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Team 4

Oscar Ramos

Ligia Evelyn Osuna

Mario Del Bosque

Alejandro Garcilazo

Samir Fallad Cortez

04/29/19
TABLE OF CONTENTS

Executive Summary ................................................................................ 1

Introduction .......................................................................................... 2

Company Description .............................................................................. 2

Business Mission .................................................................................... 3

Explanation of Product and Service ............................................................ 3

Business Model ...................................................................................... 5

Environmental Analysis ........................................................................... 5

PESTEL Analysis ................................................................................... 5

SWOT Analysis...................................................................................... 6

Porter’s 5 Forces Analysis ........................................................................ 7

Market Research .................................................................................... 8

Brand Personality and Positioning Map ...................................................... 10

Marketing Objectives ............................................................................. 12

Marketing Strategies .............................................................................. 13

Marketing Implementation ...................................................................... 16

Financial Projections .............................................................................. 17

Evaluation and Control ........................................................................... 18

References ........................................................................................... 19

Appendices .......................................................................................... 20

Qualitative Questions ............................................................................. 39


Executive summary

Taco Palenque (TP) will be the latest, fast-casual Mexican food restaurant located at 1414 W.
University Dr. Edinburg, TX 78539. Taco Palenque will offer beef or chicken fajita plate, salads, burritos,
enchiladas, and quesadillas. They will also offer their famous breakfast tacos such as potato and egg, ham
and egg, chorizo and egg, barbecue, and more in a friendly family atmosphere. Taco Palenque also offers
a variety of homemade salsa flavors such as pico de gallo, salsa roja, guacamole, and other traditional
Mexican salsas in a salsa bar presentation with free chips. Taco Palenque is family owned and operated
by Juan Francisco Ochoa and the Ochoa family. They have over 40 years of experience in the food
industry as well as understanding of the food quality, consistency, and traditional flavor. Besides Taco
Palenque, the Ochoa family also owns El Pollo Loco in Mexico and Palenque Grill in the US. Taco
Palenque was founded in 1987 in Laredo TX. There are several Taco Palenque restaurants operating
throughout Texas cities such as Edinburg, McAllen, Mission, Palmhurst, Weslaco, Harlingen,
Brownsville, Laredo, Houston, San Antonio and New Braunfels. Some of Taco Palenques’ main
competitors in the Mexican food market are the following: La Taquiza, Taqueria La Mexicana, Taqueria
El Zarape, Taco Bell, El Pato and Gorditas Dona Tota. This business attracts customers with a unique
experience in the Mexican food industry and distinct products such as the fresh Mexican flavored drinks,
Jamaica and Horchata. TP also offers a variety of salsas and diverse tacos served throughout the day with
a full-time service of 24 hours 7 days a week. Taco Palenque allocated an initial investment of $4,000.00
dollars in marketing and advertising for the new location during its first three months in business. A
marketing strategy and implementation was created to help Taco Palenque start and continue with
sustainable profitability. A proposed long-term strategy with the UTRGV Athletics department has been
advised to solidify partnership with the University. Financial projections paint a conservative profitable
picture. Note that estimated (fictional) values have been added for the location revenues and expenses.
Marketing and advertising expenses are calibrated according to our marketing strategy.

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Introduction

The new location for this Taco Palenque restaurant has one thing in mind, and that is hungry
university students. University drive is prime real estate for fast food options, this makes the market very
saturated for restaurants offering burgers, sandwiches, and tacos (your typical fast food options). Catering
to the majority Latino population and entering the Mexican food market makes sense, people want
something nearby, that they are familiar with, and that above all they will enjoy. Geographic location and
the demographics of the local area makes this Taco Palenque location highly likely to succeed. The
owners of Taco Palenque have 5 locations scattered throughout McAllen and one in Edinburg, this
disparity is another reason why Taco Palenque has opted for a new Edinburg location and this also
explains why the marketing budget is not as big as you would think. Taco Palenque has built a presence
in the valley over years of work and serving spectacular food, they’ve sowed their own oats and are
reaping the benefits of their own brand recognition. They’ve worked hard the past few years to expand
their business, therefore marketing efforts are not an overly expensive part of their budget, nevertheless
they have allocated four thousand dollars to launch a marketing campaign, including handing out coupons
to the first two hundred customers, they also have future plans to sponsor UTRGV athletic games in
return for special mentions and recognition to the crowds they will be hosting. Partnerships with the
university and focus on appealing to the college crowd will certainly be beneficial to the company given
its proximity to the university, not only do college students attend these games that will be sponsored but
also their parents, faculty, and nearby professionals interested in school events, the importance of
community outreach cannot be understated.

Company Description

Taco Palenque is a company that has grown massively from humble beginnings, in essence, it is
the American dream that every entrepreneur hopes for, but in this case this dream had a Mexican flavor.
Originating in Mexico, the company’s roots come from selling roasted chickens on the side of a busy road
to workers and travelers. After much success, the owners expanded to Texas, knowing the Latino
population of South Texas would have an appetite for their products they quickly expanded to owning a
handful of locations throughout the Rio Grande Valley, all serving hungry customers, twenty-four hours a
day. The company specializes in Mexican favorites, such as tacos, whether they be for breakfast, lunch or
dinner, and staples of Mexican cuisine such as charro beans and Spanish rice, all prepared quickly to

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make the sale and feed the next hungry customer in line. American culture is one of having a busy work-
day for the majority of people, this often means not having the time to prepare a home-cooked meal every
day, this culture is blended with the Rio Grande Valley’s densely Latino population to create a large
prospective clientele net for Taco Palenque. Since its origins in its mother country of Mexico, the
company has grown and thrived by feeding on-the-go consumers, naturally this is the same concept they
will apply to all their locations in the Rio Grande Valley, with the new location specifically located to
attract nearby college students, faculty, not to the mention the Edinburg courthouse and other professional
establishments within this proximity.

Business Mission

Taco Palenque business mission comes from the owner Juan Francisco Ochoa, known as Don
Pancho, who had a passion for Mexican cuisine and wanted to bring that flavor into the United States. His
goal was to create the ultimate place for families to enjoy delicious, unforgettable and authentic Mexican
food, all while having a family-friendly place to create good memories. On its new location next to
UTRGV, Taco Palenque aims to attract the huge market share of students that live around the area and
attend the university, while delivering excellent quality of food and great ambient, TP plans to create the
best spot for students to enjoy a good meal and have a good time.

