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39-467: Martha Stewart Living Omnimedia Inc. ( MSLO ) is an American diversified media and merchandising company founded by Martha Stewart in 1997 and owned by Marquee Brands LLC since April 2019. It is organized into four business segments: publishing, Internet, broadcasting media platforms, and merchandising product lines. MSLO's business holdings include a variety of print publications, television and radio programming, and e-commerce websites. The company

78-460: A direct-to-consumer flower business, marthastewartflowers.com. Through an agreement with Touchpoint , it designed a line of customizable greeting cards under the Marthascards banner, which were sourced and fulfilled by Touchpoint. This agreement was replaced by a new program with Kodak EasyShare Gallery in 2006. In November 2006, MSLO announced its launch of Martha's Circle which is

117-525: A listing refers to the company's shares being on the list (or board) of stock that are publicly listed. Some stock exchanges allow shares of a foreign company to be listed and may allow dual listing , subject to conditions. Normally the issuing company is the one that applies for a listing but in some countries an exchange can list a company, for instance because its stock is already being traded via informal channels. Stocks whose market value and/or turnover fall below critical levels may be delisted by

156-401: A company goes out of business , declares bankruptcy , no longer satisfies the listing rules of the stock exchange, has become a private company , has become a subsidiary after a merger or acquisition , or wants to reduce regulatory reporting complexities and overhead, or if the stock volumes on the exchange from which it wishes to delist are not significant. Delisting does not necessarily mean

195-496: A contract with Costco Wholesale Corp. to offer a series of food products developed from MSLO's library of recipes. Diversification (marketing strategy) Diversification is one of the four main growth strategies defined by Igor Ansoff in the Ansoff Matrix : Ansoff pointed out that a diversification strategy stands apart from the other three strategies. Whereas, the first three strategies are usually pursued with

234-480: A firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm. Generally, the final strategy involves a combination of these options. This combination is determined in function of available opportunities and consistency with the objectives and the resources of the company. There are three types of diversification: concentric, horizontal, and conglomerate. This means that there

273-399: A lifestyle-oriented blog-advertising network whose charter members included Apartment Therapy , Smitten Kitchen , and Charles & Hudson . Historically, the company also produced a print and online catalog, Martha by Mail , which was launched in 1997 and later rebranded as Martha Stewart: The Catalog for Living . Following Stewart's public fallout and the dot-com bubble burst in 2002,

312-450: A new business (either related or unrelated) at the same stage of production as its current operations. For example, Avon's move to market jewellery through its door-to-door sales force involved marketing new products through existing channels of distribution. An alternative form of that Avon has also undertaken is selling its products by mail order (e.g., clothing, plastic products) and through retail stores (e.g.,Tiffany's). In both cases, Avon

351-426: A new product that helps the particular company to earn profit. For instance, the addition of tomato ketchup and sauce to the existing "Maggi" brand processed items of Food Specialities Ltd. is an example of technological-related concentric diversification. The company could seek new products that have technological or marketing synergies with existing product lines appealing to a new group of customers. This also helps

390-505: A partnership with Bernhardt Furniture Company and previously with Sherwin-Williams . In October 2006, the company announced a new agreement with Lowe's to develop an exclusive interior paints line, which replaced its previous contract with Sherwin-Williams. The new line of paints, Martha Stewart Colors , launched in April 2007. In April 2006, the company announced its plans to develop a new, upmarket merchandise line with Macy's, Inc. (at

429-411: A percentage of the total outstanding stock; an approved prospectus, usually including opinions from independent assessors, and so on. The listing requirements imposed by some stock exchanges include: Delisting refers to the practice of removing the capital stock of a company from a stock exchange so that investors can no longer trade shares of the stock on that exchange. This typically occurs when

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468-583: A portion of its lawsuit with MSLO over a home-products deal, however, Macy's continues to sue J.C. Penney. MSLO did not disclose the terms of the settlement. This lawsuit cost between "$ 7 million and $ 8 million in legal costs", according to MSLO's chief executive officer Daniel Dienst . The Omnimedia media division stopped printing Everyday Food and Whole Living magazines while the Martha Stewart Living magazine moved from monthly to eleven issues per year in 2013. On December 4, 2015, it

507-410: Is a technological similarity between the industries, which means that the firm is able to leverage its technical know-how to gain some advantage. For example, a company that manufactures industrial adhesives might decide to diversify into adhesives to be sold via retailers. The technology would be the same but the marketing effort would need to change. It also seems to increase its market share to launch

546-486: Is still at the retail stage of the production process. Conglomerate diversification involves adding new products or services that are significantly unrelated and with no technological or commercial similarities . For example, if a computer company decides to produce stationery items, the company is pursuing a conglomerate diversification strategy. According to Calori and Harvatopoulos (1988), there are two dimensions of rationale for diversification. The first one relates to

