline in traffic. RadioShack was too slow in revamping and remodeling their store floor plans and didn't encourage customers to take a look at the new versions. Simply put, consumers don't want to browse a store that's set up like a museum when they're looking for modern electronics.
4. Slow Sailing into E-commerce
In the marketing world, the Internet matters; if successful marketing tactics are not applied online, you can bet that shoppers won't visit your site. That being said, RadioShack was one of the slowest retailers to move online at all. Other competitors like Best Buy and Walmart began operating e-commerce sites in the late 90s, but RadioShack didn't let shoppers buy products online. This slow entrance into the online world continued throughout much of the early to mid-2000s and, by that time, online consumers already knew RadioShack wasn't as capable as other retailers with websites.
While RadioShack's future is up-in-the-air as their file for bankruptcy unfolds, one thing is for certain: businesses need to avoid their marketing mistakes! Leave your strategies to one of the best marketing companies in Philadelphia to prevent similar failures.
1. Brand Confusion
Back when RadioShack got into the retail game they were a prime place for consumers to buy electronics, but after stiff competition from other retailers their name was no longer a household one. Because of this, the store tried to rebrand itself as "The Shack" around 2008 but this name was a huge marketing mistake. Critics and consumers did not see the name as "cool," and it created quite a bit of confusion because it didn't have much to do with the company or brand. Also, a "shack" didn't exactly conjure up an image of cutting-edge products.
2. Product Confusion
Did consumers even know what RadioShack was selling? One of the biggest mistakes that the company made was trying to get into too many already-saturated segments of the market. Were they selling cellphones? Radio equipment? Home electronics? RadioShack never did a good job of marketing its brand and sending a consistent message to consumers. On the other hand, they managed to steer away from their original customer base of DIY electronic hobbyists – not a good move when the company hadn't secured other loyal customers in their stead.
3. Outdated Stores
If someone wants to walk into a store that hasn't changed since the 1990s, then RadioShack is the place to be. Consumer trends have vastly changed in the past few years, and a bad store layout can result in a decline in traffic. RadioShack was too slow in revamping and remodeling their store floor plans and didn't encourage customers to take a look at the new versions. Simply put, consumers don't want to browse a store that's set up like a museum when they're looking for modern electronics.
4. Slow Sailing into E-commerce
In the marketing world, the Internet matters; if successful marketing tactics are not applied online, you can bet that shoppers won't visit your site. That being said, RadioShack was one of the slowest retailers to move online at all. Other competitors like Best Buy and Walmart began operating e-commerce sites in the late 90s, but RadioShack didn't let shoppers buy products online. This slow entrance into the online world continued throughout much of the early to mid-2000s and, by that time, online consumers already knew RadioShack wasn't as capable as other retailers with websites.
While RadioShack's future is up-in-the-air as their file for bankruptcy unfolds, one thing is for certain: businesses need to avoid their marketing mistakes! Leave your strategies to one of the best marketing companies in Philadelphia to prevent similar failures.