Tag

RadioShack

Browsing

What: Electronics retailer RadioShack has filed for bankruptcy nearly 94 years after  opening its first store. The retailer agreed with Telco Sprint to cobrand 2,400 of its approximately 4,000 stores. The wireless company will cobrand stores, with Sprint being the primary brand on storefronts and in marketing materials and RadioShack continuing as a “store within a store” concept in up to 1,750 of those.
Why it matters: The move may help Sprint to catch up with competitors T-Mobile, Verizon and AT&T and reach a larger base of Hispanic customers.

descarga (1)Electronics retailer RadioShack filed for bankruptcy, after nearly 94 years of having opened its first store.

The retailer has made a deal with Sprint to sell up to 2,400 of its approximately 4,000 stores.The wireless company will cobrand stores, with Sprint being the primary brand on storefronts and in marketing materials and RadioShack continuing as a “store within a store” concept in up to 1,750 of those.

According to RadioShack, its remaining stores are expected to close.The company’s franchise locations, as well as stores in Mexico and Asia, are not included in the deal.

This move will help Sprint’s aggressive Hispanic marketing ambitions by extending their physical footprint to thousands of Radio Shack stores.

“Today we are the carrier with the smaller amount of stores, we are lacking 500 or 600 stores less than T-Mobile and we’re like 3000 stores less than Verizon,” Sprint CEO Marcelo Claure told analysts on an earnings call on Thursday when asked about RadioShack.

“Sprint and RadioShack expect to benefit from operational efficiencies and by cross-marketing to each other’s customers,” Claure said in a statement.

RadioShack’s bankruptcy announcement is no surprise. The company’s marketing budget has declined in recent years. It spent US $78 million on U.S. measured media in 2013, down from US $88 million a year earlier, according to Kantar Media. Losses have increased and in its latest quarter sales plunged 16% from a year ago.The bankruptcy filing also, comes at a time when many electronics competitors such as Circuit City and Nobody Beats The Wiz died years ago or  Apple have risen  and consumers’ transition to wireless devices.

RadioShack’s losses have increased and in its latest quarter sales plunged 16% from a year ago.

Extra Point for Sprint

KmYyjCQ__reasonably_smallFor Sprint, this a major opportunity to go against Verizon and AT&T, carriers with much larger subscriber numbers and retail locations. The carrier plans to add “at least 500 stores this year. Sprint employees will sell mobile devices and plans on all Sprint brands including Boost and Virgin Mobile.

What are the implications for the Hispanic marketing, particularly on how Telco’s pursue the coveted Hispanic consumer?  “From my point of view this move will help Sprint’s aggressive Hispanic marketing ambitions by extending their physical footprint to thousands of Radio Shack stores.  This move gives them increased awareness and distribution including in Hispanic neighborhoods, but most importantly puts more Sprint employees, many of which will be Hispanic, face to face with potential customers,”Lee Vann, CEO of Captura Group tells Portada.

Read our recent interview with Sprint’s Hispanic Marketing Manager Kymber Umaña.

Sprint’s third quarter results showed revenues of US$9 billion and an operating loss of US$2.5 billion. Sprint added 30,000 branded postpaid customers, an increase after several quarters of consistent subscriber loss.

Austin based LatinWorks had been RadioShack’s Hispanic agency. Sprint’s retail agency is Leo Burnett. Sprint is one of the nation’s largest advertisers, spending US$1.6 billion in the U.S. in 2013, according to Kantar Media.

 

What: RadioShack is planning to close 1,100 stores, after releasing its Q4 financial results.
Why it matters: Sales dropped significantly over the holidays, highlighting the  challenges many brick and mortar retailers face to adapt to the digital age.

radioshackElectronics retailer RadioShack has announced its’ plans to close 1,100 stores , after releasing its Q4 financial results, which showed a huge drop in sales over the holidays, sending its stock down 23%. RadioShack’s sales have fallen mainly due to executive departures, tough competition and an image problem.

Sales at stores open at least a year fell 19 percent in the fourth quarter on weak customer traffic. This resulted in an adjusted net loss of US $1.29 per share from US $0,63 a year earlier, which was much worse than the US $0.13 expected by analysts.

Sales fell to US $935.4 million in the quarter covering the holiday season, from US $1.17 billion in the year-ago period.

