Q2,

Growth strategy followed by Classic:

Classic follows the product development strategy here by introducing Guardian Apparels as it
involves introducing new product to the existing market.

Other indications of this strategy followed are:

1. To venture for this strategy, a company generally invests in some R&D as we can see from
the survey conducted by Classic through consumer.com.
2. It has also researched to find an innovative product which consumers require but is not
widely available in its existing market.
3. Classic formed an agreement with Guardian to gain access to Guardian’s technology for its
apparels and use its brand value to their advantage.
4. This strategy forecasts to improve Classic’s gross margins and getting into a licencing
agreement would reduce its marketing costs by a huge amount.