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Gisela Benavides Armando Devora
Giselle OdumKirk Teegardin MARK 4389-01April 24, 2014
I. Executive Summary
Nino’s Rio Pizza is a small, food-service business that operates from a food truck. They
sell fresh, homemade pizza that is cooked in a wood fire oven. They first began selling at
McAllen’s farmer’s markets. Recently, the city of McAllen past a city ordinance allowing for
twelve food trucks to operate in the city. Nino’s Rio Pizza was able to open their food truck in
September 2013. In addition to selling directly from the food truck, the business also caters for
parties, events, and other large group functions.
The owner, Alberto Gulino, grew up in Italy. While in Italy, one of his family traditions
was making pizzas. He grew a passion for cooking authentic food from his home country. He
has since grown to create his own pizza business. He demonstrates his skill set in every pizza he
makes. While in the valley, he has been able to adhere to Hispanic culture and create pizzas that
resonate with the locals, such as, chorizqueso (chorizo and cheese) pizza.
As a new, small business, the overall marketing goals and objectives are to increase brand
awareness. Currently, Nino’s Rio Pizza is using a Facebook page in order to advertise towards
their customer base. Several tactics can be implemented in order to increase the effectiveness of
these marketing strategies. Possible strategies that can be used can be promotional, such as,
offering a, “College Night,” where customers can receive a discount if they bring their student
identification card. Another strategy can be handing out small samples or slices of pizzas to
customers. By giving out samples, customers will be able to try things they may have otherwise
been afraid of purchasing. These tactics could help draw in consumers during the slower days
and increase sales.
Nino’s Rio Pizza’s current struggle is having little brand awareness. This is a problem
because many people simply do not know that the business exists and find a substitute for their
pizza-craving through competitors. The business needs to effectively distinguish itself amongst
its competitors by informing the public about its offerings: authentic Italian pizza cooked in a
wood-fire oven, fresh produce, non-bleached flour, and experiencing a food truck in the Valley.
II. Situation Analysis
Internal Environment
Nino’s Rio Pizza’s current marketing strategy involves the business engaging with the
community and other customers through the use of social media channels. He successfully
engages consumers to try his products by offering discounts to those who complete tasks. For
instance, he once wrote messages on several boxes, if you were lucky enough to receive one,
take a picture, and tag Nino’s Rio Pizza, you would receive a discount on your next pizza. He
also uses Facebook to inform consumers about where he will be located, show pictures of the
fresh produce in his garden, and notify customers about specials.
The main products sold are different kinds of pizza, but specials that include items such
as lasagna, risotto, and porchetta are offered during specific times. An example of one pizza that
has been offered as a special is, the Nutella Pizza. This dessert pizza features Nutella spread on a
crust with various toppings. The crust and sauces are all homemade and so is the pasta when it is
presented as a special menu item. Every pizza is created with the finest ingredients that the
business can acquire. From non-bleached flour to fresh produce from Gulino’s garden, you can
guarantee a high-quality pizza.
The pricing of the products at Nino’s Rio Pizza has been placed in order to attract the
customer. The owner, Alberto Gulino, took into consideration what many of the competitors
were charging for pizza. He took into consideration the demographics of the McAllen area and
decided to price his products accordingly. A large pizza is around twelve dollars, depending on
the toppings selected. At noon, slices are available to be purchased individually: this allows for
price-conscious consumers to try the pizza with little risk of dissatisfaction. It also encourages
consumers to try new pizza since the price is lower.
The distribution of the product is done through the food truck. This food truck is located
in different locations at different times of the day. It usually operates at Unique’s, Barn White,
McAllen Culinary Academy, and the business occasionally attends the McAllen farmers’
markets on weekends. The location of the food truck can be found on Nino’s Rio Pizza’s
Facebook page.
Currently, the promotional strategies that are used are done via Nino’s Rio Pizza’s
Facebook page. Alberto Gulino is paying for the extra promotional activities available through
Facebook, and offering special promotions through wall posts. Nino’s Rio Pizza also promotes
itself through the use of food truck itself. As it travels to several different locations, it displays
the business name, what it sells, and a phone number.
Nino’s Rio Pizza has a total of three employees that sell and make food in the food truck.
The owner hopes to soon hire another employee in order to have the food truck operating at the
same time as catering events.
The organizational culture of Nino’s Rio Pizza is engaging with the customers and
keeping them happy. The employees interact with the customers, creating a friendly and inviting
atmosphere. A positive experience at Nino’s Rio Pizza is something that will impress consumers
and make them more satisfied. It will also encourage positive word of mouth.
