2013: Year of the verdict, says P Balaji

Interview with Managing Director, Nokia India

Four months after taking charge as MD, Nokia India, 44-year-old P Balaji, says the two-year old transformation process of the company is almost complete and higher sales in 2013 will be proof of its success. Edited excerpts of an interview with Sudipto Dey & Sounak Mitra:

How do you assess Nokia’s performance over the past two years, having known it as both a competitor (as head of Sony Mobile India) and now from inside?
Two years back, we said we are on a transition. We now have a portfolio that is very strong and fulfilling in that sense for us to make an impact in the market. Nokia was always seen as a respected brand, whether from outside or inside.

When in transition, we invested on two fronts. One, with Microsoft for Windows as a platform and, second, in differentiated experiences. One was to create the devise itself, and then on how these devices could be different from any other in the market. To me, that was a bold statement and the execution of that strategy has been excellent.

Is the transformation process almost over?
The final verdict of the process we started two years earlier will come in 2013. The product portfolio is in place and so is the differentiation process. This should result in more sales than before in 2013 – that would be the final verdict by the market and consumer. All we are saying is that the hard work has been done on differentiation and on portfolio. We now need to work harder to sell even more.

With Lumia at the top and Asha at the pyramid’s bottom, has Nokia found the elusive sweet spot between price and product positioning?
We will look to keep Lumia at a level where differentiation is not compromised. If our strategy was to go for Windows and Lumia for differentiation, then we cannot change that strategy in the quest for price alone. Price alone cannot be a strategy.

At different price points, we will create differentiation to get brand preference, brand loyalty and brand premium. Price alone is not a direction we will take. We will focus on value through differentiation, with price being a lever. We are re-enforcing differentiation as our game plan.

Did the income tax scrutiny and subsequent tax controversy take you by surprise?
We are strongly committed and have been committed to pay all legally due taxes. The enquiry is not an issue but the intensity and the way it was carried out…to that extent, it was a surprise.