---
title: "KA Store Practical Operations Training Manual (III)"
description: "This article provides practical guidance on operations after entering KA stores, covering product selection, display techniques, promotion planning, promotion staff management, financial control, and relationship maintenance, with the goal of improving sales and profitability in key accounts."
author: "周广军"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2015-01-20"
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# KA Store Practical Operations Training Manual (III)

> This article provides practical guidance on operations after entering KA stores, covering product selection, display techniques, promotion planning, promotion staff management, financial control, and relationship maintenance, with the goal of improving sales and profitability in key accounts.

**Reminder: Click the blue text “FMCG Distributor Professional Consulting” above to learn more about marketing and distributor internal management.**

III. Operational Measures After Entering KA Stores

(1) Selection of Products to Enter the Store

1. Product selection should be based on local market conditions and consumption habits, choosing leading products, new products, competitive products, and specialty products that are suitable for the market. Specific enterprises can operate according to their actual situation.

2. Product optimization mix standards:
a. The ratio of leading products, new products, competitive products, and specialty products should be 3:3:2:2.

Note: Why do this? For example, new products represent future sales and future profits, so their shelf space share should be relatively higher.

3. Pricing standards for products entering the store:
- Regular products: add 30% or more on top of the landed cost.
- Ordinary products: add 20% or more.
- KA products: add 16% or more.

Note:
1. For new products, add 5-10% on top of the original price system. Why?
2. For KA stores that settle in cash or with prepayments, prices can be appropriately reduced, in principle within 5%. Why?

(2) Terminal Visual Merchandising Techniques

70% of consumers go to the supermarket without knowing what to buy; most are impulse buyers. The average browsing time is 15 minutes, and they stop in front of a product area for 15 seconds. 75% of people make a decision within 5 seconds. If they can't see the product they want to buy, 40% will buy another product.

1. Product Display Techniques

- Maximize shelf space: Why? Sales and shelf space are directly proportional to a certain extent! The goal of product display is to occupy more display space and increase the number of products displayed. Only by occupying more display space than competing brands will customers buy your product. (Within a certain range, shelf space is proportional to sales. Especially for regular shelves, establish the concept that "shelf space is fought for, not bought." Some of our stores have been squeezed out or delisted by competitors, which is a typical negative case. There are many such examples.)

- Full product range: Why? It's not about not making money, but about not having a complete range. Each product category has its target consumer group! Display as many product categories as possible in a group of freezers to meet the needs of different consumers, increase sales, and enhance the company's image and product influence. (Plan a complete product line to meet the needs of different consumers.)

- Centralized display (or scattered follow-up display): Why? Analyze specific problems! Unless the mall has special regulations, always display all specifications and varieties of products together. Every time you visit the store, remove other brands that have mixed into your display. (Some companies also stipulate that even if centralized display is not allowed, try to achieve partial centralized display. This principle should be analyzed on a case-by-case basis. For example, if centralized display is recommended in the Shandong region, other regions should display close to competing products.)

- Full display: Why? Consumers have choices! The phenomenon of one piece or one bag remaining in terminal marketing also illustrates this problem. (If only one piece or one bag remains in the terminal display, it may not sell for a long time!) Make sure your products fill the display cabinet completely. This not only increases the fullness and visibility of the product display but also prevents competitors from occupying the display space. At the same time, take out some products to make it easy for consumers to pick up, and create the illusion that someone has already chosen this product. (If a product sells poorly and you're worried about it not being full, you can add a base layer at the bottom.)

- Highlight key products: Why? Limited resources should generate maximum sales and profit! When displaying a series of products on a stack or display cabinet, in addition to full range and maximization, you must highlight the position of the main product so that the priority is clear and customers can see it at a glance. (More importantly, it can make limited shelf space produce maximum benefit. Key product principle: one leading product should have multiple shelf facings (3 or more), new products should have double shelf facings (2 or more).)

- Visual consistency: Why? The role of VI: Cola is red, Pepsi is blue... All company products in the display cabinet must have the Chinese trademark facing the consumer uniformly, achieving a neat, beautiful, and eye-catching display effect. From freezer stickers, price tags, product placement to POP configuration, all should comply with the above display principles, and must be holistic, coordinated, and standardized. (Convenient for consumers to purchase, strong visual impact.)

- Clean packaging: Why? Maintain the value of the product! Ensure all displayed company products are neat and clean. If you were a consumer, you wouldn't buy dirty and messy products. (Freshness can enhance product value. Also, the product bags should be smooth and flat.)

