Tutorial Assignment

Entrepreneurship Development
[Submitted for B.Com Semester 1 under NEP(CCF 2022) for SEC Under the
University of Calcutta]

Topic
New Business Proposal

Title of the Project

Submitted By

Name of the Candidate:

College ID Number:
Name of the College:

Year of Submission
2024
 STUDENT’S DECLARATION

I hereby declare that the Tutorial Assignment for Entrepreneurship Development with the
title “New Business proposal on AromaZen” submitted by me for Semester 1 under
NEP(CCF 2022) for SEC under the University of Calcutta is my original work and has not
submitted earlier to any other University/Institution for fulfilment of the requirement for any
course of study.

Date: 11th March 2025

Name:
C.U. Registration Number:
Table of Contents
 AromaZen: Smart Aromatherapy Incense Sticks for Mindful Living
“Ignite Your Mind, Embrace Your Zen”

Welcome to my business proposal for AromaZen. In this project, I have tried to combine the old tradition of
burning incense with new digital technology. The idea is simple: we will create incense sticks that not only
give a nice aroma but also come with a QR code which links to online content like guided meditation videos,
soothing music, and health tips.

In today’s fast-paced world, people face increasing stress from academics, work, and daily life challenges.
Traditional methods like burning incense have long been used to create a calming atmosphere, aid
concentration, and promote mental well-being. However, modern consumers seek more than just fragrance;
they look for holistic experiences that support relaxation and mindfulness. AromaZen addresses this need by
blending the soothing effects of incense with digital wellness resources, making stress relief more accessible
and engaging.

AromaZen incense sticks come with a unique QR code on each pack, giving users access to guided
meditation, calming music, breathing exercises, and self-care tips. This fusion of tradition and technology
offers a complete relaxation experience, particularly appealing to students and professionals. By enhancing
the age-old practice of aromatherapy with modern digital support, AromaZen stands out as more than just an
incense brand—it becomes a lifestyle product aimed at improving overall well-being.

Executive Summary:
This project introduces AromaZen, a unique product that merges traditional incense sticks with modern
digital wellness solutions. In today’s fast-paced world, stress and mental fatigue are common challenges,
especially for students and professionals. AromaZen provides a simple yet effective way to relax by
including a QR code on each pack, granting access to guided meditation, calming music, breathing
exercises, and self-care tips.

By offering more than just a pleasant aroma, AromaZen stands out as a holistic wellness product. Its
combination of fragrance and digital relaxation tools makes it appealing to those seeking innovative self-
care methods. With the rising demand for stress-relief solutions, AromaZen has strong potential to attract
interest and establish itself as a go-to product for mental well-being.

1
 Overview
Business Idea:

The basic idea behind AromaZen is to bring together the age-old tradition of incense sticks and modern
digital technology. In our culture, incense has always played a key role in daily rituals, spiritual practices,
and creating a soothing ambiance. AromaZen takes this timeless practice and infuses it with a modern twist
that makes it relevant for today's fast-paced lifestyle.

The concept is simple yet innovative: each pack of incense sticks will include a unique QR code. When
scanned using a smartphone, this code will direct users to a variety of online resources. These resources
include guided meditation videos designed to calm the mind, soothing music that sets a peaceful tone, and a
range of useful health tips aimed at reducing stress and promoting overall well-being. This digital layer
transforms a traditional product into a comprehensive wellness tool.By combining a pleasant aroma with
easily accessible digital content, AromaZen not only enhances the sensory experience but also provides an
effective way to relax and manage everyday stress. This approach makes it especially attractive to students
and young professionals, who often juggle demanding schedules and high-pressure environments. For them,
AromaZen serves as a simple reminder to take a moment for self-care and mindfulness.

In summary, AromaZen revives a beloved cultural practice and modernizes it for the digital age. It creates a
bridge between tradition and technology, offering a holistic experience that nourishes both the body and the
mind. This innovative blend of old and new not only delivers a delightful aroma but also provides practical
tools for stress relief and mental rejuvenation, making it a perfect fit for the contemporary urban lifestyle..

Business Plan:

Our business plan is designed to ensure that AromaZen becomes a successful venture. The plan includes:
 Production: We will use high-quality, organic ingredients to make our incense sticks. The production
will be managed on a small scale initially, ensuring that quality is maintained at every step.
 Marketing: We plan to promote AromaZen through social media, college events, and word of mouth.
The unique feature of the QR code will be highlighted as a modern twist to a traditional product.
 Sales and Revenue: Revenue will come from both the direct sale of incense packs and from a possible
subscription model for premium digital content. We expect to break even within 18 months and then
start making profits.
 Budget and Costs: The costs include raw materials, packaging, digital platform development, and
marketing expenses. Detailed financial planning will help us manage these costs effectively.

Product Design:

The design of AromaZen focuses on blending simplicity with modern appeal. Here are the key points of our
product design:
 Quality Ingredients: We use natural and organic materials to make the incense sticks, ensuring a pure
and long-lasting aroma.
 Eco-Friendly Packaging: The packaging is designed to be attractive yet environmentally friendly. It is
simple, clean, and shows a blend of traditional aesthetics with a modern look.
 Digital Integration: The most exciting part of the design is the QR code printed on each pack. This
code is the gateway to a digital platform that offers meditation guides, calming music, and health tips.
This makes our product more than just incense; it becomes a tool for enhancing well-being.
 User-Friendly: The overall design is user-friendly, appealing to people of all ages. It reflects a balance
between tradition and modern technology, making it stand out in the market.

2
 Financial Overview
Sources of Finance:

To launch AromaZen, we plan to use a combination of funding sources to cover our startup costs and initial
operations. Our planned sources include:

 Personal Savings: A portion of the initial investment will come from my own savings.
 Bank Loans: We will apply for small business loans available from local banks at competitive interest
rates.
 Angel Investors: We intend to attract investors who are interested in supporting innovative ideas in the
wellness sector.
 Government Schemes: We will explore government initiatives and subsidies offered to startups in the
wellness and green technology fields.
 Crowdfunding: As an additional option, we might run a crowdfunding campaign to gather smaller
contributions from many supporters.

Estimated Product Selling Price:

Each pack of AromaZen incense sticks is estimated to be sold at approximately ₹120 per pack. This price is
set based on a careful evaluation of the manufacturing cost, market competition, and consumer expectations,
ensuring a balance between affordability and profitability.

Cost of Manufacturing:

The manufacturing cost per pack includes:

 Raw Materials: Natural incense powders, organic essential oils, and herbs – estimated at around ₹40
per pack.
 Packaging: Eco-friendly materials and printing of the unique QR code – estimated at ₹20 per pack.
 Labor & Overhead: Skilled labor, utilities, rent for the production unit, and transportation – estimated
at ₹20 per pack.
Thus, the total cost to manufacture one pack is approximately ₹80.

Expected Profit Margin:

With a selling price of ₹120 and a manufacturing cost of ₹80, the gross profit per pack is about ₹40. This
results in an estimated profit margin of roughly 33%. As production increases and economies of scale kick
in, we expect the profit margin to improve further.

Funding Required to Start Operations:

To set up AromaZen, we estimate that an initial funding of around ₹5,00,000 is required. This funding will
be allocated as follows:
 Setup Costs: Establishing the manufacturing unit and procuring initial inventory.
 Digital Platform Development: Creating and maintaining the website/app for digital content linked via
the QR code.
 Marketing and Promotional Expenses: Launch campaigns, advertising, and promotional materials.

 Administrative Costs: Miscellaneous expenses for operations and staffing.

3
 Estimated Financial Reports
Estimated Profit & Loss (P&L) Account for 1st Year:

This P&L statement shows that after reaching the break-even point, we expect to generate a net profit of
around ₹30,000 in the first year.

Estimated Balance Sheet as of Year-End (1st Year):

This balance sheet provides a snapshot of the financial position at the end of the first year. It shows that our
total assets are expected to be ₹2,00,000, balanced by liabilities of ₹95,000 and an equity of ₹1,05,000.
These figures help us gauge the overall financial health and sustainability of AromaZen as we grow our
operations.

4
 Promotional Strategy
At AromaZen, our promotional strategy is the backbone of our marketing efforts, aiming to create
widespread awareness and generate excitement about our unique product. We plan to implement a multi-
channel approach that combines traditional promotional methods with modern digital marketing techniques.
The goal is to reach out to our target audience—students, young professionals, and wellness enthusiasts—by
using creative and cost-effective methods.

Our strategy begins with a strong presence on social media platforms such as Instagram, Facebook, and
Twitter. We will create engaging content that highlights the dual benefits of AromaZen: the traditional
charm of incense and the modern twist of digital wellness. This will include regular posts, stories, and short
video clips demonstrating how to use the QR code feature to access guided meditations and soothing
soundtracks. We also plan to collaborate with popular influencers in the health and lifestyle sectors, who can
help promote the product to a wider audience.