585-568: The U.S. Securities and Exchange Commission , she was banned from serving in any role that would allow her to prepare, audit or disclose financial results of a public company until August 2011. In effect, this banned her from serving as an officer of her own company. Stewart rejoined the board of directors of her namesake company in September 2011 and became its chairwoman once again in May 2012. In 2012, Macy's sued MSLO and J.C. Penney after

624-522: The Ansoff matrix, Diversification has the highest level of risk and requires the most careful investigation. Going into an unknown market with an unfamiliar product offering means a lack of experience in the new skills and techniques required. Therefore, the company puts itself in a great uncertainty. Moreover, diversification might necessitate significant expanding of human and financial resources, which may detract focus, commitment, and sustained investments in

663-851: The Emeril brand, to Marquee Brands holding company for $ 175 million with benchmarked additional payments. The lease on MSLO's headquarters in the Starrett-Lehigh Building in the Chelsea neighborhood of Manhattan was not included in the deal, but Marquee could assume the lease. Marquee Brands owns various companies, including the BCBG Max Azria brand, and is a subsidiary of asset manager Neuberger Berman . The company has published various magazines, including: Four newspaper columns — Ask Martha , Living , Weddings and Everyday Food — are distributed to newspapers throughout

702-507: The U.S. via The New York Times Syndicate. Current books are published through Random House 's Clarkson Potter division; earlier titles were offered through subsidiaries of Time Warner prior to Stewart's spin-off of her business ventures from its corporate umbrella. Publishing activities are a major source of income for the company, and accounted for roughly 60% of total revenue in 2005. On 15 November 2005, MSLO named NBC 's Sheraton Kalouria as president of television for MSLO. He

741-658: The acquisition of 16.6 percent of the company's stock. JCPenney planned to put "mini-Martha Stewart shops" in many of its stores in 2013, as well as starting a web site together. On September 14, 2007, MSLO announced that it had agreed to a partnership with E & J Gallo Winery to produce a wine brand with the label " Martha Stewart Vintage " for sale in six cities. The 15,000 cases to be sold included: 2006 Sonoma County Chardonnay , 2005 Sonoma County Cabernet Sauvignon and 2006 Sonoma County Merlot (for Atlanta , Boston ; Charlotte , North Carolina ; Denver , Phoenix , and Portland, Oregon ). MSLO also signed

780-515: The channel there was a weekday-evening talk show co-hosted by Martha Stewart's daughter Alexis Stewart , Whatever with Alexis and Jennifer . Alexis left the radio show in June 2011 leaving Jennifer Koppelman-Hutt as the sole host. The show was cancelled in December 2011 and Koppelman-Hutt was terminated. The company's Internet and Direct Commerce segment includes its website marthastewart.com and

819-695: The company decided to discontinue both the online and print editions in 2003. The final print catalog was mailed in January 2004, and the online store closed in June of that year. MSLO additionally offers various home goods through its mass-market Martha Stewart Everyday brand in Kmart stores throughout the United States, and at Sears Canada in Canada. Furniture and paint are part of the company's specialty-retail-oriented Martha Stewart Signature brand through

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858-526: The company determined on October 26, 2004, to change the method of accounting for interim period expense recognition of its subscription acquisition costs. The company recognized subscription-acquisition costs in the period in which the acquisition efforts took place and restated the financial statements. On February 19, 2008, the company announced that it had reached an agreement with celebrity chef Emeril Lagasse to purchase certain business assets for $ 50 million: $ 45 million in cash and $ 5 million in stock. With

897-434: The company to tap that part of the market which remains untapped, and which presents an opportunity to earn profits. The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. This strategy tends to increase the firm's dependence on certain market segments. For example, a company that was making notebooks earlier may also enter

936-475: The core industries. Therefore, a firm should choose this option only when the current product or current market orientation does not offer further opportunities for growth. In order to measure the chances of success, different tests can be done: Because of the high risks explained above, many companies attempting to diversify have led to failure. However, there are a few good examples of successful diversification: Delisting (stock) In corporate finance ,

975-454: The exchange. Delisting often arises from a merger or takeover , or the company going private. Each stock exchange has its own listing requirements or rules . Initial listing requirements usually include supplying a history of a few years of financial statements (not required for "alternative" markets targeting young firms); a sufficient size of the amount being placed among the general public (the free float), both in absolute terms and as

1014-465: The exclusion of Lagasse’s restaurant chain and his foundation, the deal consisted of the rights to television programs such as Essence of Emeril and Emeril Live , Emeril Lagasse's Cookbook library, the emerils.com website, and kitchen and food products. Stewart had served as president, chairwoman and chief executive officer of the company until being forced to resign as a result of the 2001 ImClone insider trading case . As part of an agreement with