The planned closures would leave Radioshack with over 4,000 stores, including over 900 dealer franchise locations. “Our fourth quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues,” said CEO Joseph Magnacca.“We will continue to have a strong, unmatched presence across the U.S. with over 4,000 stores including over 900 dealer franchise locations,” he added.Store closures will be carried out, despite Radioshack’s repeated attempts to survive to substantial market losses in the wireless business and the tech retail arena, which, in turn, were the result of huge changes in consumer electronics retailing as new players like Amazon have aggressively entered the market. In a recent  interview with Portada, Director of Integrated Marketing at RadioShack Javier Figueroa , referred to RAdioShack’s recent rebranding campaign.

 

Radio Shack Hispanic versionRadioShack just announced its new positioning under the “Do It Together” line, the campaign is starting this week in general market media and Hispanic TV, digital and print media outlets. After being part of the American retail landscape for more than 90 years, the iconic RadioShack brand is struggling to survive due to substantial market losses in the wireless business and the tech retail arena, which, in turn, are the result of  huge changes in consumer electronics retailing as new players like Amazon have aggressively entered the market. Portada interviewed  Javier Figueroa, Director of Integrated Marketing at RadioShack,  to ask him how he plans to reverse this trend. Figueroa  is responsible for the strategic vision, research, marketing plan development, launch, ongoing management, and measurement of all Hispanic marketing efforts for the electronics retailer.

Portada: In what way is the “Let’s do it together” brand positioning different from the Let’s Play you announced in Spring of 2013?
Javier Figueroa,Director of Integrated Marketing, RadioShack: “Our previous campaign, “Let’s Play” was an initial step in re-energizing the brand and re-engaging consumers and associates alike with the new RadioShack. The campaign communicated that RadioShack is a place where people go to interact with technology solutions. “Do It Together”, our new brand positioning campaign, is meant to inspire consumers to think big when it comes to technology because RadioShack can help bring those ideas to life. We want consumers to recognize that RadioShack is their neighborhood technology resource — here to help you get it done with the best products, friendly experts and solutions for every budget. Ultimately, we want to encourage exploration and collaboration to help connect consumers with the tech solutions to suit their lifestyle.”

What is the Spanish translation you are going to use for “Do It Together”?
J.F.:“The Spanish translation we will be executing for “Do It Together” is “Juntos Es Mejor”. RadioShack’s new brand positioning reinforces the idea that if you think it’s possible, It Can Be Done, When We Do It Together.”

Hispanic efforts will be supported by Univision and Telemundo. We will also have digital, print and social media placements running to reinforce the brand’s new positioning as well as in-store marketing.

Can you please explain how the Integrated Marketing Campaign will be done in the Hispanic market? What media will be bought?
J.F.:“RadioShack will have four 15-to-30 second ads dedicated to the general market, plus two additional ads targeted specifically to the Hispanic market. These ads are slated to roll out in early February during prime time and sporting events airing in television networks such as Univision and Telemundo. We will also have digital, print and social media placements running to reinforce the brand’s new positioning. In addition, in-store marketing will also support the campaign. The ads will mirror the campaign’s tagline: “It Can Be Done, When We Do It Together.”

Does RadioShack do Newspaper Advertising, particularly pre-prints in Newspapers? Is this also the case for Hispanic newspapers?
J.F.: “Yes. Circulars, offers/promotions. We also use newspapers to distribute our circulars to the Hispanic consumer.”

Who is RadioShack’s Hispanic Advertising Agency and what agency does media buying and planning?
J.F.: “GSD&M, based out of Austin, is RadioShack’s advertising agency for both Hispanic and General Market. LatinWorks is our media agency.”

How many stores does RadioShack have in the U.S. and how many of them are owned/ how many franchised?
J.F.:“RadioShack is a leading national retailer of innovative mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack employs approximately 30,000 knowledgeable and helpful sales experts globally. RadioShack’s retail network includes approximately 4,300 company-operated stores in the United States, 58 in Puerto Rico, 4 in the US Virgin Islands, over 270 company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide.”

Do you categorize your stores into Hispanic and “other”, meaning those that are located in high Hispanic population areas?
J.F.:“Our Hispanic Stores are categorized based on the Hispanic population around our stores.”

 

 

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Hispanic market and/or targeting Hispanic consumers right now.

Start the year on the right foot with Portada’s Interactive Directory of Corporate Marketers and Agency Executives. To acquire the database, please call Armando Gutierrez at 1-800-937-5322 or e-mail him at  armando@portada-online.com
SEE A DEMO OF THE DIRECTORY!

