DORITOS: THE DIP DESPERADO STRATEGY (in Encyclopedia of Major Marketing

Strategies, Golson Media, 2013, pp. 121-124

http://www.gale.cengage.com/servlet/ItemDetailServlet?region=9&imprint=00
0&titleCode=GBSE1&cf=e&type=4&id=15916259)

George Rossolatos, PhD Researcher, University of Kassel, Germany

Company Name: PepsiCo

Product Name: Doritos
Website: http://www.doritos.co.uk/
Country Strategy Deployed In: United Kingdom
Strategy Name: “The Dip Desperado”
Marketing Tactic: Integrated Campaign
Sector Name: Food
Strategy Date: 2011

Situation Analysis

 Fierce competition in the impulse-channel called for differentiated

promotional mechanisms, with view to maintaining top-of-mind
awareness and preferential choice for Doritos.
 There was a considerable opportunity for increasing combined
Doritos chips/dip sales.
 Constant need for enhancing bonding ties with the core target-
group.
 Communicative clutter necessitated integration along the path-to-
purchase route, while mandating cross-media synergies, coupled with
stand-out creative ideas.

The global food and beverage industry is a trillion dollar one.

PepsiCo was founded in 1965 through the merger of Pepsi-Cola and

Frito-Lay, and today is a world leader in convenient snacks, foods, and
beverages, with revenues of $65 billion. In line with the category’s
highly innovation-driven character, PepsiCo’s organic growth targets are
geared towards constant product innovation, with view to yielding
incremental sales and market share, while increasing the market’s
penetration, purchase-frequency, consumption-occasions and average volume
per purchase act and consumption occasion. Tom Greco, president of
PepsiCo's Frito Lay North America unit, said the company’s “2012
innovation pipeline is absolutely loaded and very incremental”. The
increasing importance of the snacks category in PepsiCo’s long-term
portfolio strategy is evinced in the company’s long-term growth plan,
according to which snacks are poised to overtake beverages, while
accounting for 55% of overall revenues by 2021.
The UK savory snack foods market rose by 26% between 2007 and 2011
(Keynote Snack Foods Market Report Plus 2012). The UK crisps, savory
snacks and snack nuts market is currently worth £2,466 million (Snack,
Nut and Crisp Manufacturers’ Association Report, Aug 2 2012). Potato
crisps in the UK market are still the most popular product in the snack
foods market and accounted for a 48.3% share in 2011 (Keynote Report
2012). Innovation and flavors-proliferation constitute key growth drivers
in the fast-paced snacks category.
The key brand players in the UK crisps market are Walkers and
Walkers Sunbites (PepsiCo), Doritos (PepsiCo), Red Sky (PepsiCo),
Pringles (Procter & Gamble), Kettel (Diamond Foods), McCoy’s (United
Biscuits), Seabrook (Seabrook), Tyrrells (Tyrrells) The Dormen Crisps
(The Dormen Food Company). Walkers Crisps is the UK's best-selling
branded snack, with retail sales grossing at more than 1 billion per year
for the entire portfolio, based on Nielsen’s annual ScanTrack data for
2011.
Doritos is among the top 10 brands in the U.K. Retail Food market,
and cherishes high levels of awareness and loyalty. Currently, Doritos'
(a brand-name that stems from dorados, 'little bits of gold' in Spanish)
major competitor in the flavored chip category is Pringles.
According to Adriana Riberio (Marketing Director, Sharing, PepsiCo
UK), Doritos’ sales (in value) were growing at a rate of +19.1% year-on-
year, adding £21m incremental sales to the category over the past year
(Nielsen Scantrack MAT to 23.04.2011). Furthermore, Doritos dips have
been leading the ambient dips segment.
The key opportunity for Doritos in the U.K. market in 2011 was to
maximize combined cross-category sales between Doritos chips and Doritos
dips. Whereas in the U.S. market combined sales between the two
categories took place in 1 out of every 2 purchase acts, in the U.K.
market only 1 out of 10 purchases were combined. Thus, there was ample
scope for generating incremental revenues by capitalizing on the benefits
of combined chips/dips purchases.

Target Market

 Doritos’ core demographic group is Males/Females 16-24 yrs. old.

 In psychographic terms, Doritos’ core target is the Millennials,
who are not just looking for brands they can buy, but for brands
they can buy into, that is aspirational brands with which they may
identify.
 Doritos’ consumers live active and adventurous lifestyles.

