New York, NY, Mar. 19--Consumer opinion of Martha Stewart's brand has risen since the icon of gracious living quit as a director and officer of her namesake company this week, a new survey showed on Thursday.
The survey found that consumers' view of the Martha Stewart brand--which adorns everything from flower pots to frying pans-- climbed this week after plunging on her March 5 conviction on charges of lying to investigators about a suspicious stock sale.
"The more distance the company can put between Stewart the person and the company, the better off they will be," said Robert Passikoff, president and founder of New York-based marketing consultancy Brand Keys, which conducted the survey.
Stewart's resignation on Monday as a board member and officer from Martha Stewart Living Omnimedia Inc. "is the beginning of the way to repair a rift between the consumers and the brand," Passikoff said.
Brand Keys asks consumers how they view brands, then assembles an index with a baseline of 100. A score over 100 means consumers have a good impression of a brand, while numbers under 100 show a negative opinion.
Stewart's brand climbed to an 86 on the index after her resignation, after falling to a new low of 64 after her conviction--a worse showing than the 71 touched by scandal-plagued Enron Corp. at its lowest, Passikoff said.
In comparison, a popular brand like Coca-Cola Co. currently comes in at 112. Before Stewart's legal troubles began, her brand was extremely well liked and enjoyed a strong score of 120, he said.
Stewart, 62, has been the public face behind her media and merchandising empire, whose reach extends to magazines, TV programs and household products sold at Kmart stores. She faces a possible prison sentence for her felony convictions. Stewart has said she plans to appeal the verdict.
In a securities filing this week, her company disclosed that since her conviction, sales of "Martha Stewart Everyday" products at Kmart stores have risen from a year ago, but it warned that the trend might not continue.
