I'd try a differnt food, something high in omega 3 fish oil, you can also get an omega 3 suppliment to put on the food (I use and like Wild Alaskan Salmon Oil for my beagle who gets dandruff and dry skin from a thyroid condition). I couldn't find the ingredient list online for Nutro's puppy food, but I'm not a fan of nutro in general. Check out:
www.dogfoodadvisor.com/ and
www.dogfoodanalysis.com/
You definatly shouldn't have a problem bathing him once every two weeks or even once a week, that's what most of us do, but if his skin is really dry, you do need something really moisturizing and definatly a good conditioner. Make sure you're rinsing very well also.
If a better food and good grooming products don't work, talk to your vet