Customer Environment
The target market of Nino’s Rio Pizza is composed of young adults between twenty and
thirty years of age. These people either work, live, or shop near the McAllen area. These people
may also enjoy authentic food made in the comfort of mom and pop restaurants. While many of
these people may merely enjoy trying new things, others may value high quality ingredients.
These consumers may be more health conscious and choose Nino’s for their fresh produce and
gluten free dishes. These people value high-quality ingredients, but do not wish to sacrifice
taste. In order to encourage repeat visits, Nino’s Rio Pizza constantly changes their menu and
creates new pizza combinations.
Most of the business’ loyal customers frequent the locations once per week and new
customers arrive daily. Nino’s Rio Pizza has different locations each day in order to cover more
areas of the Rio Grande Valley. They do this as a way of reaching customers that are in different
locations. Depending of the day, customers check where the truck is located and if they should
go or wait until they are closer to them. The customers can find the locations on Nino’s Rio
Pizza’s Facebook page. Some of the most popular locations include, the McAllen Culinary
Academy and Unique’s Boutique located in North McAllen. Both locations cover the area of
North McAllen and Pharr. Barn White is another one of their locations. It is located on 10th
street and is closer to Edinburg. In order to cover the Mission area, Nino’s Rio Pizza has
attended events at the McAllen Convention Center. The business hopes to be more accessible to
consumers by being in different locations. In turn, this decreases the customer’s traveling
distance to the facility.
Potential customers who are not currently visiting the business probably do not know that
the business exists. Since Nino’s Rio Pizza is a fairly new business, their brand awareness is not
high enough to captivate more market share. Customers need to be aware that the business exists
to even try it. By simply driving the truck around, they may gain attention. Nino’s needs to
focus on encouraging people to spread the word about the business. Positive word of mouth
from current customers can be obtained by continuing to provide excellent service and tasty
pizza.
Nino’s Rio Pizza is a unique place in the Valley because they are the only ones that
maintain the Italian tradition of baking the pizza in a special, wood fire oven. They are also the
first food truck in the Valley.
External Environment
Competition
A. 1 Major Types of Competition: Pizza in the Rio Grande Valley
Brand Product Generic Total BudgetNino’s Rio Pizza
Mama Mia’s PizzeriaRusso’s New York Pizzeria
DominoesPizza Hut
Papa John’s
CalzonesPizza BitesHot PocketsFlat bread
Frozen Pizza
BurgersTacosPasta
ChickenSalad
Sandwich
GasDVDs
Theatre TicketsAlcoholMakeupClothes
* Table A. 1 demonstrates the different types of competitors within the pizza sector in the Rio Grande Valley.
Nino’s Rio Pizza is still the only set up food truck in the Rio Grande Valley. However
there are many taco stands that may appear to be “food trucks.” The only problem with these is
that they don’t have perceived differentiation from one another, and they are not mobile.
Mama Mia’s Pizzeria may be Nino’s biggest competition because they are both “mom
and pop,” types of restaurants. Moreover, Mama Mia’s has been around since 1984, and has
created awareness and a loyal fan-base throughout the years. Their Facebook page has over
5,400 likes. They are located in a high traffic area, U.S. Business 83 in McAllen, TX. This
makes it easier for them to gain the attention of consumers. They offer dining in and carry out,
and stress that their restaurant is good for groups and kids. Still, most of their market consists of
consumers who wish to experience real, Italian food in the Valley.
By having a brick and mortar location, Mama Mia’s is able offer service to many guests.
Their kitchen allows them to store any excess inventory with ease. The restaurant offers a
variety of foods, such as, salad, soup, Chicago style hot dogs, pastas, seafood, sandwiches,
burgers, calzones, pizza, and more. However, the number of items in their menu may prove to
be detrimental to their business. They offer over 90 items that can be made in numerous ways.
These items are all priced under $26.
Russo’s New York Pizzeria is another competitor. This franchise began in Houston, TX
in 1992 by Anthony Russo. In 2009, Russo’s New York Pizzeria arrived in McAllen, TX. Their
location was on the corner of N. 10th Street and Trenton Rd. This area is known as being one of
the busiest and fastest growing areas in the Valley. With over 3,450 Facebook likes and 14,850
check-ins, Russo’s decided to open another location on Shary Rd. in 2013.
Similar to Mama Mia’s, this brick and mortar location offers ample storage space.
