Martha
Stewart’s Look in the Mirror
Once again, domestic doyenne Martha Stewart has given us the perfect recipe – two,
in fact. In 2003, she showed us the perfect way to destroy a carefully-crafted public
image, with equal parts arrogance and ignorance. And now, in just-completed 2005,
Martha has shown us the best way to repair that same damaged image, with equal parts
humility and savvy.
Here’s a quick review: In June 2003, Martha Stewart was indicted on charges
of obstructing justice and securities fraud for her 2001 sale of ImClone stock. She
resigned as chairman and CEO of Martha Stewart Living Omnimedia Inc. but stayed on
the board, and the company’s stock plummeted to nearly $10 per share.
Martha’s public relations strategy (or lack thereof) failed miserably. When
asked for a comment during her cooking segment on CBS’ The Early Show,
she brushed it off by saying, “I will be exonerated of any ridiculousness.” Really,
Martha?
During the trial, Martha was photographed and filmed entering the courthouse holding
a now-notorious $20,000 Hermes bag, symbolizing extravagance. She appeared stoic
and detached as she listened to damaging testimony, and when the guilty verdict was
read, she remained expressionless while her daughter sat nearby, sobbing. After her
sentencing for a crime that further padded her already well-padded wallet, did she
apologize? No. In fact, she asked her supporters to put more money in her pocket. “Perhaps
all of you out there can continue to show your support by subscribing to our magazines,
by buying our products, by encouraging our advertisers to come back in full force
to our magazines.”
Martha was rewarded for her hubris with a public backlash. Viacom stations dropped
her syndicated television show. Advertisers fled. She resigned as director of her
company, and the stock plummeted even further. Her image hit an all-time low.
It seems at this point, however, that Martha got the message and started receiving
some media-savvy advice. She served her sentence and used her time in confinement
to take a look in the mirror. Through reflection and introspection she seemed to
remember the deeper value proposition she and her ubiquitous brand have to offer.
She gained an appreciation for the direct relationship between her image and how
well she communicates to her audience both directly through her brand and indirectly
through the media.
For the first time, she appeared to be taking responsibility for her own actions.
Upon her release, she said little other than a brief statement on her web site where
she referred to the experience as “life-altering and life affirming.” “There
is no place like home,” she wrote.
The response to her conciliatory approach was nearly immediate. NBC began publicizing
her two new television shows. The stock of her company rose to more than $30 per
share. The message was clear. People still liked her products, just as they always
did. But the public was not going to support her if they did not respect her. And
without public support, Martha had nothing.
What was Martha’s secret recipe for her turnaround? Start with a long, hard
look in the mirror and remember the basis of your value proposition. Remember the
importance of respect from your audience. Take responsibility for your mistakes,
sprinkle in some humility, and move onward and upward.
Once Martha learned this recipe, her audience would, and could, once again notice
that the apple pie had exactly the right amount of brown sugar, the medicine cabinet
was perfectly organized, and the birthday gift was wrapped just so.
Like her or hate her, Martha Stewart has given us a perfect example of how sound
media strategy can lead to corporate success.
 Beacon Issue -
January 2006
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