Martha’s Goose Could Be Cooked If She Doesn’t Mount Her Own Defense

It may be only Martha who can save Martha.

Martha Stewart's vast media empire hangs in the balance nearly two weeks after she was indicted by the Justice Department for securities fraud and obstruction of justice
charges stemming from her sale of nearly 4,000 shares of ImClone stock. Stewart, who has stepped down as chairman-CEO of Martha Stewart Living, probably a good thing PR-wise, pled
not guilty and has vowed to fight the charges.

Stewart's PR campaign started just a few hours after she was arraigned, when Marthatalks.com was posted on the Web. At press time, the site had claimed more than 8 million hits
and more than 50,000 visitors. The site includes a letter from the domestic diva saying she is confident she will be "exonerated of these baseless charges, but a trial
unfortunately won't take place for months." In addition, Martha Stewart Living Omnimedia bought full-page ads that ran in the June 9 editions of The New York Times and The Wall
Street Journal reaffirming the company's commitment to consumers and business partners. In no way does corporate try to distant itself from its namesake. "As ever, Martha's vision
and energy will continue to be central to the efforts of our creative team in realizing our company's mission," says the letter.

PR executives says the Web site leaves a lot to be desired. Matthew Harrington, president of the eastern region for New York-based PR giant Edelman, says marthatalks.com is a
"day late and a dollar short" for it to have any positive impact. "The charges have been swirling around for weeks and [her PR team] was remiss having waited for the indictment,"
he says. "Right now she's mounting an aggressive communications strategy, but it may be too late to sway public opinion...She needs to do more to help herself."

Because Stewart is so synonymous with her brand, PR strategists recommend she take her case directly to the public. "They need to find the pro-Martha attributes out there and
turn them into a marketing strategy," says Andy Hilburg, president-CEO of Porter Novelli Consulting Hilburg, adding that Stewart might consider a "road show to remind people why
they like her in the first place...She needs to strengthen and expand her base."

Indeed, Stewart has to be more out front if she wants to change the current conversation about her. "When you talk about Martha, she is the product. When she's attacked her
persona is being attacked. That's why she needs to be coming forward saying this is unfair," says Carole Gorney, APR, fellow, PRSA, and professor of PR at Lehigh University.
Gorney adds that Stewart could do a much better job communicating to the public herself than either her lawyers or her PR team, which Gorney say have not served her well so far.
"They've put her in a defensive position...She needs to put out more information and owes the public more of an explanation than 'I'm innocent.' And whining that his happened
because she's a successful woman won't work."

Others say the problem is that Stewart's attorneys have kept her PR team on a short leash. "This is the time to educate between law and PR," says Mike Paul, president &
senior counselor of New York-based PR firm MGP & Associates PR. "They need to break down how the story is going to play out in PR terms. Her lawyers may be thinking the best
thing for her is a six-month jail term, which is short-term thinking. For PR in this case, the thinking has to be long-term."

The house that Stewart built has already suffered some blows from the public. Newsweek reports that shares in Martha Stewart Living Omnimedia have plummeted 50% since her legal
woes began while ad pages for Martha Stewart Living fell 29% through June, per PR NEWS sister publication Media Industry Newsletter.