Russo’s also encourages groups and children to stop by. However, they not only allow indoor
seating, but outdoor seating as well. They also offer delivery and catering. Although families
may seem to be Russo’s main market, they attract young adults with their back room that
consists of a large bar and high seating. There is also a party room that can be reserved. Russo’s
stays true to their roots, offering only Italian dishes, such as, soups, bruschetta, salads, pasta,
flatbread sandwiches, and of course, brick-oven pizza. Items are priced under $30, and pizza can
be ordered by the slice.
Dominoes, Pizza Hut, and Papa John’s may be the most recognized brands in the pizza
industry. However, they are fast food. Their pizzas target the mass market and prices are
amongst the most competitive here because their franchises are billion dollar companies. They
can afford loyalty cards and unlimited promotions because of this. Their locations are on every
other corner, and they are capable of making pizza within minutes. Although they may offer the
lowest price and speedy delivery, their dough and sauces are pre-made and frozen. Their pizza is
also “Americanized” and nowhere near being authentic Italian pizza.
Economic Factors
Prices in fresh produce and dairy are constantly changing. The abrupt price changes in
dairy products, such as, mozzarella cheese, may force the price of the pizzas to increase. If
prices are due to increase, people may choose to substitute the fresh pizza with something of
lower cost. They may go to the lower priced competition.
Legal and Regulatory Issues
The city of McAllen recently passed an ordinance allowing food trucks. Nino’s Rio
Pizza is one of the first food trucks in the Rio Grande Valley. The ordinance will only allow 12
food trucks in the city. This is an advantage to Nino’s because it limits competition. However,
the strict orders within the ordinance may be a threat to his food truck. The food truck is limited
in where it can be located. For instance, the food truck cannot vend in single-family residential
zoning and the truck cannot be located within 100 feet of the entrance of a Food Service
Establishment.
Moreover, food trucks are allowed to set up at parks, but Nino’s Rio Pizza has been
denied this. Although the ordinance states that it is allowed, the city of McAllen is not abiding
the ordinance. In addition to location rules, a truck cannot be in one set location for over 8 hours
per day, they are not allowed in highly congested traffic areas, and more. These rules have made
it difficult for Nino’s Rio Pizza to choose locations to sell their products. Currently, the business
operates at Barn White, Uniques, and the McAllen Culinary Institutes. However, Nino’s Rio
Pizza is also forced to close their food truck at the same as the stores that surround them. The
latest time they can stay open, as of now, is 8pm.
Sociocultural Trends
People are becoming more conscious about what they eat. Fresh food is seen to have a
higher statute than those served by fast food chains because of documentaries such as, “Super
Size Me, ” and the increasing awareness of the harm preservatives can cause.
III. SWOT Analysis
A. Strengths
Strength 1: Nino’s Rio Pizza restaurant is a food truck, making the business mobile.
Strength 2: The business is the only place where customers can purchase a wood fire pizza.
Strength 3: The pizza and food is cooked with high quality ingredients, such as unbleached flour.
Strength 4: The business offers specialty pizzas that cannot be found anywhere else.
Selling the food Nino’s Rio Pizza has to offer through a food truck as created many
advantages for the business. By being mobile, the food becomes more accessible to customers.
This creates more customers for the business since they can be at different locations throughout
the day. While the truck drives around, the business promotes itself for free with the help of the
logo and phone number printed on its side.
There are many different pizza businesses in McAllen such as, Mama Mia’s Pizzeria,
Russo’s New York Pizzeria, Pizza Hut, Papa Johns, and Dominos. Nino’s Rio Pizza is the only
place where customers can get a wood fired oven pizza, giving the business a distinct advantage.
The business also uses high quality ingredients to create its food, enhancing the flavor and
product quality offered at Nino’s Rio Pizza. Along with the high quality product used in making
the pizza, Nino’s Rio Pizza is the only pizza restaurant in the Valley that makes their pizza with
unbleached flour. This is a strength, making the health conscious person more willing to buy
pizza from Nino’s Rio Pizza.
The restaurant offers specialty flavored pizzas, giving customers another reason to visit
the business. An example of a specialty pizza is the, La Weslaco pizza, which features their
special sauce, San Manuel Chorizo, nopales (cactus), and arugula. By offering unique pizzas
customers will have more of a reason to visit Nino’s Rio Pizza.
B. Weaknesses
Weakness 1: Nino’s Rio Pizza has a limited inventory space for produce and other ingredients
needed to make the food for customers.
Weakness 2: The business sells food from a food truck making the seating of the business very
limited (one table and three chairs).
Weakness 3: There are only a few employees that work at Nino’s Rio Pizza.
Weakness 4: Since the business is fairly new to the market there is little brand awareness.
