http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: 0.17
R/$ = 11.58Change: 0.07
Au 1198.59 $/ozChange: 4.13
Pt 1200.50 $/ozChange: 3.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 14, 2009

SA’s first lubricants franchise being set up

Back
Engineering|Africa|Franchising Plus|Industrial|Africa|South Africa|Automotive|Equipment|Food|Mining|Products|Service|Services|Untapped Agricultural And Retail Markets|Eric Parker|Gary Marais
Engineering|Africa|Industrial|Africa||Automotive|Equipment|Mining|Products|Service|Services||
engineering|africa-company|franchising-plus|industrial|africa|south-africa|automotive|equipment|food|mining|products|service|services|untapped-agricultural-and-retail-markets|eric-parker|gary-marais
© Reuse this



Lubricants blender and supplier Blue Chip Lubricants is overhauling its branding and business structure, and this includes expanding through the establishment of a lubricants franchise, the first of its kind in South Africa.

“Blue Chip Lubricants is breaking new ground by being the first in its industry sector to expand through franchising,” says franchising expert Franchising Plus consultant Eric Parker, one of the cofounders of successful fast-food franchise Nandos.

He says that by replicating the franchise business format through owner-operator franchisees throughout the country, Blue Chip Lubricants would be able to gain a significant advantage in its industry sector, while creating small business opportunities for other entrepreneurs.

“By having a premium product, providing exceptional service and exceeding customer expectations through a strict mechanism of duplication and with the commitment of owner-operator franchisees, any business can thrive to become a recognised brand,” he adds.

Blue Chip Lubricants’ expansion plans include gaining a national market share through franchising its brand and tapping into the largely untapped agricultural and retail markets, which would be in addition to its current involvement in the mining, industrial, engineering and automotive markets.

The proposed franchise roll-out would see the company follow a three-tier strategy.

Initially, the company would own its own franchise outlets, allowing the franchisor to keep close tabs on how the business is run and what improvements are needed.

The second tier would involve joint venture outlets, where the co-owned franchises would operate jointly in partnership with franchisees.

The final tier would see the establishment of fully fledged operator-owned franchises in outlying areas, affording entrepreneurs the opportunity to buy into the brand. These franchisors would depend on the blenders for their services and products, reducing transportation costs and delivery times, while increasing the level of service to outlying customers.

The franchise expansion plan was initiated through a pilot operation in Rustenburg, which has performed beyond the company’s expectations, breaking even in only two months.

Blue Chip Lubricants co-owner Gary Marais tells Engineering News that the Rustenburg pilot’s success is attributed to the concentration of mining and related industrial activities in the area. He says that the market holds a lot more potential and so further expansion of the franchise in the region is likely.

In light of the global financial crisis, which has left many companies scrambling to retain capital, it may seem odd timing for the company to launch a large-scale expansion plan. However, Marais explains that this seems to have worked in the company’s favour, in that many companies would rather increase their efforts to maintain their existing vehicles and equipment than replace them, which has translated into increased expenditure on consumables such as lubricants.

The expansion plan calls for 12 franchises to be set up in major metros and big towns, starting with the establishment of four franchises in the first year.

“Once the model has been perfected in South Africa, the potential to master-franchise into the rest of Africa is a very real possibility,” concludes Marais.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
More
 
 
Latest News
China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks