An old brown shoe within the consumer electronics industry, RadioShack was redirected away from slow-turn private label specialty goods to fast growing name-brand cellular phones, satellite TV and convergent devices. A host of new strategic partnerships were brought in with Sprint, Verizon, HP and MSN products that were combined with RadioShack’s great service in a long-running “You’ve Got Questions, We’ve got Answers” campaign starring Howie and Terri.
Research showed that RadioShack’s top of mind brand awareness has declined but that its sales people--who understood consumer terms like “whatchamacallit” and “thingamajig”--provided outstanding personal service in solving technology problems. The challenge was to redirect the product focus away from clunky, private label, slow-growing parts and accessories, towards name-brand wireless phones and complex emerging technology that RadioShack’s knowledgeable sales associates could patiently explain.
- Move from a rarely visited destination selling obscure parts and accessories, into a contemporary store specializing in name-brand wireless phones and electronics, and Answers
- Wireless phones were exploding in popularity but many consumers were hesitant to buy due to confusing and threatening (fear of runaway spending) wireless calling service plans
- A re-launch advertising campaign was needed that would resonate with middle America, announce a string of new strategic partnerships (Sprint, Verizon, HP and MSN) and introduce new brand-name products--along with friendly, trusted experts to explain exactly what each customer needed
Strategy and Solution
- Using funding provided by strategic partners, RadioShack upgraded its tired, slate-grey stores, and displayed popular, new name-brand products inside small Sprint, Verizon, etc. branded “stores-within-a-store”.
- Prior to the launch of its new “You’ve Got Questions, We’ve Got Answers” ad campaign, RadioShack doubled down on training and certified its 35,000 sales associates in new wireless phone, internet and computer technologies (to make sure associates would have the Answers as promised)
- Used a celebrity advertising campaign to modernize the Brand, with celebrities Howie Long and Teri Hatcher arguing over technology frustrations and then getting help and cool, new products from RadioShack’s friendly experts
- RadioShack grew from $3.5 to $5 billion in sales in 5 years (stock appreciated over 800%) and to number one market share for wireless phones/service plans at retail (at 22% market share, RadioShack sold more phones than all other competitors combined)
- Successfully introduced constant stream of new products including branded goods from partners (IBM, Nokia, Motorola, Compaq, Sprint, DirecTV, Verizon, HP, and RCA) and new private label brands like Zip Zaps micro RC cars
- Revitalized RadioShack’s toy business with exclusive placements in feature films (Stuart Little, Grinch, Spy Kids) and introduction of innovative micro radio-controlled car line (Zip Zaps) that sold over 1 million units after launching this new brand tied to Hollywood movie blockbusters (e.g. Fast & Furious, Transformers, Spiderman, etc.)
"The "You've Got Questions, We've Got Answers" campaign awakened a sleeping giant at RadioShack and drove sales consistently year-after-year."
- Len Roberts, CEO of RadioShack