Explanation of Product and Service

Taco Palenque offers a wide variety of products inside the food industry; it focuses on the
production of tacos as its main product with a variety of ingredients to play with but also offers parrilladas
for bigger parties such as families or groups of 3 or more. Its menu does not stop in those two; it also
offers breakfast options, quesadillas, full plates with entrees, enchiladas, burritos, bowls, some Mexican
desserts as well as fountain drinks. Taco Palenque offers all said menu options with fajita, sirloin, chicken
fajita, and carne al pastor, while on breakfast it counts with all kinds of egg combinations as well as
barbacoa. It also offers combos for people looking to spend less on a more substantial meal, overall TP
offers options for every client taste buds and budget.

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First Page of TP Current Food menu

Second Page of TP Current Food menu

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Business Model

Taco Palenque business model is of food service, they rely on dine in as well as take out through
the drive thru. They use Mexican cuisine to attract the large percentage of Hispanic families that live in
the valley as well as cities more north on Texas, such as San Antonio and New Braunfels. While talking
to the owner of Taco Palenque, he stated that they focus on buying the best fajita in the market; they want
to be recognized as a family-friendly place but also for its quality on food. They prepare most of its
ingredients at home. For example: the tortillas they use are made at Taco Palenque and they produce over
10 million tacos per year. They also offer catering services; it can be for family parties or more formal
events, for example they catered at the UTRGV MBA event this spring 2019. For instance, TP delivers
exceptional service with delicious home-style food for all the members of the event, the members for the
events can range from two person to as many as needed to be feed. Taco Palenque forms part of a large
chain of restaurants, it counts with many locations all around Texas and its part of a larger family of
restaurants, this family consist of Taco Palenque, Palenque Grill, Pollo Palenque and Pollo Loco.

Environmental Analysis

PESTEL Analysis

A Political, Economic, Social, Technological, Environmental and Legal factors (PESTEL)


analysis has been prepared to review the environment that surrounds Taco Palenque. The identification of
Political, Economic, Social, Technology, Environment & Legal variables that intervene, give the needed
view to determine what specific elements are of most relevance.

Political Economical
● Edinburg major is in favor of new ● TP has show a high increase of locations
businesses in the area and enjoys during its expansion since 1987
Mexican cuisine himself

Social Technology

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● High volume of Mexican culture families ● Development of new application for
lives in the valley. consumers.
● Consumer preference towards Mexican ● Collaboration with food delivery
cuisine in the area. companies in the area such as doordash
and bite squad

Environment Legal
● Taco Palenque does not follow any ● Taco Palenque follows health and
special garbage disposal technique but safety laws of Texas as well as
follows the regulations of Edinburg waste employment laws
department

After reviewing the different factors in the PESTEL analysis, Social has a big impact in the future
of Taco Palenque. Mexican culture and the love the people of the Valley have for its Mexican cuisine is
one of the most powerful advantages Taco Palenque have, it relies on it due to the high amount of
nostalgia people have toward Mexican food and how much its consumed in the area.

SWOT Analysis

Taco Palenque has strengths to potentially attract more customers with a great experience in the
Mexican food industry, quality and distinct products such the fresh Mexican flavored drinks. Taco
Palenque needs to look at their weaknesses and figure out how to implement changes to improve.

Internal Factors

Strengths Weaknesses

● Quality of food ● Missing waiters


● Location proximity to UTRGV ● Safety and security improvement the fire
● Family friendly atmosphere (see figure 26) extinguisher was missing at Mission location
● Experience in the Mexican Food Industry (see figure 30)
● Competitive Mexican flavored drinks such ● No variety of healthy food options
as Jamaica and Horchata ● Tacos served in foil paper and not on a plate
● Salsa bar with free chips (see figure 24) when dining in
● Open 24 hrs. 7 days a week ● Cleanliness and appearance of the restaurant
● Free Wi-Fi

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● Online ordering ● Maintenance supplies in front of the
● Community involvement customers view
● Usage of the same cleaning towel to clean
the tables

External Factors
Opportunities Threats

● Other Mexican restaurants closing ● Uncertainty of consumer preferences


● Rising inclination for healthy foods ● Health conscious awareness
● UTRGV Corporate Sponsorship ● Lower price Mexican restaurant options
opportunities with Intercollegiate Athletics
● Predominant Hispanic population
● Sustainable business involvement

Porter's 5 Forces Analysis

Competition in the industry: Taco Palenque will have several competitors in the Mexican Restaurant
Industry. The following are the main competitors located on University Drive in Edinburg, TX: La
Taquiza, Taqueria la Mexicana, Taco Bell, El Pato, Gorditas Dona Tota and Taqueria el Zarape (See
figure 5, 6, 7).
However, Taco Palenque is a strong competitor with a lot of experience in the Mexican restaurant
industry. According to our focus group statistics 53.7% of UTRGV staff/students buy food off campus,
54.5% are not satisfied with the variety of food on campus, 74% like Mexican cuisine and 53.6%
student/staff think that what they pay for food is a fair amount (See figures 10,11,12,13). Taco Palenque
needs to take advantage of this potential market and attract and keep loyal customers coming back.

Potential of new entrants into the industry: Taco Palenque needs to differentiate its products from
other restaurants because Mexican restaurants tend to have the same characteristics and style. There is a
potential for a new entrant to the Mexican Restaurant Industry since starting a business in the Rio Grande
Valley is an excellent opportunity due to the geographic location, skilled workforce and low tax burden.

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Power of suppliers: We would like to know this information. However, in a meeting with the owners of
Taco Palenque they decided not to share this information, because they considered it private.

Power of customers: Customers have different options and preferences to eat Mexican food in the area
on University Drive in Edinburg TX. For example, La Taquiza restaurant is well known for the non-
greasy tacos, fresh handmade tortillas are a great option for health-conscious customers. However, they
don’t offer breakfast and their hours of operation are from 11:00 am to 10:00 pm. Taco Palenque offers
breakfast tacos such bean and egg, potato and egg, taco a la Mexicana, etc. for the price of $1.19 from
6am to 11:00 am. Customers can still order tacos after the special hours for the price of $1.79. Taco
Palenque advantage is serving breakfast and their hours of operation of serving customers 24 hours 7 days
a week (See figure 22). Taco Palenque has the potential to get more customers and be able to compete
because of their extended hours and specially priced tacos in the mornings.

