Who Are They?
Nutella Cereal will target children from the ages of 8 to 11 years as users of the cereal by attracting their parents. Although the Nutella cereal is for children, it will be important to focus on their parents as they ultimately make the final purchasing decision. Geographically, the target market will be living in urban areas where they will be exposed to the marketing campaigns and ads in public transit, on billboards and magazines, as well as in store. In terms of price, the Nutella Cereal will cost around the average price of a box of cereal. (Did we figure out an exact price?) Although they will not be price competitive, Nutella Cereal will have an average price which will attract regular cereal buyers. Regular cereal buyers will be able to switch to Nutella Cereal without taking price into much account since the price will be similar to other boxes of cereal. These buyers will be able to decide on purchasing the cereal using other factors such as the taste and quality of the cereal to decide. What Do They Want and Why?
The parents in this market segment look for specific factors while making their decision to buy their children ready-to-eat breakfast cereal. Market research shows that Canadian consumers seek convenience, health and wellness, pleasure and value from their food choices. The Nutella Cereal provides convenience for parents since it can easily be made by children for breakfast. Furthermore, the Nutella Cereal strives to provide children with enough energy for the day. This adds value for parents. At the same time, with an average selling price, consumers will be further satisfied. The design of the cereal box will attract children, who will then convince their parents that not only does the box look good, but they will be quite sure that the cereal is good too. A study has found that children believe cereal taste good when it comes out of a box that they enjoy looking at. By using the cereal box tactic, children will be fond of the Nutella Cereal and will encourage their parents to buy the product.

When Do They Buy It and Use It?
The purchasing decision for Nutella Cereal is triggered by both parent and children. Mothers do the majority of food purchasing and are often busy with cleaning and taking care of the family. As a result, the demand for easy-to-eat food has increased. Nutella Cereal satisfies this need. Furthermore, with more and more women joining the workforce, it is hard to have three complete meals a day. Therefore, a recent trend shows that rather than eating three meals a day, people eat several smaller meals throughout the day. Once again, Nutella Cereal will fit this criterion since it is something small that can be eaten throughout the day. Women will also choose to buy cereal that their children prefer. Children also trigger the purchasing decision. Studies show that children request more pre-sweetened cereals, accounting for 66% of all cereal requests. Every 8 in 10 children find that the supermarket is the first store that children visit. This also has an influence on what the parents will purchase.

Where Do They Buy and Use It?
The majority of the Nutella Cereal target market will purchase the cereal at their local grocery stores. These grocery stores are the predominant buyers in the Canadian breakfast cereals market, accounting for more than 72.7% of the market. Parents regularly go to grocery stores, but it is not always to buy cereal. However, when the target market does go to the grocery store, they will be more inclined to pick up cereal and other products at the same time. Nutella Cereal will also be distributed through convenient stores such as Macs where the target market can come any time of the day and pick up Nutella Cereal, along with other products, in a short amount of time. Research shows most Canadians use products at their place of residence. It is likely that Canadians will use Nutella Cereal at home. There is a chance that parents may take it with them while going on vacation. This opens up an opportunity for Nutella Cereal to introduce mini boxes for more convenience.

How Do They Buy and Use It
The decision making process to purchase Nutella cereal involves young children who want to eat the cereal. It is the children who have to convince their parents to buy the cereal for them. However, Nutella Cereal takes on the role of convincing parents as well by emphasizing on the amount of energy the cereal provides to children in order for them to be energetic throughout the day. When consumers purchase products, they look at the nutritional facts and the convenience of the product. Nutella strives to offer children the energy they need to play and Nutella also proves to be a convenient breakfast for people who are in a rush and for parents who do not have time to make their children breakfast. A convenient breakfast can potentially mean that less people will skip breakfast. A recent trend shows that more and more people skip breakfast each day. However, with a more convenient and easy to eat breakfast, it will encourage people not to skip the most important meal of the day.

Similar to other cereals, the Nutella cereal can make several commercials to advertise the product and promote it. Furthermore, magazine ads or posters are useful. However, advertising on the internet has been a growing trend and has proved to be efficient. By taking on this approach, Nutella cereal may bring in more consumers. For Nutella cereal, it is important to advertise both to children and parents by taking on different approaches. For parents, choosing cereal for their children is a cognitive decision with slight high involvement since parents want to ensure that they are feeding their children good cereal. This cereal would be eaten everyday by their children with milk and potentially fruit. Study shows that the market consumption of breakfast cereal has also been increasing in the past few years.

Segment Size
The cereal market in Canada has great potential and the growth in the past years can be clearly seen. In 2015, the Canadian breakfast cereals market is forecast to have a $1,582.4 Million value. This is an increase of 6.7% since 2010. Evidently, this shows that the cereal market will continue to grow. It is also noticeable that consumers demand easy and quick things, whether it is in terms of technology or food, the consumer is always seeking the quickest way to do daily activities. Cereal is a quick way to have breakfast in the morning and will attract those parents to start their work days early and do not have the time to make their children breakfast. Recent trends have also proved that consumers find ready-to-eat cereal more favourable in the market compared to hot cereal. Ready-to-eat cereal is the largest segment in Canada for breakfast cereal covering 89% of the total market value. The rest of the 11% of the market accounts for hot cereal. The annual growth rate of the market is predicted to be 1.3% from 2010 to 2015.