- Prominent pricing: Why? It's the most concerned issue for consumers! A clear and eye-catching price tag is one of the driving forces for purchase. It not only increases the visibility of the product display but also lets consumers buy with confidence, allows price comparison with similar products, and can show special prices and discount numbers to attract consumers. If consumers don't know the price, even if they want to buy, they may hesitate, losing a sales opportunity. (It's best to use explosion tags, POP, triangle cards, etc., for comprehensive display.)

- Dynamic display: Why? Attract consumers' attention! On the basis of full display, intentionally remove a few bags from the top layer. This not only makes it easier for consumers to pick up but also shows that the product is selling well. (If it's too flat, consumers may find it hard to pick up, and it doesn't show that consumers have already chosen to buy.)

- First in, first out: Why? Reduce product loss and maintain freshness! Place products with earlier production dates on the outermost layer and newer products inside to avoid product retention and expiration. For freezer and stack goods, turn them over at least every five days, putting earlier products on the outside. (This applies to warehouse management as well as terminal management. It is one of the responsibilities of regional managers, area managers, city managers, sales representatives, and merchandisers/promoters.)

- Safe storage: Why? Prevent stockouts! Ensure that the variety and specifications of in-store inventory are not lower than the "safety stock line." Safety stock = average daily sales × replenishment lead time. (Ensure no stockouts or supply interruptions, increasing sales opportunities.)

- Light on top, heavy on bottom: Why? Aesthetics and convenience! If it's a vertical cabinet, put small packages on top and large packages at the bottom.

2. Selection criteria for terminal display positions (should be determined with reference to supermarket traffic flow design and magnet point theory)

- Main aisles; special price areas; near checkout counters; entrance to the product category area; next to best-selling brands; supermarket entrance; freezer end caps, etc.

Think about it: Why is a stack position better than an end cap, and an end cap better than a regular shelf?

Quantified answer: A stack faces consumers on 4 sides, an end cap faces consumers on 3 sides, and a regular shelf faces consumers on 1 side, so the sales generated are different.

(3) Promotion Activity Arrangements

1. Promotion activity procedures

Since each requirement is different, operations should follow the contract specifications. Here's an example:

Case: CR Vanguard in-store and out-of-store promotion process

Out-of-store promotion (DM) process: (Auchan single stores have DM authority)
a. About 1 month in advance, communicate with the regional buyer about the DM poster schedule, promotional products, promotional prices, promotional forms, and promotional sales volume.

Note: Each supermarket system has different lead times for submitting promotion plans. For example, Walmart requires 3 months in advance to submit promotion plans to the head buyer; Auchan requires 2 months in advance to regional buyers; Century Lianhua, CR Vanguard, and Yonghui (both DM and in-store) require 1 month in advance; Carrefour requires 2 months in advance (regional DM requires 1 month, usually proposed by regional buyers). Some KAs only require 15 days in advance or no advance notice; follow the contract requirements. Generally, companies prepare the annual promotion plan a year in advance and then communicate with KAs.

b. Sign the DM promotion agreement, including schedule, promotional products, promotional forms, promotional prices, involved stores, whether special display support is given, and promotion costs.

c. Regional sales staff take the DM promotion agreement back to the company for stamping, and provide samples of the corresponding products to the regional buyer (for poster photos).

d. Three days before the DM starts, the supply price of promotional products will be changed to the promotional purchase price. Regional sales staff need to stock up four days in advance. On the day the DM starts, the promotional selling price will be automatically generated; no need for regional sales staff to maintain the promotional purchase price and selling price.

e. After the DM ends, the promotional selling price will automatically revert to the original price. Regional sales staff need to check whether the promotional supply price has also reverted to the original price. If not, remind the regional buyer to adjust the price. (Why? Because the resulting losses are usually borne by the supplier.)

In-store promotion process:
a. Regional sales staff fill out the CR Vanguard price change form, noting the promotional purchase price, promotional selling price, promotion period, etc., and stamp it with the company seal.

b. Submit the price change form to the regional buyer. After the buyer and purchasing manager sign off, the regional buyer will submit it to the CR Vanguard price change clerk.

c. The CR Vanguard regional purchasing clerk will update the system based on the time and promotional prices on the form.

d. After the update, the system will automatically generate the promotional price and revert it based on the price change interval.

Note: The promotional purchase price is usually generated two nights before the promotion starts, and the promotional selling price is usually generated one night before.

2. Promotion forms

a. Discount: Based on competitor sales, use price reductions to attack competitors in stages. Specific forms include in-store special prices, out-of-store special prices (DM), and shocking prices.