1053-495: The existing product line with related products is one such method adopted by many businesses. Adding tooth brushes to tooth paste or tooth powders or mouthwash under the same brand or under different brands aimed at different segments is one way of diversification. These are either brand extensions or product extensions to increase the volume of sales and the number of customers. The strategies of diversification can include internal development of new products or markets, acquisition of

1092-431: The expected outcomes of diversification: Management may expect great economic value (growth, profitability) or first and foremost great coherence with their current activities (exploitation of know-how, more efficient use of available resources and capacities). In addition, companies may also explore diversification just to get a valuable comparison between this strategy and expansion. Of the four strategies presented in

1131-516: The nature of the strategic objective: Diversification may be defensive or offensive. Defensive reasons may be spreading the risk of market contraction, or being forced to diversify when current product or current market orientation seems to provide no further opportunities for growth. Offensive reasons may be conquering new positions, taking opportunities that promise greater profitability than expansion opportunities, or using retained cash that exceeds total expansion needs. The second dimension involves

1170-470: The organisation to higher levels of risk. Note: The notion of diversification depends on the subjective interpretation of “new” market and “new” product, which should reflect the perceptions of customers rather than managers. Indeed, products tend to create or stimulate new markets; new markets promote product innovation . Product diversification involves addition of new products to existing products either being manufactured or being marketed. Expansion of

1209-410: The pen market with its new product. Horizontal diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity or instability. Horizontal integration occurs when a firm enters

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1248-445: The same technical, financial, and merchandising resources used for the original product line, the diversification usually requires a company to acquire new skills and knowledge in product development as well as new insights into market behavior simultaneously. This not only requires the acquisition of new skills and knowledge, but also requires the company to acquire new resources including new technologies and new facilities, which exposes

1287-411: The series, is also co-producer of the company's daily talk show , Martha . MSLO began marketing instructional DVDs in late 2005 through a partnership with Warner Bros. , with the first five offerings oriented toward cooking and holiday and special-event planning. MSLO operated a satellite radio channel, Martha Stewart Living Radio , on Channel 110 of SiriusXM Satellite Radio . Among programs on

1326-649: The time named Federated Department Stores ) launched in Macy's stores in 2007. The company also announced its intention to design a new paper-based crafts product line, Martha Stewart Crafts, with EK Success, initially planned for release in time for the Holiday 2006 season, which later debuted in early 2007 at Michael's stores. In the fall of 2009, MSLO announced the development of a line of outdoor furniture, indoor organization, kitchen cabinets, and decor products at Home Depot . On December 7, 2011, JCPenney announced

1365-420: The two companies decided, in 2011, to partner up and open up what would be called "Martha Stewart Home Shops". Macy's sued MSLO for "breach of contract" and sued J.C. Penney for "interfering with its agreement with Martha Stewart". Both of these lawsuits were combined in December 2013. Macy's goal was to stop J.C. Penney from selling MSLO merchandise that was supposed to be sold exclusively at Macy's. Macy's settled

1404-609: Was announced that Sequential Brands Group acquired MSLO. As a result of its acquisition, MSLO requested that the NYSE suspend trading and de-list the company's common stock . In March 2017, MSLO partnered with Marley Spoon Inc. to have Martha & Marley Spoon meal kit service delivered by Amazon Fresh to customers in Dallas, Boston, New York, Philadelphia, San Francisco and Washington, D.C., metropolitan areas. Sequential Brands Group agreed in April 2019 to sell MSLO, including

1443-466: Was filed against the company for misleading investors by issuing materially false and misleading statements, and its officers using insider information to avoid losses. A settlement of $ 30 million was approved in 2007. In 2004, the company previously recognized as expense its estimate of annual subscription-acquisition costs rateably throughout the year. After reviewing this matter with its independent certified public accounting firm and its audit committee,

1482-549: Was founded in 1997 by Martha Stewart as an umbrella company for the various media and merchandising ventures linked to the Martha Stewart brand. It went public, via an initial public offering , on the New York Stock Exchange (NYSE) on October 19, 1999. The stock opened at US$ 18 a share, but shot up to $ 38 a share, making Stewart an instant billionaire . On August 6, 2002, a class-action lawsuit

1521-531: Was responsible for development and production of global programming for cable , broadcast , syndication and DVD as well as managing MSLO's development in the area of digital content for video on demand , web and mobile platforms. Although MSLO retained no technical ownership stake in NBC 's program The Apprentice: Martha Stewart , the company, its magazines, and various business ventures were prominently featured in each episode. Mark Burnett , who produced

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