According to Mintel-Oxygen (2011), the UK Salty Snacks and Nuts

market consists of the following segments: Budgeters (23%), Health-
conscious (20%), Enthusiasts (19%), Indulgents (12%), Undriven (26%).
In terms of the category’s usage and attitudes landscape, snacks
are no longer regarded as hunger-stoppers between meals. “They also
accompany, even replace, meals, and are nibbled on during home
activities, whether it be watching television or entertaining. In
response, manufacturers have produced an array of packaging sizes to
accommodate the various occasions when snacks are consumed. 2011 has seen
a surge in both sharing- and multi-packs, in addition to growth in
premium snacks due to the emerging trend” (Keynote Snack Foods Market
Report Plus 2012). Doritos has been pioneering in occasion-specific new
product development, with the launch of variants, such as Doritos Late
Night, which was backed by a comprehensive 360 plan.
 Hard-hit by the recession, snacks consumers have been spending
longer hours at home, while seeking added benefits from the category’s
consumption, such as indulgence.
Premiumization, value-for-money and health & wellness are key
consumption drivers in the Snacks market. According to John Compton,
CEO of PepsiCo's food operations in the Americas, the company is
focusing on both premium and value segments.
Increasing public awareness of health-related issues has been
reflected in NPD (new product development) investment behind low-sugar,
low-fat product variants’ development in the overall snacks category,
coupled with attempts at growing the premium value segment. In the face
of consumers becoming more price-sensitive, but at the same time more
value-seeking, multipacks’ sales have been on the increase, at the
expense of single-packs.
Relevant consumer research suggests that in recent years there has
been a dramatic change in the in-home leisure habits of teenagers and
young adults. The brand’s core target-audience are known to be online
gaming enthusiasts. They spend 60% less time watching TV than their
parents. As a result, TV viewing has been declining among members of this
demographic group, while being replaced by alternative entertainment
outlets. A typical Friday or Saturday night-in consists of a small group
of friends texting each other, playing computer-games and interacting on
social networking sites. Riberio commented that "social gaming has really
captured the imagination of UK gamers, both male and female, and is in
strong growth (+66%)”.

Marketing Strategy

 Increase Doritos’ chips/dip-sauce combined sales.

 Drive brand engagement and enhanced interaction with the brand’s
core values through advertainment / edutainment.
 Increase retailers’ goodwill and trust in Doritos’ product range.

The strategic marketing goals that undergirded the Dip Desperado

campaign reflect PepsiCo’s overall commitment in safeguarding leadership
in the macrosnacks category. Macrosnacks includes biscuits,
confectionery, bars, salty snacks, nuts and other savory snacks. As John
Compton, CEO of PepsiCo's food operations in the Americas commented at
the Consumer Analyst Group New York conference (23 February 2012), "The
macro snack market is roughly a $400bn market and is consistently growing
about 6% a year […] PepsiCo is the undisputed leader in macro snacks".
In line with Doritos’ positioning statement and core mission, which
promises “brand tortilla chips that deliver a powerful crunch that
unlocks the bold and unique flavors you crave. The DORITOS® brand is
constantly creating new ways to give you immersive and memorable
experiences, to put you in control of the things you love most”, the
marketing goal behind the Dip Desperado campaign was to deliver a multi-
channel immersive experience into the brand’s life-world. Doritos’ brand
personality is daring, irreverent, and uninhibited.
 At the same time, according to Riberio, this promotion aimed to
boost sales during the peak summer period, while leveraging the growing
dipping trend.
The explicit demand placed on the trade for creating coherent
blocks (chips and dips), enhanced the cross-product category on-shelf
impact, while consolidating the impression of a complete product bundle.

Marketing Tactics

 The integrated campaign comprised the following communication

vehicles: TV, consumer PR and interactive media, which included
Facebook, gaming sites and mobile.
 The marcomms plan across the path-to-purchase steps culminated in
in-store promotions, which featured interactive consumer games.
 The Dip Desperado promotion was communicated on-pack with a vibrant
and impactful design, which featured information about a bespoke
contest.

