A lesson in brand loyalty The verdict is in for the federal lying trial of homemaking diva Martha Stewart. But what has not been decided is how well Stewart "the brand" will hold up in the court of public opinion. Sentencing is scheduled for June, but who knows if and when Stewart will serve any jail time since she plans to appeal. Although numerous legal analysts believe she will have a difficult time overturning a federal conviction, if anyone can pull it off, Stewart can. Stewart lost her title as chief executive officer and chairman of the board of Martha Stewart Living Omnimedia last June when she was charged with lying to regulators about a biotech company stock sale. After her March 5 conviction, she resigned as director and president of the company, of which she still owns 61 percent. Although she has been relegated to the position of founding editorial director, you can bet she is still making or influencing many of the company's decisions. Sticking with Stewart Many people have offered opinions on the impact the guilty verdict will have on Martha Stewart the brand. Stewart's corporate partners haven't been as optimistic about her ability to maintain consumer loyalty. Even before her trial began, HGTV did not extend her contract for the shows "From Martha's Garden" and "From Martha's Home" after 2003. Her syndicated TV show "Martha Stewart Living" was dropped by some Viacom-owned stations shortly after her conviction. And her name was removed from two weekly columns in The New York Times. Some advertisers have also backed away from her Martha Stewart Living magazine. In 2003, advertising pages in the magazine fell 34.6 percent. Some financial analysts believe the advertisers won't return and even more will pull their ads. Even while some of her business relationships have soured, her popularity among consumers continues to remain strong. Brand Keys, a New York-based brand and customer loyalty research company, found that even after her conviction, consumer opinion of Stewart went up after she resigned as a company director and officer. According to comments from Brand Keys president Robert Passikoff in the New York Post, Stewart is one brand that's totally invested in Stewart the person. Passikoff said not only was Stewart indicted, but so was the brand. What impact will her conviction have on the products that currently carry her namesake? Kmart, which after three years finally posted a profit in the fourth quarter that ended Jan. 28, has the biggest financial investment at stake. The Wall Street Journal reports that sales of Stewart's products at the third-largest U.S. retailer account for 5 percent of the company's $16.9 billion annual sales. Kmart still plans to roll out an updated line of Stewart-labeled garden products that it has carried for five years along with offering new Stewart patio furniture sets. While many of her business partners consider Stewart to be damaged goods, consumers will have the ultimate decision as to whether Stewart the brand remains viable. Numerous news services have reported that many consumers still believe in her lifestyle and the products that can give them a piece of it. And if not Martha, then who? None of the Martha wannabe lifestyle gurus have made a significant dent in her domestic domain. Stewart has a tremendous following and consumers like the quality and the price of her product lines. Unless she does something else to offend the public during her appeal that might alienate consumers further, her products will continue to sell. And as Stewart would say, "That's a good thing." Send this article to a friend Enter your e-mail address: Enter your friend's e-mail address: Click the image below to send: © 2004 Branch-Smith Publishing