Martha Stewart Living Omnimedia
...ng females as well. The Brands of Martha Stewart are reliant upon the continued success of Martha Stewart. Although some of the Martha Stewart brands are more contingent on the continued success of Martha some are stable on their own. The primary brand that is stable on its own is the Martha Stewart Living Magazine which began it publishing in 1991. This magazine has a devout following of readers. It was successful long before Martha Stewart Living Omnimedia went public. This magazine should continue to experience success as long as it articles and stories current with the wants of its readership. The other Martha Stewart lines including house wares, gardening items, paints seem to be more volatile. These brands would experience a drastic impact from negative happenings in the personal life of Martha Stewart. Current Issues The primary issue currently being considered is the growth of the Martha Stewart Brand. The Martha Stewart brand could be extended in a couple of ways. - Expand into new markets for the home. - Take current product lines to more retailers. - Increase the offerings for existing lines. By expanding into new markets for the home the Martha Stewart Brand could capitalize on a greater “share of the wallet,” meaning that the Brand could use its existing customer base and give them more lines of Martha Stewart products then were previously offered. The Martha Stewart Brand could also grow by offering its current products at additional retailers. For example many “big box” home centers such as Home Depot, Lowes, and Menards offer many different lines of paints and widow decors for the home. The Martha Stewart Brand should get their paint and window furnishings sold by these retailers, as these retailers are adequately reaching the consumers improving their homes. This expansion method should be limited as well. The current perception of the Martha Stewart Brand is that of quality and cost effectiveness, this should not change as it would have adverse affects. One possible way that these adverse affects could occur is through expansion into retailers such as Walmart. Walmart is perceived by the general public as a low cost, low quality retailer featuring inferior quality items to the price conscious consumer. Low quality is not a characteristic that has been associated with the Martha Stewart Brand in the past nor should it be in the future. The final method of growth proposed for the Martha Stewart Brand is increasing the current offerings within its lines. An example of this would be to offer different colors and patters for the house ware lines, as well as new colors of paints. This is more easily achieved than other growth methods as it uses the current offerings and makes slight modifications to them. Martha Stewart’s Affects As is mentioned throughout this case the person and company of Martha Stewart are very closely intertwined. Without the personal popularity experienced by Martha Stewart the success of the Martha Stewart Company would not have been achieved. Martha Stewart is looked upon by her fans as a member of their own families. In reading articles and letters published by her fans they mention setting a place for her at their tables in honor of her. Her ideas and influence upon them is like another family member, although they may have never made contact aside from television appearances. This following is one that must cause a person with the following of Martha Stewart to be extremely cautious. It is bad enough when something you do hurts your family, but when something that is done affects people who you have never met, and in turn adversely affects the success of your company that is even worse. However, this is the case with Martha and her following. Martha’s personal life is under a magnifying glass being scrutinized by those who idolize her. The S-1 filing by Martha Stewart Living Omnimedia outlined three areas of vulnerability with regard to the company. - Our business would be adversely affected if our licensees were to diminish the quality of our brands. - The termination or impairment of our relationships with a small number of key licensing and strategic partners could adversely affect our revenues. - If we are unable to predict, respond to and influence trends in what the public finds appealing, our revenues will be adversely affected. The first risk could be avoided by assuring that adequate quality controls are in place monitoring the production of the goods. These would include regular inspections as well as random inspections to maintain the proper attention to quality in the manufacturing of the products. A lack of attention to the quality of the products being sold would have a negative impact on the company, as the Martha Ste...