“The Hut”, “The Shack”… what do these "names" really mean to you? If you believe Pizza Hut and Radio Shack, they stand behind their efforts at weaving these new “nicknames” that may evolve into the future brands for these American staples.

AdAge profiled the obvious confusion with Radio Shack’s positioning shift with the introduction of “The Shack”. Critics, including myself, feel that this marketing effort is only a surface level approach to solving a much larger problem for the company… notably the retail chain’s ineffective positioning in the marketplace versus other big box retailers and customer service struggles at the store level. While Radio Shack may not accurately deliver the right positioning, trying to make a branding switch under the guise of a marketing campaign tells me everyone at the company is not singing from the same song book.

Back in June 2009 MSN Money highlighted Pizza Hut’s issues and thoughts behind their brand switch. According to the article, the fast food chain will now brand some stores as simply “The Hut.” Obviously there is some testing underway. The company has added a range of non-core items to its menu, including pasta, wings, desserts, etc., but does its target audience really identify with these new offerings, or merely see them as an extension or alternative choice. My guess is like “Wing Street,” this positioning will not resonate with the audience and will further dilute the chain’s positioning.

The common thread with these two companies is their inability to focus on what matters most to their core customers, and not catering to fringe influences or fads. Is Pizza Hut a pizza joint, an Italian restaurant, or a hot wing stand? Does Radio Shack sell radios (who has a radio these days, by the way?), electronics, or is it really a cell phone stand? Right now, both companies are guilty of trying to be “everything to everybody.” And that is never a good thing. Re-branding may start with a new name, but it must be supported at all levels of the company and continually tie back to the real needs of the prospect and existing customers.