We traditionally think of consumer behavior during a recession as largely driven by rational motivations.  We shop for more private label groceries, clip more coupons and shop more discount apparel stores.  So perhaps the best strategy for brands to survive this recession is by using rational tactics likes sales, deals, and promotions.

But consider these three brands that are perceived as cost savings brands.  It’s no surprise they’re doing well, or at least better than their competition.  What is surprising is that all three are positioning themselves as “better life” brands, not just “better deal” brands.  By making emotionally relevant connections now, they are profiting in the short-term while positioning for the long-term.

Hyundai - Struck with the fear and anxiety of losing their jobs, many Americans have postponed major purchases like automobiles.  But Hyundai posted their highest market share ever in the first 6 months of 2009.  And it’s not just because they sell cheaper cars.  It’s that their Assurance Program helped put consumer fear in the backseat.  While many others have launched similar programs since, Hyundai was the first to win the hearts of consumers.

Home Depot – In this recession many homeowners are putting off fixing that leaky faucet or painting the living room.  But when that to-do list piles up, it weighs on us like a heavy burden.  While Lowe’s has been promoting their every day low prices, Home Depot has translated their own savings message into an emotional payoff – “More Saving.  More Doing.”  The results?  In the first 6 months of 2009 their stock outperformed Lowe’s by over 15%.  Home Depot gets it.  When consumers feel paralyzed to do even the small things, a message of practical empowerment is the emotional antidote they’re seeking.

Walmart – In an interesting counter trend, Walmart is trying to become a house of brands while Target is pushing their private label “up & up.”  To support their massive makeover, Walmart has revamped everything from logo and advertising to store formats, replete with fresh signage and hardwood floors.

Their new tagline “Save Money. Live Better.” gets to the heart of the matter.  The brands that will win in the long run are the brands who position themselves with consumer’s hearts, not with their wallets.