Abstract

Martha Stewart was the founder of Martha Stewart Living Omnimedia (MSO), a media conglomerate with interests in publishing, radio, television and merchandise. MSO’s main brand was ‘Martha Stewart’ and all the businesses were centered around Stewart. Therefore, when Stewart became embroiled in controversy over her sale of shares in Imclone Systems in 2000, her image took a beating, adversely affecting her business. The case discusses Stewart’s and MSO’s efforts to revive the “Martha Stewart’ brand after Stewart was released from jail in 2005. It talks about the steps taken by the company to improve Stewart’s image in public, which had a positive impact on the brand. The case concludes with a commentary on how Stewart’s hits and misses were affecting MSO’s business and whether the brand could be restored to its past glory.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To study the rise and fall of a major lifestyle brand in the US
• To understand the inherent dangers in closely associating a business or brand with its founder
• To analyze the issues involved in reviving a brand, especially one associated with a controversial person
• To highlight the importance of goodwill and brand equity.

Keywords

Martha Stewart, Martha Stewart Living Omnimedia, Imclone Systems Incorporated, Kmart, Macy's, Martha Stewart Living, House Energy and Commerce Commission, Blueprint, Brand Revival, Securities fraud, Image Rebuilding, NBC, CBS, Entertaining, The Apprentice