Vivos Shelters: A Route to Stable Demand Post COVID-19 Pandemic
(6 pages of text)
Case (Pub Mat)
California-based Vivos Group (Vivos) built and sold luxury bunkers designed to withstand catastrophes. The founder himself had acknowledged that the majority of US residents could not afford them: while competitors offered bunkers with down payments as low as a US$1,300 —which middle-income consumers could afford—Vivos’s $35,000+ bunkers were for the rich. By May 2020, several of Vivos’s bunker properties were sold out, but it was uncertain whether this indicated some permanent change in consumers’ buying behaviour or an effect of the COVID-19 pandemic. Vivos’s founder now faced several challenges: should he focus on constructing more luxury apartment-based bunkers or low-cost, community-sharing bunkers to provide consumers with protection from COVID-19? What aspects of bunker management should he improve, given the criticism that bunker companies had made false claims about the air filtration systems in the bunkers? How could he help Vivos achieve growth in the long run?
This case is intended for undergraduate- or graduate-level courses in small business management, strategic marketing, marketing management, and entrepreneurship.
The case elaborates on the growing significance of the prepper community, especially bunker service providers, and on the increased demand for such services during the COVID-19 pandemic. It also discusses the accusation that bunker service providers have behaved like “snake oil companies” by misleading consumers with claims that they provide virus-free bunker facilities. It notes that bunker companies must meet the demands of both middle-income and millionaire consumers. After working through the case and assignment questions, students will be able to do the following:
- Explain the panic-buying behaviour of consumers during a pandemic.
- Examine the demand fulfillment strategies a firm can use across different consumer segments.
- Critically analyze the strategies that businesspeople in the prepper community should take to avoid accusations of misleading consumers.
- Explore the growth strategies chief executive officers can employ, based on their visions for companies’ futures.
Real Estate and Rental and Leasing
New Zealand; United States, Medium, 2020
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