http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.09Change: 0.09
R/$ = 11.87Change: -0.04
Au 1206.30 $/ozChange: 1.62
Pt 1149.00 $/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 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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Corrosion and Tribology News
MEGA-DELIVERY The Medupi ACC drive order was the single biggest order received by the Sumitomo group worldwide, and became a material reference project
Gearbox designer and manufacturer Hansen Transmissions South Africa has completed the supply of 384 Hansen M4 air-cooled condenser (ACC) drives each to State-owned power utility Eskom’s coal-fired Medupi power station, in Limpopo, and the Kusile power station, in...
NATASHA SACKS Sacks conducts training for employees enrolled for master’s degrees or PhDs to produce better materials and tools
University of Witwatersrand (Wits) associate professor Natasha Sacks received the 2015 Louw Alberts Award last month for her outstanding contribution to tribology from the South African Institute of Tribology (SAIT). Sacks, currently with the Wits School of Chemical...
UPDATING THE INDUSTRY The CSSA offers seminars, site visits, student support and continuing professional development accreditation for its members
Hosted by nonprofit public benefit organisation The Concrete Society of Southern Africa (CSSA), the RepSem Concrete Repair and Protection seminar, which took place in March in the four major centres around the country, focused on starting repair and rehabilitation...
More
 
 
Latest News
South Africa’s crude steel production dropped by a sizeable 17.2% year-on-year to an estimated 530 000 t in April, amplifying a global trend that saw world steel production decline by a comparatively marginal 1.7% to 135-million tons in the fourth month of the year....
The Treasure the Karoo Action Group (TKAG) on Friday called on government to delay publishing final regulations and issuing rights for shale gas exploration in the Karoo, until a 24-month strategic environmental assessment (SEA) has been concluded. TKAG CEO Jonathan...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
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