Weakness 5: Since there is only one food truck, there are very few locations where customers
can purchase the food.
Nino’s Rio Pizza is a fairly new business that is still trying to expand the business and
become known to customers. Due to this, the business has several weaknesses that are effecting
the business. A current weakness the business has is its current inventory system. The business
is small and cannot hold a large inventory of products. This requires the business to waste time
and money by having to restock more often. While this makes it possible for Nino’s Rio Pizza to
not have wasted inventory, it also allows for the possibility of running out of product during
operating hours.
Another weakness the business has is the limited seating available to customers. There is
currently only one fold-out table and a few chairs making it impossible for more than one group
to eat next to the food truck. This weakness limits business from having customers that want to
sit and eat their food.
Nino’s Rio Pizza has three full time employees which operate the food truck. This is
currently a weakness because by having one additional employee the business could operate
more efficiently. It is difficult to operate at capacity optimization while supplying food for
events through catering and through the food truck.
The business is still relatively new; therefore, Nino’s Rio Pizza is unknown to a large
amount of customers. This limited awareness is a major weakness of the business, effecting the
sales and overall growth of the business. This is due primarily to having just opened the food
truck in September 2013. Being not well known effects the non-monetary sacrifice customers
have to pay. They have to be willing to try a new pizza that they are unfamiliar with.
Unlike many of the competitors in the food industry, Nino’s Rio Pizza is not a franchise.
It is a single food entity and therefore has not established numerous locations throughout
McAllen. Because of this, customers may find it more convenient to get pizza elsewhere, despite
being a mobile food truck.
C. Opportunities
Opportunity 1: Catering at local events.
Opportunity 2: Advertising to the new, health conscious consumers.
Opportunity 3: Increasing outdoor seating
Opportunity 4: Expanding the locations that their truck visits
If locations abide by the city ordinance then Nino’s can begin to sell at local events as
long as they register with the correct party. This would allow them to create awareness amongst
locals and gain profits.
Today’s consumers are wary of gluten and seek fresh produce. Nino’s differs from
competition by offering top of the line ingredients and non-bleached flour. This can attract those
who wish to stay healthy and those who are unable to consume gluten. This is something that
Nino’s should begin to advertise immediately.
People are naturally curious when crowds form. By adding outdoor seating, Nino’s can
gain attention and offer customers a place to sit. This addition would also increase the
customer’s time spent by the food truck, meaning, they could easily purchase more products.
This is something Nino’s Rio Pizza can look forward to in the future.
The new city ordinance seems to be strict and questionable. Although Nino’s wishes to
expand their locations to parks and other venues, they have currently been denied this
opportunity. The expansion of locations could help Nino’s reach new customer segments and
create exposure. The exposure would help them in creating awareness around the valley, and
attracting attention to food trucks.
D. Threats
Threat 1: Fluctuating prices in produce and dairy may cause price changes.
Threat 2: Weather can impact the number of customers.
Threat 3: Outside competition may have more market share.
Threat 4: The strict city ordinance may limit the business.
Prices of fresh produce and dairy, such as, mozzarella are constantly fluctuating. As
these prices rise, Nino’s Rio Pizza may need to increase the prices of their items in order to be
profitable. If Nino’s begins to raise their prices too much, people may stray from them and
substitute their need by going to a competitor.
Competition remains a threat for every business. Competitors that are brick and mortar
offer seating for their clientele and are able to hold more inventory. Their locations allow for
customers to fulfill their need for food while offering them a place to go. Fast food competitors
are able to offer low prices, which may draw in families.
The weather is another threat to Nino’s. Where brick and mortar can operate efficiently
whether or not the weather is bad, Nino’s cannot. The rain and the cold draw less customers to
the food truck because they are not willing to wait outside.
The city ordinance does not allow for the truck to have a drive thru. Nino’s could
possibly overcome this threat with a delivery service, but this may be costly since more
employees would need to be hired. Other limitations that exist from the ordinance is that it is
still new and the city has yet to become fully accepting of the rules and regulations that exist in
the city ordinance.