Threat of substitute products: Customers want to save money eating out every day and they prefer to
make their own lunch. Our focus group statistics reports that out of 530 responses, 35.3% of
students/staff pack their own lunch (See figure 9). Also, customers could go to convenience stores, local
grocery store and purchase ready to cook tortillas and frozen meat that are ready to heat in the microwave.
This could be a potential threat to Taco Palenque.

Market Research

To complement our market research activity 2 Focus Groups were conducted, a total of 10 people
were interviewed to gather a special insight for their preference in food. The groups had representation
from the Hispanic community and international non-Hispanic, ages ranged from the mid 20’s to 50’s,
graduate and college degrees, students and administrative work personnel (See figure 17-18).

These are the top topics researched:


● Type of food style preference (Mexican, American, Asian, Vegetarian, etc.).
● Consumer habits for prepared meals or purchased.
● Favorite food or dish.
● Preferred dining place.
● Awareness of Taco Palenque restaurant. Things enjoyed and for improvement.

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The most relevant things gathered from this focus group activity were as follows:

● Food prepared at home is mostly preferred due to taste and economic reasons.
● UTRGV Students and working people have limited time to consume their meals, they frequently
rely on quick serve places.
● Food preference style and ethnicity of the person go together. Mexican style food is preferred by
Hispanics.
● Students from UTRGV prefer to eat tacos at “La Taquiza” and “La Mexicana”, this is due to
flavor being more like in Mexico.
● People perceive “Taco Palenque” as having their own style and not as true Mexican food flavor,
however their Tex-Mex style is liked. If Taco Palenque comes they will visit and very likely their
preferred restaurant will remain unchanged.
● There is an improved customer experience suggested for Taco Palenque: a) Waiter service
delivers the order and walks away, there is not continued service at table. b) Tacos are always
served wrapped, it feels like deliver and you will walk out. c) Restaurant housekeeping can be
improved, they are dirtier in dining area and can improve in restroom area cleanliness as well.
● Taco Palenque is perceived as being a little more expensive.

Another component of the market research was the online survey with about 140 responses from
UTRGV students and staff. Social media was used for the online survey such as Facebook groups,
WhatsApp, and email. One of question regarding Taco Palenque was “when it comes to the restaurant
Taco Palenque (TP), select all that apply to you” (see figure 15). The following are the most relevant
results from the online survey:
• 18.6% - I don’t go to Taco Palenque because of the price.
• 12.1% - I have never been to Taco Palenque before.
• 40.2% - I go to Taco Palenque because of its drive thru option.
• 24.3% - I go to Taco Palenque because of it’s a family friendly atmosphere.
• 40.7% - I go to Taco Palenque because of the 24-hour service.
• 41.4 % - I go to Taco Palenque because of the free chips and salsa bar.
• 54.3% - I go to Taco Palenque because of the quality of the food.

Four open-ended questions were asked to collect qualitative insights about TP and more. Refer to the
Appendices (Pages 39 – 45).

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Brand Personality and Positioning Map

In this evaluation of the Taco Palenque brand personality, the theory from Aaker (1997) will be
applied so there exists a basis from which to measure the personality of the brand. Aaker (1997) states
that there are five facets of brand personality; sincerity, excitement, competence, ruggedness, and
sophistication. Each of the dimensions is further divided into extended attributes, and should a product be
characterized by these, it may be called one of the five (of course, a product may be more than one though
not all five).

When assessing Taco Palenque, it becomes clear that sincerity is the strongest personality facet
due to the honest, wholesome, and cheerful perception of a Mexican family friendly restaurant. A
secondary personality factor that can be attributed to the Taco Palenque brand is also evident. Primary
research via our focus groups tells the team that the brand is perceived as slightly upper-class/expensive,
thereby making Taco Palenque Sophisticated. Secondary research on social media indicates that Taco
Palenques’ brand persona can be defined as traditional, trendy, and storyteller.

Two dimensions have been selected to help define Taco Palenques' current positioning in the
consumer's mind: the likeliness to visit the restaurant and the price perception of the consumer. The
following positioning map data was collected via online surveys. Taco Palenque and its main Edinburg
competitors have been placed in the quadrants concurrent with the criteria selected:

● Likely to visit & higher price (quadrant 1)

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● Not likely to visit & higher price (quadrant 2)
● Not likely to visit & lower price (quadrant 3)
● Likely to visit & lower price (quadrant 4)

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Marketing Objectives

The following objectives add up to $4,000 dollars invested in advertising for Taco Palenque’s new
location on University Drive in Edinburg, Texas. Aggressive marketing efforts will run during opening
week and up until the last day of the three months of promotions.
● Increase Annual Sales Revenues at the new Edinburg Location by at least 10% over the next five
years.
● Double 2019’s profits by the end of the five-year mark (2024) at the new Edinburg Location.
● Connect UTRGV students and the Edinburg Community with TP’s Social Media Platforms by
engaging them in digital campaigns through Digital Evangelists (UTRGV Students working as interns
for TP).
● Educate customers about TP’s new coupon strategies and Student ID Discounts during slow seasons
and day periods.
● Create a special product for UTRGV students called, “the vaquero taco” priced under $3 dollars for
those who show their Student ID.
● Encourage a long-term relationship with the UTRGV Athletics department after a year of opening.
● Reach UTRGV students with $500 online advertising (Instagram and Facebook) with a 5%+
conversion rate during opening week in the new Edinburg location.
● Reach UTRGV students and Edinburg residents with $1,000 online advertising (Instagram and
Facebook) with a 5%+ conversion rate (Percentage of customers going to the restaurant while the ad
runs) during the next three months after opening week at the new Edinburg location.
● Spark customer impressions and word of mouth by investing $1,000 dollars in an Instagram coupon
challenge campaign. The first 333 people get a free Taco Pirata! Assuming that TP’s cost to produce
a Pirata is $3.
● From the Positioning Map, move price perception of UTRGV students closer to the X axis (yellow
dot) by providing sales promotions via print coupons in the University’s newspaper (The Rider)
during the first month of the new TP location. A half-page ad with coupons running in “The Rider”
for 4-5 weeks requires a $1,000 investment.

