Working with image consultants Landor Associates; agency Lord, Dentsu & Partners, New York; and a 140-person in-house ad staff, Radio Shack's re-positioning has been thorough and aggressive.
The company's strategy can be defined by its new image-the name spelled out in red with the "R" encircled as representative of its simple product lines-and in two words, says senior VP-marketing and advertising David Edmondson: "Demystify technology."
Along the way the company created a new tagline, "You've got questions, we've got answers," designed to focus on the company's new "retail service concept."
The plan is for the consumer electronics company to focus less on product and more on service and its educated sales force, Mr. Edmondson says.
True to its new mission, Radio Shack has changed its offerings to match its new focus, all without losing its profitability, concept equity or technophile base-a niche that has given the chain visitor rates of 99% of all American households shopping there in the past three years, says Mr. Edmondson.
"We have been creating programs to enhance the consumer's perception of the value provided by Radio Shack," Mr. Edmondson says. That includes carrying branded products from other companies such as IBM*Corp.
Efforts like these helped RadioShack record an increase in same-store sales of 5% in the first quarter of 1996.`Where there is confusion," says Mr. Edmondson, "we see opportunity."