  • TAJÍN International 

Tajin Photod expósito & Partners has been named as the US agency of record for the total market for TAJÍN International Corp., a company that produces fruits and vegetable seasonings in the U.S. and Mexico. D’Exposito  will provide services for all assignments in the general and Hispanic markets. In 2013, d expósito & Partners provided media planning for TAJÍN in partnership with the Redbean Society.Redbean will continue as  a strategy consultant in 2014.

  • RadioShack

Radio ShackRadioShack is launching a new marketing campaign this week under the“Do It Together (DIT)” tagline.  The campaign will be based on consumer experiences that have differentiated RadioShack and create an emotional connection with its’ associates. RadioShack ushered in the company’s new brand positioning with a 30-second ad featuring ’80s icons during last night’s Super Bowl. The ad is ment to shed outdated perceptions of the brand for consumers in need of a reintroduction to RadioShack.  The spot opens in a throwback RadioShack store; an associate receives a warning phone call before familiar ’80s personalities, including Hispanic celebrity Erik Estrada. In an effort to continue “clearing out the ’80s” and celebrate #InWithTheNew, RadioShack is also hosting a 24-hour sweepstakes via Twitter, which launched in line with our Super Bowl ad.The campaign continues this week and will also target the Hispanic market with Spanish ads being featured in outlets such as Telemundo and Univision, as well as digital print and in-store promotions. Latinworks is RadioShack’s media buying agency. According to Kantar Media, Radio Shack spent $88 million on measured media in 2012. For the first nine months of 2013, the company spent $42.8 million on measured media.  (Read our just published Interview with Javier Figueroa, Director of Integrated Marketing at Radio Shack).

  • Abott (Republican Gubernatorial Candidate in Texas)

Republican gubernatorial candidate Greg Abbott launched a Spanish-language website, targeted at Hispanic voters. The website sees a new version of his campaign logo: Abbott Para Gobernador. Abott’s campaign also introduced a Spanish-language Twitter accout. Abbott and his expected Democratic opponent, Wendy Davis, are both courting the Hispanic vote in a state that’s reliably Republican despite its growing minority population, which tends to identify with the Democratic Party. The gubernatorial hopefuls have both made campaign stops in South Texas and appeared on Spanish-language television, but the Abbott campaign’s Spanish-language website is the first during this election cycle.

  • Xoom

Xoom Corp.,the digital money transfer provider, introduced three new TV commercials for the U.S. Hispanic market. The ads, targeting the Spanish-language audience, began airing on major Spanish-language TV in January and all speak to the message of mobile convenience.

  • Harley Davidson

Harley DavidsonThe 111-year-old motorcycle manufacturer announced Thursday that its fourth-quarter earnings were up about 10 percent compared with a year ago As its core customers age, Harley has diversified its marketing strategy by broadening its product appeal to women and Hispanic, black and younger riders. Maripat Blankenheim, director of external communications for Harley, said the company hired Mark-Hans Richer as chief marketing officer several years ago. Richer’s focus: pumping up sales by broadening the company’s reach. Looking at ways to introduce the brand to those key areas, Harley took a more aggressive stance in getting more people into dealerships.

  • WalMart

Walmart plans to close its one Más Club membership warehouse store that is located in Houston.The store at 8711 North Freeway carries more Hispanic-themed merchandise than does a traditional Sam’s Club, according to the Houston Chronicle. The store will close Feb. 7, Walmart’s director of communications Anne Hatfield said. Más Club opened as a test format in 2009, she said, and Walmart came to realize that it made more sense to incorporate its best working elements, including some of the merchandise, into traditional Sam’s Clubs in Houston and throughout the United States, the report said. There are six Sam’s Clubs within a six-mile radius of Más Club. The store’s 153 associates will be able to find work at an area Sam’s Club or Walmart, Hatfield said.

Read previous issues of Sales Leads!

GET ALL THE LEADS YOU NEED WITH PORTADA’S INTERACTIVE DIRECTORY OF CORPORATE MARKETERS AND MEDIA BUYERS! For detailed contact information on Corporate Marketers at these companies and the decision makers at their Advertising Agencies, get access to Portada’s Interactive Directory of Corporate Marketers and Agencies targeting Hispanics with more than 3,000 Leading Agency and Marketing/Advertising Directors. (Downloadable into an Excel Spreadsheet for seamless integration into your own database!). If you are a Subscriber to the Directory login and access the Directory.

SEE A DEMO OF THE DIRECTORY!

Start the year on the right foot with Portada’s Interactive Directory of Corporate Marketers and Agency Executives. To acquire the database, please call Nicolas Miranda at 1-800-937-5322 or e-mail him at  nicolas@portada-online.com

Get our e-letters packed with news and intelligence!