In addition, we intend to organize campus events and local workshops. These events will not only serve as
live demonstrations of the product but also offer opportunities for the audience to experience AromaZen
firsthand. Special introductory offers, such as discounts on first purchases or bundled deals, will be used to
incentivize trial and adoption. Our promotional materials—flyers, banners, and brochures—will be designed
with an appealing mix of traditional aesthetics and modern design, resonating with our brand’s core values.

To ensure the strategy reaches every potential customer, we will also invest in local print and radio
advertisements, particularly in urban centers and college towns. This integrated approach is designed to
build a strong brand identity while creating multiple touchpoints for customer engagement.

Channels of Distribution
Our channels of distribution are designed to ensure that AromaZen reaches the widest possible market
across India. We plan to adopt a multi-tiered distribution strategy that includes both online and offline
channels, ensuring that our product is easily accessible to our target audience.

The primary channel will be our own e-commerce website, where customers can directly purchase
AromaZen incense packs. This direct-to-consumer model will allow us to control the brand experience and
build a loyal customer base. In addition to our website, we will leverage popular online marketplaces like
Amazon India and Flipkart, which have extensive reach and established customer trust.

Offline, we aim to partner with specialty stores, wellness centers, and lifestyle boutiques that cater to health-
conscious consumers. Tie-ups with local retail outlets and departmental stores in metro cities, as well as in
tier 2 and tier 3 cities, will help expand our market presence. We also plan to collaborate with distributors
who specialize in health and wellness products, ensuring a steady supply chain and broader market
penetration.

Another important distribution channel will be direct sales through college events and pop-up stalls at local
festivals and exhibitions. This grassroots approach will not only drive sales but also create brand
ambassadors among young consumers. Additionally, we are exploring the possibility of a dedicated mobile
application that facilitates direct orders and offers exclusive digital content, further reinforcing our
integrated product concept.

Our comprehensive distribution strategy is designed to provide multiple avenues for customers to purchase
AromaZen, ensuring that the product is visible and accessible in both urban and semi-urban markets. This
multi-channel approach will help us maximize sales and build a sustainable, scalable business model.

5
 Societal Benefit
AromaZen is not only an innovative business venture but also a project with significant societal benefits. By
merging traditional incense with modern digital features, our product promotes mental well-being and stress
relief—an essential need in today’s fast-paced lifestyle. The digital content accessible via QR codes, such as
guided meditations and soothing music, is designed to help users manage daily stress, enhance mindfulness,
and contribute to overall mental health.

This venture supports sustainable development in several ways. First, we are committed to using eco-
friendly materials for packaging and sourcing raw ingredients locally, which helps reduce our environmental
footprint. By employing local artisans and skilled workers, AromaZen creates job opportunities and
encourages the growth of local communities. Moreover, the product plays a role in preserving cultural
heritage, as it revives the ancient tradition of incense making while adding a modern twist.
Additional societal benefits include:
 Mental Health Awareness: Providing accessible tools to practice mindfulness and meditation, which
are crucial for managing anxiety and improving mental health.
 Environmental Sustainability: Using natural, eco-friendly ingredients and packaging, which minimizes
waste and supports green practices.
 Economic Empowerment: Generating employment opportunities through local sourcing and
production, thereby contributing to the local economy.
 Cultural Preservation: Revitalizing traditional practices and promoting cultural heritage by integrating
age-old incense-making techniques with modern digital solutions.
Through these efforts, AromaZen aims to create a positive impact on society, enhancing quality of life while
promoting sustainable and culturally rich practices.
Target Customer Base:
Our primary target customers are urban youth, college students, working professionals, and wellness
enthusiasts, primarily aged between 18 to 45 years. These individuals are tech-savvy, value modern
solutions, and are increasingly aware of the importance of mental well-being. They seek innovative products
that offer not only traditional benefits but also digital enhancements. AromaZen is designed to meet their
needs by combining the calming effects of natural incense with digital content like guided meditation
sessions, ambient soundscapes, and health tips. This integrated approach appeals especially to those who
experience academic or work-related stress and are looking for accessible methods to relax and recharge.