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Marketing Strategies

Target Market
The market selected is based on the predominant consumer groups in the geographic area surrounding
Taco Palenque at the UTRGV Edinburg, TX location. The restaurant is conveniently located across the
street from the campus main entrance (See figure 8).
These consumer groups are:
● UTRGV Student (Primary)
● Edinburg, TX Residents (Secondary)
From market information obtained via Focus Groups interviews (See figure 17 and 18), Social Media
(See figure 2-6) and Online Interview (See figure 9-16) the target market characteristics were defined
(See Table 1).

Target Market Demographics Needs & Preferences Consumption Habits

● Single ● Main meals consumed ● Food preference style


● Student out follows ethnicity.
UTRGV ● < 30 years old ● Budget constraints ● High influence from
Student ● Financial ● Eats off campus during social trends. Friends,
(Primary) Dependent after hours Social Media.
● Hispanic ● Seeks for homelike food
Population ● Dining options variety
Predominant are not sufficient in the
area
● Eats around campus

● Families & ● Main meals prepared at ● Food preference style


Generation X home & taken out follows ethnicity
● Works ● Family ambient
Edinburg, TX ● Financial ● Eats at home after hours
Residents Independent ● Dining options are not
(Secondary) ● Hispanic sufficient in the area
Population
Predominant
Table (1) Target Market

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Marketing Mix
The integrated market mix considers the 4P’s of Taco Palenque UTRGV: Product, Price, Promotion and
Place. The Environmental Analysis and Marketing Objectives were reviewed, and as result these, the
focus items to consider were defined (See Table 2).

Product Price

● Serve tacos consumed in restaurant on a ● As part of the pricing strategy can take
plate without a wrapper. advantage of UTRGV location by offering a
● Include products that satisfy healthy habits. discounted price for students showing an ID.
Gluten Free, Keto Diet, Low Fat, Sugar Free ● On days where demand is lower, an incentive
can be offered for customers. Discount %,
2X1 taco, free fountain drink.
● Loyalty program

Promotion Place

● Digital Social Media advertising directed at ● 100% waiter service at tables, not just delivery.
UTRGV Students (Instagram and Facebook) ● Improve restaurant appearance. Focus on
● Digital Social Media advertising directed at overall cleanness, location of maintenance
Edinburg residents (Instagram and supplies, portable child seating relocation.
Facebook)
● Coupon challenge coupon program in
Instagram
● UTRGV Newspaper advertising
● Digital Brand Evangelist
● WhatsApp for business
● LinkedIn Digital Strategy
● Long-Term Partnership with athletics
Table (2) Market Mix

Product: The food is already very well accepted by the consumer and is perceived as high quality,
already differentiated with its own style and extras like salsa bar, chips and Mexican style flavored drinks.
The way tacos are served can be differentiated in 2 styles: 1) Served unwrapped in a plate when
consumed in the dining area, 2) Wrapped when these are To-Go. This helps change customer perception
of tacos to being made and like a Mexican taqueria style (See survey comments).
The Taco Palenque menu already includes healthy options consisting of several combination salads, it can
be of advantage to promote these as compliant with low fat, gluten free, keto diet or other trend in the
market. This is targeting improved perception of those that are health oriented and currently prefer other
dining options (See survey comments).

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Price: The position in the market is well located in the Positioning Map 1st quadrant and is currently a
place where customers are likely to visit repeatedly, however the perception is that it is more expensive,
this can be a misconception where price is not readily associated to value offered and food quality.
Given that consumers are price sensitive in this market (See figure 10 & Survey comments), incentives
can be given to attract more customers, taking advantage of the UTRGV student market, Taco Palenque
can offer customized pricing incentives for this location such as: Student discount pricing, coupon
discount, loyalty program, 2X1 happy hour, special student priced “vaquero taco” for location, etc.

Promotion: The startup of the new UTRGV location requires an initial start boost for consumers
awareness of the new location. Considering that the budget for promotion is somewhat limited, the use of
the digital media advertising combined with UTRGV newspaper advertising is being followed.
The digital media targeted advertising on Facebook and Instagram, can be customized as per the target
market information defined earlier in the Target Market section (See table 1). Below are sample fields of
the settings to make:
UTRGV Customer Device Activity Information. Type of device being used, likes, posts, ads clicked,
to see the advertisements (See figure 35).
UTRGV Customer Demographics Information. Gender, marital status, education, employment (See
figure 36).
Edinburg Community Device Activity Information. Type of device being used, likes, posts, ads
clicked, to see the advertisements (See figure 37).
Edinburg Customer Demographics Information. Gender, marital status, education, employment
(See figure 38).

Each of the promotion stages are indicated as follows:


a) For the opening week Facebook and Instagram advertising is directed at UTRGV Students, the
application configuration tool estimates 3.7K-12K visitors will see the advertisement in a day. If a
conversion rate of 5% is used, expect to have at least 185 customers as a result (See figures 31-32).
The estimated investment is $500.
b) For the first 3 months Facebook and Instagram advertising continues and is directed towards the
Edinburg, TX community, an estimated 487-1.5K residents will see the advertisement. If a
conversion rate of 5% is used, expect to have at least 25 customers as a result (See figures 33-34).
The estimated Investment is $1000.

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c) To spark word of mouth and customer impression, a coupon challenge campaign is launched; in
exchange for customer information a coupon giving a free Taco Pirata is issued for the first 333
people. The estimated investment is $1000, assuming that the making of a Taco Pirata costs is $3.
d) Run advertisements in UTRGV newspaper “The Rider” for 4-5 weeks with a half page Ad that
includes coupons. The estimated cost is $1000 (See figure 39).
e) Enter in a relationship with UTRGV Athletics to become a sponsor (See figure 40).
Place: This restaurant location was selected by Taco Palenque management, it is already favorably
located in a commercial area across UTRGV Edinburg, TX.
Based from comments received during the focus group sessions, the location management can be taken a
step up:
a) Waiter service can improve by extending it to visit tables during all customer stay. Currently the
service is only to deliver food.
b) Improve housekeeping and cleanliness at dining area/restrooms, cleanness varies and is not
consistent. An example is from TP Mission, TX where a fire extinguisher is not located in its
assigned area. Additionally, a cleaning mop was located next to the trash can (See figure 30), this
can be assigned a storage area that is out of sight.

