M.A.P.S. -- Market Area Plant Strategy

The Market Area Plant Strategy (MAPS) is a marketing tool for industrial development that stresses the location of a branch manufacturing plant to produce specific commodities for a major subnational market. It is illustrated through an application to the plastics material industry; its use led to identification of the South Atlantic Region and South Carolina in particular as the strategic target location for a branch plant to exploit an undersupplied market. The goal of MAPS is to maximize client manufacturers' profits by reducing transportation and production costs and increasing the firm's market share. Steps to take when using MAPS include: 1. Identify geographic areas where consumption exceeds regional production. 2. Determine which area would provide transportation cost economies to serve the undersupplied markets. 3. Conduct a comparative analysis of the area's production costs to determine those costs' effect on the marketing advantages. 4. Conduct comparative cost analyses for specific sites within selected communities.