“Many manufacturers have been maximising sales through innovative

competitions, whereby consumers are invited to name, vote or design their
own packages and flavors” (Keynote Snack Foods Market Report Plus 2012).
Interaction lies at the heart of Doritos’ marketing communications.
Participatory communication, co-creation and brand engagement are not
just buzzwords for this iconic brand, but integral elements of its core
promise. A remarkable instance of application of such disruptive co-
creative communicative tactics by Doritos was the 2006 “Crash the Super
Bowl” concept, a contest that invited consumers to create and upload
their own Doritos ads. The winners’ ads, who were elected by means of
online voting, were aired during the Super Bowl event, while a prize of
$25,000 was awarded to each finalist.
The Dip Desperado campaign that was rolled-out during summer 2011,
revolves around the feats and trials of the heroic figure of Esteban
Ortega. Born in 1945 in Santa Catarina, Mexico, Esteban Ortega discovered
at the age of 23 that he possessed a remarkable talent, viz. the ability
to flick a tortilla chip over great distances, with an accuracy that
could only match that of a trained hitman. The TV commercial dramatizes
Esteban’s legendary ability by focusing on scenes where he manages to hit
long-distance flying objects, such as an eagle and a bottle thrown in the
air. The perfect match between chips and sauce is projected in close-ups
that portray straight hits between a flicked chip and a Doritos’ dip jar.
Alas, Esteban’s extraordinary ability that brought him much coveted fame,
wealth and a marriage to the girl of his dreams, withered when he lost in
a competition to his most ardent opponent. Deserted and desolated from
the villagers’ community who once idolized him, he reminisces over his
glorious past in desperation. However, by an unexpected twist of fate, he
is summoned back to the village, to reclaim his laurels and restore his
honor. Upon his return and amidst a cheering crowd, he stands up
heroically against his dethroner. The spaghetti-western inspired scene of
confrontation culminates in Esteban’s defeat of his opponent and the
restoration of his winner status. The commercial ends with the
promotional message “Play to win one of 4,000 daily prizes” and a frame,
featuring the gaming platforms (Facebook app, Android app and ipod app).
The Dip Desperado social media game that was developed by ACNE
Production, urged participants to ride on Esteban’s legendary abilities,
while transposing the flicking game from a physical to a virtual
environment. In the beginning of the game, players had to flick a Doritos
chip and let it fly through obstacles, like insects and roadblocks. The
aim of the game was to collect as many diamonds as possible, while
revealing secret bonuses.
By capitalizing on the viral potential of the application and its
dissemination through word-of-mouth, Doritos staged effectively an
engaging interactive experience, through which the mythic elements of the
commercial’s plot came to life. Players had the ability to share their
scores with friends on Facebook and were promised a prize for topping the
Dip Desperado Facebook leader board. Markus Forsberg, ACNE Production’s
Creative Director, described the game’s rationale as “a competitive game,
where skill means a higher score."
The Doritos variants that were included in the on-pack promo
mechanism, featured Lightly Salted, Hint of Lime, Tangy Cheese, Fajita,
Cool Original and Chilli Heat Wave. 250g packs were used in the grocery
channel, whereas 110g packs in the impulse channel. The promotion was
also available in 175g chips packs and 300g dip packs.
According to Riberio, the £770,000 worth of prizes in the promotion
period that spanned ten weeks as of June 25th 2011, were aimed at
maximizing key entertainment occasions, such as BBQs, festivals and big
nights-in throughout the summer season. Consumers had the chance to win
one of 1,000 prizes every day, provided by Doritos in conjunction with
its Dip Desperado partners EA Store, Universal Resort Orlando, Virgin
Experience Days, Sky Games, LoveFilm and Truprint. Prizes included EA
Store games and games console prizes, Virgin Experience Days adventures
and trips to Universal Resort Orlando. On a daily basis, Doritos gave
away 1000 prizes, such as an exciting holiday to Universal Orlando Resort
in Florida, Silverstone driving experience days, cinema tickets, the
latest Xbox, PlayStation or Nintendo Wii games from the EA Store.

Outcome

 The campaign resulted in a phenomenal incremental sales uplift.

 In addition, the campaign resonated positively with Doritos’ core
target-group members, resulting in increased loyalty.
 The Dip Desperado campaign received multiple awards, including a
CLIO award, an International Food and Beverage Creative Excellence
Award and a Campaign BIG award.

As a direct result of the campaign, the brand experienced a 25%

uplift in sales of dips, which was the biggest in Doritos’ history.
Riberio, reporting on the outstanding performance of the campaign, said
“the Dip Desperado game tapped into a craze amongst our target audience
who are captivated by social gaming, resulting in 1.6m plays of the game,
an increase in dual purchase of Doritos chips and dips and a 10% increase
in sales of single serve Doritos".
 According to the Scottish Grocer (based on Nielsen ScanTrack data),
in 2011 “Doritos became the top sharing brand in the impulse channel,
significantly outperforming the category and growing at double the rate
of its nearest competitor”.
Remaining true to its values and committed to its mission,
Doritos continued the successful course inaugurated by Esteban,
by launching in summer 2012 the Mariachi Doritos integrated
campaign.

Sidebar

Doritos On Tour

As a sequel to the successful Dip Desperado campaign, The “For

Fun…Add A Little Mexican” campaign that was launched in 2012 brought
Doritos’ brand values into consumers’ living-rooms (literally). In line
with the participatory communication strategy that has been followed
consistently by the brand, the Mariachi Doritos band (starring in the
“For Fun…Add A Little Mexican” commercial) performed live in various
house parties during 2012. The band’s performances featured cover
versions of popular tunes, such as ‘Stay Another Day’, ‘Don’t you want me
baby’ and ‘Need you tonight’. The band also appeared in virtual live
concerts. The AMV BBDO London team followed the band on tour and recorded
their performances, which were uploaded on youtube.