Marketing Implementation

Taco Palenque has allocated a budget of four thousand dollars for marketing purposes, this
includes buying coupons to offer to the first batch of customers to raise awareness and further down the
line sponsoring sports events at the nearby university and other community outreach events. The company
knows the brand recognition they have built through their many locations is the backbone of their
customer acquisition, new marketing efforts will not be necessarily educating new clients about their
products but advertising their new location and the benefits of visiting it.

Strategy Timeline May June July

Activity Facebook & Instagram Online Coupon “The Rider” Newspaper


Campaign Challenge Ads

Responsibility Attract UTRGV Generate sales by Printing coupons in the


students, dedicating allowing three hundred university newspaper
roughly $500 for and thirty-three will put the company’s
marketing to this customers to receive a prices within the reach

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customer base, and free taco pirata (rough of more students, a
$1000 dedicated cost $3 each) equaling half-page ad for 4-5
towards marketing around $1000 for the weeks requires a $1000
directed at Edinburg coupon campaign investment.
residents.

Financial Projections

This financial projection represents sales growth at the new Taco Palenque location in Edinburg
from 2019 until the year 2024, growing at a rate of between twenty to thirty thousand yearly, this
conservative estimate also includes a variety of factors which directly affect the expenses of the company.
Expenses are to include several marketing operations such as social media challenges, school
partnerships, and newspaper articles, growing on a scale comparable to the growth of their sales revenue
during this five-year period. The profits of the new location continued to grow finally surpassing the
hundred thousand mark coming into year 2023, a profitable venture which will pay for itself sooner rather
than later.

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Evaluation and Control

Efforts of the marketing plan will be evaluated on a month-by-month basis according to


marketing activities and community outreach planned for that particular month. In the first month when
coupons are distributed, coupons received at the cash register must be counted to track how many of the
distributed coupons were spent by customers eating at the restaurant. The second month will bring the
social media campaign which will allow for easy tracking as sites like Facebook and Instagram allow you
to see how your marketing campaign is generating clicks and receiving attention, simplifying the
evaluation process for this part of the marketing plan. Lastly, in the third month, the sports game
sponsorship program at UTRGV will allow Taco Palenque access to a new customer base, tracking
referrals from events like this can be done via sign-in sheet or questionnaire on their receipts, thus
allowing the company to gauge the effectiveness of sponsorships within their marketing budget.

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References

Aaker, J. L. (1997). Dimensions of brand personality. Journal of Marketing Research, 347-356.

Oscar Ramos Chacon. (Feb 27, 2019). Focus group 1 [Video file]. Retrieved from
https://www.youtube.com/watch?v=ZNjmi7Um9yY&t=2699s

Oscar Ramos Chacon. (April 4, 2019). Focus group 2 [Video file]. Retrieved from
https://www.youtube.com/watch?v=DjFiP7djhxA&t=2294s

Taco Palenque. (Apr 5, 2019). A Taco Palenque Digital Short - "Game of Tacos" [Video file].
Retrieved from https://www.youtube.com/watch?v=y92iAya4lS0

Taco Palenque. Home. April 28, 2019


https://www.tacopalenque.com/

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Appendices

Figure (1) as of April 13th. 2019. Current TP website. Coining the title with the best fajitas.

Figure (2) as of April 13th. 2019. Current TP Instagram. Same as the website with the best fajitas.

Figure (3) as of April 13th. 2019. Current TP Facebook page. Different message than other platforms.

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Figure (4) as of April 13th. 2019. Current TP YouTube channel, owning the best fajitas title.

Figure (5) as of April 13th. 2019. Google Maps ranks TP very high in the fajitas rating scale.

Figure (6) as of April 13th. 2019. Google Maps ranks TP very high in the tacos rating scale

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Figure (7) as of April 13th. 2019. Restaurant overview on W. University Drive in Edinburg, Texas.

Figure (8) as of April 13th. 2019. 6 current TP locations / Red pin will be the new location.

Figure (9) Percentage of money spend on food daily by University students.

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Figure (10) The food location preference ranking with University students.

Figure (11) More people think what they pay for food is a fair amount.

Figure (12) However, most people are not satisfied with the variety of food at the University.

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Figure (13) Most students prefer to eat Mexican food, American ranking second.

Figure (14) Most students eat off campus every day or twice a week.

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Figure (15) College student rankings about TP’s strengths and weaknesses.

Figure (16) Age range of UTRGV respondents.

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Figure (17) First Focus group, a total of 3 participants. (Link to video under references).

Figure (18) Second Focus group, a total of 7 participants. (Link to video under references).

Figures (19 & 20) TP sponsored a UTRGV MBA event during Spring 2019 by providing food for
graduate students.

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Figure (21) Drive-thru on TP on North 10th street in McAllen at around 6pm on Thursday.

Figure (22) TP worker charging and delivering food.

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Figure (23) Current menu of TP at North 10th street in McAllen.

Figure (24) Traditional TP’s salad and salsa bar

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Figure (25) TP’s standard taco accompanied with tortilla chips and green salsa.

Figure (26) Kids playing at TP’s table video games.

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Figure (27) TV’s acting as indoor billboards.

Figure (28) TP’s restroom design at North 10th street in McAllen

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Figure (29) TP’s Harlingen location with the outdoor table setting.

Figure (30) A missing Fire Extinguisher at the TP’s Mission location.

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Figures (31 and 32, respectively) These are the UTRGV student customer Facebook and Instagram Ad details.

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Figures (33 and 34, respectively) These are the Edinburg comm. customer Facebook and Instagram Ad details

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Figure (35) UTRGV Customer Device Activity Information

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Figure (36) UTRGV Customer Demographics Information

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Figure (37) Edinburg Community Device Activity Information

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Figure (38) Edinburg Customer Demographics Information

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Figure (39) The Rider Newspaper Ad options. We selected (HALF PAGE) for 4-5 weeks with coupons included.

Figure (40) Proposed long-term relationship with UTRGV by becoming a corporate sponsor for a full year.

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The following are open-ended questions asked through our online survey platform. These four
questions bring rich insights for Taco Palenque representatives to analyze and use as needed. These
answers represent the UTRGV student current perspective and position on its respective topic.

