http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.87Change: 0.01
R/$ = 13.30Change: 0.00
Au 1133.54 $/ozChange: -1.31
Pt 1018.00 $/ozChange: -2.00
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 14, 2009

SA’s first lubricants franchise being set up

Back
Engineering|Africa|Industrial|Mining|Africa|Automotive|Equipment|Products|Service|Services
Engineering|Africa|Industrial|Mining|Africa|Automotive|Equipment|Products|Service|Services
engineering|africa-company|industrial|mining|africa|automotive|equipment|products|service|services
© 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
Creamer Media Senior Deputy Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
More
 
 
Latest News
A preliminary investigation by the Railway Safety Regulator (RSR) into the derailment of a Shosholoza Meyl train in Kimberley earlier this month, found that Transnet Freight Rail (TFR) had failed to communicate with the Passenger Rail Agency of South Africa (PRASA)...
Three of home improvement company Illiad’s major shareholders – Sanlam, Visio and Coronation, which held 69.25% – have agreed to vote in favour of a takeover by Steinhoff, with the company’s remaining shareholders to vote on the deal on September 29. Seventy-five per...
Government should face the fact that South Africa’s full-blown jobs crisis is a matter of urgent public importance, the Democratic Alliance (DA) said on Friday. MP James Vos, the DA shadow minister of tourism, was responding to a letter by Baleka Mbete, the Speaker...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96