ATC

Libey Marketing Strategy

Libey is a custom merchandize store which was started in 2014 with an objective of
supplying high quality t-shirt materials with custom prints and embroideries’. It was the only
trader in first year of operations outsourcing t-shirts and printing from other vendors. As it
grew and its sales increased, it vertically integrated and started its own printers and
stitching machineries. Its core competency is to provide complete solution for custom t-
shirts with its in-house stitching and printing unit.

Libey is now planning to expand its business by opening new outlets and focusing on new
centres. The strategy of having a retail outlet in some centre’s like Bangalore, Belgaum and
Manipal did not work well. Hence, it is now planning to open printing units in Bangalore,
Belgaum and Goa. Each centre will have a franchisee model. It has identified three
franchisee models.

Model 1: Franchisee will invest Rs 1,50,000 as a one-time fee. Libey will install machinery
and stock. Franchisee will run the unit there after. All expenses of rent and salary would be
paid by the franchisee. The franchisee will get 25% of sales turnover.

Model 2: Franchisee will invest Rs 1,00,000 as franchisee fee. Libey will install machinery
and stock. It will run the unit and pay the salaries for the employees. Franchisee will get a
return of 12% on turnover. The building will be owned or rented by the franchisee.

Model 3: Franchise will invest Rs 50000 as franchisee fee. Libey will run the store for a
return of 12% on sales turnover. It’s only a retail store and no printing machineries will be
installed.

1. Suggest marketing strategies for new centers with clear budget and returns expected

2. Critically analyze the franchise models in terms of financial feasibility and production

You are free to make assumptions, but, with proper justifications

ALL THE BEST!!!!