VCU news

By Lissette Linares

A new program at Virginia Commonwealth University is proving that students don’t have to go to school abroad to get an international education. Under the pilot program, five graduate business students are serving as consultants to an Austrian company considering U.S. market entry. The students will present their findings at company headquarters Aug. 26-27 in Salzburg.

The new initiative builds on the School of Business’ 11-year partnership with the Virginia Economic Development Partnership’s International Market Planning Program. That program has linked graduate marketing students with Virginia companies considering expansion into global markets. Now, in addition to the VEDP program, VCU students enrolled in "International Market Planning" are consulting with foreign companies considering U.S. market entry.

"By the nature of the world’s globalization, we are forced to think cross-culturally about business opportunities," said Pamela Kiecker, Ph.D., VCU chair of marketing and business law. The program teaches students to think globally while conducting primary research and in-depth market studies for foreign companies.

The School of Business learned about the project last spring from SalzburgAgentur, an Austrian consulting firm. HAMA Foodservice, a SalzburgAgentur client, needed to determine the viability of bringing its top product, QimiQ, into the U.S. market. A low-fat substitute for oil, eggs and cream, QimiQ is used in hospital and school cafeterias and restaurants in Austria, Germany and the United Kingdom.

"VCU was the perfect fit for the project," said Michael Stephens, a partner at Spark International LLC, a Richmond-based consulting and project management firm. "The students produce high quality work and they were very interested in the project."

The student team began work on the project in June, conducting research on the food service market, the food manufacturing industry, grocery stores, direct marketing and the FDA approval process. In July, students met with HAMA representatives in Richmond to present preliminary findings, which offered background information on the industry and market entry.

"Their input helped us focus our research tremendously," said Robert Ferguson, VCU second-year M.B.A. student. "After their visit, we were able to begin to clearly identify potential retail markets and partnership opportunities."

In its final report, the VCU team recommended that HAMA first bring its product to the mid-Atlantic region, with Richmond as the focal point. The student consultants further advised the company to develop strategic alliances with dairies, since QimiQ is 99 percent milk. The team also determined that the company’s primary focus should be on the food service industry, and retail was identified as a possible alternative channel for the product as an ingredient in already prepared foods, such as salad dressing.

The student team will present the final report to HAMA executives in Austria. A team of four Richmond consultants – Kiecker; Van Wood, Ph.D., Philip Morris Chair in International Business; Stephens of Spark International; and Michael Drzal, an attorney at the Richmond law firm LeClaire Ryan – then will meet with HAMA executives to develop an implementation plan based on the student-consultants’ report. While in Austria, the professional team also will meet with companies interested in working with VCU students on similar projects.

"It’s been a lot of work, but it’s been a brilliant learning experience," said Ferguson. "The program definitely adds a dimension to the M.B.A. experience that you just can’t get in the classroom."

The department hopes to offer six to 10 market planning projects annually for both Richmond and Western European businesses. The HAMA market study was privately funded by the company.