Businessweek

Martha Stewart Living Omnimedia, Inc., an integrated media and merchandising company, provides lifestyle content and products for homemakers and other consumers. The company’s designed and branded products are available in various retail outlets across the country, including The Home Depot, Macy’s, Petsmart, and in various Staples stores. The media and merchandise the company creates includes cooking and entertaining, holiday and celebrations, crafts, home, whole living (healthy living and sustainable practices), weddings, organizing, gardening, and pets (grooming, apparel, feeding, and health) areas. Strategy The company’s strategy to grow its merchandising business by utilizing its brand equity to expand the distribution of product in existing categories, diversifying into new categories and distribution channels, and negotiating new partnerships that reward it for the value of its brands and its active role in product development and design; strengthen its media business by creating a brand-centric advertising sales force and by using its content across existing and new distribution channels; and expand its media presence and pursuing merchandising opportunities internationally. Segments The company operates through three segments: Publishing, Broadcasting, and Merchandising. PUBLISHING This segment includes operations related to magazine and book publishing and digital distribution, principally through the company’s Website, marthastewart.com. Magazines Martha Stewart Living: The company’s primary magazine, Martha Stewart Living, is the foundation of its publishing business. It publishes Martha Stewart Living on a monthly basis with a rate base of 2.05 million. The magazine appeals primarily to the college-educated woman between the ages of 25 and 54 who owns principal residence. Martha Stewart Living offers lifestyle ideas and how-to information in a visual, upscale editorial environment. Martha Stewart Weddings: The company offers Martha Stewart Weddings that targets the upscale bride and serves as a vehicle for introducing young women to its brands. Martha Stewart Weddings is distributed primarily through newsstands. Everyday Food: The company offers Everyday Food after publishing four test issues. This digest-sized magazine, published 10 times per year, targets women ages 25 to 49. Everyday Food features recipes for the everyday cook, along with seasonal menus, cooking instructions, suggestions for healthy, ‘smart’ eating, and money saving shopping tips. Whole Living: The company owns Whole Living magazine. Special Interest Publications: In addition to the company’s periodic magazines, it publishes special interest magazine editions. Its special interest publications provide advice and ideas around a particular topic in one of its core content areas, allowing the company to utilize its distribution network. Its special interest publications are sold at newsstands and might include advertising. In 2011, it published Martha Stewart Living Halloween Flights of Fancy Special, Martha Stewart Holiday Handbook, a full-sized Everyday Food special, and Martha Stewart Weddings—Destination Weddings and Dream Honeymoons. Magazine Production, Distribution, and Fulfillment: The company prints majority of its domestic magazines under agreements with R. R. Donnelly and purchases paper through an agreement with Time Inc. Newsstand distribution of the magazines is handled by Time Warner Retail Sales and Marketing, an affiliate of Time Inc., under an agreement. Subscription fulfillment services also for the company’s magazines are provided by Time Customer Service, another affiliate of Time Inc., under an agreement. Books The company has a multi-year agreement with Clarkson Potter/Publishers to publish 10 Martha Stewart branded books. Subsequent amendments ultimately increased the number of books to be delivered to 17, majority of which had been delivered and accepted as of December 31, 2011. Three books were published in 2011 under this agreement, Pies & Tarts, Entertaining, and Handmade Holiday Crafts. The company has a multi-year agreement with Harper Studio to publish 10 Emeril