A.2 Nino’s Rio Pizza S.W.O.T. Analysis
STRENGTHS WEAKNESSES
Only Food Truck in RGVMobile
Unique Wood-Fired OvenFlavors Tailored to Mexican Culture
High Quality IngredientsSpecial Menu Items
Friendly Service
Limited Inventory/ StorageExtremely Limited Seating
Few EmployeesLittle Brand Awareness
Few Locations
OPPORTUNITIES THREATS
EventsNew, Health-Conscious Segments
Outdoor SeatingExpansion of Locations
Fluctuating Product and Dairy PricesCompetition
WeatherStrict City Ordinance
Converting Weaknesses Into Strengths
Several of the weaknesses can be converted into strengths. Nino’s Rio Pizza has only
three employees, and this affects the overall productive of the business. By hiring another
employee the company can eliminate three of the weaknesses the business has, resulting in
having more strengths. Hiring another employee will add to the expenses of the business, but it
will allow for the business to function at capacity optimization. It would also allow for the
business to continue to have a lower inventory system on produce and ingredients. Having
another employee will allow for him/her to go out and purchase ingredients and produce while
the food truck can still operate efficiently. Another weakness that can be converted into a
strength by hiring another employee would be having few locations. This would be eliminated;
Alberto Gulino has stated that hiring just one more employee would allow for the business to
cater and sell at the food truck simultaneously. This would increase the overall customer base
that Nino’s Rio Pizza can reach.
Another weakness that the business has is its current brand awareness. This weakness
affects the business because a higher level of awareness would result in more customers.
Potential customers may not be present customers because they are not aware that Nino’s exists.
Creating a newspaper advertisement can increase the awareness of the brand. Also using
Facebook in a strategic manner can lead to more customers to purchase products from Nino’s
Rio Pizza. Increasing the brand awareness of the business will also improve as the business
continues to have friendly employees. These employees create relationships with the customers,
resulting in loyal clientele.
Converting Threats Into Opportunities
Threats cannot always be converted into opportunities. In such scenarios, it is best for
the business to try to lessen the impact of the external factors. Nino’s Rio Pizza’s biggest threat
to the business is the fluctuating prices of produce and ingredients. There is no possible way to
eliminate this without drastically changing a major component of the business. One way to
eliminate the threat would be to increase the price of all the products in order to allow for the
prices of the ingredients to fluctuate. Doing this though would cause many of the customers to
be dissatisfied and may ultimately harm Nino’s Rio Pizza. It is best for the business to come to
the realization that this threat is nearly impossible to convert into an opportunity unless they are
willing to sacrifice quality.
The weather can be detrimental towards the business. Customers can be given an
incentive to go on a cold or rainy day that would normally make Nino’s Rio Pizza inoperable.
The business can entice customer by marking down the price of their products. Loyal customers
that become aware of such a discount may consider to eat at Nino’s on a day that has bad
weather. Another way to encourage customers to visit Nino’s Rio Pizza on a cold/rainy day is by
offering an incentive such as a dessert with the purchase of a pizza. Either of these incentives
can allow for Nino’s Rio Pizza to remain open and sell products to customers while the weather
is bad.
Nino’s is different in many aspects; nonetheless, it is still a restaurant that sells pizza.
Being fairly new to this market makes it difficult for the business to acquire market share from
competitors. In order to change this threat into an opportunity, Nino’s must inform present
customers and potential customers about what makes their pizza better than others. They should
stress what differences their pizza has. The business should also increase awareness.
The strict city ordinance cannot be eliminated altogether, but it can possibly become less
impactful towards the business by Alberto Gulino acquiring several copies of the city ordinance.
This can allow for him and his employees to provide the proper credentials when someone
opposes the food truck being at an event or location that previously did not allow food trucks.
Marketing Approach
Nino’s Rio Pizza has much strength that help give the business a competitive edge.
Despite this, the four different threats affect the business greatly. The overall strategic focus of
the marketing plan undertakes a diversification approach. The threats that the business currently
has make it difficult for the business to take an aggressive approach. The strict city ordinance on
food trucks was recently passed and so many McAllen officials are unsure of the specifics
included in the ordinance. The weather also impacts the business greatly; making the business
possibly not profitable on cold or rainy days. The business can further increase the many
strengths by converting their weaknesses into strengths, as previously mentioned. Having an
abundant amount of strengths, the company can acquire will make the threats easier to deal with.
Nino’s Rio Pizza is successfully different in a saturated market of restaurants that sell
pizza. Competitors such as: Papa Johns, Dominos, and Pizza Hut all sell the same products and
are similar in the way they prepare them. Nino’s Rio Pizza distinguishes itself by being the only
wood fired oven pizza offered in the Rio Grande Valley. The businesses pizza is also of high
quality and many customers will be able to taste the Nino’s Rio Pizza difference.
IV. Marketing Goals and Objectives
Marketing Goals
The goal of the marketing plan is to increase awareness of Nino’s Rio Pizza. Increasing
awareness of the business will impact the business greatly and will allow for the business to
grow and improve itself. Many of the weaknesses will be able to be turned into strengths with a
higher customer base and revenue stream.
