brands in their product category in the marketplace. In brand-sensitive (consumer) cultures, when an individual chooses to smoke a particular brand of cigarette, he or she engages in an act of social and cultural distinction. The tobacco industry uses a variety of marketing tools and strategies to influence consumer preference, thereby increasing market share and attracting new consumers. Among all U.S. manufacturers, the tobacco industry is one of the most intense in marketing its products. Only the automobile industry markets its products more heavily.
             Why is the tobacco business so profitable in Canada? According to the Five Forces model of Harvard Business School professor Michael Porter, tobacco can be considered a five-star industry. Buyers have little power relative to that of the industry, including when it comes to manufacturer price increases. The industry's suppliers have little bargaining power because what they supply (tobacco, paper products) are mostly commodities that could be obtained from other suppliers. Few products can directly substitute for cigarettes in the same way that margarine can substitute for butter. Although nicotine gum and the nicotine patch do exist, their sales are small by comparison. Large barriers prevent new competitors from entering the market. Normally, massive returns on investment would entice new entrants, but there have been no new players in Canadian tobacco in almost 40 years. Rivalry within the industry is relatively tame. Imperial Tobacco is the leader of the oligopoly. Although this information just in Canada, it can reflect on the different areas in the world. As a tobacco company, keeping and developing are the two of important things the manager have to do it. In this report, we will enumerate five strategies, which are being widely used by tobacco companies now. In addition, we will recommend a new strategy called Direct Marketing Strategy, which is being used by some leading to...