This document compares the Martha Stewart and Blockbuster brands. It analyzes why Martha Stewart has been successful for decades while Blockbuster failed. Martha Stewart adapted to changing times, expanded across platforms, and maintained high quality products. In contrast, Blockbuster's CEO refused to change with technology, stores became uninviting, fee structures confused customers, and the brand failed to build loyalty as advertising dropped. The document concludes Martha Stewart's ability to evolve helped it thrive while Blockbuster's inability to adapt led to its demise.

1. SKODAK Project By Jenny Hartung October 19, 2010

2. A Story of 2 Brands Two strong brands that have shown longevity over the years, yet currently one dominates the competition while the other slides into oblivion….

3. founded 1997 founded 1985

4. MARTHA STEWART A look into what makes the Martha Stewart brand perennially successful

5. The Martha Stewart Brand Image Martha Stewart is a LIFESTYLE brand Its perceived attributes are; Quality Style Creativity Practical Authentic Dependable

6. Winning Combination Award-winning Photography Award-winning Editorial Iconic Imagery Beautiful Design

7. Beautifully photographed and laid out “How To” features

9. Expert on Entertaining and Homemaking

12. Martha Stewart has become an American icon. She has become the go-to brand for Entertaining Decorating Cooking Crafting

13. Reasons Why Martha Has Lasted

14. ...and will continue to last

15. Brand Personality Martha Stewart caters to what she calls a “Creative Class” Customers express their own identity through the Martha Stewart brand You would enjoy spending a weekend with Martha Her region of origin - Connecticut/Maine/New England, gives her credibility

16. If the Person Were to Leave If Martha herself left the company, the company would continue to prosper. Why? Because the“Martha Stewart aura transcends the person” (Businessweekarticle,“The Reinvention of Martha Stewart”)

17. The Martha Stewart Brand changes with the times, expanding the brand by venturing forth into new waters and adapting to fit current trends.

18. Cross Platform Marketing Multiple Books Magazines Own TV Shows & Contributor on Today Show segments Newspaper Column Website Blog/Twitter/Facebook iGoogle App Craft Items Line Upscale line of homewares for Macys Everyday line at Kmart 24 hour Radio Channel Catalog Business Floral Business Wine Brand Costco Frozen and FreshFood Brand High-quality new homes brand with KB Home Center for Living – an outpatient medical facility dedicated to healthy aging Nintendo 3DS Game coming out soon

20. Her Logo Has Changed with the Times Original New

21. Her logo is also adaptable across all platforms – “The Martha Look”

23. Designer Stephen Doyle, creator of the new logo, describes… “We began with the letterforms of Trajan, but this quickly evolved into a version of Optima due to our rigorous research. We wanted the letterforms to reproduce in miniscule applications, like buttons or tacks, which would maintain its handsomeness when shown either carved or embossed. Based on this font, we drew it repeatedly in order to grow away from a rigidity, adding an organic sense of “handmade, homemade and artful” to the letterforms themselves.”

27. Conclusion The Martha Stewart brand has become iconic in American culture. It’s not just a brand, it’s a way of life – Martha Stewart Living Omnimedia. If Martha were to leave, the strength of her brand would continue on. The brand is willing and able to continue adapting to changing consumer needs and technologies. The products are good: the consumer is confident that anything bought within the brand is going to be of high quality and tasteful.

28. BLOCKBUSTER…..What Went Wrong

29. BLOCKBUSTER American-based chain of DVD, Blu-ray, and video game rental stores

31. Original Success Able to stock each of its rental stores with titles that were tailored to the demographicof the city they were in. Always had new releases available. Had a LARGE inventory. Great staff who would help you pick out a movie.

32. “Make it a Blockbuster Night®” Successful ad campaign beginning in February of 2002 premiering during the Superbowl Rabbit named Carl & ginea pig named Ray voiced by actors James Woods and Jim Belushi. They lived in a pet shop across street from a Blockbuster.

35. Top 6 Reasons CEO Jim Keyes refuses to keep up with the changing times Company stopped taking care of its employees Storefronts became unattractive and uninviting The constant change in both fee structure and policies in-store and online confused and disgruntled customers (and employees!) Stopped designing advertising campaigns to build the brand by creating loyalty and preference Logo has not changed – the shape reminiscent of a VHS

36. 1. CEO Jim Keyes doesn’t keep up with the times Named CEO in 2007 -- introduced a new business strategy that included de-emphasizing the unprofitable Total Access online service, in favor of an in-store, retail-oriented model. Believes his primary consumers are un-technological parents – the (direct quote) “family-oriented mom who is not as willing to figure out how to go to a console or a computer and load a movie into the queue.” Didn’t bring in BLOCKBUSTER Express rental machines until July 2009

37. 2. Bad Customer Service Company not supportive of employees. Longer and longer periods between raises Employees docked hours if merchandise is stolen from their store Fewer staff to handle busy periods, leading to uncaring, stressed employees

38. 3. Storefronts = Uninviting Photo by Olivier Blanchard, taken in 2006

39. Where are the movie posters? Where are the cars?

40. 4. Constantly Changing Fee Structure and Policies The BrandBuilder Blog reader Suzannah Scully recounts her movie rental experience: Them: “This is a one-day rental.” Me: “So, it’s due back tomorrow?” Them: “No, you have one week to return it.” Me: “Okay, so if I return it in one week, I won’t get charged?” Them: “Right, but if you bring it back after a week, we’ll charge you for the movie but then if you bring it back within a month, we’ll charge a $1.25 stocking fee.” Me: “HUH?”

41. 6. No Customer Loyalty When the money got tight, the advertising dropped. Brought back Carl and Ray in 2007, but already too late. BLOCKBUSTER’S monopoly on local video rentals allowed them to charge exorbitant fees, including late fees. High cost prohibited customer loyalty.

42. 6. Logo Problems The rectangular logo is the same shape as a VHS – old technology.

43. Conclusion The Martha Stewart brand is successful due to its ability to adapt and grow with the changing times, while continuing to offer quality products, services, and a way of life. The BLOCKBUSTER brand was unable to adapt itself to the changing times and therefore flopped.

44. Research from this project can be found on my MA Design: Brand Development blog at: http://vividorchid2.blogspot.com