Strategic planning is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities. In a word, it means to figure out what you need to do and doing on it. Since Parfums Chanel was formed, it brings a significant percent of profit for the company, more than its sales in other products. Up to now, Parfums Chanel still keeps its first seat in the perfume world, especially the Chanel No5. I think the reason is Chanel has successful strategic planning. For example, in 1974, Alain Wertheimer, who took over Chanel, back in the U.S., revamped Chanel No.5 sales by reducing the number of outlets carring the fragrance from 18,00 to 12,000. He removed the perfume from drugstore shelves, and invested millions of dollars in advertisement for Chanel cosmetics. This ensured a greater sense of scarcity and exclusivity for No.5, and sales rocketed back up as demand for the fragrance increased. Looking for a designer who could bring the label to new heights, he persuaded Karl Lagerfeld to end his contract with fashion house chloe.
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