Qualitative Question: Are you satisfied with the variety of food at UTRGV?
1. There are a lot of 19. Overpriced 35. Better variety of
options 20. I graduated choices not just chips
2. Good for occasional 21. Not that many options or candy or simply
need. for main entree typical foods
3. No variety 22. UTRGV needs 36. I don’t like the chain
4. The campus lack more healthier food options. restaurants on campus
food places within the 23. Diversity except chick fil a
university. 24. When trying not to 37. There isn't a variety at
5. I get my food from spend, I try not to think all
home too much about what 38. Don’t really use them
6. Lacks variety in choice there is to offer 39. There are no healthy
7. Not a variety of options 25. My campus has a options
and the few options variety of food choices 40. I do not have classes in
that are present are bad to choose from. Edinburgh
8. My campus has 26. A lot of the restaurants 41. Haven’t tried it
multiple options on campus are more 42. there could be more
9. There’s usually a good expensive than I would Italian options (stuff
variety of foods rather want to pay, other than pizza)
available. while not being as 43. It don't smack
10. Having been to larger enjoyable as me eating 44. Yes because they
universities, I am kind somewhere else usually have my
of spoiled by their food 27. There is a variety all favorite foods
choices. Also there is over campus 45. There's not much
no variety of food 28. They have vegan 46. it does not taste good
places on campus options. 47. The variety is good but
11. The choices are good. 29. It's basically just 3 I like to clear my head
12. The restaurants that are different types of food by eating off campus.
here are mostly fast and if you eat them 48. Eating out is overpriced
food. everyday or every other 49. Because eating the
13. Not informed as to day those choices get same gets old
current offerings. old pretty fast 50. There are not enough
14. It’s good variety 30. Wide variety available; healthy options. There
15. Small selection enough to survive are also not good
16. one of the reasons I 31. Chick fil a vegetarian and vegan
bring my own food is 32. I’m satisfied with the options.
because there are not number of restaurants 51. Because there is
enough healthy options 33. Chick fil a, steak and chikifila
in campus shake, subway, and 52. Food is food.
17. I'm easy to please cafe is great for me 53. It’s okay
18. They have good 34. There should be more 54. There's not enough
choices variety variety. I usually just

39
go for a sub-way on 68. There’s not healthy 84. Fast food is not very
campus because it's the choices like subway healthy , and I prefer to
fastest thing that I can 69. There is a type of food cook because I like to
get made. And with for everyone know whats in my
everything else that I 70. There is a variety of food.
could get, I'd have to everything which is 85. They have a good
wait some time in order great. variety of food options
to get my food, which, 71. There is a variety of 86. They have a good
if you're on a tight food that you can variety of food options
school schedule, is not choose from on a daily 87. I just think that there is
fast enough. basis and there is not enough options for
55. I'm not entirely familiar restaurants on campus students. 4-5 options is
with where to obtain that have tastier food too few options, I'll
food on campus but than any other say.
I've heard there aren't restaurant chain. 88. I feel like there should
lots of 72. It has Chick-Fil-A be a variety for
vegan/vegetarian 73. we need more variety everyone. Not everyone
options around campus not likes certain things
56. Not much variety only in the union 89. I like economic food
57. Lack of 74. I hate being on campus 90. I'm satisfied with the
58. I don’t have much to 75. We need more food provided but not
choose from restaurants like canes the prices
59. I can't use my EBT 76. There’s very few 91. We don’t have a
benefits. I'm poor, it diverse options at variety. We basically
would help so much if I Edinburg. The best have the same
could. ones are usually CFA. restaurants that are
60. They manage all the Pizza Hut is still new across the street.
campus options, they right now 92. There is enough variety
also manage food for 77. Because there is a good to choose from on
hundreds of prisons. selection, but I believe campus
61. It’s not a bad variety, there is room for 93. pass
but it could be better. improvement 94. The few times I have
62. To few for large 78. There are plenty done it, I always find at
university options. least one healthy
63. There is no variety 79. It's been years since option. But having
64. Not satisfied I've had any food at my more vegetarian
65. I think it’s too pricey. campus. I will start options would be good
66. There can be a bit more trying it out again soon, 95. Brownsville Campus
variety (Brownsville) though. does not have enough
67. the choices we have 80. Not everyone likes options.
have a small menu that tacos and pizza, Susan. 96. Convenient
we don’t have a lot of 81. There's only Pato tacos 97. Good choices
options to get and chick fill a, not 98. Need more vegetarian
something different really fan of pizza hut options
everyday 82. It's very generic food. 99. Need more variety for
83. Not enough options healthy food.

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100. someone gets tired of 108. I'd rather eat outside 118. Because there is a good
eating the same that in-campus selection, but I believe
101. have different choices 109. We need more there is room for
102. Few choices 110. See above answer. improvement
103. We need more option 111. Don't really eat on 119. Pizza or sandwiches is
with cheaper food. campus not enough of a variety
104. need healthier offerings 112. Good food. 120. There is a good variety
105. I usually only buy 113. by adding other in vending machines
snacks from campus vendors and food that 121. The university cafeteria
vendors normally people would offers large selection of
106. It has a little bit of want to eat. choices and types of
everything, and mostly 114. I have tried the food food.
things that come up and overall, it’s good. 122. many choices
fast. 115. Different from my 123. No need
107. We need more organic cultural diet 124. hardly on campus
fruits and vegetables 116. Not many choices
and no processed sugar available
in beverages. 117. enough options

Qualitative Question: Do you think what you currently pay for food at UTRGV is a fair amount?
1. That’s market value 12. I cook a lot of my food. I around $10-$15. I don’t mind
2. Mostly eat at home, 1 time a think it’s expensive if you eat paying more for quality!
week out in a budget place. out a lot. 25. Franchise restaurants have a
3. I believe is a fair price to 13. I don’t eat out often decent priced system while mom
spend on food 14. Voluntary transaction. and pop over price the food due
4. The average plate is around 15. It’s made for me to them not being as large.
$12 so anything less for the 16. Se spend weekly for Tour 26. Not that expensive
quantity I am getting is tamil members 27. Everything is over priced on
sufficient. 17. I eat a lot campus
5. Food from home is cheaper 18. I mostly eat from home. So 28. Only times I spend more
and healthier that cost reflects any additional than 2 dollars on food is when I
6. I think it’s a fair price snacks I may buy give in to temptation
7. I pay for what I want 19. It's within my means 29. The places I shall buy food
8. When I cook at home I can 20. Phone are on campus or some fast food
lower the the food cost 21. I do not buy on campus restaurants so I believe the
significantly. 22. I eat about 6-7 meals a day amount I pay is fair.
9. Some food is overpriced 23. You're not only paying for 30. They current price for food
compared to what you can cook the ingredients but also all the that I pay completely up to me, I
by yourself. work it's being put into get to decide how much I’m
10. I choose to spend on fast 24. I don’t mind paying for gonna spend that day and it just
food rather than cook my own quality food. For example a happens to be that amount.
meal. cheap burger from McDonald’s 31. Usually free or at a fair
11. Because it is to expensive will be $1, but a good salad price
from a better place would be 32. I cook.
33. It's good food that's quick

