28 the Original Toasted Corn Flavor on Store Shelves from Coast to Coast. In
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ag_028-029.qxp 8/23/07 11:04 AM Page 2 THE MARKET the original Toasted Corn flavor on The flavored macro-snack category store shelves from coast to coast. In in the United States is a $10.9 bil- those early days, DORITOS tortilla lion business. Within this universe, chips were positioned as a “unique the world of salty snacks represents Latin snack,” a heritage reflected in the $7.8 billion in sales. The flavored tortilla origin of the name, dorados, the Spanish chip category accounts for approximately word for little bits of gold. 10.2 percent of that consumption, roughly The DORITOS brand continued to $793 million in retail sales in 2006 (source: evolve with the introduction of Taco flavor Information Resources Inc. GDMx). in 1969. This ongoing emphasis on product The DORITOS® brand provides a refinement and innovation led to the launch snacking alternative to the potato chip and of the Nacho Cheese flavor in 1972. After unflavored tortilla chip categories, which a relatively slow start, sales of the flavor sister Frito-Lay products LAY’S® and skyrocketed with the support of a full-scale TOSTITOS® brands dominate. Today marketing campaign. Though the flavor has DORITOS brand remains the only national been tweaked and improved many times player in the flavored tortilla chip category. over the years, it continues to be the top As the market share leader, as DORITOS seller in the DORITOS flavor lineup. goes, so goes the category. In the decades since, many other new flavors have been developed. One of the ACHIEVEMENTS most popular, Cool Ranch®, made its debut DORITOS is the second-largest brand in in 1986. Subsequent flavors have come the Frito-Lay portfolio — second only to its and gone: Guacamole, Black Pepper Jack, sister product LAY’S potato chips. In 2006, Jumpin’ Jack Flash, Pizza Cravers, Smokey DORITOS maintained its position as the Red BBQ, and Baja Picante are now part of third-largest food brand in America. Frito- DORITOS lore. Lay’s constant innovation, unique advertis- With fourteen flavors currently in pro- ing and positioning, and world-class sales duction and many others in development, and distribution system have enabled the Frito-Lay continues its commitment to DORITOS brand to grow steadily since product innovation and cutting-edge its 1964 introduction. The DORITOS marketing in order to strengthen the flagship flavor, Nacho Cheese, is the DORITOS brand for years to come. No. 1–selling item within Frito-Lay year after year. THE PRODUCT Frito-Lay introduced flavored DORITOS chips are made from yellow tortilla chips to Americans with its HISTORY corn and are renowned for their iconic triangular DORITOS brand. DORITOS continually adapts In the early 1960s, Frito-Lay was already manu- shape, satisfying crunch, and bold flavors. The to stay true to its young, ever-changing consumer facturing the LAY’S, RUFFLES®, and FRITOS® product is held to strict quality standards, includ- target and continually offers bold new flavors that brands, but the company sought to expand its ing the size and thickness of the chip, the round- give consumers an intense taste experience. product offerings. That opportunity presented ness of the corners, and the pattern of air bubble In America, DORITOS brand is a household itself when Alex Foods introduced DORITOS tor- “blisters” and “toast points” on the chip. name. Within the last year alone, almost half tilla chips on the West Coast in 1964. Frito-Lay Metallized packaging, introduced in early of all households ate DORITOS chips. purchased the fledgling brand, and by 1966 had 2000 to keep the chips tasting fresh longer, also 28 ag_028-029.qxp 8/9/07 1:10 PM Page 3 invited consumers to “Crash the Super Bowl.” More than 1,000 consumer-created commercials were submitted during the course of the promo- tion. The winning commercial, “Live the Flavor,” cost only $12 to produce, and was consistently rated as a viewer favorite in post–Super Bowl advertising polls (No. 4 in the post–Super Bowl USA Today poll and No. 1 in the post–Super Bowl Youtube.com poll). Also in 2007, DORITOS asked consumers to “Fight for the Flavor,” allowing