In addition to urban consumers, we also aim to capture interest from niche segments such as yoga
practitioners and meditation centers, where the digital integration provides added value by complementing
wellness practices. The product's affordability and unique blend of tradition and modernity make it attractive
across a broad spectrum of income groups and lifestyles.
Competitor Analysis:
The current market is dominated by traditional incense brands that have a long-standing reputation but lack
digital integration. Although these brands have established trust and heritage, they focus solely on providing
a sensory experience. On the other hand, there are emerging wellness brands that offer digital health
solutions; however, they rarely combine these with a traditional product like incense.
AromaZen’s unique competitive edge lies in its dual offering: it provides a traditional aromatic experience
while also leveraging modern technology to deliver additional digital wellness content. This innovation not
only differentiates the product but also opens new avenues for revenue through digital subscriptions. By
targeting tech-aware and health-conscious consumers, AromaZen is positioned to capture market share from
both conventional incense manufacturers and digital wellness startups. The combination of high-quality
ingredients, eco-friendly packaging, and digital features makes our product stand out in an increasingly
competitive market.

6
 SWOC Analysis
A thorough SWOC analysis helps us understand both the internal strengths and weaknesses of AromaZen, as
well as the external opportunities and challenges present in the market.

Strengths:

 Innovative Product Concept: AromaZen uniquely blends traditional incense with digital technology,
offering a dual benefit that is both sensory and functional.
 Quality and Sustainability: Our commitment to using high-quality, natural ingredients and eco-friendly
packaging differentiates us from competitors.
 Dual Revenue Model: The combination of direct product sales and digital subscription services ensures
a diversified income stream.
 Cultural Relevance: Reviving an age-old tradition with a modern twist appeals to a wide range of
consumers, especially those interested in wellness and cultural heritage.

Weaknesses:

 High Initial Investment: The upfront costs for setting up production facilities and developing the digital
platform are significant.
 Consumer Education: Introducing a product that combines traditional and digital elements requires
extensive awareness and education campaigns.
 Dependency on Technology: The success of the digital features depends on reliable technology and
internet access, which could limit reach in certain areas.
 Limited Brand Recognition: As a new entrant in a market dominated by established players, building
brand trust may take time.

Opportunities:

 Expanding Wellness Market: With increasing health consciousness and a focus on mental well-being,
the demand for innovative wellness products is growing rapidly.
 Collaborations and Partnerships: There is potential to collaborate with wellness influencers, yoga
studios, and meditation centers to boost brand visibility.
 Product Line Extension: Successful implementation of AromaZen could pave the way for
complementary products, such as aromatherapy kits and wellness accessories.
 Government Support: Various government schemes and incentives for startups in the wellness and
green sectors can provide financial and infrastructural support.

Challenges:

 Market Competition: Competing against traditional incense brands that have an established market
presence can be challenging.
 Supply Chain Management: Ensuring consistent quality and timely supply of natural raw materials
requires robust logistics and supplier relationships.
 Regulatory Compliance: Meeting all industry standards and regulatory requirements for both physical
products and digital content can be complex.
 Technological Upkeep: Continuous updates and cybersecurity measures are necessary to maintain the
digital platform’s functionality and user trust.

By analyzing these factors, we can leverage our strengths, address our weaknesses, capitalize on emerging
opportunities, and prepare for potential challenges. This SWOC analysis is integral to shaping our strategic
approach and ensuring the long-term success of AromaZen.

7
 Final Remarks
Conclusion:

In conclusion, AromaZen represents a novel approach that successfully bridges the gap between ancient
traditions and modern technology. Our business proposal demonstrates that by integrating digital content
with natural incense, we can offer a product that not only delights the senses but also promotes mental well-
being. This innovative fusion caters to a growing market of consumers who seek both cultural authenticity
and contemporary convenience.

The comprehensive strategy outlined in this proposal covers every aspect—from sources of finance and
manufacturing costs to marketing strategies, distribution channels, and competitive positioning. With a
clearly defined target customer base and a robust financial plan, AromaZen is well-poised for success. The
venture’s sustainable business model, coupled with its potential to generate healthy profit margins, ensures
that it can scale and adapt to future market trends.

Moreover, by contributing to environmental sustainability, creating local employment, and promoting

Final Remarks:

AromaZen is more than just a product; it is an innovative solution to the modern challenges of stress and
mental well-being. In today’s fast-paced world, the need for relaxation and mindfulness has never been
greater. By combining the traditional benefits of incense with digital wellness tools, AromaZen offers a
unique and practical way to unwind, making self-care more accessible and enjoyable.

Our venture is built on the foundation of creativity, practicality, and a deep understanding of consumer
needs. We believe that AromaZen has the potential to positively impact lives by promoting a healthier, more
balanced lifestyle. As we take this vision forward, we invite stakeholders, investors, and customers to join us
on this journey. Your support can help bring this transformative wellness experience to a wider audience.
Thank you for considering AromaZen as a step toward a more mindful and stress-free future.