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34. Reflects the quality of the and at the store it is also pre some sort of discount because
food packaged ready for me. let’s face it we are all poor!
35. I have a gf therefore have to 56. I’m broke 71. I get plenty for what I pay
feed too heads 57. As a student that needs to for and it tastes good
36. I spend money for one meal pay for 1/3 of the classes out of 72. It depends on the restaurant
usually and eat the rest at home pocket, and not having any other that you go to, but food is
37. Because fast food is usually quick way to have food expensive. Even fast food, it all
that amount available during work breaks or adds up in the end.
38. There should be cheaper school, this is the best option so 73. The amount that I pay is the
options far, which I hope to change quality of food I put into my
39. Because the "healthier" or quick because it is too much organism
organic choices are more costly money spent. 74. I prepare my meals at home
than probably a bag of cookies 58. No because most of the to keep a budget under control,
40. Some of it is overpriced or vegan/vegetarian option are so and eat healthy.
they don’t offer a wide variety much more expensive than meat 75. It’s pretty cheap
of combos which makes options 76. Too pricey
ordering separately more 59. Way to expensive 77. Because its too expensive
expensive 60. Too expensive sometimes and the still add a
41. It used to be cheaper, so 61. They need to make edibles service fee along with tax
let's get those prices back. more affordable 78. Would be paying more if I
42. Because it’s just going to go 62. Because I buy the ready didn’t have a meal plan
up so I’ll appreciate the prices made cold foods and drinks 79. Because I was unsure
we currently have, now from the grocery stores so it's 80. I mainly pay for snacks at
43. I don’t go out to eat fair the vending machines. The
44. Because I am very picky 63. No because the only things company & utrgv both have to
with what I order and I also for that price are extremely make money somehow.
upgrade my orders. processed foods (empty 81. When it comes to the
45. Overpriced calories). Hence this country's quality of food that I consume
46. Some of the food is health is so bad, everyone is on a daily basis, I think I pay a
ridiculously overpriced being overfed but fair amount. There have been a
47. Ya boi boolin on the block undernourished. few instances where the quality
yuuuurrrrrrr 64. Everything is overpriced was not up to par with the price
48. Yes because I tend to order nowadays. That is just what I of the product. I could have
more than I have to spend on one drink. saved more than half paying for
49. Quality of the product 65. Because I can get out of something way more palatable
50. i get a lot of food for a low campus and get it for cheaper and affordable.
price. 66. Why not 82. The prices are higher at
51. The quality of food is 67. Always buy at fast food utrgv than normal places
excellent. restaurants usually the dollar 83. Cause im poor. A WATER
52. I cook at home menu to save money. SHOULDNT BE MORE
53. Because cheaper would be 68. Don’t make enough money EXPENSIVE THAN A COKE,
better for food KAREN.
54. Because it is to expensive 69. sometimes a meal has a 84. I measure the average of a
55. Yes because if I go out to Ridiculous price meal and between 7-9 sounds
eat someone prepares it for me 70. Because we are college fair, plus taxes
students and we should have

42
85. You pay for quality and 97. Food can be cheaper and 117. It is too expensive for the
service when going out to eat. not too expensive serving size.
Not to mention the time saved 98. pass 118. Food is priced too high.
from cleaning up and preparing 99. I meal prep for the week 119. I think it's a little more
the meal. and am able to eat clean and expensive compared to going off
86. Mostly eat at home it's more healthy for the same price as campus
cost effective. buying fast food on the way. 120. The questions are vague.
87. I don't think it is a fair 100. HEB has reasonable I’m not sure if you mean in
amount because is some cases prices. general or eating out? I assumed
you can pay a lot for a little 101. I eat what I need. Meat in general. I don’t usually eat
amount of food. 102. Too expensive out, but my average grocery bill
88. The Time and effort it takes 103. I buy groceries and cook at is approximately 10$ a day.
to prepare and present it home. 121.Reasonable budget for
89. The Time and effort it takes 104. Price for food is too nutritious meals.
to prepare and present it expensive 122.I spend too much on food
90. As students were looking 105.food is over price 123.Not many choices available
for ways of eating cheaper. 106.Prices keep going up for 124.i need it
91. Have you seen the prices on poor quality food 125. Because I was unsure
the vending machines? Too 107. I mostly eat at home 126.I don't eat out often but
pricy... But I'm also starving. 108. I believe I spend a fair when I do its decent quality
92. Because as a business amount on food 127. If I do eat fast food, I
student, considering inflation 109.It's expensive. We are poor typically go to second tier
and the average price of food college students. Minimum restaurants and I'm willing to
and the cost of service, I would wage is too little. pay a little more for better food.
say most of the food that is sold 110. need healthy food 128. t is not a fair amount
has a fair price. 111. It's a reasonable amount because I know I can eat for less
93. I usually go to McDonalds for the food quality. money if I would prepare my
and get a meal that fills me up 112. It ends being a big amount meals at home. I tend to go to
for a very reasonable price of money spent each month. fast food places; I am aware that
94. I have to spend more money 113. I need a higher paying in the long term fast food is
on other things rather than food career for my expensive taste expensive on the toll it inflicts
95. I live on my own so I and lifestyle. on my health.
usually have groceries at home 114.decently priced fast food 129. Eating in is less expensive.
and make food goods 130. Don't eat out as much and
96. I don’t even get full 115.I eat a lot there is always a dollar menu if
sometimes but I’m paying more 116.You get what you pay for. too expensive
than I would somewhere else

Qualitative Question: Which restaurant(s) would you consider your favorite and briefly explain your answer.
1. Taco Palenque 5. Taco palenque 9. El pato
2. Taco Palenque, covers 24hr 6. Taco Palenque because on 10. Zarape best food for price
appetite need, food. their cheap prices. 11. El pato
3. La Taquiza 7. Taco palenque, good meat 12. Taco palenque. Healthy
4. Taco Palenque, practicality 8. N/A options.

