In this paper, we present a robust and novel strategic invisible watermarking scheme which can be used in the field of copyright protection. The novelty of our algorithm lies in the creation of a compound watermark image using the target image and the key image, where both of them are self encrypted. The self encryption concept adds an extra level of data security along with the security supported by the watermarking technique. Again, our method results a single invisible watermarked image which will be sent to the recipient and from that image, both the key and the target image can be extracted with no distortion using only the proposed extraction algorithm. Results of exhaustive experimentation using standard input color images demonstrate the robustness and efficiency of our approach.