Bob Ruekert, Associate Dean of Undergraduate Programs and Professor of Marketing at the Carlson School, specializes in marketing strategy, new product development, and brand management and has published widely in top tier marketing journals. We recently asked for his thoughts on brand survival in a floundering economy.

Q> As the American economy heads into what we now know to be the second year of a recession, what predictions can you make about the emerging brand-scape?

A> I think we're in for a sort of "Darwinian shakeout" for companies and brands like many of us have never seen before. Looming bankruptcies may bring brand extinctions at all levels, whether it's at the corporate level (General Motors), the product line level (Buick), or the product level (LeSabre), and I certainly expect to see lots of mergers, product pruning, and fierce competition for customers. What we'll find is that companies will need to focus on a little-known aspect of brand value - brand resiliency - and that value brands like Target might be the most resilient ones out there. Normally, in tough times, we expect that companies representing mid-value brands will feel the pressure - your Sears or JC Penney - while those on the low and the high end, such as Walmart and Gucci, should be the survivors who ultimately get the spoils as the economy rebounds. This recession is uncharted territory, though - the holiday sales figures showed that both the middle and the high end floundered. Only discount retailers are keeping their heads above water for the time being. For the foreseeable future, companies will have to continue courting consumers with sales promotions, if not outright price slashing.

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