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Abstract
"Koninklijke Ahold nv" (Royal Dutch Ahold) was the leading
food retailer in The Netherlands in 1990 with an approximately 36%
share of the food and grocery market. Moreover, its four U. S.
companies (Giant Food Stores, PA.; Bi-Lo, NC.; Finast, OR.; and Tops
Friendly Markets, NY) ranked it number ten among the largest U. S.
food retailers . Despite this dominance and obvious knowledge of
food wholesale and retail distribution, Ahold had historically been
unable to capture a satisfactory share of the fresh food business in
The Netherlands. Yet this business represented approximately $7
billion in current business and, perhaps more importantly, was
thought by many to hold the key to future success in the food
industry.
The case study documents the set of circumstances that led
Ahold to experiment with a new food store format that, its
management hoped, would allow a more effective penetration of the
fresh food business. A project director is appointed with the
assignment to build a new fresh foods business. The case describes
his initial actions and presents the rather disappointing results after
the store had been opened nine months. Part '~A" of the case ends
with an outline of the areas that the project director feels merit
strategic redirection in order to achieve more acceptable
performance.
Part "B" of the case summarizes the actions incorporated into a
new strategic marketing plan in hopes to salvage the project. New
financial results, nine months after the repositioning, are presented.