Further Reading

“Abbott Mead Vickers BBDO London Dip Desperado campaign”. Available from
http://www.creativebrief.com/agency/work/20882/1576/?close_cookie=1.
Accessed 30 September 2012.

Bharat Book Bureau (2012). Snack Foods Market Report Plus 2012. Available
from

http://www.bharatbook.com/food-market-research-reports/snack-foods-
market-report-plus-2012.html

Accessed 23 September 2012.

Buckley, Ben. “Snack market survival demands innovation, says Intersnack

UK MD”, 7 July 2011. Available from

http://www.foodmanufacture.co.uk/Business-News/Snack-market-survival-
demands-innovation-says-Intersnack-UK-md

Accessed 30 September 2012.

Burstein, David D. “5 Lessons In Participatory Marketing From Doritos’
“Crash The Super Bowl” And CMO Ann Mukherjee”. Fastcocreate 2012.
Available from
http://www.fastcocreate.com/1679605/5-lessons-in-participatory-marketing-
from-doritos-crash-the-super-bowl-and-cmo-ann-mukherjee
Accessed 30 September 2012.

“Crisps, Salty Snacks and Nuts UK Market Report”, Mintel-Oxygen, January

2012. Available from

http://oxygen.mintel.com/display/590010/

Accessed 30 September 2012.

“Doritos case-study”. Available from

http://www.americasgreatestbrands.com/volume6/brand-case-
studies.php?key=Doritos&label=Doritos&url=www.fritolay.com
Accessed 29 September 2012.

“Doritos Dip Desperado”. Campaign 8 July 2011.

“Doritos Dip Desperado”, 7 July 2011. Available from

http://theinspirationroom.com/daily/2011/doritos-dip-desperado
Accessed 25 September 2012.
“Doritos' new "Desperado" social media game set to increase chip and dip
sales”, 16 June 2011. Available from
http://www.PepsiCo.co.uk/our-company/trade-information/trade-media-
centre/trade-news/doritos-desperado-dip

Accessed 16 September 2012.

“Doritos reach No1 sharing brand in Impulse”. Available from

http://www.youtube.com/watch?v=lzBFirLWF0E Accessed 30 September
2012.

“Doritos drives to number 1 spot” Scottish Grocer January 2012. Available

from
http://content.yudu.com/Library/A1vd8l/ScottishGrocerJan201/resources/20.
htm
Accessed 3 October 2012.

“Doritos becomes the no. 1 sharing brand in impulse”, 29 November 2011.

Available from http://www.sweetsandsnackseurope.com/tag/PepsiCo/
Accessed 30 September 2012.

“Doritos Facebook homepage”. Available from

http://www.facebook.com/doritos?sk=app_156810961053049
Accessed 24 September 2012.

“Facebook Analytics”. Available from

http://happytreeflash.com/file_b6747a018ba6f232dc61cb8ab9ce13a5.html

Accessed 2 September 2012.

“Doritos uses co-creation to engage with core audience”, Marketing Week

24 June 2010. Available from

http://www.marketingweek.co.uk/doritos-uses-co-creation-to-engage-with-
core-audience/3015011.article

Accessed 5 October 2012.

“PepsiCo corporate profile”. Available from

http://www.PepsiCo.com/investors/corporate-profile.html

Accessed 30 September 2012.

“PepsiCo Annual Report 2011”. Available from

http://www.PepsiCo.com/annual11/downloads/pep_ar11_2011_annual_report.pdf

Accessed 16 September 2012.

Russell, Michelle. “PepsiCo keeps eye firmly on snacks growth”, Just-

Food, 24 February 2012. Available from
http://www.just-food.com/news/PepsiCo-keeps-eye-firmly-on-snacks-
growth_id118377.aspx

Accessed 8 September 2012.

“Snack Foods Market Report Plus 2012”, Keynote Report 2012. Available
from
http://www.keynote.co.uk/market-intelligence/view/product/10534/snack-
foods

Accessed 15 September 2012.

“The Top-selling Food Brands in 2011 by UK grocery sales (excluding

confectionery)”, Adbrands 2011. Available from

http://www.adbrands.net/sectors/sector_food.htm

Accessed 30 September 2012.

“UK Food & Drink Market Guide 2011”. Available from
http://www.osec.ch/de/filefield-
private/files/355/field_blog_public_files/7883

Accessed 30 September 2012.