Friday, August 6, 2010

Bizmology

Bizmology

Martha Stewart’s merchandise brand is thriving

Posted: 06 Aug 2010 10:07 AM PDT

Regardless of Martha Stewart's past conviction on securities charges, her name still exudes a sense of authority and "perfection" when it comes to entertaining, cooking, and crafts. Her merchandise brand is on the rise and in demand. A recent AdAge article explores Stewart's resurgence in brand popularity, along with a potential merchandise expansion into the skin care market.

Martha Stewart's products currently line the shelves of Macy's, The Home Depot, Michaels, and PetSmart. Wait, PetSmart? I had no idea that there was a Martha Stewart Pets collection. Leashes, collars, beds, and doggie dishes are available so your pet can relax, eat, and walk around in style. Martha Stewart's French bulldogs, Francesca and Sharkey, even have a blog of their own. Clearly, she is a pet-lover and her interest translated over into the animal/pet market.

I know I wouldn't purchase a pet product simply because Martha Stewart's name was on it, but there are people out there that would. Perhaps she will turn into the next pet expert? Okay, maybe not.

Looking for a new paint color, area rug, carpet, or patio furniture? Try the Martha Stewart lineat Home Depot. Her paint collection alone has over 280 "inspiring colors." Home décor not your thing? You might possibly be interested in knowing that a Martha Stewart skin care line could be in the works. Robin Marino, CEO of merchandising for Martha Stewart Living Omnimedia, says that, "We have unlimited openness to listen to new business opportunities [. . .] So skin care could be something we'd be interested in down the road for sure." It wouldn't surprise me to see consumers and brand loyalists flock to a Stewart skin care line.

A consulting firm executive explains that the success of Martha Stewart's merchandising speaks to two items: (1) people have a short term memory when it comes to mistakes by people or brands they love and (2) Stewart's brand is increasingly expanding beyond the bounds of Stewart herself.

Merchandising seems to be the most profitable and fastest-growing part of Stewart's business. Sales in the second quarter increased 31% from the second quarter of 2009 to reach an impressive $11.8 million. For this year so far, merchandising has a 34% operating margin.

With its powerful brand equity, Stewart's company will continue to evaluate its consumer base research for future ideas on merchandising growth.

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Photo by David Shankbone, used under a Creative Commons license.

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