them to decide which new flavor, Wild White Nacho™ or Smokin’ Cheddar BBQ, would become a perma- nent addition to the flavor lineup. The follow-up promotion, “The X-13D Flavor Experiment,” challenged consumers to “get it, taste it and name it.” The X-13D “mystery flavor” invited them to participate in the product development by telling the DORITOS brand what it should be called. These hands-on promotions and the signifi- cant in-store presence that accompanies them gives DORITOS chips a unique opportunity to connect on an individual level with consumers and create loyalty by giving consumers a voice in the brand’s identity. SnackStrongProduction.com furthers this connection by providing original snack-friendly entertainment online — effectively contributes to the quality of the product. This pack- and subtle sweetness) and Jalapeño Cheddar (a taking snacking to a higher level. aging was further enhanced in 2006 with a com- zesty blend of jalapeno spice and sharp cheddar). plete redesign. The new look features a cleaner, DORITOS brand’s latest innovation DORITOS more modern layout with intense colors and a pro- COLLISIONS™ launches in the fall of 2007. gressive font. The new “sound chip” logo gives the DORITOS COLLISIONS have two separate, DORITOS brand a strong icon, its shape not only bold-flavored chips in one bag and allow con- representative of the chips themselves but the sumers to control their ultimate flavor combi- crunching sound made when they’re eaten. nation with Zesty Taco & Chipotle Ranch DORITOS chips are currently available in flavored chips or Hot Wings & Blue Cheese fla- several flavors nationwide: Nacho vored chips. The year 2007 Cheese, Cool Ranch, Spicy Nacho, also saw the limited-edition Blazin’ Buffalo & Ranch™, Fiery release of an experimental Habanero™, and Smokin’ Cheddar test flavor mysteriously known BBQ. Regionally, the variety- as only “X-13D.” BRAND VALUES seeking consumer can also DORITOS consumers lead an active, adventur- find Toasted Corn, Salsa PROMOTION ous, multisensory lifestyle, and DORITOS brand Verde, and Taco flavors. Since the first campaign, engages them on this level. The rally cry of DORITOS chips are “the new beat in things to “Snack Strong™” reminds these passionate con- packed in various sizes, eat,” brand-building advertis- sumers that only DORITOS chips can fulfill their from the one-ounce kids ing has been a core element urge for a snack with a loud crunch, iconic shape, lunch bag to the super- of Frito-Lay’s strategy for and intense flavor. size 25-ounce bag to con- the DORITOS brand. Several venient 100-calorie packs. campaigns over the years have featured recognizable THINGS YOU DIDN’T KNOW ABOUT RECENT DEVELOPMENTS faces, beginning with Avery DORITOS CHIPS Many of the current fla- Schreiber in the early 1970s vors available have been claiming that “one good recent additions to the crunch deserves another.” ❍ Fifteen million pounds of cheese and more lineup. In 2005, spicy Advertising focus shifted to a than 1 billion pounds of corn are used to food lovers rejoiced with younger audience with the produce a year’s worth of DORITOS chips. the introduction of Fiery campaign starring Jay Leno in ❍ DORITOS brand uses real cheese, mostly Habanero, a flaming-hot 1986. In 1993, Chevy Chase from Minnesota and Wisconsin. Cheddar, flavor featuring one of the rescued a DORITOS bag from Romano, and Parmesan are the cheeses in world’s spiciest peppers. the path of a steamroller, and DORITOS tortilla chips. Blazin’ Buffalo & Ranch former Miss USA Ali Landry ❍ Twenty-two U.S. plants located throughout was added in 2006, with wowed Super Bowl audiences the country make all the DORITOS chips. full-bodied ranch flavor with her acrobatics in 1998. ❍ Three ears of corn go into every bag of highlighted by a spicy More recently, the DORI- DORITOS chips. essence and tangy under- TOS brand has empowered the tones. The year also saw consumer through its promo- ❍ All the cheese and dairy products used to the addition of two limited- tions. Instead of running an make DORITOS in the United States come edition flavors: Spicy Sweet agency-produced spot during from the equivalent of 10,000 cows. Chili (a combination of smoky heat Super Bowl XLI, DORITOS 29.