http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.38Change: 0.05
R/$ = 11.57Change: -0.03
Au 1276.24 $/ozChange: -2.53
Pt 1262.50 $/ozChange: -7.00
 
 
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|Mining|Africa|South Africa|Automotive|Equipment|Food|Products|Service|Services|Untapped Agricultural And Retail Markets|Eric Parker|Gary Marais
Engineering|Africa|Industrial|Mining|Africa||Automotive|Equipment|Products|Service|Services||
engineering|africa-company|franchising-plus|industrial|mining|africa|south-africa|automotive|equipment|food|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 Corrosion and Tribology News
DUPLEX GRADE INCREASE Over the past thirteen years, the market share of duplex stainless steels worldwide has doubled
There is a growing willingness from industry to accept newer stainless steel materials, particularly duplex stainless steels, Southern Africa Stainless Steel Development Association Fabricator Sector chairperson Gary Crawford tells Engineering News. He says that, for...
OPERATIONAL LONGEVITY The most prominent benefit of the 8499/ 8470/ 8477/ 8478 series of stainless steel castors is corrosion resistance
Castor manufacturer Tente Castors South Africa introduced its stainless steel 8499/ 8470/ 8477/ 8478 series of stainless steel castors this year, says company technical manager Steve Thomas. The series comprises swivel, swivel with total lock, fixed and P67 plate...
PETER SHEPHERD South Africa’s big cities have had a severe impact on river systems, with increasing urbanisation compounding the situation
A significant amount of stormwater infrastructure in South Africa is insufficient to handle the country’s rapid urbanisation, according to consulting engineers and scientists SRK Consulting South Africa.
More
 
 
Latest News
Temporary power generation services provider Aggreko has extended the contract for its 200 MW gas-fired power project in Côte d'Ivoire by three years, with the option to extend this by a further two years.
Jeffrey Immelt
Troubled South African State power utility Eskom should place emphasis on stability ahead of improvement, GE chairperson and CEO Jeffrey Immelt suggested on Monday. Speaking at the Gordon Institute of Business Science (GIBS) in Johannesburg, the head of the...
A Competition Tribunal hearing into alleged cartel activity and price-fixing by several companies in the wire and wire products manufacturing industry was again postponed on Monday pending a decision by the Competition Appeal Court (CAC). Respondents Allens Meshco,...
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
BRUCE BRADFORD The 3D printers have a clear upgrade path to eventually print in wood, ceramics and metal-alloys
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...
 
 
 
 
 
 
 
 
 
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