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It is in the spirit of improving the domestic and international competitiveness of firms in developing countries through closer attention to marketing strategies and policies that the author presents this case. The case presents the marketing problems faced by Cigarette Company of Jamaica (CCJ), the country''s monopoly supplier of cigarettes. The problem CCJ faced was how to maintain the competitiveness of its cigarette operations in the face of government regulations. Government''s regulatory role in the case of cigarettes was on legislating minimum desirable prices for the product, rather than the more usual government regulatory policy of legislating maximum allowable prices. In the past, the government had conducted this role explicitly by setting the retail price of cigarettes at a level that would provide the income it desired. More recently, the government had moved to specifying the income it desired from cigarette sales and allowing the company to set the retail prices that would provide this income. The challenge for CCJ was what marketing programmes should it put in place to deal with the regulatory pressure imposed by the government.