Research Firm: Brand Loyalty to Martha Stewart Imp

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Research Firm: Brand Loyalty to Martha Stewart Imp
Dallas, TX, Mar. 3-- As Martha Stewart's well-publicized case goes to a jury, people may still be buying her creatively named Sherwin Williams paint colors, Martha Stewart Signature flooring and furniture, Martha Stewart Everyday towels and bedding at Kmart, and Martha Stewart Living magazines at the grocery store, according to the Dallas Morning News. But her brand loyalty comes in many shades. Wall Street infractions, legal woes and courtroom wins and losses seem to matter to her following, according to periodic surveys by Brand Keys Inc. The New York-based brand and customer loyalty research firm reported Tuesday that Ms. Stewart's brand index rose to 84 after her legal victory on Friday, when a federal judge in New York dismissed the most serious charge of securities fraud against her. The index, which has a baseline of 100, dipped as low as 72 in August after her June indictment. Robert Passikoff, founder of Brand Keys, said gains and losses in Ms. Stewart's brand strength index have preceded increases and declines in Martha Stewart Living Omnimedia Inc.'s results. "When she was indicted, the brand was indicted," Mr. Passikoff said. "What happened? Her artificial Christmas trees didn't automatically start combusting in the living room and her sheets didn't start falling apart in the dryer. Consumers have choices, and they stopped choosing her as much." Mr. Passikoff has been tracking the Martha Stewart brand since 2002, when it was one of the strongest in the United States, with an index of 120. He said he doesn't expect the brand's loyalty to return to those heights again. "The company is worth about half of what it was worth in 2002, and it's been reporting losses since mid-2002," Mr. Passikoff said. However, Martha Stewart Living is expected to report earnings of 5 to 7 cents per share on Thursday. And many people remain positive about the brand. "Her name recognition is strong," said John Spacy, owner of S&H Carpet Distributing in Dallas, which carries Martha Stewart carpet, hardwood floors and ceramic tiles. "What's going on in her life is known by people who own homes, especially. We've been carrying her products for nine months. Sometimes people bring up her problems, but sales of her products are still growing."