Note: Among national chains, Carrefour has the lowest gross margin requirement for promotional single items; some only add 1%-2%. For shocking prices and non-regular promotions, they can achieve zero or negative gross margin, with the loss shared by the KA as agreed. When signing contracts, be sure to clarify how the gross margin loss for promotions is shared.

b. Buy and gift: Use gifts to stimulate consumption. Specific requirements:
- The "activity name" should be "clear in theme," "justified," attractive, and easy to spread.
- Gift purchase principles: If the budget is high, gifts should be "attractive," "good quality," "practical," and "novel." If the budget is low, the difference between the cost price and retail price of the gift should be large, generally at least 2 times. The gift should be "usable by every household," and every family member can use it. The purchase cost should be low. It's best to print the company logo on the gift for long-term promotion.

Case: Small investment, big returns.
Magic balloon marketing; crystal cup marketing.
- The threshold for giving gifts should not be too high, and multiple options should be provided.
- Limited quantity gifts as a catalyst: Consumers always buy when prices are rising, not falling. Let consumers see that the gift pile is almost gone, but there are many empty gift boxes nearby. This feeling of "if you come late, there will be no gifts" greatly boosts purchase desire.
- Limited time and quantity principle: For buy-and-gift and special price promotions with supermarkets, be sure to specify limited time and quantity in the promotion agreement. Otherwise, if gift/special price products are insufficient during the promotion, you may face fines.

3. Selection of promotional single items and quantities

Promotion purpose: Increase sales of leading products, cultivate new products, and attack competitors.

Product selection: In principle, focus on high-end and new products. DM poster promotions should have no more than 3 items; special prices should have at least 5 items. (The specific quantity can be determined by each company.)

Note: New products should avoid special price promotions as much as possible. Why? What promotions can new products do?
New product prices are not transparent; special prices are ineffective and can easily kill the product. New products should focus on buy-and-gift promotions.

4. Special price discount range

a. Special price discounts generally should not exceed 10%; DM shocking prices generally should not exceed 25%. Why? To avoid "no promotion, no sales."

b. Special circumstances require approval from the marketing director, provided that the local market price system is not affected. If other KA systems complain or penalize, there should be corresponding solutions and measures.

Note: What if the supermarket makes special prices without authorization? For example, RT-Mart often runs big promotions during store anniversaries without notifying suppliers. What should other supermarkets do?

Preventing price collapse:
a. Avoid special prices and shocking prices as much as possible.
b. If doing activities, do them uniformly.
c. Communicate in advance, at least 1 month ahead. After the poster is released, if the promotion is too aggressive, reduce or stop shipping. Especially for Taiwanese companies.
d. Maintain good relationships; don't just do business formally. If you don't visit regularly, last-minute efforts won't work.
e. Product differentiation: Use different items for different channels.

If prices have already collapsed, how to manage:
First treat the symptoms, then the root cause. Don't go to the buyer first. Why? We should first go to the store, the promotion supervisor, and the section chief (not the buyer, who will argue). Say the price was printed wrong, reduce the shelf space, move the product to a place where consumers can't see it, so consumers can't find it. Then talk to the salesperson; for each item sold, deduct a certain amount. Make consumers unable to see it, and if they see it, they can't buy it. After these two steps, then go to the buyer.

Before going, know what the buyer is thinking: 1. Increase sales; 2. Low prices to attract traffic; 3. Cross-selling; 4. Handle customer complaints (if there are frequent problems with customers, they force the manufacturer to come). Know yourself and know your enemy:
If it's the 4th reason, we can help the buyer solve it. Usually it's the first three reasons. If they want to continue the special price, other stores will do the same. (Don't push the negotiation into a dead end. If it's the first three, I'll help you achieve those goals. If the buyer agrees, fine. If not, I have other ways. Today it's not about me against you; if you finish, other companies will do the same. Instead of letting the city be destroyed, I'd rather cut off your supply.) When saying harsh words, avoid personal conflict: cut off supply, buy back (including products in shopping carts), and encircle (on the basis of normal prices, I give other stores big discounts, making consumers feel your prices are not low). Later, proactively communicate with other supermarkets: "The company punished me with a notice because this wasn't my doing. Don't cut prices for these 4 days, and I'll give you support."

5. Notes on using promotional materials

Promotional POP pricing and content: Show both the promotional price and the original price to distinguish them. Minimize text so consumers can read it all within 3 seconds and clearly understand the promotion. (Some KA stores don't allow this.)

Write clear restrictions: e.g., limit 5 packs per person, weekend promotion, limited quantity while supplies last, valid before XX date, etc.