Marketing Objectives
Some objectives that will be reached using strategic decisions in order to accomplish
Nino’s Rio Pizza marketing goals are:
1. Improve product awareness: “Increase the number of people that like Nino’s Rio Pizza
Facebook page by at least 30 likes a month.”
2. Increase Sales: Increase the number of people who purchase Nino’s Rio Pizza by using
marketing strategies that will lead to improvement of the business sales over the few months;
impacting the business in the long term. “Increase sales by 20% by July 2015.”
1. Increase brand awareness of Nino’s Rio Pizza:
Increase awareness by offering t-shirts with Nino’s Rio Pizza logo and phone number at a
discounted price during certain times. Customers will be walking billboards.
Participate in community events in order to promote the brand and the food truck. This
will ensure that many see the brand.
Drive the food truck around town. This will draw attention and curiosity from fellow
drivers.
Inform customers about why your product is unique. The more they know, the more
value they will see.
2. Increase sales of Nino’s Rio Pizza:
Improving the awareness of the business will increase the customer base, resulting in
more sales.
Increase sales by providing Nino’s Rio Pizza menu’s to businesses near the food truck.
Offer small promotions on low-traffic days, such as $1 off if you bring your student I.D.
or military discount.
Give samples of unique pizza flavors to current customers. They may be afraid to try
new things, but a free sample will give them the chance to try something new without any
risk.
V. Marketing Strategy
Target Markets
Nino’s Rio Pizza primary target market is composed of young adults, both male and
female, between the ages of twenty and thirty. The geographic area of these targeted customers
reside in the McAllen area. Many of these customers are attracted to Nino’s Rio Pizza because
of the uniqueness of a food truck in the Valley and pizza that is cooked on a wood fired oven.
The menu is priced to be appealing towards the price sensitive customers who like to eat quality
ingredients. Due to using higher quality ingredients, Nino’s Rio Pizza is able to remain
competitive with their fair pricing.
The secondary target market of the business is customers that demand healthier versions
of pizza. This is done at Nino’s Rio Pizza by the business cooking with non-bleached flour and
fresh ingredients. These customers differ with the age ranges, being between twenty-three and
twenty-eight years old. Many of their buying habits are affected by them trying to be healthy.
These customer segment tends to purchase healthier products.
Product Strategy
Nino’s Rio Pizza’s logo is a pizza with an outlining of fire. This logo describes the
business perfectly since they cook their products using a wood fired oven. The packaging of the
food is a generic pizza box that does not advertise the business. However, the owner sometimes
doodles on the boxes to catch customer’s attention.
Nino’s Rio Pizza offers its customers high quality pizza. The quality of the food products
are improved by using ingredients from local farmer markets. The business is different from all
of its competitors by offering pizza that is cooked in a wood fire oven designed specifically to fit
inside the food truck. In addition, the business offers many different toppings including protein
such as: pepperoni, ham, bacon, beef, chicken, white beans, chorizo, fajita, and shrimp. Other
toppings include: basil, nopales, mushrooms and other fresh vegetables.
Pricing Strategy
Nino’s Rio Pizza prices its food based on the ingredients used to make it. The price of
the cheapest pizza is six dollars and fifty cents, with the other pizzas increasing in price as the
pizza gets larger and more toppings are added. Determining the price of the food based on the
ingredients used helps make the pizza affordable by having it priced relative to its competitors.
Unlike the fast food chains like Pizza Hut, Papa John's, and Domino's, Nino’s Rio Pizza uses
high quality ingredients to prepare their dishes for customers. This results in creating better food
for customers.
Several non-monetary costs are minimized from the business being based out of a food
truck. The restaurant travels to several different locations throughout the week, making the food
more convenient as it travels closer to some customers. The employees that operate the food
truck are friendly towards customers; reducing the stress involved in the purchase at Nino’s Rio
Pizza.
