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After Acquiring the Current Governor of Minas Gerais’ Network in 2018, Total Plans to Double Sales, Starting with the State
Total, the French multinational oil company, entered the fuel distribution market in Minas Gerais in 2018 by buying the Zema Group from the state’s current governor, Romeu Zema.
Barely starting here, the company has already set an ambitious goal: it wants to double its sales of petroleum derivatives in Brazil in the next two years, increasing from 80,000 cubic meters to 160,000 cubic meters annually.
The state of Minas Gerais hosts most of the company’s fuel stations, with 150, and there are a total of 280 stations in Brazil. The rebranding is being carried out gradually and is expected to be completed by 2021.
The first station under the Total brand was inaugurated yesterday (08/22) in Betim, a city in Minas Gerais. This year, around 30 stations will receive the new brand. The former Zema network stations, besides in Minas Gerais, are located in the states of Goiás, Mato Grosso, and São Paulo.
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Strategy
Total has outlined several strategies to double its sales percentage in Brazil, one of which is to focus on sales to white-label stations, which are those that do not represent any distributor and can purchase fuel from anyone they want.
According to Total Marketing & Services’ general director and member of the group’s Executive Committee, Momar Nguer, “Today, 45% of the stations are white-label.”
Another initiative the company plans to implement is the adoption of an application to retain customers, which should take place in the coming years.
Total’s market share is still quite modest and is expected to reach 1% of the Minas share, thus not posing a threat to market giants such as Shell, Petrobras, Ipiranga, and Ale.
But according to Momar Nguer, the Total group will grow and invest in logistical bases to improve transportation and increase safety. “We will gradually increase our market share with competitive prices and good services,” he declared.
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