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Vibra's challenge in replacing Icone BR Petrobras and the role of convenience stores in fuel retail

Written by Corporate
Published 24/07/2024 ร s 18:25
branding, logo, emblem
Vibra's Challenge in Replacing the BR Petrobras Brand and the Role of Convenience Stores in Fuel Retail'. โ€“ PHOTO: ยฉ2024|paula@difattocom.com.br
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BR Petrobras loses leadership in Brand Strength; Ipiranga and Shell lead gas stations and convenience stores; Vibra faces immediate rebranding challenge.

BR Petrobras loses its leadership in Brand Strength, with Vibra facing the imminent challenge of a rebranding. Ipiranga and Shell are now ahead in the gas stations and convenience stores market, taking the lead as the strongest brand in this dynamic sector.

The fierce competition between Ipiranga, Shell and BR Petrobras redefines the branding landscape in Brazil, with each company seeking to strengthen its logo and brand identity. Vibra needs to do significant rebranding work to maintain its relevance in this competitive environment.

Dominant Presence of Brands in the Fuel Market

In Brazil, three major brands account for approximately 82% of the main consumers in the fuel market. They are BR Petrobras, operated by the Vibra Energia group, with a 30,6% stake, Ipiranga, from the Ultra group, with 29,5%, and Shell, belonging to the Raรญzen group, which holds 22,3%. Other smaller networks, such as ALE, Total Energies, Carrefour, Atacadรฃo, Assaรญ, among others, share the rest of this competing market.

Brazil currently has more than 40 thousand gas stations, according to the ANP, and around 8 thousand convenience stores that offer a variety of products and services, including fuels, lubricants, automotive services, food, beverages and tobacco, among others.

Decisive Factors in Choosing Positions

Location, competitive prices, good brand reputation, presence of convenience stores, reduced queues, fuel quality, well-maintained facilities, helpful staff and effective loyalty programs are attributes that significantly influence consumers' choice of their preferred establishment.

The three leading brands stand out due to the largest number of stations, long presence in the market, and continuous investments in communication, convenience stores and loyalty programs. CVA Solutions, a division of the American CVM Inc., which has been operating for 23 years in Brazil and 28 in the United States, recently completed a detailed analysis of this segment.

Market Study and Main Business Axes

Through a comprehensive online survey, the consultancy examined the main areas of business, marketing and services based on the opinion of 4.266 people across the country, covering all income and age groups in all Brazilian states. The research addressed Perceived Value, NPS (brand recommendation index) and Brand Strength, providing insights into the customer journey at the gas station.

Perceived Value considers the cost-benefit assessed by customers. Among those interviewed, benefits accounted for 33% in the perception of value, with highlights being location (23%), brand reputation (19%), fuel quality (19%), physical facilities (16%), queues (6%) , convenience store (6%), washing service (6%) and attendants (5%). Costs accounted for 67%, with emphasis on fuel prices (30%), cafeteria prices (29%), washing prices (27%) and lubricant prices (14%).

The Impacts of the Customer Journey and Rebranding

Customers tend to pay a little more for fuel if they avoid long lines, have good service and find a good convenience store, according to Sandro Cimatti, CEO of CVA Solutions. Perceived Value together with NPS allows you to measure the customer journey. Satisfied consumers tend to recommend the brand, expanding its presence.

In terms of perceived value, Ipiranga leads, followed by Shell, BR Petrobras, Assaรญ, ALE, Total Energies, Atacadรฃo and Carrefour. In the NPS, Ipiranga also leads with 64,5%, followed by Shell, BR Petrobras, Carrefour, Total Energies, ALE, Atacadรฃo and Assaรญ. Brand Strength, which reflects the degree of customer recognition and attraction, records Ipiranga in first place, followed by BR Petrobras, Shell, Atacadรฃo, Assaรญ, Carrefour, Total Energies and ALE.

Vibra Energia Challenges and Strategies

BR Distribuidora, with a network of more than 8.300 stations, was acquired by Vibra Energia in 2021. In January 2024, Petrobras informed Vibra that it does not intend to renew the brand's license after the contract ends in June 2029. The research from CVA identifies that the Vibra brand is little known, with recognition of only 19,1% among general and specific consumers of BR Petrobras. When stimulated, the association of the Vibra brand with the BR Petrobras network increases.

BR Petrobras lost leadership in brand strength and has lower communication recall in relation to Ipiranga and Shell among its consumers. 'This is a crucial moment for Vibra Energia. It doesn't make sense to invest in communication in the BR Petrobras brand with the possibility of not being able to use it in the future, however, failing to invest in it could weaken the brand,' explains Sandro Cimatti. The ideal solution seems to be a immediate rebranding, migrating the BR Petrobras brand to Vibra Energia, with a five-year transition period.

Profitability and Loyalty Through Services

The CVA study reveals that convenience stores and automotive services are fundamental to increasing the profitability and loyalty of stations. Around 40,8% of gas station customers frequent convenience stores, and these consumers use more lubricant changes and car washes compared to those who do not frequent such stores. Ipiranga leads in these services, followed by Shell and BR Petrobras.

Lubrax (BR Petrobras) leads in sales of lubricating oils, followed by Mobil, Castrol, Ipiranga and Shell. In loyalty programs, Ipiranga leads, followed by Shell and BR Petrobras. 'Fuel retail is less digitalized and loyal compared to medicine and food, so convenience stores and loyalty programs are effective strategies to bring consumers closer to the brand,' concludes Cimatti.

Source: ยฉ paula@difattocom.com.br

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Bruno moraes
Bruno moraes
25/07/2024 20:27

It's high time for Vibra to stop burning the Petrobras name and move on with its own two feet.
But thanks to that crap from Bolsonaro and Paulo Guedes and CIA, who gave away the BR Petrobras, Lubrax, BR convenience brand, for 8 years.

Alfa
Alfa
In reply to  Bruno moraes
25/07/2024 22:24

In case you don't know, Vibra is Br Petrobrรกs, Vibra never existed before. Br Petrobrรกs changed to Vibra, because it was the parent holding company, which started using the Br brand because it had become so strong because of the distributor that after having its shares sold it became known as Vibra Energia.

Esadof
Esadof
In reply to  Alfa
26/07/2024 09:03

The holding company sold the asset and not the brand.
Nowadays, not even the fuel is Petrobras anymore... it's almost a station without a brand, lol
Bruno Morais is right about the โ€œjunkโ€โ€ฆ

Durval
Durval
In reply to  Bruno moraes
26/07/2024 09:02

You are misinformed. The brand was not transferred, there is a brand usage contract and Petrobras receives payment for it. No one transfers anything in business.
The report contains inaccurate data. Vibra is BR Distribuidora, which has changed its name.

Rubens Senna
Rubens Senna
In reply to  Bruno moraes
27/07/2024 13:13

Exactly that, my friend.

Wagner
Wagner
27/07/2024 11:35

Transfer of a brand that is harmful to Petrobras. Vibra, when there is a leak or accident, does not show up, preferring to burn the Petrobras brand. It seems as if the accident happened on Petrobras' premises, as seen in the truck that exploded in the middle of a densely populated neighborhood in Rio de Janeiro.
The value of the transfer was also ridiculous, and what's more: contradictory in essence, since not even Vibra's gasoline belongs to Petrobras.

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