A. 3 Nino’s Rio Pizza Menu
Nino's Rio Pizza MenuProduct Ingredients Small Large
Margherita Pizza Fresh mozzarella, basil, olive oil $8.50 $11.50Farmers Pizza 4 Vegetables, 1 meat $8.50 $11.50Marinara Pizza Our Sauce, Fresh Garlic, Basil,
Romano Cheese, Italian Olive Oil$6.50 $9.50
Choriqueso Pizza San Manuel Chorizo, Mozzarella $8.00 $11.004 Stagioni Pizza Our Sauce, Ham, Mushrooms,
Marinated Artichoke$9.00 $12.00
La Weslaco Pizza Our Sauce, San Manuel Chorizo,Nopales, Aruguia
$8.50 $11.50
Meat Lover Pizza Our Sauce, Ham, Pepperoni,Sausage
$9.50 $12.50
Pepperoni Pizza Our Sauce, Pepperoni $7.50 $10.50Hawaiian Pizza Our Sauce, Ham, Pineapple $.7.50 $10.50
*Customers are encouraged to ask about specialty pizzas and customerscan create their own pizza with the available ingredients
Distribution/Supply Chain
The supply chain for Nino’s Rio Pizza is not very complex. The business gets it produce from
local farmer markets, Gulino’s garden, or H-E-B. They set their pizza apart from the competitors
by purchasing the finest ingredients available. From this point, the business has their product
distributed to the customer in two different ways. The food truck is the primary means that the
customers receive their food. The other way is through the catering Nino’s Rio Pizza does for
events, birthdays, and large groups.
Besides price, there are other factors that go into the purchase of products. Nonmonetary
costs including: time, stress, and effort that go into the purchase of a product. Nino’s Rio Pizza
has been able to reduce these nonmonetary costs by having a mobile business. The truck travels
to several different locations, posting its location on Facebook. This makes it easier for
customers to purchase the product. The business also goes to different local events, making the
business attract more customers.
There are several tactics that Nino’s Rio Pizza can do in order to increase the
effectiveness of the business. The business can increase the distribution of their product by
hiring a few more employees. The owner wants to hire one more employee in order to have both
the catering and food truck business operating simultaneously. Another employee could be hired
in order to be sure that these two operations have the produce and ingredients needed to operate
the business at full capacity. Hiring two employees would also make it possible for Alberto
Gulino to oversee the utilization of the food truck and catering of Nino’s Rio Pizza.
Integrated Marketing Communications
There are several different strategies that have been created in order to increase the brand
awareness of Nino’s Rio Pizza. The advertising strategy for the business is to continue
advertising through the food truck itself. This is a free form of advertising that the business
does. Another form of advertising that is done is through the use of Facebook. The company
can notify customers of specials that are available and also give promotional discounts to
consumers online.
Nino’s Rio Pizza can also use a pull strategy in order to acquire new customers. This
would require the business to create a product that the customers demand. Many consumers
must satisfy the basic need of hunger, and eating at Nino’s Rio Pizza can do this. The business
can effectively display the types of pizza they have through displaying photos online.
These two different objectives can be accomplished by advertising through Facebook.
This will create a synergistic result, increasing the brand awareness of the business. An example
of a Facebook promotional online flyer can be that first person to share the flyer and guess how
many pieces of mesquite wood are in the picture gets a free pizza. This would allow for other
people to see Nino’s Rio Pizza through their friends sharing the restaurants photo and also see
what makes Nino’s Rio Pizza different. This customer interaction can lead to increase awareness
for the business. Another way to accomplish these objectives would be through creating a
newspaper advertisement. This can cost a large amount of money, but it can reach some of the
market segments that Nino’s Rio Pizza is trying to target.
Nino’s Rio Pizza can also increase its awareness by offering several other promotional
activities. The business can offer customers the opportunity to purchase a pizza at regular price
and get a second pizza with different toppings for a slightly reduced price. This would allow for
customers to experience two different types of pizza and possibly have a new favorite at Nino’s
Rio Pizza. Giving this type of promotion will give customers an incentive to order more than
one pizza and will generate more revenue for the business. The reduction in the second pizza
should only a few dollars in order to allow for it to be profitable for Nino’s Rio Pizza.
Another promotional discount that can be given out increase the awareness of the
business is to have a “college night” where students can show a valid college identification card
in order to get a discount. Many fast food restaurants do something similar like this in order to
attract college students. Doing this can get college student more willing to try Nino’s Rio Pizza.
This would create buzz amongst college students and in turn, lead to word-of-mouth marketing.
It would be wise for the business to offer college night on a day that is currently a slower day for
the business. Movies theaters have implemented something similar in order to make their
Tuesdays a busy day.
An excellent way to improve customer satisfaction and gain awareness is by offering
Nino’s Rio Pizza t-shirts at a discount either with the purchase of so many pizzas or as a special.
T-shirts are a great way to gain awareness because the customer will be doing all of the
advertising for you when they wear the shirt. Discounts can also be offered for actually wearing
the shirt during the purchase of the pizza. This would encourage the customer to not only
initially purchase a shirt, but actually wear it. The business could pick random dates to wear the
shirt for a small discount on pizza or have a set date, such as, “Wear your Nino’s Rio Pizza shirt
on the first of the month and receive $2 off a pizza.”
