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Marketing Martha: No Such Thing as Bad Publicity?

Aired June 03, 2003 - 14:49   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


MILES O'BRIEN, CNN ANCHOR: Well, it may be true there's no such thing as bad publicity and that may be what Martha Stewart's shareholders are banking on today as they gather in New York for their annual conference. A touch of scandal certainly isn't a kiss of death, any more, is it? -- thanks largely to the magic of marketing.
And that brings us to Laura Ries, a marketing strategist and so- called branding expert here in Atlanta.

Laura, good to have you with us.

LAURA RIES, MARKETING EXPERT: Thanks, Miles.

O'BRIEN: All right. Martha Stewart and her company -- are they completely interwoven or could the company press on without her?

RIES: I don't think the company could press on without her. I mean, the company is Martha Stewart. Martha Stewart is the brand and she's such a reflection of that brand. So anything that damages her is long-term going to have significant impact on the company.

O'BRIEN: I guess the question is, though, are consumers really perceiving this as damage? We heard a lot of people who showed up at the shareholders meeting, talking to our correspondent there, revealing a bit of backlash out there. A tremendous support in a sense that she's being singled out.

RIES: Yes, she's certainly being singled out as a celebrity and well known, they're making a point, using her. And there's going some backlash against that, you know, singling out of it.

But really I think really the biggest problem with Martha Stewart isn't the -- what she did with the stock. It's her avoidance of the whole issue of saying that -- not admitting that she was wrong. That she's like every body else.

The best celebrities in dealing with strategy come out and say, I'm sorry, I made a mistake, please forgive me and they move on.

O'BRIEN: All right. But if she said that in this case -- she does face criminal charges.

RIES: She does face...

O'BRIEN: These are serious charges, and I -- it's always the case that you have the PR people on one side and the lawyers on the other side, and you sort of have to choose. And generally people choose with the lawyers.

RIES: Yes.

O'BRIEN: That can hurt you in the public relations arena, right?

RIES: Well, but, I think you're better off going on the PR because it's the public opinion that matters most, not necessarily what happens in the court. And I think she could survive some minor, you know, court infraction or having to pay a penalty. But if the people don't love her, then she's really going to be in trouble.

O'BRIEN: So really what you're saying is she could be in a prison smock and manacles on her wrist and ankles and she'd still potentially come out of it if she leveled?

RIES: I think -- I don't think she would arrest her and put her in the stripes,. I don't think what she did is that bad -- I'm not an expert in that field. But in terms of -- it's her public persona that's the most important. And the most damage is not from her stock trading, but from her refusal to say I was sorry and to fess up and to get on TV at all. She's been avoiding the media and that's the worst strategy.

O'BRIEN: I mean, the last thing we saw of her she was dicing up that salad with Jane Clayson on CBS.

RIES: That onion.

O'BRIEN: You know, she just wanted to stay focused on her salad.

RIES: Yes.

O'BRIEN: Would you have recommended to her that she have a...

RIES: Put the knife down.

O'BRIEN: Put the knife down. You have a lot of ..

RIES: Put the knife down.

O'BRIEN: You know, a lot of ground rules, but sit down with a Barbara Walters or a Diane Sawyer and sort of develop another persona.

RIES: Yes. Be honest, be open, be on several TV shows. Get one, you know, big name, you know, Barbara Walters type of special and be honest, be friendly, be open. Don't have a big knife chopping onions and, you know, want to talk about salad.

You need to open up and say, Listen -- be like Hugh Grant -- I was dumb when I picked up that hooker.

O'BRIEN: All right. Well now surely she has gotten advice that is just probably mimicked what you said identically and yet she has not heard that advice. Why do you suppose not?

RIES: Well, her persona is based on being perfect. And I think inside she cannot, you know, believe that she is not perfect and trying to be perfect and nobody is perfect. We all make mistakes and she's got to be like the rest of us and say she is sorry.

O'BRIEN: All right. She's a little too perfect. All right.

RIES: A little too perfect.

O'BRIEN: Laura Ries who specializes in branding and is an expert on marketing. Thanks very much for joining us. A little free advice in case Martha is watching.

RIES: Just in case.

