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RADIOSHACK: PAVING A NEW SALES CHANNEL

SITUATION

While the awareness of RadioShack was strong, the percentage of the population that visited a RadioShack at least once a year was not. Unfortunately, this extended online as well, where RadioShack performed well below industry norms. RAZOR was asked to plan a Direct Response TV communication strategy with two client-driven objectives: Save on television media costs by buying DRTV units, and drive retail traffic by using spots with just enough of a direct response component (a call center number) to qualify for lower rates.

FOUNDATION

RadioShack's goal of driving retail visits via DRTV was a great start, but RAZOR felt that DRTV could be used to establish an entirely new selling channel for key RadioShack products. Offering interested (but historically non-visiting) consumers a chance to purchase directly via an 800-number, would open the brand to a significant new market. Then, people who didn't visit RadioShack could purchase RadioShack products.

BLUEPRINT

To prove the viability of this new selling strategy, RAZOR presented RadioShack with a direct-response blueprint. Initially, RAZOR reviewed relevant products advertised via TV and radio during 2002 as well as new SKUs available in the channel. Each product was scored based on a set of criteria that defined its fit within the direct sales channel. Linking this to RAZOR recommendations for seasonality, a DRTV creative approach, media cost analysis, and channel management and measurement, RadioShack had an analytically sound, market-ready strategy to reach an entirely new consumer segment.

RESULTS

The initial RAZOR-managed DRTV campaign met the client's sales and savings objectives. Additionally, RadioShack continued to use DRTV while integrating several of RAZOR's defined criteria for product selection and creative development.

RadioShack

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