Gift usage: Gifts must be handled according to the KA's gift process. Generally, once gifts enter the store, they cannot be taken out; otherwise, it's treated as theft. Gifts usually have "gift stickers," "barcodes covered," or "marked with a pen."

6. Regular follow-up visits to maintain activity effectiveness:
Sales representatives should visit every 2 days, responsible for ensuring full supply of all items in the supermarket. Check if the price change was successful, if competitors followed, what the effect is, if stock is sufficient, and if promotional staff are on duty.

Note: When visiting, arrive after the other party's promoters and merchandisers, not before. Why? And for CD stores, it's the opposite?

7. Promotion timing selection

a. Legal holidays: weekends, Spring Festival, New Year's Day, Women's Day, Labor Day, National Day, Teachers' Day, etc. Double 11, Double 12, etc., should have a justified reason.

b. Non-legal holidays: Mid-Autumn Festival, Christmas, Dragon Boat Festival, Valentine's Day, Father's Day, Mother's Day, etc.

c. Folk seasons: e.g., Winter Solstice.

d. Execution period: A single-item promotion of 15 days is best. (Follow KA regulations; some are 10 days, and some KAs use weeks as units.)

※ After the schedule ends, change the promotion promptly. Why? (Otherwise, "no promotion, no sales" may occur.)

(4) Recruitment, Training, and Management of Promoters

Criteria for excellent promoters: "Strong affinity, good attitude, and skillful techniques."

1. Recruitment sources for promoters:
- Poach from competitors' promoters.
- Store recommendations.
- Professional promotion etiquette companies.
- University student unions and other social organizations.
- Human resources markets or media recruitment.

※ What are the advantages and disadvantages of each recruitment method?
※ How to identify excellent promoters?

2. Training content and methods for promoters:
a. Training content: corporate culture, job responsibilities, management processes and standards; product knowledge, sales skills, competitor status; KA system's internal promoter management methods.

b. Training methods: meeting training; simulation training; on-site training.

※ What are the advantages and disadvantages of each training method?
※ What are the key points in promoter training? What is the most important role of a promoter? (Brand switching. How to achieve it? The premise is a deep and thorough understanding of product knowledge.)

3. Promoter management:
a. Establish a complete promoter file.
※ Why establish files?

b. Health checks and pre-job training; only after passing can they start work.
※ Why?

c. Keep daily sales records and report to the company at regular meetings.
※ Why?

d. Implement weekly or monthly meeting systems for regular training, reporting, and exchange.
※ Why?

※ Think about management challenges: How to prevent promoters from leaving their posts? What to do if promoters are often pulled by the store to do other things?

Practical tool to prevent promoters from leaving their posts: the "Departure Time Schedule" usage method.

4. Evaluation and motivation of promoters:
Evaluation: Develop a comprehensive, systematic daily assessment system and reward/punishment rules. (Attendance, loss reporting, returns, sales reports, etc.)

※ Make daily sales reports to know the daily commission. Why?

Motivation: Set monthly sales targets and strictly assess at the end of the month. Compensation should be base salary + commission, which maximizes motivation and is currently the best incentive method: more work, more pay. Reward methods: excellent case award, comprehensive ranking award, sales progress award, overachievement award, special contribution award, etc.

Attachment: Promoter entry process and precautions? (KAs usually charge promoter management fees.)
a. Go to the store to get the relevant application and personnel information manuals. For example, CR Vanguard requires filling out the "Promoter Entry Form," "Appointment Letter," and "Promoter Information Form," then stamp with the company seal.

b. The KA manager stamps the "Promoter Training Certificate" with the company seal, proving the promoter has been trained in the company before starting work.

c. Promoters prepare ID copy, health certificate, and one-inch photos to attend store training. The specific training time should be confirmed with the store. After passing the training, they receive a training certificate.

d. Promoters bring ID copy, photos, health certificate, promoter entry form, appointment letter, promoter information form, and training certificate to the store's HR department to complete the entry procedures.

e. After completing the procedures, they receive an employee card and uniform, and pay the corresponding fees.

5. Key points for a successful promotion:
a. Have a justified reason; b. Plan in advance; c. Train properly; d. Pay attention to details. The plan should be specific to people, tasks, and responsibilities. e. The simpler, the more effective.

Case: Draw conclusions from a case?
Tianshui region store operations: from 50,000 to 300,000!
a. Effective publicity. (How to target the target consumer group.)
b. Easy operation. (How to reduce processes and make operations simple and convenient.)

