Pivot tables usually get set up like a "cross tab" report where you have multiple columns and rows of data with subtotals located at the intersections of these rows and columns. If that's what you want, a simple summary report with sub summary parts won't produce that result.
If you want a report like this:
San Jose 30
CA total: 100
Las Vegas 23
Carson City 12
Nv Total: 35
Grand Total: 135
That can be done with a summary report and what you describe is the correct approach, just make sure you have corrrectly sorted your records or the sub summary report parts will not be visible.