Mixed economy system of Nepal has permitted to establish a number of agro-based industries in public as well as private sector. It is widely believed that the performance of most of the enterprises has been below the mark. Various factors might be responsible for such a situation. More importantly they are faced with most challenging and competing business environment which requires very efficient and effecting market strategies. A firm producing quality product cannot guarantee to achieve success in competitive and dynamic business environment. But it becomes possible when its marketing efforts are adequate. In modern dynamic age, marketing must be effective otherwise the organization cannot meet its goals and objectives. In this context, the present study has been undertaken to explore and analyse the prevailing market structure and marketing system of sugar & cigarette industries in Nepal.