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13. Taco palenque- good 32. Taco palenque, because i 55. Taqueria la mexicana. Good
variety know what to get, in taco bell, service
14. Taco Palenque. Because you either love something, or 56. Taco Bell would be my
have a variety of salsas. But hate it favorite just because I like the
food is salty. Must reduce salt. 33. Taco Palenque because of foods sold there.
15. Taquiza the taco piratas / Doña Tota 57. Taco palenque food is
16. La taquilla. Because is cause of gorditas and the sides decent
family owned they offer / El Pato for cheap 58. Taco Bell. It’s cheap and
17. Palenque, its delicious breakfast tacos good
18. Taco palenque 34. Taqueria El zarape because 59. Taco Palenque. Awesome
19. El Zárape, familiar with of it's great tacos food and great service.
them 35. Gorditas doña tota, best 60. Taco Palenque; Good
20. Taco P food quality of food for the price you
21. Taco Bell for their low fat 36. Taqueria la mexicana is my pay
options favorite because they have good 61. La taquiza, not too good but
22. Taco Palenque , cause of potatoes. are the best tacos around here
the salsa bar 37. Taco palenque it’s really 62. Gorditas doña tota! My all
23. I honestly hate all the other good time favorite
places except gorditas doña tota. 38. Canes gang bih 63. El Pato, because it’s the
They’re fire!!! And the food is 39. El Pato since it’s close to only one I’ve really tried
the closest to home cooking my house and my family loves it 64. Taqueria la Mexicana is
compared to the other 40. Taqueria el zarape, very very good quality Mexican food.
restaurants. You can’t beat them affordable Not bad for the price.
in that line up. 41. la taquiza food is always 65. taco palenque
24. Taco Palenque because it fresh 66. Taqueria la Mexicana
cheap and simple and very 42. Taco Bell 67. El Pato
effective 43. NA 68. Taco palenque
25. Taco Palenque because they 44. Taco palenque 69. Gorditas Dona Totas
have free chips 45. El pato because of the 70. Taco Palenque
26. Taco Palenque. Because I freshness and I am not a Taco P. 71. I have no favorites since
like their meat. Bandwagon Taco Bell is not too god and
27. Taqueria la Mexicana 46. Taquiza-tacos are life haven’t tried the others
because there food is very 47. Anything with Tacos. It's 72. Taco Palenque , quality is
delicious. my favorite. always good
28. Taco palenque is my 48. Gorditas Doña Tota. I love 73. La mexicana has more
favorite out of the options since gorditas, it's one of my favorite options than taquiza.
you can get more bang out of foods to eat. 74. None
your buck as you have more 49. Taco Palenque, they have 75. La taquiza
people with party platters, if not great food for good prices 76. Taco Palenque and Doña
their food i still better that most 50. Taco apalanque love the Tota, just the best
while being a little cheaper fajita 77. El pato due to it being
29. Taco palenque, great flavor 51. None cheaper and actually fresher
30. la Mexicana because it's 52. Taco palenque than most places.
quality food 53. El Pato because it's cheaper 78. They all good
31. Taco Palenque and more delicious 79. None.
54. La mexicana- best meat

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80. El Pato - the breakfast tacos 87. Taco Palenque and La 100.Taco Palenque, everything
are good. taquiza is good there. Great taste.
81. Taco palenque good options 88. la taquiza 101.Taco bell, cheap dollar
82. Taco palenque good options 89. Gorditas Doña Tota because burritos
83. Taco palenque. I'm too it reminds me of my childhood. 102.taco palenque
broke for that, but the food is so 90. Taco Bell - Cheap and easy 103.Taco Palenque. It is good
amazing. 91. Taco Palenque, decent food 104.Taco P. The others ones do
84. Taqueria La Mexicana 92. Taco Palenque (flavor and not like that much
because it's actually the food is variety) 105.Taco Palenque - I love
actually better than the other 93. taco palenque Mexican Food!
"fake" mexican restaurants 94. dona tota 106.La Taquiza, food is
85. La taquiza cuz I can tell it’s 95. Taco Palenque, good delicious, you don't have to wait
homemade and the lemonade is variety of food with a good long, and its not that expensive.
the bomb. I always get full number of tasty salsas. 107.Taqueria la Mexicana is my
going here. 96. Taco Bell favorite because the food is
86. Taco Palenque is the one I 97. Taco Palenque good, the price is fair and the
feel most comfortable with. I am 98. like taco p, great setting service is impeccable.
already used to going there even comfortable 108.neither
though it might be a little bit 99. Taco Bell. I'm a very picky 109.Taco Palenque
pricey. eater, and Taco Bell has nacho 110.Gorditas Dona Tota
fries.

Qualitative Question: Is there anything else that you would like to share about Taco Palenque?
1. Quality of food is consistently good. Other 16. They should have stayed in the Student
places vary in salt, condiments,service. Union. El Pato is worse
2. Care more about growth than service 17. It’s alright
3. It’s really good 18. It’s Goooooood
4. I love salsas 19. They need to add weritas to the TP in the
5. I only go if I am with a group of people mall, smh
going. I will not go for my own choice 20. It's so good!
6. More chips! 21. I like it, but it will never be my first choice.
7. The flour tortilla tacos are good and the Not for tacos, not for fast food
fideo is good 22. Long wait for food.
8. It hits the spot when you’re on the run or 23. best food after partying all night
need something quick. 24. I like that they are likely to give you extra
9. It's really good but I wish it was cheaper; I tortillas free of charge.
can't wait for the one to open across from 25. Love it, a little pricey
campus 26. I really think it is a great restaurant that
10. can be very expensive successfully targets all ages and genders.
11. It go hard aye God bless your business. Take care.
12. i get food poisoning 27. Food
13. Yes, Don’t be a Taco Palenque Bandwagon 28. It's basically a legend for people outside the
it’s annoying and you look pathetic. RGV.
14. Ew :say in jimmy fallon voice: 29. Can't go wrong with Taco P. Reliable.
15. Awesome food and service 30. Great food 24/7

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