Martha Stewart Brand Dilution

1. What is Martha Stewart the brand? What is the brand identity? Do multiple brand identities exist?

Martha Stewart's brand stands for stylish and traditional American living. She is brilliant at channeling the taste and passion of her customers into new products and media. She is said to turn "dreamers into doers". Taking this in to the context of how corporate strategists want the brand to be perceived by internal and external constituents arrives at a brand identity. The core identity or primary associations include such words as "American living", "homemaker", "tasteful", "stylish", "how-to info", and "home". Extended associations include words related to the product offering such as "gardening", "cooking", and "home renovation", as well as words showing conflict in Martha Stewart the person such as "gracious hostess" vs "perfectionist", and "model of femininity" vs "business woman". Other secondary attributes include Martha's slogan "It's a good thing" and the Turkey Hill chicken coop. The core identity, or brand essence, sets the guiding vision for MSLO. As such, these values should not and do not change in relation to consumer segments, brand extensions, or corporate strategy. Nonetheless, the manner in which the brand is promoted, communicated, or advertised to different segments may differ. In fact, the identity can be perceived as being different amongst MSLO's customers. Different brand images may exist amongst customers of the different offerings: home vs cooking vs gardening.

2. Where do these identity elements come from--Martha Stewart the person or Martha Stewart the brand?

The reality is that it is almost impossible to separate Martha Stewart the person from Martha Stewart the brand. The success of MSLO lies in the successful creation of the brand from the person. For example, the strength in Martha Stewart's brand can be found in how the customer takes ownership in the brand. On some note, they "relate" to Martha. Martha has touched their lives and made those lives better. "Ask any of her brand loyalists and they'll tell you that Martha understands their lives, which is why they listen to her, follow her advice and buy her products" (Frankel). Attributes such as "tasteful", "stylish", and "homemaker" are personality traits whereas "cooking" and "gardening" are traits of MSLO. Likewise, as we saw in the case, a comprehensive report of MSLO will undoubtedly include stories about Martha Stewart's personal life. The brand and company succeeds on her celebrity status and vice versa. Martha Stewart is indeed the personification of the brand. So much so, that she appeared on the cover 9 of the first 10 covers of Martha Stewart Living41.

3. Consider the 4 spokes of the Martha Stewart Living empire--publishing, television, merchandising, and internet/direct marketing. Do these all exude the same brand identity to the same audience?

Martha Stewart has created a successful empire by targeting a very clear audience - the homemaker seeking advice on how to make a better home. Per Exhibit 4, the audience of MSL includes women, in the age range of 25 to 54 Years of age, with 93% being homeowners. MSLO has been very effective in expanding share of attention of the target audience. The company has taken a core set of content and leveraged it across a broad range of media - books, magazines, television, internet, and merchandise. They have used "Omnimedia to create merchandise demand and then use omnimerchandising to fulfill it." By expanding from content to merchandise MSLO has successfully expanded their share of wallet of the target audience. All while pushing the same brand identity throughout. MSLO has used this clear audience focus and broad media and merchandise to develop a very strong brand. The brand is about the audience - Martha Stewart knows what an American homemaker would find most useful and you can trust her, and MSLO, to deliver the right mix of advice and products.

4. 2001 sale of ImClone Systems stock - In light of this situation, and the intensive media exposure surrounding the case, do you believe that the Martha Stewart brand has been diluted? What evidence can you find in support?

When assessing brands and their relation to a personality or celebrity that is inextricably entwined in the brand it becomes very important to understand the affect that any personal crisis with this individual may