What is Customer Demographics and Target Market of Ultrapar Participacoes Company?

Ipiranga's primary customer segment is the Business-to-Consumer (B2C) market, encompassing individual vehicle owners and commercial fleet operators throughout Brazil. With approximately 6,500 service stations, it caters to a broad demographic of Brazilians reliant on fuel for daily transportation. In 2024, Ipiranga maintained a significant 15.26% market share in Brazil's fuel distribution sector.

Ultragaz addresses both Business-to-Consumer (B2C) and Business-to-Business (B2B) markets with its liquefied petroleum gas (LPG) offerings. Its B2C customers are primarily households using LPG for cooking and heating, a segment that represented the largest revenue source in the Brazilian LPG market in 2023. The B2B segment includes industrial, commercial, and agricultural clients utilizing bulk LPG.

Ultracargo operates exclusively within the Business-to-Business (B2B) sector, providing essential bulk liquid storage services. Its clientele consists of major industrial entities, fuel distributors, and agribusiness companies that handle chemicals, petrochemicals, biofuels, and vegetable oils. In 2024, Ultracargo's net revenues reached R$1.076 billion, reflecting a 6% increase from the previous year.

The company's strategic expansion efforts highlight a focus on growing segments, particularly within the agribusiness industry in inland regions. This indicates a proactive approach to serving evolving market demands and expanding its customer base in key growth sectors.

Ipiranga, a leading fuel distributor, has an extensive network of approximately 6,500 service stations spread across Brazil. The state of São Paulo hosts the highest concentration of these stations, followed by Minas Gerais and Rio de Janeiro, reflecting a strategic presence in Brazil's most populous and economically significant regions.

Ultragaz, a major distributor of LPG, serves both residential and industrial clients throughout Brazil. In 2024, the Brazilian LPG market saw sales of 7.57 million cubic meters, with Ultragaz playing a substantial role in this sector.

Ultracargo, specializing in bulk liquid storage, strategically positions its terminals in key Brazilian ports and inland regions. It is the sole operator in its sector with a presence in all major ports, including Santos (SP), Rio de Janeiro (RJ), Aratu (BA), Suape (PE), Itaqui (MA), and Vila do Conde (PA).

Further enhancing its logistical capabilities, Ultracargo operates transshipment and storage terminals in Paulínia (SP), Rondonópolis (MT), and Palmeirante (TO). The company is set to expand its Itaqui (MA) terminal by 83,000 m³ by 2026, reinforcing its support for vital economic corridors, particularly in the North-Northeast and Southeast-Midwest regions, and serving agricultural hubs like Mato Grosso.

Ipiranga attracts customers through its vast network of approximately 6,500 service stations nationwide. Marketing efforts focus on competitive pricing, especially with the trend towards more affordable hydrous ethanol in 2024. The 'Km de Vantagens' loyalty program is a key retention tool, rewarding frequent visitors and encouraging repeat business.

Ultragaz targets both residential (B2C) and commercial (B2B) customers. For homes, widespread distribution and competitive pricing are key, supported by growing LPG consumption. For bulk clients, reliability, efficiency, and customized solutions are emphasized, with retention built on consistent supply and strong client relationships.

Ultracargo secures and retains clients in the B2B logistics sector through its strategic port and inland terminal network. Offering integrated multimodal transport solutions and investing in new terminals, such as the one in Palmeirante (TO) set to begin operations in early 2025, are crucial for serving sectors like agribusiness.

Ipiranga enhances customer experience and loyalty by integrating convenience stores (ampm) and Jet Oil services at its stations. Franchised locations have shown a significant increase in customer flow, with marketing managers noting an approximate 25% rise. This integrated approach aims to maximize customer engagement and repeat visits.