VI. Marketing Implementation
The marketing implementation is going to come from the manager instilling it into his
business. Nino’s Rio Pizza is a small business with few employees. Therefore, Gulino will have
to inform his employees about the goals of the business. Employees should be well informed
about how the business operates, and what makes their products unique. Consistency amongst
the food made by the different employees is crucial. Employees should also be instructed to
engage with customers. The business should encourage customers to try new things and create a
relationship with them. Relationships will only enhance the businesses image and motivate
customers to spread positive word of mouth.
It is up to the business to create a pleasant experience for customers. Employees and
Gulino should communicate and listen to what customers have to say. If there is a complaint,
then it should be used as a learning experience to grow from. If customers have ideas for new
pizza flavors then the pizza can possibly become a special. When customers feel as though they
are being heard, they will have more value for a business and their ethics. In order to gain a
good reputation and increase awareness, Nino’s Rio Pizza must work hard to keep their
customers happy. These customers will not only be retained, but will bring in new customers as
well.
A.4 IMC Activities
Possible IMC (Promotion) Activities
Activity Budget Completion Date
1. Facebook paid ads $30-$50 per month
Conducted monthly or every other month
2. Social Media Presence (Facebook, Instagram)
Cost=time Conducted daily
3. T-shirts $100 as needed Conducted on as needed basis
4. UTPA Panorama Magazine (seasonal magazine)
$2$e rwre re re wrewrwerf
$250 for ¼ page Conducted 2 times per year
5. Flyers $25 per month Distributed monthly
**These are ideas and estimated pricing. Some prices may be reduced if purchased in bulk.
VII. Evaluation and Control
Formal Controls
Before the marketing plan can be properly implemented the business must set in place
several factors. In order to attract customers with the use of the marketing plan, there will be
expenditures. The business needs to prepare itself and be sure it has the proper financial
resources to carry out the marketing plan. In order to carry out the marketing plan it will also
require time from an employee. The time will be needed in order to conduct several of the
promotional ideas, such as the t-shirt idea or using Facebook.
While the marketing plan is ongoing, Nino’s Rio Pizza needs to remain focused on the
overall marketing objectives and goals. Communication from management will be important
since Alberto Gulino will need to dictate all of the marketing strategies to the employees.
During the execution of the marketing plan, Facebook will play an important role in
monitoring the successfulness. As the business continues to implement the marketing plan the
business should begin to see an increase in the number of “likes” and, or check-ins that the
business receives from customers. Customers will also interact more often with the businesses
Facebook page. Nino’s can also use the Facebook monitoring tools in order to track the progress
of the business increasing its brand awareness.
Informal Controls
Employees must know the goals of the business. By informing them about how the brand
wishes to increase awareness and asking for employee advice, they will feel as though they are
an important part of the business. It is important that employees have knowledge about the
produce and pizzas that they serve. Every employee needs to be trained so that they can answer
any questions that the customer may have. It is vital that all employees are respectful and
engaging with customers because they are the face of the brand. They are also the front of house
and will hear many compliments and complaints that can be noted for future reference.
Employees should be commended on their good work and consistency so that they feel valued as
a part in the Nino’s Rio Pizza business. The employees are extremely important because they
interact with people one on one and are capable of recommending new menu items to consumers.
As consumers build a relationship with the employees, they will be willing to take their advice
and try new things. As people try new menu items, they will spread word of mouth about the
unique flavors offered by Nino’s. This will increase sales, and the desire to try the offerings of
the food truck.
Marketing Audits
Owner, Alberto Gulino, will monitor marketing activities. Every month, profits should
be analyzed as to whether or not they are continuously increasing. Facebook will also need to be
monitored. An increase in “likes” or “check-ins” should be noted every month in order to show
brand awareness. The owner should also focus on encouraging customer feedback while
constantly checking what they have to say. Yelp, Tripadvisor, and Facebook are all good places
to check for feedback.
If awareness and sales are not increasing, Gulino should stress the importance of
customer relationships and service to his employees. Employees should be encouraging
customers to try new things and give their feedback via online resources. If this is not working,
then awareness will need to be created through advertisements on local newspapers, flyers,
etcetera. There are many ways in which Nino’s Rio Pizza can bring prevalence to their name at
a low cost, but these more costly advertising may be necessary if the lower cost options prove to
be unsuccessful.