(5) Financial Management and Cost Control

1. Daily sales data management:
a. Finance, business, and warehouse must accurately verify daily deliveries and returns, and settle daily.

b. Finance should categorize delivery documents, accurately count, establish ledgers, and assign dedicated personnel for safekeeping.

2. Promotion data management:
During promotions, sales staff should promptly notify finance of promotional prices and times. Finance should update prices and file records in a timely manner.

3. Accounts receivable management:
a. Establish accounts receivable ledgers:
- General ledger: Finance lists each supermarket's reconciliation time, payment time, method (cash, check, wire transfer), and document requirements based on the credit period.
- Sub-ledger: One ledger per store, including all contents of the general ledger and supply prices, with original delivery documents attached.

b. Reconciliation and payment:
- Reconcile on time; do not delay.
- Investigate any discrepancies promptly to ensure payment is not delayed.
- After reconciliation and confirmation by both parties, immediately notify finance to issue invoices.
- When submitting invoices, require the supermarket to sign for receipt.

4. Cost determination and control:
a. Cost categories: mainly a. contract costs; b. promotion costs.

b. Cost control:
- Contract cost control: Use public relations to achieve "spend small money to save big money." Leverage customer relationships to get the maximum discount.
- Promotion cost control: Improve sales staff's quality and communication/negotiation skills; sales staff must be familiar with the cost levels of each supermarket; establish good relationships with supermarkets.

5. Loss control:
a. Loss standards: In principle, within 1%; try to avoid signing such clauses.

b. Loss categories:
- Natural loss: Normal loss due to product quality issues and circulation.
- Man-made loss: Loss due to lack of responsibility of relevant personnel.

Note:
- If it's the store's fault, in principle, the store is responsible; clarify this directly when negotiating the contract.

c. Loss control:
- Strengthen supermarket order planning, reasonably control inventory, and avoid blind ordering.
- Strengthen management of supermarket salespeople, implement first-in-first-out, and promptly promote slow-moving products.
- Establish a loss responsibility system and clarify responsible persons.

6. Establish a financial analysis system:
Conduct monthly financial analysis for supermarkets, including sales amount, cost amount, loss amount, gross margin, loss rate, cost rate, and collection rate.

7. Prevention and avoidance of payment risks:
a. Strengthen financial operations and improve sales staff's awareness of payment collection. Reconcile and settle promptly, starting from the source.

b. Gradually compress contract credit periods, and strive for cash or prepayment as much as possible.

c. Understand supermarket business trends, take timely measures in special situations, and minimize risks.

(6) KA Relationship Maintenance Skills

1. How to maintain relationships with buyers (identify buyer needs)
- How to deal with buyers of different ages; case.
- How to deal with buyers of different genders; case.
- How to deal with buyers of different personalities; case.

※ Case: How to spend less money and do more? (Case: Based on their performance assessments; based on their family needs; based on their need for respect (training).)

2. How to maintain relationships with store personnel (divided into relationships with store personnel with more power and those with less power; section chiefs, supervisors, warehouse managers, etc., all need maintenance)

Case: How to maintain store relationships to achieve "spend small money, do big things."

In summary, how to do well in KA: First, understand professional knowledge; second, understand the operational processes of each system and business type; third, build good relationships; fourth, do well in operations and maintenance; fifth, understand input-output to ensure profitability.

Regarding professional knowledge, how to build relationships, how to operate and maintain, and input-output (costs, expenses): I believe everyone can understand these.

Attachment: Contracts and business processes (contract negotiation process, order process, promotion process, payment process, new product entry process, product code process, price adjustment process, promoter entry process, etc.) for well-known national systems (Century Lianhua, RT-Mart, Walmart, Carrefour, Auchan, Yonghui), as well as promotion details and precautions.

IV. Afterword

Although the development momentum of KA stores has slowed in recent years, even less than convenience stores, as you can see Carrefour also entered the convenience store format in 2014, the operations of chain convenience stores are almost the same as those of hypermarkets. Therefore, we must operate KA stores.

As for e-commerce, it has been a hot channel in recent years, but how much sales it truly achieves, and how many myths it creates, perhaps the FMCG giants know in their hearts. Achieving online-offline integration (O2O) may be another blue ocean for cooperation among e-commerce, KA stores, and suppliers in the future! After all, Ma Yun has already sent the first generous gift to his Hangzhou fellow townsman!

Daonong recently opened a public account specifically about how traditional enterprises can do WeChat marketing well. If you are interested, you can follow it. Search for the WeChat ID above or scan the QR code below to follow.

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