China's Tobacco Industry Marketing Research Industry And Commerce Collaboration

The administration function has been cleared and defined, the local blockade hasbeen effectively curbed since the separation of China Tobacco’s industrial andcommercial enterprises in2003, which result in a continuous growth for many years.The nationwide big market hasn’t been formed due to the low efficiency of resourceof allocation, lack of coordination and the scale of the big brands. The SynergisticMarketing of industrial and commercial enterprises is the key act on optimization ofthe value chain, it reduces the conflicts and improves the efficiency of resourceallocation, progresses the formation of big enterprises and big markets.The China National Tobacco Monopoly Bureau issued the document “Guidanceto the promotion on synergistic marketing of industrial and commercial enterprises”on Feburary2008marked the official launching of synergistic marketing, ChinaTobacco Industry has carried out practice and exploration at all aspect of synergisticmarketing and achieved certain effects in the past5years, but some problems, such asa mere formality, waste of resource, lack of system and mechanism etc, still exist.China Tobacco Industry is such a special industry which implements anadministrative system of unified leadership, vertical management, absolute monopolyand separation of industrial and commercial enterprises. The industrial businessinclude of manufacturing and brand operation, and the commercial enterprises areresponsible for the sales business and tobacco leaf production in the value chain oftobacco industry. But the industrial enterprises play an unfair role compare to thecommercial enterprises, who occupied the important stragetic link in the tobaccoindustry’s value chain, they master the supply of raw meterial and the sales of market,posess all market resource in the dominated regional markets. On the contrary, theindustrial enterprises’ all sales links are limited by local commercial enterprise exceptthey just posess their own brands.By the guidance of “Twin More than Ten” policy, China’s tobacco marketexperienced the competition through the period of once a single big power of Yunnan Tobacco to more than ten large enterprises, China Tobacco Industry realized changesin turn upside down, but from the industrial enterprises’ perspective, the future will bethe critical period for the formation of market pattern. The industrial enterprises willlose the opportunities for ever if they can’t catch the opportunities.From the analysis of industrial structure, we know that the marketingcompetition under the planned economics composed of several industrial enterpriseswhose products only can be saled by the exclusive commercial enterprise in thecertain region. Because of the exclusive channel, how would the tobacco industrialenterprises develop the logistics, marketing research, brand marketing and promotionwith the commercial enterprises protected by national monopoly management underthe special administration system in China. It is very important to explore fullysupports of commercial enterprise for the development and growth of brands hold byindustrial enterprises.From the actual situation of synergistic marketing, both of the industrial andcommercial enterprises achieve great success, but also meet some difficulties, theauthor applied Michael E. Porter’s competition theory to analyse the competionenviroment for the industrial enterprise by their own view in this article, summing upand reviewing the progress of synergistic marketing between industrial andcommercial enterprises, drawing forth the new concept of synergistic marketing ofbuilding mega synergism for the industrial enterprise through the existed problemsand causes of current synergistic marketing. The article also suggests the industrialenterprise should deepen understanding, adjust their organization structure to carryout their synergistic work selectively and focused with the commercial enterprises atdifferent levels, turn the format synergism to the mechanism synergism finally, thusprovide a path of development reference for the big brands of China Tobaccoindustrial enterprises.