O'BRIEN: Appreciate it. Thanks for dropping by.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired June 3, 2003 - 14:49   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Well, it may be true there's no such thing as bad publicity and that may be what Martha Stewart's shareholders are banking on today as they gather in New York for their annual conference. A touch of scandal certainly isn't a kiss of death, any more, is it? -- thanks largely to the magic of marketing.
And that brings us to Laura Ries, a marketing strategist and so- called branding expert here in Atlanta.

Laura, good to have you with us.

LAURA RIES, MARKETING EXPERT: Thanks, Miles.

O'BRIEN: All right. Martha Stewart and her company -- are they completely interwoven or could the company press on without her?

RIES: I don't think the company could press on without her. I mean, the company is Martha Stewart. Martha Stewart is the brand and she's such a reflection of that brand. So anything that damages her is long-term going to have significant impact on the company.

O'BRIEN: I guess the question is, though, are consumers really perceiving this as damage? We heard a lot of people who showed up at the shareholders meeting, talking to our correspondent there, revealing a bit of backlash out there. A tremendous support in a sense that she's being singled out.

RIES: Yes, she's certainly being singled out as a celebrity and well known, they're making a point, using her. And there's going some backlash against that, you know, singling out of it.

But really I think really the biggest problem with Martha Stewart isn't the -- what she did with the stock. It's her avoidance of the whole issue of saying that -- not admitting that she was wrong. That she's like every body else.

The best celebrities in dealing with strategy come out and say, I'm sorry, I made a mistake, please forgive me and they move on.

O'BRIEN: All right. But if she said that in this case -- she does face criminal charges.

RIES: She does face...

O'BRIEN: These are serious charges, and I -- it's always the case that you have the PR people on one side and the lawyers on the other side, and you sort of have to choose. And generally people choose with the lawyers.

RIES: Yes.

O'BRIEN: That can hurt you in the public relations arena, right?

RIES: Well, but, I think you're better off going on the PR because it's the public opinion that matters most, not necessarily what happens in the court. And I think she could survive some minor, you know, court infraction or having to pay a penalty. But if the people don't love her, then she's really going to be in trouble.

O'BRIEN: So really what you're saying is she could be in a prison smock and manacles on her wrist and ankles and she'd still potentially come out of it if she leveled?

RIES: I think -- I don't think she would arrest her and put her in the stripes,. I don't think what she did is that bad -- I'm not an expert in that field. But in terms of -- it's her public persona that's the most important. And the most damage is not from her stock trading, but from her refusal to say I was sorry and to fess up and to get on TV at all. She's been avoiding the media and that's the worst strategy.

O'BRIEN: I mean, the last thing we saw of her she was dicing up that salad with Jane Clayson on CBS.

RIES: That onion.

O'BRIEN: You know, she just wanted to stay focused on her salad.

RIES: Yes.

O'BRIEN: Would you have recommended to her that she have a...

RIES: Put the knife down.

O'BRIEN: Put the knife down. You have a lot of ..

RIES: Put the knife down.

O'BRIEN: You know, a lot of ground rules, but sit down with a Barbara Walters or a Diane Sawyer and sort of develop another persona.

RIES: Yes. Be honest, be open, be on several TV shows. Get one, you know, big name, you know, Barbara Walters type of special and be honest, be friendly, be open. Don't have a big knife chopping onions and, you know, want to talk about salad.

You need to open up and say, Listen -- be like Hugh Grant -- I was dumb when I picked up that hooker.

O'BRIEN: All right. Well now surely she has gotten advice that is just probably mimicked what you said identically and yet she has not heard that advice. Why do you suppose not?

RIES: Well, her persona is based on being perfect. And I think inside she cannot, you know, believe that she is not perfect and trying to be perfect and nobody is perfect. We all make mistakes and she's got to be like the rest of us and say she is sorry.

O'BRIEN: All right. She's a little too perfect. All right.

RIES: A little too perfect.

O'BRIEN: Laura Ries who specializes in branding and is an expert on marketing. Thanks very much for joining us. A little free advice in case Martha is watching.

RIES: Just in case.

O'BRIEN: Appreciate it. Thanks for dropping by.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com